The Effects of Transaction–Specific Satisfactions and Integrated Satisfaction on Customer Loyalty Bo Wendy Gao and Ivan Ka Wai Lai International Journal of Hospitality Management 44 (2015) 38–47

Abstract Integrated resorts provide different leisure services including casinos, hotels, food and beverage (F&B), and shopping. Tourists staying in an integrated resort would experience a wide range of transactional services. This study aims to investigate the relative influence of each transactional service on the level of integrated satisfaction within an integrated resort and their effects on customer loyalty. Partial least squares analysis is used to analyze the data collected from 601 tourists in Macau. The main findings are as follows: integrated satisfaction is influenced by transaction-specific satisfactions in different levels; integrated satisfaction has a strong direct influence on customer loyalty; and integrated satisfaction has a fully mediating effect on B&F satisfaction/ customer loyalty, a partially mediating effects on hotel and casino satisfaction/ customer loyalty, and a partially mediating and moderating effect on shopping satisfactions/ customer loyalty.

Introduction Customer satisfaction and loyalty have been studied for decades especially in hospitality and tourism But most studies only examine customer satisfaction and loyalty in a particular service Tourists staying in an integrated resort would experience all transactional services and their satisfaction relating to each individual service transaction may affect their overall satisfaction with that resort The integrated satisfaction with an integrated resort may ultimately influence their customer loyalty towards the resort itself This study fills a gap in the literature as it examines the relationship among transaction-specific satisfaction, integrated satisfaction, and customer loyalty towards an integrated resort.

Transaction-specific satisfaction and overall satisfaction models Jones, M. A., Suh, J., 2000. Transaction-specific satisfaction and overall satisfaction: an empirical analysis. Journal of Services Marketing 14(2): 147–159.

Research Models

Research Models

Research Models

Hypotheses Hypothesis 1: The satisfaction of F&B service has a positive impact on the satisfaction level with an integrated resort. Hypothesis 2: The satisfaction with hotel service has a positive impact on the satisfaction levels with an integrated resort. Hypothesis 3: Satisfaction with casino service has a positive impact on the satisfaction level with an integrated resort. Hypothesis 4: Satisfaction with the shopping experience has a positive impact on the satisfaction level with an integrated resort. Hypothesis 5: Integrated customer satisfaction with an integrated resort has a positive impact on customer loyalty toward the integrated resort.

Instrument F&B Satisfaction Hotel Satisfaction Overall I was satisfied with the food quality offered at the restaurant(s). Overall I was satisfied with the food price charged at the restaurant(s). Overall I was satisfied with the atmosphere of the restaurant(s). Overall I was satisfied with the service provided at the restaurant(s). Hotel Satisfaction Overall I was satisfied with the cleanliness of the hotel. Overall I was satisfied with the room rates of the hotel. Overall I was satisfied with the hotel amenities. Overall I was satisfied with the staff attitude of the hotel.

Instrument Casino Satisfaction Shopping Satisfaction Overall I was satisfied with the variety of games offered at the casino. Overall I was satisfied with the physical facilities of the casino. Overall I was satisfied with the atmosphere of the casino. Overall I was satisfied with the staff attitude at the casino. Shopping Satisfaction Overall I was satisfied with the wide variety of stores of the shopping mall. Overall I was satisfied with the best selling brands offered at this shopping mall. Overall I was satisfied with the shop assistants service at this shopping mall. Overall I was satisfied with the design of mall’s architecture. Overall I was satisfied with the sufficient information of fashion trends and product features offered at this mall. Overall I was satisfied with the sufficient number of sales, promotions, discounts, and bargains offered at this mall.

Instrument Integrated Customer Satisfaction with the integrated resort Overall I was satisfied with the service offered at this integrated resort. Overall I think it is value for money and time to visit this integrated resort. Overall the experience I have at this integrated resort meet my expectation. Customer Loyalty towards the integrated resort I will share my experience about this integrated resort with others. I will make positive comment(s) about this integrated resort I will recommend this integrated resort to others I will plan to revisit this integrated resort (when visiting Macau next time)

Data Collection The interviewer-administered survey was conducted from May to June 2013 in three mega-sized integrated resorts in Macau, namely The Venetian Macao, City of Dreams, and Galaxy. Four screening questions were asked in order to guarantee respondents had experienced the following four services in a single integrated resort: F&B, hotel, casino, and shopping. A total of 636 completed questionnaires. 601 questionnaires as valid for analysis.

The Results of PLS Analysis

Model Comparison

Contribution in Theories The concept of integrated satisfaction In previous studies, when customer satisfaction is measured, researchers only consider whether the satisfaction measure is based on the transaction-specific or overall satisfaction This study has shown the existence of a new form of satisfaction – integrated satisfaction - which is not the same as overall satisfaction. Integrated satisfaction is the overall satisfaction with an entity which provides a set of services.

Contribution in Theories Service similarity High similarity in service shows the full mediating effect of integrated satisfaction Medium similarity in service has a partial mediating effect of integrated satisfaction Low similarity in service has a partial mediating and moderating effect on integrated satisfaction Service similarity may be a possible explanation for the full mediating/partial mediating/ partial mediating and moderating effects on integrated satisfaction

Contribution in Theories the theory of customer satisfaction Model B tests the partial mediation role of integrated satisfaction on customer loyalty and the results show that influence of transaction-specific satisfaction decreases when integrated satisfaction is controlled. Model C tests the partial mediation and moderation of integrated satisfaction. The results show that interaction between four transaction-specific satisfactions and integrated satisfaction is significant.

Contribution in Theories the theory of customer satisfaction Integrated satisfaction in different transactional services plays different roles. For F&B service, integrated satisfaction plays a full mediating role. For hotel and casino services, integrated satisfaction plays a partial mediating role. For shopping service, integrated satisfaction plays a partial mediating and moderating role.

Contribution in Theories the theory of customer satisfaction the results of this study indicate that different roles (full mediation, partial mediation, partial mediation and moderation) of integrated satisfaction are appropriate for different kinds of transactional services in case a customer enjoys several transactional services from an integrated service provider.