THE INFLUENCE OF CUSTOMER PERCEPTIONS ON FINANCIAL PERFORMANCE IN HOSPITALITY ORGANIZATIONS: AN EMPIRICAL STUDY

The purpose of this study is to develop and empirically test a model that examines the relationship between customer perceptions and financial performance in hospitality organizations. A survey has been undertaken in hospitality organizations with a sample size of 387 based on simple random sampling. Meta-analysis of literature was the basis for developing the metric that included the variables constituting the hypothetical research model. The tool used for data analysis was structural equation modeling with partial least square technique. Results indicate that both the product- and nonproduct-related attributes have positive and significant influence on symbolic benefits and experiential benefits, which in turn positively influence customer satisfaction. Further, customer satisfaction positively influences financial services. The findings suggest that financial service managers should consider treating customers as partners in services on their quest to develop successful new services in hospitality organizations. Reciprocal behavior will foster a positive atmosphere, remove barriers arising from risk, and enable relationships to progress, ultimately improving customer satisfaction and financial performance. There are not many models available that deal with the antecedents of customer satisfaction (in terms of the product- and non-product related attributes and the functional, symbolic, and experiential benefits) and financial performance. This study adds to the body of knowledge in this emerging area