A Study of the Impact of Relational Benefits and Relationship Marketing on Purchase Intention in the Lodging Industry

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A Study of the Impact of Relational Benefits and Relationship Marketing on Purchase Intention in the Lodging Industry A STUDY OF THE IMPACT OF RELATIONAL BENEFITS AND RELATIONSHIP MARKETING ON PURCHASE INTENTION IN THE LODGING INDUSTRY By CHRISTY YEN NEE NG Bachelor of Science in Marketing Oklahoma State University Stillwater, Oklahoma 2001 Master of Science in Hospitality Administration Oklahoma State University Stillwater, OK 2005 Submitted to the Faculty of the Graduate College of the Oklahoma State University in partial fulfillment of the requirements for the Degree of DOCTOR OF PHILOSOPHY July, 2010 A STUDY OF THE IMPACT OF RELATIONAL BENEFITS AND RELATIONSHIP MARKETING ON PURCHASE INTENTION IN THE LODGING INDUSTRY Dissertation Approved: Dr. Radesh Palakurthi Dissertation Adviser Dr. Bill Ryan Dr. Jerrold K. Leong Dr. Tom J. Brown Dr. Mark E. Payton Dean of the Graduate College ii ACKNOWLEDGMENTS I would like to express the deepest appreciation to my chair, advisor, and mentor, Dr. Radesh Palakurthi, who has the attitude and the substance of a genius: he continually and convincingly conveyed a spirit of adventure in regard to research and scholarship, and an excitement in regard to teaching. Without his guidance and persistent help this dissertation would not have been possible. I would also like to thank my committee members, Dr. Bill Ryan, Dr. Jerrold Leong, and Dr. Tom Brown, for their time, expertise effort, and concern. My thanks also go to Mrs. Sharon Gallon, Mrs. Lynn Smith, and Mr. Joe Nelson who generously helped me throughout the years, and gave me courteous encouragement. My gratitude also goes to my dear friends, Ms. Pimtong Tavitiyaman, Ms. Emily Ma, Ms. MinYen Ku, Ms. Wanlanai Saiprasert, Ms. Suna Lee, Ms. Lisa Kim, Ms. Gloria Liu, Mrs. Luying Simons, Mrs. Carrie Norman, Ms. Sheryl Zhang, and Ms. Emily Su for their kindness. I would like to take this opportunity to thank Dr. Qu and Ms. Qu for their encouragement and support. Her warm smile and wonderful Asian cuisines will definitely be part of my unforgettable memories in Stillwater. iii A very special appreciation to my husband, Jerome Keong, for his love, patience, understanding, encourage, and support. Your tolerance level made me of who I am today. I would like to express my profound gratitude to my mom, my sister - one and all – for always being there to offer endless love, listen, support, and understanding. iv TABLE OF CONTENTS Chapter Page I. INTRODUCTION ......................................................................................................1 Marketing and relationship marketing .....................................................................1 Scope of the study ....................................................................................................5 Purpose of the study .................................................................................................5 Objectives of the study.............................................................................................6 Significance of the study ..........................................................................................6 Definition of concepts ..............................................................................................8 Organization of the study .......................................................................................10 II. REVIEW OF LITERATURE..................................................................................11 Relationship Marketing ..........................................................................................11 The Relationship Development Process ................................................................15 The Benefits of Relationship Marketing ................................................................18 Corporate Reputation .............................................................................................19 Customer Satisfaction ............................................................................................24 Relational Benefits .................................................................................................25 Model 1. Corporate Reputation as a Relationship Development Outcome ...........27 Model 2. Purchase Intention as a Final Outcome ..................................................31 III. METHODOLOGY ................................................................................................44 Research Design.....................................................................................................44 Instrument ..............................................................................................................45 Pilot Test ................................................................................................................47 Sampling Plan ........................................................................................................50 Data Collection ......................................................................................................52 Data Analysis .........................................................................................................53 v Chapter Page IV. FINDINGS .............................................................................................................63 Demographic Profiles of the Respondents .............................................................63 Confirmatory factor Analysis of the Measurement Model ....................................66 Assessment of the Measurement Model ................................................................68 Structural Model ....................................................................................................72 Testing of the Hypotheses ......................................................................................75 V. CONCLUSION ......................................................................................................80 Summary and Discussion of Findings ...................................................................80 Managerial Implication ..........................................................................................85 Limitations and Suggestions for Future Research .................................................88 REFERENCES ............................................................................................................89 APPENDICES ...........................................................................................................108 vi LIST OF TABLES Table Page 1 Definition of relationship marketing ......................................................................12 2 A comparison of discrete transactions and relational exchange ............................14 3 Definitions of corporate reputation ........................................................................20 4 Definitions of corporate reputation and studies .....................................................21 5 Summary of objectives and hypotheses of the study .............................................43 6 Summary of instruments of this study ...................................................................46 7 Reliability of the dimensions measured with the instrument .................................48 8 Number of item for each construct ........................................................................52 9 Guidelines for measurement fit ..............................................................................54 10 Summary of fit indices .........................................................................................58 11 Demographic and hotel characteristics of respondents ........................................66 12 Business travelers’ perceptions of relational benefits dimension ........................67 13 Mean scores for the endogenous variables in the structural model .....................68 14 Comparison of the factors of male and female respondents ................................69 15 Comparison of the fit indices of the measurement model ...................................72 16 LISREL results for the measurement model ........................................................75 17 The phi matrix of the measurement model ..........................................................77 18 LISREL results for the structural model ..............................................................79 19 The phi matrix of the structural model ................................................................81 20 Comparison of the fit indices of the measurement and structural models ...........81 21 Fit statistics for the structural model ....................................................................82 22 Summary of hypothesized path testing ................................................................85 vii LIST OF FIGURES Figure Page 1 Organization of the study .......................................................................................10 2 Model 1. Corporate reputation as a relationship development outcome ...............30 3 Model 2. Purchase intention as a final outcome ....................................................41 4 The completed conceptual model of the study ......................................................42 5 The six-stage of structural equation modeling .......................................................60 6 Path diagram for the measurement model and structural model............................61 7 Research framework ..............................................................................................62 8 The standardized structural path coefficients in the structural
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