The paper studies the role and influence of operational capability and competitive market drivers required for satisfying customers with innovative service that encourages customer promotion behaviour in the Chinese context. Based on inside out and outside in strategies that include both resource based view and market priorities, the study develop models to match innovative service satisfaction with customer promotion behaviour. We captured the importance of operational capability drivers on innovative service satisfaction, market priority drivers on customer promotion behaviour and the match between innovative service satisfaction and customer promotion behaviour using three models. We carried out an empirical survey to validate our three models and hypotheses. We find operational capability drivers such as physical product, staff attributes and services have positive relationship with innovative service satisfaction. In terms of market priority drivers' budget hotels have to concentrate on location and image. Finally, we find that budget hotel can be successful if it is able to convert service satisfaction to increase customer promotion behaviour. The major contributions of this study are to propose models integrating consumer behaviour and service operations literature and to validate our innovative service satisfaction and customer promotion behaviour models in the Chinese budget hotel context.
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering