Hotel Corporate Social Responsibility

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Hotel Corporate Social Responsibility Guest Satisfaction, and Repeat Purchase Intention in China’s Domestic Hotel Market A thesis submitted in fulfillment of the requirements for the degree of Doctor of Philosophy at The University of Waikato by Zhao Kuan 2013 Abstract The fast development of China’s economy in the past two decades has created a series of CSR related problems, for instance, customer and employee rights, environmental pollution, natural resource shortage, and community relations. The effects of these issues on Chinese society have, to a degree, become a focus of a public debate aided by the emergence of the mobile Internet. Consequently corporate social responsibility (CSR) policies are being adopted by a growing number of Chinese companies, including those in the hotel sector. By adopting a composite methodology of qualitative and quantitative approaches, this thesis aims to obtain an understanding of hotel CSR policies in China from the guest’s perspective by identifying their assessments of a hotel’s CSR performance and the impacts that may follow for repeat purchasing intentions of hotel accommodation. Based on a literature review, this thesis first proposed a four dimensional CSR scale, which covers customer, environment, employee and community, and then attempted to measure how customers perceive hotel CSR policies and the relevant consequences for their future patronage of a hotel. Additionally this thesis also introduced for the first time as far as the author is aware, the concept that a guest’s familiarity with CSR is a possible determinant of future repeat patronage. Subsequently a research model was proposed to reveal the influence of hotel CSR policies determining guests’ choice of hotel. A total of 817 valid questionnaires were collected, and the dataset was analyzed by SPSS 19.0 using reliability and validity analysis, exploratory factor analysis, cluster and discriminant analysis, ANOVA, multi-approach regression analysis and structural equation modeling. The followings results were obtained. i First, social demographic factors, that is gender, age, education background, occupation, income and marital status do not play significant roles in affecting customers’ purchase intention under the influence of CSR. Second, five distinct types of customers were found to have different attitudes towards hotel CSR policies, which could positively affect their satisfaction level and future purchase intention. This result showed the diversity of customers in terms of CSR, and laid a theoretical foundation for hotel marketers to offer customers customized CSR policies in order to retain guests. Third, two community related variables, namely hotels’ effort to provide local people with job opportunities and their respecting local culture and customs were found to be significant for guests’ purchase intention. Hotel managerial expertise was also found to have significance. The findings of other research that Chinese hoteliers’ efforts to create environmental friendly hotels is not a compelling reason for guests to book with a particular hotel, is also supported by this research. Fourth, hotels’ efforts to market their CSR practices or policies could potentially exert direct impact over customers’ future purchase intention by making guests aware of the importance of CSR polices if basic guest needs are being met. Last but not least, based on the results obtained from this research, suggestions for hotel management on how to enhance customers’ repeat consumption from a CSR standpoint were given, and future possible directions of similar research were also provided. ii Acknowledgments The past years of my PhD study formed a significant part of my life. When I just started my programme, it looked like a huge obstacle which seemed impossible to overcome, and this goal has been indeed achieved with the help of many people. First, I have to admit that I have been really fortunate enough to have the privilege to be a student of Professor Chris Ryan, the best supervisor I have ever met, who has himself significant academic achievements, as well the most pleasant of personalities. He has always aided me with valuable suggestions, and a careful and detailed examination of my research. As a mentor, what he has taught me is not only the enlargement of academic vision, but also the right attitude towards life, which is more valuable for my growth. Second, I would like to extend my great appreciation to Professor Gu Huimin, who introduced me to Professor Ryan some five years ago. Professor Gu is not only my second PhD supervisor, but also was my teacher for my master’s degree. Her consistent pursuit of excellence and perfection in academic research has inspired me even before I started my PhD program. Besides the academic supervision, Professor Gu also provided guidance on how to become a qualified hospitality manager, and how I should combine academic knowledge with my practical work. My grateful thanks also extend to Associate Professor Asad Mohsin, my third supervisor for his continuing support for my research, and constructive advice for better improvement. I also want to express my appreciation to the examiners of my thesis, Professor Nigel Hemington and Professor Rachel Chen. Their patience and suggestions contributed to the completion of this thesis. iii Last but not the least, I would like to express my most sincere gratitude to my mother, Mrs. Cao Xirong, who witnessed the start of this journey but who did not have an opportunity to enjoy it with me. My greatest thanks also go to my whole family and my fiancée Arlene Zhang. Without the love they have given me, I may not have had the means to accomplish this. Thank you all for being with me in this unforgettable PhD experience! iv Table of Contents ABSTRACT .................................................................................................................... I ACKNOWLEDGEMENTS ................................................................................................. III TABLE OF CONTENTS..................................................................................................... V LIST OF TABLES .......................................................................................................... VIII LIST OF FIGURES ........................................................................................................... X CHAPTER 1 INTRODUCTION ........................................................................................... 1 Research Background…………………………………………..…………….…………....… I Research Purpose and nificance………………………………………………….…….5 Thesis Structure ……………………………………………………………………11. Conclusion………………………………………………………………………………15. CHAPTER 2 THE EVOLUTION OF CHINA’S HOTEL INDUSTRY……………… …………………………………………………. … ..19 Introduction…………………………………………………………………………….19. Overview of China’s Hotel Industry before Modernisation…………………….. 19 Recovery Phase 1978-1988 20: Fast Growth Phase: 1989-1999…………………………………………………….22 Steady Development Phase: 2000 and Afterwards………………………….… 27 Hotel Customers’ Purchase Preferences in China………………..……..…..…..32 Conclusion……………………………………………………………………………………………………………….…41 CHAPTER 3 HOTEL CSR PRACTICES IN CHINA………………………….……43 Introduction………………………………………………………………………………………………………..….……...43 A Websites Comparative Study……………………………………………………..41 v Hotel CSR Best Practices in China .................................................................. .. 46 Conclusion ............................................................................................................... 58 CHAPTER 4 LITERATURE REVIEW .............................................................................. 60 Introduction .............................................................................................................. 60 The Evolution of Corporate Social Responsibility ................................................... 60 CSR and Consumer Purchase Intention ................................................................... 77 CSR Research in the Hotel Industry ......................................................................... 93 Conclusion ..............................................................................................................111 CHAPTER 5 RESEARCH METHODOLOGY ................................................................... 113 Introduction ............................................................................................................ 113 Research Paradigm ................................................................................................ 113 Research Methodology ........................................................................................... 116 Research Design ....................................................................................................

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