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MAY 2004 OF TRAVEL RESEARCH

10.1177/0047287504263037
JOURNAL

The Roles of Quality, Value, and


Satisfaction in Predicting Cruise
Passengers’ Behavioral Intentions
JAMES F. PETRICK

The purpose of the current study was to examine the rela- judgments are experiential in nature, involving both
tionships between satisfaction, perceived value, and quality an end state and a process, and reflecting both emo-
in their prediction of intentions to repurchase and positive tional and cognitive elements. (P. 127)
word of mouth publicity. These constructs have been exam-
ined from three distinctly different perspectives, resulting in In contrast, value has been argued to be more individual-
three competing models. Thus, the satisfaction model, per- istic than satisfaction and quality (Oh 2000) and involves the
ceived value model, and quality model were utilized to assess benefits received for the price paid (Zeithaml 1988). Further-
which one best explains cruise passengers’ behavioral inten- more, quality and perceived value are cognitive responses to
tions. Results revealed that the quality model most accurately a service experience, while satisfaction is an affective re-
fit the data and that quality was the best predictor of inten- sponse (Baker and Crompton 2000; Cronin, Brady, and Hult
tions to repurchase. Quality was found to have both a moder- 2000).
ated and direct effect on behavioral intentions. Specific This article provides a review of the literature on satisfac-
theoretical and managerial implications are discussed. tion, perceived value, and quality, including empirically
tested relationships among these constructs, and seeks to test
Keywords: quality; perceived value; SERV-PERVAL; the most prevalent models. Thus, the purpose of the study is
satisfaction; intention to repurchase; cruise; word of mouth to examine the relationships between satisfaction, perceived
value, and quality in their prediction of intentions to repur-
Most tourism managers would acknowledge that they chase and positive word-of-mouth publicity.
strive to provide quality and satisfying and valuable experi-
ences to their clientele in hopes that visitors will desire to
repurchase the experience. Past research has suggested that LITERATURE REVIEW
each of these constructs (value, satisfaction, and quality)
should be measured to understand more thoroughly why
Consumer Satisfaction
tourists decide to return and/or provide positive word of
mouth publicity regarding their experiences (Baker and Past research has suggested that satisfaction is an excel-
Crompton 2000; Getty and Thompson 1994; Petrick and lent predictor of repurchase intentions (Choi and Chu 2001;
Backman 2002a; Petrick, Morais, and Norman 2001; Tam Petrick 2002; Tam 2000). One of the most often cited defini-
2000). Yet, tourism managers often use these conceptually tions of satisfaction is that of Rust and Oliver (1994) who
different constructs interchangeably, thus utilizing only one state that satisfaction reflects the degree to which one
measure (or worse yet, none) to represent the antecedents of believes that an experience evokes positive feelings (Rust
repurchase. By understanding the relationships among the and Oliver 1994). Thus, satisfaction is an overall affective
antecedents of repurchase, and their determinants, tourism response due to the use of a product or service (Oliver 1981).
managers would be better equipped to alter their provisions Due to its ability to predict future purchase behavior, the
and marketing efforts to maximize their use of resources. understanding of what causes one to be satisfied has been
Perceived value (Jayanti and Ghosh 1996; Petrick and argued to be one of the most important challenges facing
Backman 2002b), satisfaction (Spreng, Mackenzie, and businesses (Oliver 1997). Barsky and Labagh (1992) suggest
Olshavsky 1996; Petrick and Backman 2002c), and quality that by knowing how the components of a product or service
(Baker and Crompton 2000; Oh 1999) all have been shown to affect consumers’ satisfaction, planning for the future could
be good predictors of repurchase intentions. Research has be limited to adapting product or service offerings to
also shown that these concepts are quite distinct (Caruana,
Money, and Berthon 2000). According to Cronin and Taylor
James F. Petrick, PhD, is an assistant professor in the Depart-
(1994), ment of Recreation, Park and Tourism Sciences at Texas A&M Uni-
versity, College Station.
service quality perceptions reflect a consumer’s Journal of Travel Research, Vol. 42, May 2004, 397-407
evaluative perception of a service encounter at a spe- DOI: 10.1177/0047287504263037
cific point in time. In contrast, consumer satisfaction © 2004 Sage Publications
398 MAY 2004

maximize current customers’ service ratings. To this end, voice to guide managers in how to respond.” It has further
researchers have examined the influence of numerous ante- been revealed that satisfaction measures do not always corre-
cedents on consumers’ postpurchase satisfaction judgments late highly with repurchase intentions, as customers often
(Barsky 1992; Madrigal 1995; Petrick, Backman, and Bixler state that they are satisfied yet purchase elsewhere (Jones and
1999; Spreng, Mackenzie, and Olshavsky 1996). This body Sasser 1995). Thus, satisfaction measures may be easier to
of research has generally found that antecedents that are most interpret and more informative if backed up with perceived
highly related to satisfaction (either negatively or positively) value measurement.
are the most important variables to monitor. Empirical research also has revealed that high levels of
According to Baker and Crompton (2000), the majority perceived value result in both future purchase intentions and
of both marketing and tourism research on satisfaction has behavior (Baker et al. 2002; Bojanic 1996; Grewal, Monroe,
built upon the disconfirmation of expectations paradigm and Krishnan 1998). Thus, it is possible that satisfaction is an
(Weber 1997). A recent meta-analysis of customer satisfac- antecedent to the outcome of perceived value and perceived
tion research found disconfirmation to be the best predictor value is what leads to repeat purchase and brand loyalty over
of satisfaction (Szymanski and Henard 2001). The disconfir- time.
mation paradigm suggests that consumer satisfaction/dissat- One of the most widely used definitions of perceived
isfaction is the result of the comparison of a consumer’s value is that it is “the consumer’s overall assessment of the
prepurchase expectations and their postpurchase evaluation utility of a product based on perceptions of what is received
(Engel, Blackwell, and Miniard 1990). Therefore, if consum- and what is given” (Zeithaml, 1988, p. 14). Zeithaml (1988)
ers feel that the performance of a service is better than they identified four patterns of responses in an exploratory study,
had expected (termed a positive disconfirmation), they are resulting in four potential definitions of value:
satisfied. Conversely, if one believes the perceived perfor-
mance of a service is less than one’s expectations, negative 1. Value is low price.
disconfirmation occurs. 2. Value is whatever one wants in a product.
While central to the disconfirmation paradigm, the use of 3. Value is the quality that the consumer receives for the
expectations to measure satisfaction has been argued price paid.
(Armstrong, Mok, and Go 1997; Barsky 1992; Johnson 4. Value is what consumers get for what they give.
1998; Petrick and Backman 2002c; Spreng, Mackenzie, and
Olshavsky 1996; Williams 1989). According to Barsky While each of these definitions has merit, the vast majority of
(1992), expectations have been frequently accepted as affect- past research has focused on the fourth meaning of value
ing satisfaction, yet there is inconclusive evidence that they (Bojanic 1996; Caruana, Money, and Berthon 2000; Tam
directly lead to satisfaction or dissatisfaction. One problem 2000; Zeithaml 1985).
with the disconfirmation of expectations model is that if Buzzell and Gale (1987) argue that perceived value of the
one’s expectations are decreased, their satisfaction must total package of products and services is what influences
inevitably increase. Thus, the model would suggest that con- consumer behavior and is the best predictor of competitive
sumers who expect and receive poor performance will be sat- success. According to Bojanic (1996), this notion of relative
isfied (LaTour and Peat 1979). perceived value results in three possible value positions:
This relationship may also be hindered according to the offering comparable quality at a comparable price, offering
context of delivery. Johnson (1998) proposes that the effects superior quality at a premium price, or offering inferior qual-
of expectations on satisfaction are weaker in a service con- ity at a discounted price. Thus, service providers’ relative
text because the intangible nature of services makes informa- value will change if they modify what they are doing, if com-
tion on expectations less concrete and less useful. For this petitors modify what they are doing, or if a customer’s needs
reason, several researchers suggest that a leisure service’s and/or preferences change.
performance may be the crucial determinant of future pur- Recent research has suggested that perceived value may
chase intentions and good word of mouth instead of expecta- be a better predictor of repurchase intentions, than either sat-
tions or disconfirmation (Olshavsky and Miller 1972; isfaction or quality (Cronin, Brady, and Hult 2000; Oh 2000).
Spreng, Mackenzie, and Olshavsky 1996; Whipple and Oh (2000) measured fine-dining patrons’ perceptions of
Thatch 1988). quality, value, and satisfaction both prior to and after their
Thus, while expectations may assist in the understanding dining experience. Results found that value was a superior
of satisfaction formation, they have been found to be detri- predictor of repurchase intentions, both pre- and
mental in trying to predict repurchase intentions (Petrick and postexperience.
Backman 2002c; Tam 2000). Therefore, for the purpose of While the role of perceived value in consumer behavior
the current study, satisfaction will be measured as perfor- has received far less attention than service quality and cus-
mance, without a measure of disconfirmation. tomer satisfaction (Tam 2000), this may be due to a lack of
good perceived value measures. According to Semon (1998),
Perceived Value measures of perceived value historically have been poor. Fur-
thermore, measurement of perceived value has been cited as
Past research has revealed that the measurement of con- a main cause for problems in drawing conclusive relation-
sumer satisfaction should be used in conjunction with the ships between satisfaction, perceived value, and repurchase
measurement of perceived value (Oh 2000; Woodruff 1997). intentions (Jayanti and Ghosh 1996; Petrick and Backman
According to Woodruff (1997, p. 139), if “consumer satis- 2002b).
faction measurement is not backed up with in-depth learning Perceived value is most commonly analyzed with a self-
about customer value and related problems that underlie their reported, unidimensional measure (Gale 1994). The problem
evaluations, it may not provide enough of the customer’s with a single item measure is that it assumes that consumers
JOURNAL OF TRAVEL RESEARCH 399

have a shared meaning of value. According to Zeithaml Krishnan 1998; Parasuraman and Grewal 2000; Zeithaml
(1988, p. 471), “quality and value are not well differentiated 1988). This research reveals that quality is not embedded in
from each other and from similar constructs such as per- perceived value, but it is a direct antecedent and is generally
ceived worth and utility.” It has therefore been argued that the best predictor of perceived value.
single-item measures of perceived value lack validity One of the most extensively used measures of service
(Woodruff and Gardial 1996). Another inherent problem is quality is SERVQUAL (Cronin and Taylor 1992; Oh 1999).
that unidimensional measures result in the knowledge of how The SERVQUAL questionnaire was developed by
well one is rated for value but give no specific direction on Parasuraman, Zeithaml, and Berry (1988) and conceptual-
how to improve value. izes service quality as the difference between consumers’
Recent research has produced a multidimensional scale expectations and their assessments of service performance.
(SERV-PERVAL) for measuring perceived value (Petrick Thus, if service performance meets expectations, the
2002). The SERV-PERVAL scale operationalizes perceived expectation is confirmed.
value as a five-dimensional construct consisting of quality, From their research in a number of service industries,
monetary price, non-monetary price, reputation, and Parasuraman, Zeithaml, and Berry (1988) determined that
emotional response. customers base their assessment of service quality on five
In developing the SERV-PERVAL scale, quality was distinct dimensions, namely, tangibles, reliability, respon-
defined as a consumer’s judgment about a product or ser- siveness, assurance, and empathy. Tangibles refer to physical
vice’s overall excellence or superiority (Zeithaml 1988). facilities, equipment, and appearance of personnel. Reliabil-
Emotional response was defined as a descriptive judgment ity is defined as the ability to perform the promised service
regarding the pleasure that a product or service gives the pur- dependably and accurately. Responsiveness is the willing-
chaser (Sweeney et al. 1998). Thus, emotional response dif- ness to help customers and provide prompt service. Assur-
fers from satisfaction in that it is an affective response to the ance refers to the knowledge and courtesy of employees and
purchase of a service, while satisfaction is an affective their ability to inspire trust and confidence. Empathy is the
response to experiencing a service. The definition utilized for caring, individualized attention the firm provides its
monetary price was the price of a service as encoded by the customers.
consumer (Jacoby and Olson 1977). Behavioral price was Even though the SERVQUAL questionnaire has been
defined as the price (nonmonetary) of obtaining a service that extensively used to measure service quality, many research-
included the time and effort used to search for the service ers have criticized its applicability. Research suggests that
(Zeithaml 1988). Finally, reputation was defined as the pres- the SERVQUAL conceptualization of service quality
tige or status of a product or service, as perceived by the pur- (Cronin and Taylor 1992) and the relevance of the
chaser, based on the image of the supplier (Dodds et al. disconfirmation of expectations as the basis for measuring
1991). service quality are inadequate (Carman 1990). In the market-
The scale has been found to be both reliable and valid, ing literature, it has been suggested that a simple perfor-
with all items significantly (p < .05) assisting in the predic- mance-based measure of service quality is superior (Wood-
tion of their assigned factor, and each of the factors of per- ruff, Cadotte, and Jenkins 1983) and that the current
ceived value reliably measuring their respective construct
conceptualization (SERVQUAL) confounds satisfaction and
(Petrick 2002). Hence, the current study postulates that over-
attitude (Cronin and Taylor 1992).
all perceived value consists of a five-dimensional construct
Cronin and Taylor (1992) proposed that service quality
including quality, monetary price, nonmonetary price, repu-
should be conceptualized and measured as an attitude. They
tation, and emotional response.
further suggested that the SERVQUAL questionnaire is a
better measure of service quality if used as a performance-
Quality based measure, without a comparison of expectations. They
Quality has been shown to be an antecedent of both satis- empirically examined the performance-only model
faction (Caruana, Money, and Berthon 2000; Baker and (SERVPERF) to SERVQUAL in four industries (banking,
Crompton 2000) and perceived value (Baker et al. 2002; pest control, dry cleaning, and fast food) (Cronin and Taylor
Petrick 2002) and to be a good predictor of repurchase inten- 1992). Results found that the structural model of
tions (Baker and Crompton 2000; Getty and Thompson SERVPERF was superior in all four industries, while reduc-
1994). According to Ruyter, Wetzels, and Bloemer (1998, p. ing the number of items from 44 to 22 (50%). Crompton and
449), “quality has an impact on customer preference and the Love (1995) and Petrick and Backman (2002a) also found
willingness to recommend the service to other consumers” that performance-only measures are superior to contrast
and “leads to a more favourable disposition towards the ser- measures utilizing expectations.
vice providor and the commitment to repatronage increases.” Recent conceptualizations suggest alternative measures
Whereas satisfaction is an emotional state of mind cre- of service quality are more appropriate than utilizing
ated by exposure to a service experience, quality refers to an SERVQUAL (Baker and Crompton 2000; Hartline and
evaluation of “the attributes of a service which are primarily Ferrell 1996; Oh 1999). Petrick’s (2002) SERV-PERVAL
controlled by a supplier” (Baker and Crompton 2000, p. scale measures quality based on the Zeithaml (1988) defini-
787). Thus, quality is conceptualized as a measure of the pro- tion stating that quality is a consumer’s judgment about a
vider’s performance, while satisfaction is a global measure product’s or service’s overall excellence or superiority. Uti-
of how the provider’s performance (the service experience) lizing this definition, the resultant items that measure quality
makes the tourist feel. are related to the reliability of a service. Given that reliability
There is extensive research that discusses the relationship has consistently been found to be the most important dimen-
between quality and perceived value (Baker et al. 2002; sion of quality for recreation and tourism managers
Cronin, Brady, and Hult 2000; Grewal, Monroe, and (Asubonteng, McCleary, and Swan 1996; Backman and
400 MAY 2004

Veldkamp 1995; Howat, Crilley, and Milne 1995; Knutson, FIGURE 1


Stevens, and Patton 1995; Ostrowski, O’Brien, and Gordon COMPETING MODELS FOR PREDICTING
BEHAVIORAL INTENTIONS
1994) and that performance-only measures have been found
to be superior to expectation disconfirmation measures
(Crompton and Love 1995; Petrick and Backman 2002c), the
current study will operationalize quality with the use of the
quality dimension of Petrick’s (2002) SERV-PERVAL scale.

Relationships between the Variables


Rust and Oliver (1994, p. 14) suggested the importance of
empirically assessing the “antecedent, mediating and conse-
quent relationships” among satisfaction, perceived value,
and quality. Since then, numerous studies have attempted to
model these relationships (e.g., Athanassopoulos 2000;
Baker and Crompton 2000; Cronin, Brady, and Hult 2000;
Oh 1999; Petrick and Backman 2002a; Zeithaml, Berry, and
Parasuraman 1996). While consensus seems to exist that all
three variables are related to behavioral intentions, conflict-
ing arguments have been made related to (a) which variables
are most important to measure, (b) which variables are mod-
erating and which have direct effects on behavioral inten-
tions, and (c) the causal order of these relationships.
Research has shown consistently that quality leads to
both satisfaction (Caruana, Money, and Berthon 2000; Baker
and Crompton 2000) and perceived value (Petrick 2002;
Zeithaml 1988) and that both satisfaction and perceived PURPOSE OF THE STUDY
value are direct antecedents of behavioral intentions (Cronin,
Brady, and Hult 2000; Petrick and Backman 2002a; Tam According to Cronin, Brady, and Hult (2000, p. 193),
2000). Yet, in some studies, satisfaction has been found to “service quality, service value and satisfaction issues have
lead to perceived value (Chang and Wildt 1994; Petrick and dominated the services literature, yet few studies have simul-
Backman 2002a) while in others perceived value has been taneously analyzed their relationships in predicting behav-
found to lead to satisfaction (Cronin, Brady, and Hult 2000; ioral intentions. Understanding these relationships should
Tam 2000). Furthermore, it has been argued that quality is render destination managers better equipped to retain clien-
not only moderated by perceived value and satisfaction in the tele by knowing which variables are most important in cus-
tomer retention. Furthermore, resources could be utilized
prediction of behavioral intentions, but also has a direct rela-
more efficiently and managers may be better prepared to
tionship to behavioral intentions (Cronin, Brady, and Hult alter their services to retain and/or attract clientele.”
2000). One industry in need of retaining and/or attracting clien-
These differences suggest that at least three potential tele is the cruise industry. While the cruise industry has seen
models exist for explaining the relationships between per- an annual growth rate of almost 8% since 1980, which is
ceived value, satisfaction, and quality in the prediction of twice as large as the tourism industry overall (Wood 2000),
behavioral intentions (Figure 1). Derived from the consumer recent changes in the market suggest that this rate has leveled
satisfaction literature, the first model (Satisfaction) argues off. According to ShipPax (2002), 2001 was the first year
that perceived value and quality lead to satisfaction, while that the cruise industry registered a decline in the total num-
both satisfaction and perceived value are direct antecedents ber of passengers, and they suggest that this decline may be
of behavioral intentions (e.g., Oh 1999; Tam 2000). The sec- due to a saturation of the market. While September 11th may
ond model is based on the service value literature (Value), have had some effect, historically the vast majority of book-
and suggests that satisfaction and quality lead to perceived ings in the industry occur well before the beginning of Sep-
value, while both satisfaction and perceived value are direct tember. ShipPax (2002, p. 1) further suggests that this
antecedents of behavioral intentions (e.g., Chang and Wildt decline “emphasizes the shift of volumes to the ‘Big Four’
1994; Petrick and Backman 2002a). The third model (Qual- operators, with fewer and fewer small operators.”
Subsequently, the purpose of the current study is to exam-
ity) is based on the service quality literature that suggests that
ine the relationships between satisfaction, perceived value,
quality has both a moderated role (through both perceived
and quality in their prediction of intentions to repurchase and
value and satisfaction) and a direct role in predicting behav- positive word of mouth publicity. More specifically, the
ioral intentions (Baker and Crompton 2000; Cronin, Brady, objective of the current study is to examine which of the
and Hult 2000; Zeithaml, Berry, and Parasuraman 1996). A potential models in Figure 1 best fits the data.
question mark is placed between the satisfaction, perceived While a few studies have found that satisfaction leads to
value relationship (in Model 3 of Figure 1), as the quality perceived value (Chang and Wildt 1994; Petrick and
literature depicting this relationship is inconclusive. Backman 2002a), the majority have found that perceived
JOURNAL OF TRAVEL RESEARCH 401

value leads to satisfaction (Cronin, Brady, and Hult 2000; Oh RESEARCH METHODS
1999; Tam 2000) in the prediction of behavioral intentions.
Furthermore, it has been argued that quality and perceived Participants were sampled on two separate 7-day Carib-
value are cognitive responses to a service experience, while bean voyages, onboard the same ship. To ensure that cruise
satisfaction is an emotional response (Cronin, Brady, and passengers taking back-to-back cruises were not sampled
Hult 2000), and that cognitive responses precede emotional twice, the two samples were taken three weeks apart. On the
responses (Bagozzi 1992). Thus, it is believed that model 1 second to the last evening of the cruise, one questionnaire
will fit the data better than model 2. Therefore, the first was distributed to each cabin on board the vessel accommo-
hypothesis of the current study is dated by a paying cruiser. A total of 591 questionnaires were
distributed during the first cruise, and 592 during the second.
Hypothesis 1. Model 1 (perceived value as an antecedent Of these, 394 (66.7%) and 398 (67.2%) completed question-
to satisfaction) will fit the data better than model 2 naires were returned from the first and second cruises,
(satisfaction as an antecedent to perceived value). respectively (N = 792). Among passengers who participated,
the average age was 51.6, the median household income was
Recent literature has suggested that quality has both a
$75,000 to $99,999, 58.7% were female, and, on average,
moderated effect on behavioral intentions through perceived
value (Petrick and Backman 2002b; Jayanti and Ghosh 1996) respondents had taken 8.1 cruises in their lifetime. An exami-
and satisfaction (Caruana, Money, and Berthon 2000; Baker nation of all demographic variables and tripographic vari-
and Crompton 2000), and may also have a direct effect ables found no significant differences (p < .05) between the
(Cronin, Brady, and Hult 2000). Thus, it is believed that passengers on the two cruises.
model 3 will be a better fit of the data than either model 1 or The six-page questionnaire was composed of four sec-
model 2, and it is hypothesized that tions. The first section measured participants’ cruising his-
tory (i.e., number of cruises taken, frequency of cruises,
Hypothesis 2. Quality will have a moderated effect motives for cruising), while the second section measured
(through both perceived value and satisfaction) and a variables related to the participant’s current cruise vacation
direct effect on cruise passengers’ behavioral inten- (i.e., travel party composition, purpose of vacation, miles
tions (model 3 will be a better fit of the data than both traveled, etc.) and behavioral intentions (intentions to repur-
model 1 and model 2). chase and word of mouth). Similar to Grewal, Monroe, and
Krishnan (1998), intentions to repurchase was
While perceived value (Jayanti and Ghosh 1996; Petrick operationalized with a two-item, 5-point scale anchored by 1,
and Backman 2002b), satisfaction (Spreng, Mackenzie, and
very low, and 5, very high. The first item was stated, “If I
Olshavsky 1996; Petrick and Backman 2002c), and quality
were to purchase another cruise, the probability that the vaca-
(Baker and Crompton 2000; Oh 1999) each have been shown
to be good predictors of repurchase intentions, few studies tion would be with XYZ Cruise Line is.” The second item
have analyzed the simultaneous effect of all three variables. was stated, “The likelihood that I would consider purchasing
Oh (1999) analyzed the effects of all three but did not con- a XYZ cruise again is.” The respondent’s score for intention
ceptualize a direct effect of quality on behavioral intentions. to repurchase was the sum of both items.
Results of the study found that perceived value was a better WOM was measured with one item, stating, “When dis-
predictor than satisfaction. The most inclusive model was ex- cussing this week’s cruise with other people, which of the
amined by Cronin, Brady, and Hult (2000) who found that all following best describes how positively or negatively you
three variables had a direct effect on repurchase intentions, will talk to others about XYZ cruise line?” Potential response
and perceived value was the best predictor, followed by qual- items were extremely negatively, mostly negatively, some-
ity and satisfaction. Therefore, the third and fourth what negatively, neutral, somewhat positively, mostly posi-
hypotheses are tively, and extremely positively.
Section 3 measured participants’ satisfaction with their
Hypothesis 3a. Perceived value will assist in the predic- cruise vacation, overall perceived value of their vacation, and
tion of intentions to repurchase. the five dimensions inherent in the SERV-PERVAL scale.
Hypothesis 3b. Satisfaction will assist in the prediction of Overall satisfaction was measured with a single-item, 10-
intentions to repurchase. point scale anchored by very dissatisfied and very satisfied.
Hypothesis 3c. Quality will assist in the prediction of in- As recommended by Petrick (2002), all 25 items of the
tentions to repurchase. SERV-PERVAL scale were utilized to measure the five
Hypothesis 4a. Perceived value will be a better predictor dimensions of perceived value. Respondents were asked to
of intentions to repurchase than satisfaction. rate the value they felt they received from their cruise vaca-
Hypothesis 4b. Perceived value will be a better predictor tion. The 25 items were measured on 5-point scales anchored
of intentions to repurchase than quality.
by definitely false and definitely true. Quality, Monetary
Research also has found that vacationers’ repurchase in- Price, Behavioral Price, Emotional Response, and Reputa-
tentions are good predictors of word of mouth (WOM) pub- tion were measured with four, five, six, five, and five items,
licity (Oh 2000; Oh and Parks 1997). Thus, the final hypoth- respectively. Overall perceived value was measured sepa-
esis is rately, with a single-item 10-point scale anchored by
extremely poor value and extremely good value. The final
Hypothesis 5. Cruise passengers’ repurchase intentions section measured demographic information. Demographic
will positively predict their WOM behavioral inten- questions included gender, age, education, ethnicity, and
tions in all three models. income.
402 MAY 2004

RESULTS TABLE 1
STANDARDIZED PATH COEFFICIENTS OF CFA
PREDICTING FACTORS OF PERCEIVED VALUE
To examine the reliability of the 25-item SERV-PERVAL
scale, confirmatory factor analysis (CFA) utilizing maximum Composite Path
likelihood estimation was employed. The analysis was con- Factor/Item Reliability Coefficient
ducted with the EQS software and followed guidelines sug-
gested by Hatcher (1996). Fit indices were chosen following Quality .92
recommendations by Hu and Bentler (1998). Fit indices 1. is outstanding quality .83
2. is very reliable .86
included in the current investigation are the Bentler (1989)
3. is very dependable .88
comparative fit index, or CFI, the Bentler and Bonett (1980) 4. is very consistent .88
normed fit index, or NFI, and Jöreskog and Sörbom (1981)
root-mean-square residual, or RMSR. Emotional response .96
Both the CFI and NFI may range in value from 1.0 to 0.0. 5. makes me feel good .87
According to Bentler (1989), a fit index of 0.0 is associated 6. gives me pleasure .89
with a “null” model (one specifying that all items are 7. gives me a sense of joy .93
uncorrelated), while a fit index of 1.0 represents a “satu- 8. makes me feel delighted .90
rated” model (a model with zero degrees of freedom that per- 9. gives me happiness .91
fectly reproduces the original covariance matrix). Values
Monetary price .94
greater than 0.9 indicate a good fit of the data, while values
10. is a good buy .80
higher than 0.95 indicate an excellent fit of the data (Hu and 11. is worth the money .85
Bentler 1998). Conversely, An RMSR of less than 1.0 sug- 12. is fairly priced .90
gests a good fit of the data (Joreskog and Sorbom 1981). 13. is reasonably priced .90
Results of the model (CFA) reveal that both the CFI 14. is economical .80
(.915) and NFI (.905) are greater than 0.90, and the RMSR 15. appears to be a good bargain .83
(.034) is less than 1.0, suggesting that the model is a good fit
of the data. This finding further suggests that each item is Behavioral price .95
uniquely related to the factor to which it was assigned. A re- 16. is easy to buy .84
view of the resultant Wald and Lagrange tests did not suggest 17. required little energy to purchase .87
18. is easy to shop for .86
any conceptually sound changes to the model. Therefore, the
19. required little effort to buy .95
proposed model was tentatively accepted, pending further 20. is easily bought .94
tests to examine its reliability and validity.
The resultant standardized path coefficients are displayed Reputation .92
in Table 1. The t tests investigating the null hypothesis that 21. has good reputation .86
each of the coefficients are equal to zero were all significant 22. is well respected .89
(p < .01), suggesting that all paths were assisting in the pre- 23. is well thought of .86
diction of their assigned factors. These results provided evi- 24. has status .77
dence supporting the convergent validity of the indicators 25. is reputable .89
(Anderson and Gerbing 1988). Note: All paths significant, p < .01.
Table 1 also displays the composite reliability scores for
each of the five factors. Composite reliability is analogous to
coefficient alpha (Cronbach) and reflects the internal consis- for the variables hypothesized to be related to behavioral
tency of the indicators measuring each CFA factor (Fornell intentions. Results of the initial model (Figure 1, model 1)
and Larcker 1981). Results show that all five factors have
are reported in Table 3. The CFI was greater than 0.90, and
composite reliability scores greater than .70. Utilizing the
the RMSR was less than 0.10, but the NFI was less than 0.90
criteria set for the current analysis, this suggests that each of
(.898). Results of the Wald test indicated that the path from
the factors are reliably measuring their respective constructs.
Combined, these findings support the reliability and reputation to perceived value was deleterious to the overall
internal validity of the hypothesized model (Hatcher 1996). model. The Wald test identifies paths and covariances that
Since the model was found to be a good fit of the data and all should possibly be deleted from the model (Hatcher 1996).
paths were found to be significant (p < .05), it is suggested It also was revealed that the path from reputation to per-
that the proposed scale effectively measured subjects’ per- ceived value was not significant (p > .05). Examination of the
ceived value. five items used to measure reputation revealed that the items
To examine the reliability of the two-item Grewal, Mon- had the lowest standard deviation (less than 0.5) and had the
roe, and Krishnan (1998) intentions to repurchase scale, a highest overall mean (4.5), of all five factors. This reveals
Cronbach’s alpha coefficient was calculated. The resultant that as a whole the visitors felt that the cruise line had a very
alpha was .94 and was deemed acceptable for the current good reputation, with little variance between responses.
study. According to Tabachnick and Fidell (1996), items that do not
differ between respondents should not be used in prediction.
Due to these findings, reputation was dropped from the
Hypothesis Testing
model.
The hypotheses were analyzed with the use of structural Results of the new model are shown in Table 3 also and
equation modeling utilizing EQS and the aforementioned fit suggest that the model is a good fit of the data (indices >
indices. Table 2 reports the results of the correlation analysis 0.90). By analyzing the change in the value of chi square for
JOURNAL OF TRAVEL RESEARCH 403

TABLE 2
CORRELATIONS BETWEEN THE INDEPENDENT AND DEPENDENT
VARIABLES PREDICTING BEHAVIORAL INTENTIONS

Variable 1 2 3 4 5 6 7 8 9
1. Emotional response 1.00 0.72 0.79 0.51 0.68 0.71 0.74 0.70 0.72
2. Monetary price 1.00 0.77 0.56 0.66 0.74 0.64 0.67 0.62
3. Quality 1.00 0.56 0.78 0.74 0.75 0.74 0.72
4. Behavioral price 1.00 0.56 0.42 0.37 0.35 0.42
5. Reputation 1.00 0.59 0.58 0.58 0.56
6. Perceived value 1.00 0.77 0.74 0.74
7. Satisfaction 1.00 0.73 0.77
8. Repurchase intentions 1.00 0.80
9. Word of mouth 1.00
Note: N = 792. Correlations above 0.15 are significant at the .01 level.

TABLE 3
GOODNESS OF FIT INDICES: INTENTION TO REPURCHASE MODELS

Model N χ2 df p NFI CFI RMSR


Initial satisfaction model 792 2559.1 361 < .01 .898 .911 .071
Final satisfaction model (model 1) 792 1983.4 219 < .01 .901 .911 .083
Value model (model 2) 792 1994.1 219 < .01 .901 .910 .086
Quality model (model 3) 792 1918.2 218 < 0.01 .904 .914 .066

TABLE 4
STANDARDIZED PATH COEFFICIENTS OF VARIABLES RELATED TO BEHAVIORAL INTENTIONS

Initial Final
Variables Satisfaction Model Satisfaction Model Value Model Quality Model
Repurchase → WOM 0.80 0.80 0.80 0.80
Value → Repurchase 0.45 0.45 0.45 0.31
Satisfaction → Repurchase 0.38 0..38 0.38 0.23
Quality → Repurchase NA NA NA 0.33
Value → Satisfaction 0.43 0.42 NA 0.41
Satisfaction → Value NA NA 0.39 NA
Quality → Satisfaction 0.43 0.44 0.77 0.45
Quality → Value 0.38 0.30 0.12* 0.31
Emotion → Value 0.15 0.11 –0.03* 0.10
Monetary Price → Value 0.43 0.49 0.46 0.49
Behavioral Price → Value –0.10 –0.10 –0.05* –0.10
Reputation → Value 0.08* NA NA NA
*Denotes paths are not significant, p > .05.

the two proposed models, it is possible to determine if the Table 5 shows the amount of variance explained by each
new model is significantly better than the first. The critical of the endogenous variables. A considerable amount of vari-
value of chi-square for 142 degrees of freedom (change in ance was explained for perceived value (63.7%), satisfaction
degrees of freedom between the models) is 545.28 (3.84 (64.6%), repurchase intentions (59.6%), and WOM (64.0%).
times 142). Since the change in chi-square between models Furthermore, the second model explains more of the variance
was 664.1, it was determined that the second model is signifi- in each of the endogenous variables than the first model.
cantly better than the first. The model was tentatively Since the variance explained in all of the endogenous vari-
accepted, pending further tests to examine its reliability and ables is considerably high (> 40%), the model demonstrates
validity. acceptable reliability (Fornell and Larcker 1981). Combined,
Standardized path coefficients (measurement equations) these findings support the reliability and convergent validity
are displayed in Table 4. Analysis of the t values associated of the hypothesized model (Hatcher 1996). Thus, the second
with the null hypothesis that each of the coefficients are equal model will be used to represent the satisfaction model (model
to zero revealed that all paths were significant (p < .05), sug- 1 in Figure 1), and reputation will be deleted from all
gesting that all paths are assisting in the prediction of inten- subsequent models.
tion to repurchase. These results provide evidence support- Results of the value model (model 2) are also revealed in
ing the convergent validity of the indicators (Anderson and Tables 3, 4, and 5. While the resultant model fits the data
Gerbing 1988). (NFI and CFI > 0.90 and RMSR < 0.10), the paths from
404 MAY 2004

TABLE 5
EXPLAINED VARIANCE OF ENDOGENOUS VARIABLES

Initial Satisfaction Final Satisfaction


Variable Model Model Value Model Quality Model
Word of mouth 0.640 0.640 0.639 0.640
Repurchase intentions 0.596 0.596 0.594 0.635
Satisfaction 0.642 0.646 0.593 0.648
Perceived value 0.625 0.637 0.693 0.637

quality to value, emotional response to value, and behavioral


price to value were not significant (p > .05). Furthermore, FIGURE 2
FINAL MODEL OF THE VARIABLES
model 2 explained less of the variance in repurchase inten- RELATED TO BEHAVIORAL INTENTIONS
tions and word of mouth than model 1. Thus, the first hypoth-
esis was confirmed, and it is proposed that the satisfaction
model explains cruise passengers’ behavioral intentions Emotional
Response
better than the value model. .10
Since the satisfaction model was deemed superior to the (2.06)
.45 Satisf. .23
value model, the second hypothesis was examined by com- (6.05)
(12.32)
paring the satisfaction model to the quality model. Results of .33 .80
the quality model are displayed in Table 3 and Figure 2 and Quality (8.12) Repurch WOM
.31 .41 (37.51)
(12.00)
reveal that the model is a good fit of the data (NFI and CFI > (4.88) .31
0.90 and RMSR < 0.10) (Table 3) and that all hypothesized Value (8.47)
paths are significant (p < .05) (Table 4). It was also revealed Monetary .49
that the quality model explained more of the variance in Price (9.28)

repurchase intentions than the satisfaction model (Table 5).


-.10
To further determine whether the satisfaction model or (3.39)
the quality model fit the data better, a chi-square difference Behavioral
test was computed. The critical value of chi-square for 1 de- Price
gree of freedom (change in degrees of freedom between the
models) is 3.84 (3.84 times 1). Since the change in chi-square
between models was 65.2, it was determined that the quality
model is significantly (p < .05) better than the first. Thus, the related to WOM. Thus, this hypothesis is accepted, suggest-
second hypothesis was validated, and it is proposed that the ing that cruise passengers who intend to repurchase are more
quality model explains cruise passengers’ behavioral inten- likely to speak positively about their cruising experiences to
tions better than both the satisfaction and perceived value others than those who are less likely to repurchase.
models. Therefore, quality has both a moderated effect
(through both perceived value and satisfaction) and a direct
effect on cruise passengers’ behavioral intentions. DISCUSSION AND CONCLUSIONS
Hypotheses 3a, 3b, and 3c stated that satisfaction, per-
ceived value, and quality would, respectively, be good pre- It has been suggested that the variables of quality, satis-
dictors of cruise passengers’ repurchase intentions. Since
faction, and perceived value “have dominated the services
results of the quality model revealed that all three variables
literature” (Cronin, Brady, and Hult 2000, p. 193). Past
significantly (p < .05) predicted repurchase intentions, these
research has revealed a multitude of relationships between
hypotheses were accepted. Thus, to maximize the ability to
explain cruise passengers’ behavioral intentions, cruise man- these variables and has proposed that they are all necessary
agement should measure all three variables. for effectively understanding the decision-making processes
Hypotheses 4a and 4b proposed that perceived value of visitors (Cronin, Brady, and Hult 2000; Oh 1999; Tam
would be a better predictor of cruise passengers’ intentions to 2000). Yet, tourism management often uses these conceptu-
repurchase than satisfaction and quality, respectively. Results ally different constructs interchangeably and fails to differ-
revealed that quality (.33) had the highest standardized path entiate between their measures. Furthermore, research ana-
coefficient, followed by perceived value (.31) and satisfac- lyzing these relationships has come from three different
tion (.23) (Figure 2 and Table 4). Thus, hypothesis 4a is paradigms. Thus, the current study analyzed behavioral
accepted, while hypothesis 4b is rejected. Therefore, results intentions models from each of these paradigms to better
of the current study suggest that quality is a better predictor understand the relationships between cruise passengers’ sat-
of cruise passengers’ repurchase intentions than perceived isfaction, perceived value, and quality, and their behavioral
value, and perceived value is a better predictor than intentions.
satisfaction. Similar to past results, it was revealed that both perceived
The final hypothesis was that cruise passengers’ repur- value (Oh 1999; Tam 2000) and quality (Caruana, Money,
chase intentions would positively predict their WOM behav- and Berthon 2000; Baker and Crompton 2000) are anteced-
ioral intentions in all three models. In all three models, repur- ents of cruise passengers’ satisfaction in the prediction of
chase intention was positively and significantly (p < .05) behavioral intentions. Utilized in conjunction with Bagozzi’s
JOURNAL OF TRAVEL RESEARCH 405

(1992) proposition that cognitive responses precede emo- entertainment) are best at predicting quality, they would be
tional responses, these findings lend further credence to best served by moving resources to these areas. Furthermore,
Cronin, Brady, and Hult’s (2000) proposal that quality and if areas are poor predictors of the antecedents (satisfaction,
value are cognitive responses to a service experience while quality, and value) of behavioral intentions, management
satisfaction is an emotional response. Thus, quality and per- might be able to reduce the resources allocated to these areas.
ceived value lead to satisfaction, which inevitably leads to Thus, further research is necessary to determine the
behavioral intentions. antecedents of satisfaction, quality, and value.
Another theoretical implication is that quality was found Since the current study was limited to one cruise ship,
to have both a moderated effect and a direct effect on cruise during one time of the year, future research should determine
passengers’ repurchase intentions, while being a better pre- the generalizability of the current results. More research is
dictor of intentions to repurchase than both perceived value necessary to determine if similar results would be derived
and satisfaction. This finding suggests that if managers are from different samples. Future studies should analyze how
only able to use one variable for predicting intentions to well the proposed model explains the behavioral intentions
repurchase, quality may be the preferred variable. However, of cruise passengers during different times of the year, travel-
since both satisfaction and perceived value were found to be ing on different cruise lines, and for varying sectors of the
good predictors, it is suggested that managers should use all service industry (i.e., resort visitors, amusement park
three if possible. By knowing how a cruising experience patrons, museum visitors, etc.).
affects the satisfaction, perceived value, and quality, cruise According to Baloglu and Erickson (1998), visitation to
management will be better prepared to alter their provisions one destination influences the probability of revisiting the
to most positively affect passengers’ behavioral intentions. same destination or visiting other destinations. Thus, the
One reason that satisfaction may have been found to be addition of at least one other cruise ship would have
the least predictive was the way it was operationalized. Satis- increased the study’s external validity. The measurement of
faction was operationalized as a single measure, which cruise passengers during all four seasons would also have
makes it more likely than a measure with more items to have increased the generalizability of the results.
error variance (Tabachnick and Fidell 1996). Thus, further Furthermore, the overall model utilized only the mea-
research utilizing multi-item measures of satisfaction is nec- sures of overall satisfaction, perceived value, and quality as
essary to better understand the overall predictability of independent variables in the prediction of intention to repur-
satisfaction. chase. Past research has shown that perceptions (Oh 1999),
Another measurement limitation of the current study was past behavior (Petrick, Morais, and Norman 2001), and
how quality was operationalized. While the five dimensions attributional importance (Spreng and Olshavsky 1993) can
of SERVQUAL have often inadequately explained tourists’ be utilized as predictors of future purchase intentions. Future
perceptions of quality (Childress and Crompton 1997), it is research should therefore include other independent vari-
believed that a more holistic (multidimensional) measure of ables to aid in the determination of what combination of vari-
quality would provide a better understanding of the determi- ables most accurately and parsimoniously predicts intentions
nants of behavioral intentions. Future research should assess to repurchase.
the utility of different measures of quality within the Finally, the overall model presented in the current study
proposed model. could be beneficial in the prediction of repurchase intentions
The current study also revealed that cruise passengers beyond that of cruise passengers. It is posited that the model
with higher intentions to repurchase are more likely to speak may aid in the prediction of behavioral intentions for a multi-
positively about their experiences (WOM) than those with tude of services and products. To further determine the
lower intentions to repurchase. This finding is analogous to potential of the model proposed, additional research is
the findings of Shoemaker and Lewis (1999) who found that needed to investigate the model’s effectiveness in other
loyal customers create a potential for WOM publicity at no environments.
extra cost to the service provider, and Thomas (2001) who In conclusion, the current research examined three differ-
found that it is more desirable, and much less expensive, to ent theoretical foundations for understanding the determi-
retain current participants than it is to seek new ones. Thus, nants of cruise passengers’ behavioral intentions. The current
providing a quality experience that is perceived to have value analysis provides a more thorough understanding of the rela-
and to be satisfying not only leads to repeat clientele but also tionships between quality, satisfaction, and value, which may
elicits free publicity for the business. be utilized by destination managers to better understand the
It was also found that reputation was not a good predictor derivatives of potential repurchase behavior. This knowledge
of cruise passengers’ perceived value. This finding appears to could be useful in determining the most important variables
be due to little to no deviation in the scores given by respon- to measure, and how to alter visitors’ experiences, to
dents. Future research is necessary to determine if reputation maximize the probability of repurchase intentions.
is related to perceived value for other cruises, cruise lines, or
service sectors.
While the current study offers more theoretical implica-
tions than managerial implications, it does provide a frame-
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