HUTCHINSON - LAI - WANGRelationships of Quality, Value, Equity, Satisfaction and Behavioral Intentions - TOURISM MANAGEMENT - 2009

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Tourism Management 30 (2009) 298–308

Contents lists available at ScienceDirect

Tourism Management
journal homepage: www.elsevier.com/locate/tourman

Understanding the relationships of quality, value, equity, satisfaction,


and behavioral intentions among golf travelers
Joe Hutchinson a, *, Fujun Lai b, Youcheng Wang c
a
Rosen College of Hospitality Management, University of Central Florida, 1200 W, International Speedway, Daytona Beach, FL 32114-2811, United States
b
College of Business, University of Southern Mississippi, 730 E, Beach Boulevard, Long Beach, MS 39560, United States
c
Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Boulevard, Orlando, FL 32819-8701, United States

a r t i c l e i n f o a b s t r a c t

Article history: This study developed and tested an integrative model to examine the relationships between golf trav-
Received 15 November 2007 elers’ perceptions of quality, value, equity, and satisfaction and to investigate the impacts of the service
Accepted 26 July 2008 evaluation variables (i.e., quality, value, and satisfaction) on their behavioral intentions (i.e., revisit
a destination, word-of-mouth referrals, and search for alternative destinations). The model was tested
Keywords: using surveyed data from 309 golf travelers. The results indicated that although service quality did not
Satisfaction
have a significant influence on value or satisfaction, it did have a significant influence on equity. As
Equity
hypothesized, equity had a significant and direct influence on both value and satisfaction, and value had
Value
Customer loyalty a significant influence on satisfaction. Regarding the behavioral intention variables, service quality did
Behavioral intention not influence any of the behavioral intention variables, while value and satisfaction had no significant
Golf traveler influence on the search for alternative variable. However, as hypothesized, both value and satisfaction
had significant influences on the intention to revisit and word-of-mouth behavioral intention variables.
Discussion and implications are provided based on the research results.
Ó 2008 Elsevier Ltd. All rights reserved.

1. Introduction Bachman, 2002b). By better understanding the purchasing


behavior of golf travelers, destination marketers and managers of
The golf traveler market has become an important component tourism-related supply components (i.e., golf courses, hotels,
of the tourism industry in many travel destinations (Petrick & restaurants, attractions, etc.) will be better equipped to develop
Bachman, 2002a). Golf travelers spend money in a variety of ways more appropriate marketing strategies and tailor their products
(e.g., travel, hotels, restaurants, golf courses, attractions, enter- and services to attract new golf travelers to their destinations, while
tainment, etc.), and business travelers who play golf have a greater building a repeat business among existing clientele.
economic impact on local communities than non-golfing business Prior research has suggested that key service-oriented
travelers (National Golf Foundation, 2007). As a result, there has constructs (e.g., quality, value, and satisfaction) should be further
been intensified competition among travel destinations for the golf examined to better understand why tourists decide to return to
traveler market, as evidenced by the ongoing development of new a destination and/or generate positive word-of-mouth referrals
golf course resorts and the refurbishment and upgrading of existing for that destination (Baker & Crompton, 2000; Getty & Thompson,
golf courses and resorts. An increasing number of travel destina- 1994; Oh, 1999; Petrick, 2004; Tam, 2000). Although theory-based
tions offer attractive, all-inclusive golf packages and aggressively research efforts have advanced the understanding of service-
market to golf travelers through various information sources. oriented constructs in hospitality and tourism settings, there
As the competition among travel destinations for the golf travel continues to be a need to refine the theories and methodologies
market intensifies, it will become increasingly important for golf by introducing new variables and/or modified frameworks to
managers and destination marketers to identify the variables that enhance the predictive power of these models (Oh & Parks, 1997).
assist in the attraction and/or retention of golf travelers (Petrick & For example, most hospitality and tourism service-oriented
research has focused on service quality as the sole antecedent to
customer satisfaction, and other variables/constructs have been
* Corresponding author. Address: Rosen College of Hospitality Management, proposed and/or tested for better accuracy of prediction. For
University of Central Florida, 1200 W. International Speedway, Daytona Beach, FL
instance, perceived value has been empirically tested as a second
32114-2811, United States
E-mail addresses: jhutchin@mail.ucf.edu (J. Hutchinson), fujun.lai@usm.edu proposed antecedent variable to satisfaction in recent studies
(Fujun Lai), raywang@mail.ucf.edu (Y. Wang). (e.g., Oh, 1999; Petrick, 2004; Tam, 2000). Although perceived

0261-5177/$ – see front matter Ó 2008 Elsevier Ltd. All rights reserved.
doi:10.1016/j.tourman.2008.07.010
J. Hutchinson et al. / Tourism Management 30 (2009) 298–308 299

equity has been proposed to have an important relationship to equity (Hellier et al., 2003; Oliver, 1993; Oliver & DeSarbo, 1988;
service, value, and customer satisfaction (Hellier, Geursen, Carr, & Oliver & Swan, 1989). The theoretical justification for the linkages
Richard, 2003), it has rarely been empirically tested in a tourism between quality, value, and satisfaction is derived from Bagozzi’s
context. Further, the measure for behavioral intentions may also (1992) coping framework, which suggests the initial service
warrant scrutiny, since previous studies dominantly use intention evaluation (i.e., appraisal) leads to an emotional reaction that, in
to repurchase or word-of-mouth as single behavioral intentions turn, drives behavior (Gottlieb, Grewal, & Brown, 1994). The
constructs to examine their bivariate relationships with proposed adaptation of Bagozzi’s (1992) framework to a service context
antecedent variables (e.g., quality, value, and satisfaction). suggests that the more cognitively-oriented service quality and
Although the search for alternatives construct has been cited as value appraisals precede satisfaction (e.g., Anderson, Fornell, &
an important outcome of customer satisfaction in consumer Lehmann, 1994; Anderson & Sullivan, 1993; Chenet et al., 1999;
purchase behavior (e.g., Kozak & Remington, 2000), this construct Cronin & Taylor, 1992; Gottlieb et al., 1994; Patterson & Spreng,
has rarely been empirically tested in tourism research as 1997; Spreng & Mackoy, 1996; Woodruff, 1997). According to
a measure of behavioral intentions. Since tourists are often faced Cronin and Taylor (1994), service quality is reflected in a cus-
with a number of choices between travel destinations, it appears tomer’s evaluative perception of a service encounter at a specific
that their search among alternative destination choices would point in time, while customer satisfaction involves both end state
play an important role in their final decision to select a specific and process judgments and reflect both emotional and cognitive
travel destination. elements.
Using an integrative approach, the objective of this paper was to Rust and Oliver (1994) also called for the study of the conse-
empirically test a proposed model to better understand golf trav- quences of the quality, value, and satisfaction constructs. As
elers’ perception judgments and the impact of those judgments on a result, a number of studies have been conducted that have
their behavioral intentions. To achieve this research objective, the specified relationships between the three service evaluation vari-
relationships between golf travelers’ perceptions of service quality, ables of quality, value, and satisfaction and the proposed effects of
value, equity, and satisfaction were assessed. Simultaneously, the these variables on behavioral intentions outcomes such as
effects of perceived quality, value, and satisfaction on three repurchase intentions and word-of-mouth communication.
behavioral intentions (i.e., intention to revisit, word-of-mouth, and However, there has been little uniformity concerning which of the
search for alternatives) also were examined. three service evaluation variables, or their combinations, have the
most significant direct influence on consumer behavioral inten-
2. Conceptual framework, model elaboration and research tions. Correspondingly, several competing models emerged. The
hypotheses first (Value) model is derived from the service value literature,
where value is suggested to lead directly to behavioral intentions,
2.1. Conceptual framework with service quality and satisfaction as antecedents to value (e.g.,
Chang & Wildt, 1994; Sweeney, Soutar, & Johnson, 1999). The
Research concerning the nature and measurement of customer second (Satisfaction) model, which emanates from the satisfaction
satisfaction and service quality is prevalent in the marketing liter- literature, defines customer satisfaction as the primary and direct
ature (Anderson & Sullivan, 1993; Andreassen, 2000; Boulding, link to behavioral intentions, with service quality and value being
Karla, Staelin, & Zeithaml, 1993; Cronin & Taylor, 1994; Oliver, 1980; antecedents to satisfaction (e.g., Anderson & Fornell, 1994; Fornell
Parasuraman, Zeithaml, & Berry, 1988, 1994). In the tourism et al., 1996; Mohr & Bitner, 1995; Spreng et al., 1996). The third
industry, customer perceptions of satisfaction and service quality (Quality) model is derived from service quality literature investi-
are important to successful destination marketing because of their gating the relationships between service quality, satisfaction, and
influence on the choice of a destination (Ahmed, 1991), the behavioral intentions. Most studies investigating these relation-
consumption of goods and services at that destination, and the ships have reported that service quality influences behavioral
decision to return to that destination (Stevens, 1992). As a result, intentions only indirectly through value and satisfaction (e.g.,
researchers have attempted to adapt service quality and customer Anderson & Sullivan, 1993; Gottlieb et al., 1994; Patterson & Spreng,
satisfaction theories and measures to hospitality and tourism 1997).
industry settings. For example, researchers have tested the All three competing models discussed above have illustrated
SERVQUAL framework in restaurant (e.g., Bojanic & Rosen, 1994), significant bivariate relationships between service quality, value,
lodging (e.g., Saleh & Ryan, 1992), and destination (e.g., Pizam, satisfaction, and behavioral intentions, but few studies have
Neumann, & Richel, 1978) settings. Different approaches also have investigated whether any or all of these three service evaluation
been applied to the measurement of customer satisfaction within variables directly influence behavioral intentions when the effects
the tourism industry. For example, Parasuraman, Zeithaml, and of all three are simultaneously considered (Cronin, Brady, & Hult,
Berry’s (1985) expectation–perception gap model (Duke & Persia, 2000). Cronin et al. (2000) argued that partial examination of the
1994), Oliver’s (1980) expectancy-disconfirmation theory (Pizam & simple bivariate links between any of three service evaluation
Milman, 1993), and Pizam et al.’s (1978) performance-only model constructs and behavioral intentions may mask or overstate their
have been used to measure customer satisfaction in the tourism true relationships due to omitted variable bias. To address this
context. issue, Cronin et al. (2000) proposed and examined a more collective
Following Rust and Oliver’s (1994) call for research into the model, in which all three service evaluation variables (quality, value
conceptual relationships between quality, value and satisfaction, and satisfaction) directly lead to behavioral intentions
a number of studies endeavored to model these linkages (e.g., simultaneously.
Chenet, Tynan, & Mond; 1999; Fornell, Johnson, Anderson, Cha, & In recent years, researchers have proposed and empirically
Bryant, 1996; Spreng, MacKenzie, & Olshavsky, 1996; Zeithaml, tested more integrative models of quality, value, and satisfaction to
Berry, & Parasuraman, 1996). Service evaluation variables better understand the purchase decision-making process of
considered to be important antecedent factors to customer hospitality and tourism customers. Using a sample from the luxury
satisfaction include customer perceptions of quality (Cronin & segment of the hotel industry, Oh (1999) found that perceived
Taylor, 1992, 1994; Fornell et al., 1996; Hellier, Geursen, Carr, service quality had a positive direct effect on both perceived
& Richard, 2003; Parasuraman et al., 1994; Severt, Wang, Chen, & customer value and customer satisfaction, perceived customer
Breiter, 2007), value (Fornell et al., 1996; Hellier et al., 2003), and value had a direct and positive effect on customer satisfaction and
300 J. Hutchinson et al. / Tourism Management 30 (2009) 298–308

repurchase intentions, and customer satisfaction had a positive and 2.2. Model elaboration and hypotheses development
direct effect on repurchase intentions and on word-of-mouth
intentions. In a cross-cultural assessment of service quality, value, 2.2.1. Service evaluation variables
and satisfaction between American and Latin-American fast-food There are extensive studies on the relationships between the
customers, Brady, Robertson, and Cronin (2001) reported that three service evaluation variables of quality, value, and satisfaction
service quality had a direct and positive relationship with value and (Cronin et al., 2000; Spreng et al., 1996). The majority of empirical
satisfaction in both samples. Although value had a direct, signifi- studies in the literature have reported the relationship between
cant and positive effect with satisfaction and behavioral intentions customer perceptions of quality and value to be positive (e.g.,
only in the American sample, satisfaction had direct and positive Andreassen & Lindestad, 1998; Brady et al., 2001; Cronin et al.,
relationships with behavioral intentions in both samples. Finally, 2000; Sweeney et al., 1999). The results of these studies have led to
service quality did not have a direct effect on behavioral intentions a convergence of opinion that service quality is an antecedent of
in either sample. value perceptions (Cronin et al., 2000; Hellier et al., 2003; Petrick,
In a study of cruise passengers, Petrick (2004) reported that 2002a; Rust & Oliver, 1994; Zeithaml, 1988) and is generally the best
quality had both an indirect effect (through both perceived value predictor of perceived value (Baker et al., 2002; Cronin et al., 2000;
and satisfaction) and a direct effect on cruise passengers’ behav- Parasuraman & Grewal, 2000). Therefore, we hypothesize:
ioral intentions, with quality, value, and satisfaction all being
H1. Perceived service quality has a direct positive effect on
significant predictors of repurchase intentions. More specifically,
perceived value.
quality was a better predictor of repurchase intentions than
perceived value, and perceived value was a better predictor of Although marketing literature has suggested that perceived
repurchase intentions than satisfaction. Further, repurchase value is the leading predictor of behavioral intentions (Parasura-
intentions was positively and significantly related to word-of- man & Grewal, 2000; Woodruff, 1997), Petrick and Bachman
mouth communication. Thus, cruise passengers who intended to (2002b) argued that the perceived value measurement has been
purchase another cruise spoke more positively about their cruise given little attention by tourism researchers. Although most studies
experiences than those passengers who were less likely to have proposed service quality as the sole antecedent to consumer
repurchase another cruise. satisfaction, empirical evidence also has shown perceived value to
Based on an extensive and critical literature review and be an immediate antecedent in the prediction of customer satis-
considering the unique context of the study, our proposed model is faction (Anderson et al., 1994; Cronin et al., 2000; Fornell et al.,
presented in Fig. 1. First, the proposed model simultaneously 1996; Oh, 1999; Rust & Oliver, 1994; Spreng & Mackoy, 1996).
examines the relationships of service quality, perceived value, and Therefore, we hypothesize the following:
satisfaction. The model suggests that service quality, perceived
H2. Perceived value has a direct positive effect on customer
value, and satisfaction all have directional relationships between
satisfaction.
each other and also serve as antecedents to behavioral intentions
outcomes. Second, in addition to the frequently used service eval- According to the satisfaction model, which is derived from the
uation constructs of quality, value, and satisfaction, we also propose consumer satisfaction literature, perceived service quality is an
that equity is a consequent variable to service quality and an important antecedent to customer satisfaction. A number of
antecedent variable to both value and satisfaction. Third, the rela- empirical studies have found support for this model, and have
tionships between the three service evaluation constructs (i.e., linked service quality as a positive and direct path in the prediction
service quality, value, and satisfaction) and three behavioral of customer satisfaction (Anderson et al., 1994; Baker & Crompton,
intention variables (intention to revisit, word-of-mouth referrals, 2000; Cronin et al., 2000; Fornell et al., 1996; Oliver, 1993; Para-
and search for alternatives) are also proposed. Search for alterna- suraman et al., 1994; Rust & Oliver, 1994; Spreng & Mackoy, 1996).
tives as a behavioral intention outcome is included in the model In the tourism literature, Petrick (2004) reported that quality was
since, as articulated before, the propensity for golf travelers to an antecedent of cruise passengers’ satisfaction in the prediction of
search for alternative destinations is considered an important their behavioral intentions. Also, in a study of customers of family-
outcome in their decision to choose a travel destination. style dinner house chains, Babin et al. (2005) reported that higher

Service H7a Intention


Quality H to Revisit
8a
H 9a
4
H

H1

H 7b
H5 H8b Word-of-
Equity
H3

Value Mouth
H
9b

H2
H6

7c
H

H 8c
Search for
Satisfaction
H9c Alternatives

Fig. 1. Conceptual model.


J. Hutchinson et al. / Tourism Management 30 (2009) 298–308 301

service quality perceptions led to greater customer satisfaction. (5) pay price premiums. A number of studies have used one or
Thus, we hypothesize the following: more of these five proposed constructs to examine the outcomes
of quality (Baker & Crompton, 2000; Oh, 1999), value (Bojanic,
H3. Perceived service quality has a direct positive effect on
1996; Petrick & Bachman, 2002a), and satisfaction (Spreng et al.,
customer satisfaction.
1996; Tam, 2000). Quality, perceived value and satisfaction all
There has been limited integration of the perceived equity have been shown to be good predictors of repurchase intentions.
construct with quality, value, and satisfaction in service evaluation However, little uniformity exists concerning these three service
theoretical models. However, perceived equity has been empirically evaluation variables, or combinations therein, when examining
demonstrated to be an important variable in a consumer’s service their direct affect on consequent measures (see Cronin et al.,
evaluation process (Hellier et al., 2003; Oliver, 1993; Szymanski & 2000).
Henard, 2001; Takala & Uusitalo, 1996). The literature suggests that Our theoretical model presented in Fig. 1 includes the two
service quality is an antecedent of perceived equity. Service quality frequently used behavioral intention variables: intentions to
is reflected in a consumer’s evaluative perception of a service revisit and word-of-mouth communication. However, we also
encounter (Cronin & Taylor, 1994). When customers perceive that include the rarely used search for alternatives variable as a third
services meet or exceed their expectations and also meet service behavioral intention outcome, since the propensity for golf trav-
promises, they also perceive to have been treated fairly and elers to search for alternative destinations is quite possible in their
reasonably (Berry et al., 1994; Bitner, 1995; Zahorik & Rust, 1992). decision-making process. The following section is an elaboration
Hellier et al. (2003) developed and tested a structural equation of the three proposed behavioral intention constructs included in
model using a sample of insurance customers and reported that our study and their relationships with the service evaluation
perceived service quality had a significant influence on perceived variables.
equity. They reported that perceived service quality influenced
respondent satisfaction, but only indirectly via perceptions of 2.2.2.1. Intention to revisit. It has been argued that quality is not
equity and value. Therefore, we hypothesize the following: only mediated by perceived value and satisfaction in the prediction
of consumer behavioral intentions, but also has a direct relation-
H4. Perceived service quality has a direct positive effect on
ship to behavioral intentions (Cronin et al., 2000). Some empirical
perceived equity.
studies have reported that service quality has a direct effect on
There has been limited research supporting perceived equity as behavioral intentions (e.g., Cronin et al., 2000; Mohr & Bitner, 1995;
a direct antecedent of perceived value. Empirically, Goodwin and Zeithaml et al., 1996), while others have shown that quality has an
Ross (1992) found that customer perceptions of overall fairness indirect path to behavioral intentions through satisfaction
were positively associated with customer perceptions of the value (Anderson & Sullivan, 1993; Anderson et al., 1994; Brady et al.,
of the service received. In a study of insurance customer repurchase 2001; Cronin & Taylor, 1992; Rust & Oliver, 1994).
intentions, Hellier et al. (2003) found that perceived quality influ- Research also has shown perceived value and satisfaction to be
enced satisfaction only indirectly, via perceived equity and direct antecedents of behavioral intentions (Cronin et al., 2000;
perceived value. Thus, we hypothesize the following: Petrick & Bachman, 2002a; Tam, 2000). In a study of restaurant
patrons, Babin et al. (2005) reported that both perceived value and
H5. Perceived equity has a direct positive effect on perceived
satisfaction had positive and significant effects on positive word-of-
value.
mouth communication. Recent research has suggested that
The literature often considers equity as an important antecedent perceived value may be a better predictor of repurchase intentions
of customer satisfaction (Oliver, 1993; Oliver & Swan, 1989; Szy- than either satisfaction or quality (Cronin et al., 2000; Oh, 2000). In
manski & Henard, 2001; Takala & Uusitalo, 1996). Empirically, a study using a sample of hotel guests, Hartline and Jones (1996)
studies have shown that customer equity perceptions influence the reported that both perceived service quality and value had a direct
level of customer satisfaction (Hellier et al., 2003; Oliver & Swan, and positive effect on guests’ word-of-mouth communication, with
1989). Furthermore, dissatisfied customers are more likely to value having a stronger effect than quality. In a study of fine-dining
increase their level of satisfaction when service providers patrons’ pre- and post-experience, Oh (2000) reported value to be
successfully recover the fairness and justice of the service a superior predictor of repurchase intentions, both before and after
encounter (Andreassen, 2000). Research suggests that dissatisfied their dining experience.
customers who successfully obtain redress (procedural, distributive In the tourism literature, prior research findings suggest
and interactional justice) are likely to experience improved overall a significant relationship among tourist satisfaction, intention to
satisfaction with the service (Andreassen, 2000; Tax, Brown, & return, and positive word-of-mouth communication (Beeho &
Chandrashekaran, 1998). Several studies have reported that Prentice, 1997; Hallowell, 1996; Pizam, 1994; Ross, 1993). Further-
customer equity perceptions influence the level of customer satis- more, satisfied tourists are most likely to recommend destinations
faction, following a purchase transaction (Oliver & DeSarbo, 1988; they have visited to their friends and relatives (Beeho & Prentice,
Oliver & Swan, 1989). In a study of insurance customer repurchase 1997; Ross, 1993). In a study of tourists visiting Mallorca, Spain,
intentions, Hellier et al. (2003) found that perceived quality influ- Kozak and Remington (2000) reported that the more satisfied the
enced satisfaction only indirectly, via perceived equity and tourists were with their visits, the more likely they were to return
perceived value. Therefore, we hypothesize the following: and recommend the destination to others. Further, satisfied tourists
were more likely to recommend holidays in Mallorca than to repeat
H6. Perceived equity has a direct positive effect on customer
their visits to the destination. A significant correlation also was
satisfaction.
found between intention to recommend and intention to revisit the
destination. Thus, tourists were more likely to recommend the
2.2.2. Consumer behavioral intentions destination to others if they intended to revisit. In a study of
Zeithaml, Berry, and Parasuraman (1996) suggested that entertainment travelers, Petrick, Morais, and Norman (2001)
favorable behavioral intentions are associated with a service pro- reported that perceived value and satisfaction could be used to
vider’s ability to get its customers to: (1) say positive things about predict the travelers’ intention to revisit an entertainment desti-
them, (2) recommend them to other customers, (3) remain loyal to nation. In a study using a sample of golf travelers, Petrick and
them (i.e., repurchase from them), (4) spend more with them, and Bachman (2002b) used simple bivariate correlations to determine
302 J. Hutchinson et al. / Tourism Management 30 (2009) 298–308

that overall satisfaction was highly correlated with intentions to 2.2.2.3. Search for alternatives. Although the search for alterna-
revisit. Therefore, we propose that these three service evaluation tives construct has been cited as an important outcome of
variables positively influence intentions to revisit. customer satisfaction in consumer purchase behavior (e.g., Kozak
& Remington, 2000), this construct has rarely been reported as
H7a. Higher levels of service quality lead to greater intentions
a measure of behavioral intentions. Since golf travelers are often
to revisit.
faced with a number of choices between travel destinations, it
appears that their search among alternative destination choices
H7b. Higher levels of perceived value lead to greater intentions would play an important role in their final decision to select
to revisit. a specific travel destination. Their satisfaction or dissatisfaction
with a prior travel experience is considered critical because it may
affect decisions they make in their future travel plans (Woodruff,
H7c. Customer satisfaction has a direct positive effect on
1997).
intention to revisit.
If golf travelers are satisfied with a prior travel experience to
a destination, it has been suggested that they will perceive low
2.2.2.2. Word-of-mouth. The importance of word-of-mouth
risk with respect to their decision to revisit that destination. As
(WOM) for service firms has been well established (Mangold &
a result, they may reduce their search for alternative future travel
Miller, 1999). Although WOM can be positive and negative,
destinations. Conversely, if they are dissatisfied with a prior
marketers are more interested in promoting positive WOM, such as
travel experience, they will perceive greater risk if they decide to
recommendations to others. Service quality has been suggested to
revisit that same destination. Thus, they are more likely to
have a direct effect on word-of-mouth communication. Thus, when
increase their search for alternative future travel destinations.
customers have positive and/or beneficial service experiences, they
This suggests a negative relationship between customer satis-
should be motivated to encourage their friends and family
faction and the search for alternatives. In support of this argu-
members to have the same experience (Babin, Lee, Kim, & Griffin,
ment, Kozak and Remington (2000) found that customer
2005). In a study of hotel guests, Hartline and Jones (1996) reported
dissatisfaction with prior travel destinations led to a greater
that high quality service increased word-of-mouth intentions.
search for future alternative travel destinations. Correspondingly,
Boulding et al. (1993) empirically demonstrated that the higher the
there is empirical evidence in the tourism literature of a rela-
customers’ perceptions of a firm’s service quality, the more likely
tionship among tourist dissatisfaction and willingness to look for
they were to engage in behaviors beneficial to the strategic health
alternative destinations for future trips (Alamanza et al., 1994;
of the firm (e.g., generate positive word-of-mouth, recommend
Kozak & Rimmington, 2000; Pizam, 1994). Specific to the context
service, etc.). Thus, service quality should be positively related to
of this study, as golf travelers’ level of dissatisfaction increases
WOM praise. In a study with samples from two different industry
with respect to their experiences at a specific travel destination,
settings, Harrison-Walker (2001) reported service quality to be
they would become more willing to search for alternative
positively related to WOM praise in the veterinary industry, but not
destinations for future trips.
in the hair salon industry.
As discussed previously, satisfaction may be positively influ-
Perceived value and satisfaction also are suggested to influence
enced by service quality and value. Correspondingly, higher service
WOM directly (Brown et al., 2005; Fornell et al., 1996; Oh, 1999;
quality and perceived value should reduce the potential risk of
Ranaweera & Prabhu, 2003; Wirtz & Chew, 2002). Consumers
dissatisfaction and the subsequent search for alternatives. There-
who are satisfied with their service experiences may be motivated
fore, we propose a negative relationship between the three service
to spread positive WOM communication to encourage others to
evaluation variables and the search for alternatives:
have the same experience. Correspondingly, satisfaction has been
suggested to relate positively to WOM (Mangold & Miller, 1999). It H9a. Service quality negatively relates to search for
has been found that when WOM is more positive, consumers are alternatives.
more likely to make a purchase recommendation (Heckman &
Guskey, 1998; Mittal, Kumar, & Tsirosm, 1999; Wirtz & Chew,
H9b. Perceived value negatively relates to search for
2002).
alternatives.
In the tourism literature, prior research findings suggest
a significant relationship among tourist satisfaction, intention to
return, and positive word-of-mouth communication (Beeho & H9c. Satisfaction negatively relates to search for alternatives.
Prentice, 1997; Hallowell, 1996; Pizam, 1994; Ross, 1993). Further-
more, satisfied tourists are most likely to recommend destinations
they have visited to their friends and relatives (Beeho & Prentice,
3. Research design and methodology
1997; Ross, 1993). A similar relationship has been reported among
tourist dissatisfaction, willingness to look for other destinations for
3.1. Sampling procedure and data collection
future trips, and negative word-of-mouth communication (Ala-
manza, Jaffe, & Lin, 1994; Pizam, 1994). Therefore, we propose that
A regional golf association (‘‘the association’’) in the Gulf South
these three service evaluation variables positively influence word-
region of the U.S. was selected to provide statistically valid infor-
of-mouth communication.
mation concerning the experiences and perceptions of golf trav-
H8a. Service quality is positively related to word-of-mouth elers to the region. This association serves as the marketing arm to
referrals. the 21 member golf courses that were included in this study. Based
on a literature review and significant input from executives and
members of the association, a questionnaire was developed and
H8b. Perceived value is positively related to word-of-mouth
pilot tested among golf travelers at one of the association’s 21 golf
referrals.
courses in June 2005 for necessary revision and modification. The
association then mailed a cover letter, the questionnaire, an
H8c. Satisfaction is positively related to word-of-mouth incentive coupon for survey participation, and a self-addressed
referrals. return envelope to 1992 individuals. This sample included 216
J. Hutchinson et al. / Tourism Management 30 (2009) 298–308 303

travelers who had signed up at the area golf courses to participate average golf score of 87, and played about 66 rounds of golf per
in the survey and 1776 prospective destination visitors who year.
requested golf package quotes from the association and subse- Partial Least Squares (PLS) was chosen to conduct the data
quently visited the destination. analyses in this study. Unlike LISREL-type structural equation
The final questionnaire instrument included 37 items divided modeling (SEM), which is based on the covariance structure of the
into four sections: The first and second sections dealt with travel latent variables, PLS is a component-based approach. Meanwhile,
information received from the destination and specific and general PLS aims to examine the significance of the relationships between
attributes of the destination. The third section included various research constructs and the predictive power of the dependent
scale items, such as overall customer satisfaction, perceived value, variable (Chin, 1998). Thus, PLS is suitable for predictive applica-
service quality, perceived equity, and behavioral intentions. The tions and theory building. PLS also does not place a very high
final section included demographic, golfographic, and tripographic requirement of normal distribution on the source data (Chin, 1998;
variables. Gefen & Straub, 2005) and has the ability to handle a relatively
The respondents were requested to complete and return the small sample size (Barclay, Thompson, Higgins, 1995; Chin, 1998).
questionnaire and the incentive coupon in the self-addressed Because PLS considers all path coefficients simultaneously, it
envelope to the association headquarters. To ensure confidentiality, allows analysis of direct, indirect, and spurious relationships. PLS
the names of study participants were not requested and the asso- estimates multiple individual item loadings in the context of
ciation assured all survey respondents that their responses would a theoretically specified model rather than in isolation, so it also
remain completely confidential and anonymous. Participation in enables researchers to avoid biased and inconsistent parameter
this study was voluntary. The completed questionnaires were for- estimates for equations (White, Varadarajan, & Dacin, 2003).
warded to the researchers by the association for data input and Therefore, PLS is an appropriate choice for testing a research model
compilation. (Ko, Kirsch, & King, 2005). PLS-Graph 3.00 was specifically used in
this study.
3.2. Measures
4.1. Measurement model
To enhance the content validity of the measurements,
a number of steps were taken. First, we went through an intensive To assess the constructs, we conducted confirmatory factor
study of the literature to identify valid measurements for the analysis (CFA) using PLS. Based on the CFA results, we analyzed
related constructs. Wherever possible, existing measures that had convergent validity, discriminant validity, and reliability of all the
been used in previous studies were adopted. Second, the golf multiple-item scales, following the guidelines from previous liter-
course managers individually reviewed the questionnaire for ature (e.g., Fornell & Larcker, 1981; Gefen & Straub, 2005). The
suitability, readability and ambiguity (Dillman, 1999). The ques- measurement properties are reported in Tables 1 and 2.
tionnaire was iteratively revised according to feedback received Reliability was assessed in terms of composite reliability, which
from the managers. Third, a pilot test was conducted among golf measures the degree to which items are free from random error and
travelers at one of the association’s member golf courses. The therefore yield consistent results. Composite reliabilities in our
questionnaire was further revised based on the inputs provided by measurement model ranged from 0.931 to 0.993 (see Table 1),
the pilot test. above the recommended cutoff of 0.70 (Fornell & Larcker, 1981;
Service quality was measured from five aspects of service Nunnally & Bernstein, 1994).
quality, which were adapted from Hellier et al. (2003) and are Convergent validity was assessed in terms of factor loadings and
consistent with the five SERVQUAL dimensions. Overall perceived average variance extracted. Convergent validity requires a factor
value measures were adapted from Eggert and Ulaga (2002). The loading greater than 0.70 and an average variance extracted no less
respondents were asked to indicate the degree to which they than 0.50 (Fornell & Larcker, 1981). As shown in Table 1, all items
agreed that they paid a reasonable price for the quality of service had significant factor loadings higher than 0.70 (p < 0.01). Average
they received when visiting the area, and to what extent they variances extracted ranged from 0.833 to 0.992, suggesting
agreed that their visit to the area gave them a superior net value. adequate convergent validity.
Customer satisfaction was conceptualized as a cumulative, global Discriminant validity was assessed by comparing the average
evaluation based on experience with a destination over time variance extracted (AVE) of each individual construct with shared
(Homberg, Koschate, & Hoyer, 2005). The measures were adapted variances between this individual construct and all the other
from Patterson and Spreng (1997), Spreng et al. (1996), Petrick and constructs. Higher AVE of the individual construct than shared
Bachman (2002a), and Homberg et al. (2005). Perceived equity variances suggests discriminant validity (Fornell & Larcker, 1981).
measures the degree to which the tourists felt they had been Table 2 shows the inter-construct correlations off the diagonal of
treated fairly and rightly. These two measures were adapted from the matrix. Comparing all the correlations and square roots of AVEs
Hellier et al. (2003). The intention of revisit, search for alternatives, shown on the diagonal, the results indicated adequate discriminant
and word-of-mouth behavioral intention measures were adapted validity.
from Cronin et al. (2000), Eggert and Ulaga (2002), Kashyap and
Bojanic (2000), and Patterson and Spreng (1997). All the afore- 4.2. Structural model
mentioned measures used 7-point Likert-type scales.
To test the proposed hypotheses, the structural model was fitted
4. Data analysis and results using the full sample. Assessment of the structural model involves
estimating the path loadings and the R2 values. Path loadings
There were 309 usable questionnaires completed and returned indicate the strengths of the relationships between the indepen-
to the association headquarters, representing a 15.5% response dent variables and dependent variable, while R2 values measure the
rate. The golf traveler to the area was 54 years of age on average predictive power of the structural models. Interpreted like multiple
with a mean annual household income of $133,500. One-third of regression results, the R2 indicates the amount of variance
the respondents had a college graduate degree, while another explained by the exogenous variables. Using a bootstrapping
27.5% had a college undergraduate degree. Respondents indicated technique, we calculated path loadings and t-statistics for
that they had played golf for an average of 27 years, had an hypothesized relationships. The results are shown in Fig. 2.
304 J. Hutchinson et al. / Tourism Management 30 (2009) 298–308

Table 1
The assessment of the measurement model

Construct Item Mean (SD) Loading Std. error T- Composite AVE


statistic reliability
1. Service quality Employees were friendly and courteous 5.86 (1.07) 0.926 0.011 82.662 0.968 0.859
Employees provided prompt service 5.68 (1.17) 0.934 0.012 80.416
Employees were always willing to help 5.71 (1.27) 0.934 0.011 84.829
Employees were knowledgeable about the products 5.50 (1.42) 0.910 0.015 60.273
and services offered
Employees were professional and gave you confidence 5.62 (1.27) 0.929 0.009 102.021

2. Equity Being treated fairly 5.95 (1.01) 0.969 0.007 134.880 0.967 0.936
Being treated right (justly and honestly) 6.02 (.94) 0.966 0.010 101.134

3. Value Received reasonable service quality 5.66 (1.12) 0.925 0.024 39.233 0.955 0.876
Paid a reasonable price 5.60 (1.09) 0.956 0.008 127.231
Received a superior net value 5.37 (1.20) 0.928 0.010 93.945

4. Satisfaction Pleased with your visit 5.88 (1.19) 0.833 0.041 20.170 0.953 0.835
Contented with your visit 5.90 (1.07) 0.935 0.015 61.270
Delighted with your visit 5.85 (1.05) 0.953 0.008 125.402
Satisfied with your trip 5.88 (1.07) 0.928 0.022 41.784

5. Intention to revisit Intention to return for next golf vacation 5.33 (1.60) 0.945 0.010 98.102 0.949 0.861
Most likely to return for next golf vacation 5.21 (1.68) 0.948 0.009 103.009
High likelihood of return for a golf vacation 5.77 (1.37) 0.890 0.015 57.947

6. Search alternatives Effort looking for alternative golf destination 4.61 (1.94) 0.958 0.012 79.955 0.931 0.871
Continuously look for alternatives to golf destination 4.94 (1.80) 0.908 0.026 34.397

7. Word-of-mouth referral Would positively recommend to other people 5.87 (1.30) 0.987 0.003 321.335 0.993 0.980
Would be glad to refer other golf travelers 5.88 (1.26) 0.992 0.002 502.446
Would recommend to those who are planning a golf vacation 5.90 (1.24) 0.990 0.002 463.560

Note: All t-statistics are significant at 0.01 level; AVE ¼ average variance extracted.

As indicated by path loadings and the associated significance and satisfaction to ‘‘intention to revisit’’ (b ¼ 0. 293 and 0.496,
levels, the influences of service quality on value (b ¼ 0.185) and p < 0.05 and 0.01, respectively) suggesting support for H7b and
satisfaction (b ¼ 0.071) were not significant at the .05 level, H7c. Consistent with our theoretical expectation, value and
suggesting the rejection of H1 and H3. However, the significant satisfaction also had significant influences on the ‘‘word-of-
path loading (b ¼ 0.740, p < 0.01) suggested the significant mouth’’ behavioral intention variable (b ¼ 0.280 and 0.639,
influence of service quality on equity, supporting H4. The path p < 0.05 and 0.01, respectively), suggesting support for H8b and
loadings from equity to value and from equity to customer H8c.
satisfaction were also significant (b ¼ 0.574 and 0.499, respec- As shown in Fig. 2, our model has a relatively good prediction
tively; p < 0.01), providing support for H5 and H6. The significant power. For the service evaluation variables, the model explained
loading from value to satisfaction (b ¼ 0.499, p < 0.01) suggested 59.1% in ‘‘customer satisfaction,’’ and 52.1% in ‘‘perceived value.’’
that value had a significant influence on satisfaction, providing The model also explained 54.7% of the variance in the ‘‘equity’’
support for H2. variable. For the behavioral intention variables, our model
Regarding the outcome variables, service quality did not explained 70.2% of the variance in ‘‘word-of-mouth’’ and 52.2% of
influence any of the behavioral intention variables (i.e., intention the variance in ‘‘intention to revisit.’’ In contrast, only 7.1% of the
to revisit, word-of-mouth, and search for alternatives), resulting variance in ‘‘search for alternatives’’ was explained.
in a rejection of H7a, H8a, and H9a. Further, both value and
satisfaction had no significant influence on the ‘‘search for 5. Discussion and conclusions
alternatives’’ outcome variable, suggesting rejection of H9b and
H9c. However, there were significant path loadings from value The current study tested an integrative model to examine the
relationships between quality, value, equity, and satisfaction and
Table 2
to investigate the extent to which tourist behavioral intentions to
Inter-construct correlations revisit a destination, search for alternative destinations, and
positive WOM were influenced by the three service evaluation
1 2 3 4 5 6 7
variables of quality, value, and satisfaction. The model was
1. Service quality 0.927
empirically tested using surveyed data from 309 golf travelers. The
2. Perceived equity 0.740 0.967
3. Perceived value 0.610 0.711 0.936 implications for research and management, study limitations, and
4. Satisfaction 0.575 0.678 0.735 0.914 future research directions are discussed in the following
5. Intention to revisit 0.437 0.535 0.641 0.696 0.928 paragraphs.
6. Search alternatives 0.095* 0.134* 0.231* 0.239* 0.259* 0.933
7. Word-of-mouth 0.492 0.645 0.721 0.818 0.784 0.179* 0.990
5.1. Relationships between service evaluation variables
Note: Square root of average variance extracted (AVE) is shown on the diagonal of the
matrix; inter-construct correlation is shown off the diagonal.
*Not significant at the 0.05 significance level; correlations without * are significant at As shown in Fig. 2, our model explained 59.1% of the variance
the 0.05 significance level. in customer satisfaction and 52.1% of the variance in perceived
J. Hutchinson et al. / Tourism Management 30 (2009) 298–308 305

Service H7a: 0.027ns Intention


Quality H to Revisit
8a :
0.0

H 9a
46 ns R2=0.522

0 **

:-
H1:0.185ns

0.1
.74

10
4: 0

ns
H
*
3
.29
:0
H3: 0.071ns H 7b
H5: 0.574** H8b: 0.280* Word-of-
Equity Value
H Mouth
9b :
R2=0.547 R2=0.521 -0. R2=0.702
16
7 ns

H2: 0.499**
H6
:0
.49

*
96 *
**

9
**
9

0.4
3
: 0.6

7c :
H 8c

H
**p<0.01; *p<0.05; Search for
ns: not significant Satisfaction
H9c: -0.179ns Alternatives
R2=0.591 R2=0.071

Fig. 2. Results of model testing.

value. This confirms the importance of using the measure of significantly influenced ‘‘word-of-mouth’’ and ‘‘intention to
perceived value in the prediction of customer satisfaction, as revisit’’.
suggested by prior researchers (e.g., Oh, 2000; Woodruff, 1997), Based on the results of the current study, it appears that the
and supports other empirical evidence which has shown effects of service quality on intention to revisit and word-of-
perceived value to be an immediate antecedent in the prediction mouth may be mediated by first equity, then value, and finally
of customer satisfaction (e.g., Anderson & Sullivan, 1993; Brady satisfaction, which is an antecedent of intention to revisit and
et al., 2001; Cronin et al., 2000; Gottlieb et al., 1994; Oh, 1999; word-of-mouth (service quality / equity / value / satisfac-
Petrick & Bachman, 2002a; Patterson & Spreng, 1997; Tam, tion / intention to revisit and word-of-mouth). Further, satis-
2000). faction had a much higher influence on word-of-mouth than on
The perceived equity construct included in our research intention to revisit. This is similar to the findings in a study by
demonstrated high predictive capacity, with our collective model Kozak and Remington (2000), which suggested that satisfied
explaining 54.7% of the variance in equity. Our study found that tourists were more likely to positively recommend the travel
equity is an important consequence of service quality and a critical destination to others than to repeat their visits to that
antecedent of both value and satisfaction. This is consistent with destination.
the findings from other empirical studies that have included Our model explained only 7.1% of the variance in the ‘‘search
perceived equity as a key variable in the service evaluation process for alternatives’’ behavioral intention, as none of the three
(e.g., Hellier et al., 2003; Oliver, 1993; Oliver & DeSarbo, 1988; service evaluation variables (quality, value, and satisfaction) had
Oliver & Swan, 1989; Szymanski & Henard, 2001; Takala & Uusi- a significant influence on the ‘‘search for alternatives’’ outcome
talo, 1996). variable. This implies that even though golf travelers may
Our study’s results indicated that service quality had no perceive high levels of service quality, value, and satisfaction
direct effect on value and satisfaction, but indirectly influenced with their experiences at a travel destination, they may still
satisfaction through equity. Further, equity had both a direct search for alternative locations for future golf vacations. A better
effect on satisfaction and an indirect effect on satisfaction understanding of these results will require a further examination
through value. This supports prior research, which proposes that of other antecedent variables that may have more influence on
when customers perceive that services received meet or exceed a traveler’s search for alternatives behavior. For example, Petrick
their expectations, they also perceived to have been treated (2002b) reported that novelty was an important factor to
fairly and reasonably (e.g., Berry et al., 1994; Bitner, 1995; Bitner, influence golf travelers post vacation assessment and Kahn
Booms, & Mohr, 1994; Zahorik & Rust, 1992). Therefore, it (1995) suggested that a traveler’s search for alternatives
appears that the effects of service quality on satisfaction may be behavior may be influenced by their level of variety-seeking
mediated by first equity and then value (service quality / behavior.
equity / value / satisfaction), while the effects of equity on
satisfaction may be mediated to some extent by value (equity /
value / satisfaction), although equity also has a direct effect on 5.3. Research contributions
satisfaction.
The present study contributes to the literature in several ways.
5.2. Impact of service evaluation on behavioral intentions First, an integrative model was tested to simultaneously analyze
the relationships between quality, value, equity, and satisfaction
We proposed that all three service evaluation variables (quality, and to simultaneously investigate these three service evaluation
value, and satisfaction) would significantly influence consumer variables in the prediction of the three behavioral intention
behavioral intentions (i.e., intention to revisit, word-of-mouth, and measures (i.e., intentions to revisit, positive word-of-mouth
search for alternatives). Our collective model explained 70.2% of the communication, and search for alternatives). Although quality,
variance in ‘‘word-of-mouth’’ and 52.2% of the variance in ‘‘inten- value, and satisfaction issues have dominated the service litera-
tion to revisit.’’ As hypothesized, both value and satisfaction ture, few tourism studies have simultaneously analyzed their
306 J. Hutchinson et al. / Tourism Management 30 (2009) 298–308

relationships in predicting consumer behavioral intentions (Oh, 5.5. Limitations and future research directions
1999).
Second, although marketing literature has suggested that Although the present study significantly contributed to the
perceived value is the leading predictor of customer loyalty and literature, it has several limitations. First, the addition of golf travel
repurchase intentions (Parasuraman & Grewal, 2000; Woodruff, destinations in different geographical regions and the measure-
1997), this construct has been given little attention by tourism ment of golf travelers during all four seasons would have increased
researchers (Petrick & Bachman, 2002b). As shown in Fig. 2, our the external validity of the results. Second, the current study
model explained 52.1% of the variance in perceived value. These analyzed only golf travelers. Thus, future research may be con-
results, consistent with the value disconfirmation experience, ducted on different recreational activities in a variety of recrea-
suggest that value has a significant influence on satisfaction, which tional environments and settings, or among travelers who are not
calls for the use of perceived value in the prediction of customer participating in recreational activities. To further determine the
satisfaction, as recommended by prior researchers (e.g., Oh, 2000; potential of our model, additional research also is needed to
Woodruff, 1997). investigate the model’s effectiveness in other industry settings.
Third, the construct of perceived equity has rarely been used in Finally, the integrative model used in the present study should be
service-oriented research, with this critical construct not even expanded to include additional variables that are likely to influence
being included in any of the three major general frameworks (i.e., tourists’ behavior in different contexts.
satisfaction, value, or quality). Our findings support the critical
importance of the integration of the perceived equity construct into Acknowledgment
these collective models. Based on the results of our research, we
recommend that perceived equity be included as a consequent The authors would like to express their gratitude to Mr. Kevin
variable to quality and an antecedent variable to value and satis- Drum, Executive Director of the Mississippi Gulf Coast Golf Asso-
faction in future models. ciation, and the members for their assistance in the development of
Fourth, unlike most prior research, we modeled behavioral the survey instrument, printing and mailing all survey materials,
intention variables separately. The separation of behavioral inten- and the receipt and distribution of completed surveys back to the
tions into three dimensions may have provided more insight into researchers.
these behaviors. For example, our model explained 70.2% of the
variance in word-of-mouth and 52.2% in intention to revisit, and
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