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Loyalty membership for luxury hotels in Malaysia

Loyalty membership for luxury hotels in Malaysia Loyalty membership is widely used as a marketing strategy to secure customer’s loyalty in many business sectors. The purpose of this paper is to focus on loyalty membership of customer in Malaysian luxury hotels, specifically, in the capital city of Kuala Lumpur, Malaysia by looking into the perceived value of economic, interaction and psychological needs.Design/methodology/approachQuantitative cross-sectional research was conducted to explore the feedback from customers who have loyalty membership with a luxury hotel. Surveyed data of 489 respondents were analysed using confirmatory factor analysis and structural equation modelling.FindingsThere is a significant positive relationship between the psychological needs and perceived value. The relationship between the perceived value and customer’s loyalty is also significant and positive. However, there is no significant relationship between the economic value and the interaction constructs with the perceived value. The perceived value functions as a mediator for the economic value, interaction and psychological needs in respect of customer’s loyalty.Practical implicationsHotel management should prioritise addressing the elements of psychological needs to enhance the perceived value from the customers’ perspective. The strength of the perceived value indirectly stimulates customer’s loyalty to a hotel, followed by the interaction and economic value from the customer value perspective to ensure customer’s loyalty.Originality/valueThis research highlights on how customers can be secured by a luxury hotel chain through a loyalty membership strategy. The knowledge generated from this research is expected to provide insights to practitioners on how to enhance their loyalty membership marketing strategy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Tourism Cities Emerald Publishing

Loyalty membership for luxury hotels in Malaysia

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References (65)

Publisher
Emerald Publishing
Copyright
© International Tourism Studies Association
ISSN
2056-5607
DOI
10.1108/ijtc-01-2017-0004
Publisher site
See Article on Publisher Site

Abstract

Loyalty membership is widely used as a marketing strategy to secure customer’s loyalty in many business sectors. The purpose of this paper is to focus on loyalty membership of customer in Malaysian luxury hotels, specifically, in the capital city of Kuala Lumpur, Malaysia by looking into the perceived value of economic, interaction and psychological needs.Design/methodology/approachQuantitative cross-sectional research was conducted to explore the feedback from customers who have loyalty membership with a luxury hotel. Surveyed data of 489 respondents were analysed using confirmatory factor analysis and structural equation modelling.FindingsThere is a significant positive relationship between the psychological needs and perceived value. The relationship between the perceived value and customer’s loyalty is also significant and positive. However, there is no significant relationship between the economic value and the interaction constructs with the perceived value. The perceived value functions as a mediator for the economic value, interaction and psychological needs in respect of customer’s loyalty.Practical implicationsHotel management should prioritise addressing the elements of psychological needs to enhance the perceived value from the customers’ perspective. The strength of the perceived value indirectly stimulates customer’s loyalty to a hotel, followed by the interaction and economic value from the customer value perspective to ensure customer’s loyalty.Originality/valueThis research highlights on how customers can be secured by a luxury hotel chain through a loyalty membership strategy. The knowledge generated from this research is expected to provide insights to practitioners on how to enhance their loyalty membership marketing strategy.

Journal

International Journal of Tourism Cities – Emerald Publishing

Published: May 23, 2018

Keywords: Hotel; Perceived value; Interaction; Economic value; Psychological needs; Loyalty membership

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