Customer Value And Tourism Satisfaction: A Multidimensional Perspective Paul Williams, American University of Sharjah, UAE Geoffrey Soutar,

University of Western Australia Abstract This paper reports on a research study into customer value and tourism satisfaction. It used a multidimensional framework to measure customer value in a tourism context including not only a functional dimension of value, but also the additional dimensions of social value, emotional value and epistemic (or novelty) value. It was expected that this broader conceptualization of value would provide a more accurate and holistic perspective of customer value perceptions in a tourism context. The study found that customer value is indeed a multi-dimensional construct, and has a strong, positive influence on customer satisfaction in a tourism setting. Additionally, the performance-only measures of value were found to explain the variance in customer satisfaction better than the measures of value calculated with an expectancy-disconfirmation approach. Introduction Customer value seems to be a critical element in consumers decision making behaviour (Zeithaml, 1988; Sheth, Newman and Gross, 1991; Sweeney, Soutar and Johnson, 1999). The construct has traditionally been approached from a functional utility perspective, with the construct seen as a trade-off between quality and price (Cravens et al., 1988; Dodds, 1991). However, functional value may not be appropriate in a tourism setting as such a trade-off model is too simplistic for service-based consumption experiences (Schechter, 1984; Bolton and Drew, 1991). The functional notion of value is central to economic exchange theory, but is also relevant to marketing theory, where buyers and sellers infer value from a comparison of the benefits received to the costs incurred (Zeithaml 1988; Gale, 1994; Treacy and Wiersma, 1995; Dodds et al., 1991; Bolton and Drew, 1991; Sinha and DeSarbo, 1998; Sweeney, Soutar and Johnson, 1997). Perceived price and perceived quality are antecedents to value, with satisfaction being the most common suggested consequence of value perceptions. A summary of the functional perspective was offered by Zeithaml (1988, p. 14), who suggested perceived value can be thought of as a consumer's overall assessment of the utility of a product, based on what is received and what is given. However, it has been suggested that a multidimensional approach may be more suitable in service contexts (Zeithaml 1988; Sheth, Newman and Gross 1991; Woodruff 1997; Sweeney, Soutar Johnson 1999; De Ruyter at al. 1997; Sweeney and Soutar 2001). In the service sector, sociological and psychological aspects, which Zeithaml (1988) termed higher order abstractions, may be more important because of the interaction between producers and consumers and the heterogeneous nature of the service experience (Holbrook, 1994). Similarly, in many services contexts, value perceptions differ from those made for goods, due to the greater risk and uncertainty inherent in many services (Murray and Schlacter, 1990; Zeithaml, 1981). In tourism, like most other services, the consumption experience is complicated by intangibility, dynamism and subjectivity (Botterill and Crompton, 1996; OGuinn and Belk,

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1989; Jayanti and Ghosh, 1996). Tourism consumption experiences include a complex mix of functional, objective and tangible components (e.g. travelling, eating, drinking, and recreating), but also include subjective, hedonic, emotional and symbolic components (e.g. enjoying, laughing, socialising and having fun). Otto and Ritchie (1996) recognised the multidimensional elements of the experience, developing a scale to measure the tangible and intangible elements of the tourism service experience. They found four experience dimensions, which they termed hedonics, peace of mind, involvement, and recognition. While a number of studies have researched the nature of tourism consumption experiences (e.g. Unger and Kernan, 1983; Gunter, 1987; Botterill and Crompton, 1996; Urry, 1990b; Cohen, 1979, 1988; Ryan, 1997), there is still a lack of understanding about the nature of the experiences or their relationship with marketing concepts, such as service quality, customer value or satisfaction. Given these issues, it is clear that more information on value in tourism contexts is needed and the present paper reports on a study that used a multidimensional framework to measure customer value in such a context. While it included a functional value dimension, several other value dimensions were included (social value, emotional value and epistemic (or novelty) value). It was expected that these additional dimensions would provide a more accurate and holistic perspective of customer value perceptions in a tourism context. The study built on the existing knowledge about customer value using a multi-dimensional value framework developed by Sweeney and Soutar (2001). In addition the study measured the value perceptions at two stages of consumption (pre-consumption and post-consumption) that allowed comparisons between disconfirmed value perceptions and performance-only value perceptions. Customer Value and Satisfaction Several studies have examined the relationships between quality, value, and satisfaction, as well as other post-purchase constructs, such as loyalty, word of mouth and repurchase intentions (Cronin and Taylor, 1992; Bolton, 1998; Ostrom and Iacobucci, 1995; Fornell et al., 1996; Chang and Wildt, 1994). Patterson and Spreng (1997), for example, noted that existing satisfaction models rarely addressed functional and non-functional benefits. Cronin, Brady and Hult (2000) claimed there was a divergence of opinion about the relationships (both direct and indirect) between quality, value, satisfaction and behavioural intentions. While many differences are evident, a partial consensus has been reached (e.g. Cronin et al., 2000) that suggests: Customer satisfaction is associated with value (Athanassopoulos, 2000). Satisfaction is affected by service quality and value (Fornell et al., 1996) Service quality perceptions affect satisfaction (Parasuraman et al., 1985; 1988; Cronin and Taylor, 1992) Service quality and value appraisals precede satisfaction (Bagozzi, 1992; Oliver, 1997)

The present study examined these suggested relationships in a tourism context by looking at the relationship between functional value dimensions (price and quality), socio-psychological value dimensions (emotional, social and epistemic) and satisfaction. While the model tested was based on prior value models (e.g. Woodruff, 1997; Sheth, Newman and Gross, 1991; Sweeney and Soutar 2001), refinements were made to take account of the studys tourism context.

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The Present Study Data were collected from paying customers on a number of four-wheel drive day tours to the Pinnacles in Western Australia from December 1999 to January 2000. Self-completion questionnaires were used to collect the data from tourists before and after their adventure tour experience. The questionnaire included 7-point scales adapted from a number of sources, including: The PERVAL scale developed by Sweeney and Soutar (2001) The consumption value model suggested Sheth Newman and Gross (1991) A customer satisfaction scale developed by Oliver (1997). Prior research into adventure tourism consumption (Christiansen, 1990; Ewert, 1989; Hall and MacCarthur, 1991; Martin and Priest, 1986; Weber, 2001). Refinements made as a result of data collected from some prior focus groups that helped in the operationalisation of the novelty value construct and contextualizing other dimensions of this type of tourism experience.

Data were collected at two stages of consumption (at the start of the tour when customers were seated on the bus and at the end of the day when the tour was almost completed), allowing disconfirmation scores to be calculated, which overcame criticisms of prior studies that measured expectations and disconfirmation of expectations after the event (Carman, 1990; Babakus and Boller, 1992; Teas, 1993; ONeill, Palmer and Beggs, 1998). The data analysis followed a two-stage procedure. The first stage involved the calculation of composite constructs for the various constructs. Confirmatory factor analysis was used to estimate one-factor congeneric (composite) constructs that reflected the relationships between the latent construct and its observed variables (items in the questionnaire) (Holmes-Smith and Rowe, 1994; McGill, Hobbs and Klobas, 2003). The major advantage of a congeneric model is that each item can have a different impact on the latent variable. This allows for variations in the degree to which each item contributes to the latent variable, which is more realistic than assuming equal weights (Holmes-Smith and Rowe, 1994), as has often been the case in similar studies, where simple summated scales have been used to represent a construct, once internal consistency has been verified (Churchill, 1979; Bagozzi and Baumgartner, 1994). In the second stage of the data analysis, these composite constructs were used to estimate regressions that explored the relationships between the various value dimensions and satisfaction. The Statistical Package for the Social Sciences (SPSS) was used to estimate the regressions and to assess the magnitude, direction and statistical significance of the suggested relationships. The Results Obtained As was noted in the last section, the composite constructs were calculated as congeneric variables and Table 1 shows the means and standard deviations of the disconfirmed (calculated as the difference between Post tour measures and Pre-tour measures) value dimensions and the received value dimensions (Post-tour measures only) as well as the satisfaction construct. As can be seen from the Table, respondents felt they received moderate value although, interestingly, the greatest value received was emotional, while the least value received was social. The mean satisfaction score suggested most respondents were happy with their adventure tour.

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Table 1: Descriptive Statistics for the Constructs Construct Novelty Value Emotional Value Social Value Value for money Functional Value Satisfaction Mean 4.75 5.04 3.01 4.68 4.82 5.41 Received Std. Deviation 0.60 0.83 1.56 0.90 0.77 0.92 Disconfirmed Mean Std. Deviation -0.92 0.75 0.66 0.84 0.09 1.27 0.21 1.01 0.53 0.96 na na

As the analysis was exploratory in nature, stepwise multiple regressions were used to examine the suggested relationships between value and satisfaction (Hair et al., 1998). Table 2 shows the results of regressing satisfaction with the disconfirmed value dimensions, while Table 3 shows the results of regressing satisfaction on the received value dimensions (Post-tour measures only). Table 2: Multiple Regression of Satisfaction on Disconfirmed Value Dimensions Construct Constant Novelty Value Value for Money Emotional Value Functional Value Social Value B 5.41 0.30 0.12 0.15 Std Error 0.05 0.09 0.06 0.07 Beta 0.20 0.15 0.14 t 115.26 3.30 2.17 2.09 Sig. 0.00 0.00 0.03 0.04 n.s. n.s. VIF 1.21 1.54 1.57 -

The estimated regression was significant (F=16.55, p<0.001). However, the adjusted R square was only 0.15, suggesting the disconfirmed value dimensions did not explain customer satisfaction very well. The three beta coefficients were 0.20 for disconfirmed novelty value, 0.15 for disconfirmed value for money and 0.14 for disconfirmed emotional value, suggesting they had positive, but weak, influences on satisfaction. Disconfirmed novelty value had marginally the greatest impact on satisfaction, but all were of similar value. Two value dimensions, disconfirmed functional value and disconfirmed social value were not significantly related to customer satisfaction. The low VIF figures (below 10) suggested multicollinearity was not an issue and there was no evidence regression analysis assumptions had been violated. Table 3: Multiple Regression of Satisfaction on Received Value Dimensions Construct Constant Emotional Value Value for Money Novelty Value Functional Value Social Value B 0.07 0.59 0.27 0.24 Std. Err. 0.20 0.04 0.04 0.05 Beta 0.54 0.29 0.17 t 0.34 13.09 6.92 4.92 Sig. 0.73 0.00 0.00 0.00 n.s. n.s. VIF 2.09 2.10 1.51 -

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The regression was significant (F=315.66, p<0.001), with three of the value dimensions being significantly related to satisfaction, jointly explaining 77% of the variance. Three value dimensions included in the regression had standardised (beta) coefficients of 0.54 for received emotional value, 0.29 for received value for money and 0.17 for received novelty value, suggesting they had positive influences on satisfaction, although emotional value was a more important predictor than were the other two constructs. The low variance inflation factor (VIF) statistics suggested multicollinearity was not a problem in the regression analysis and there was no evidence that regression analysis assumptions had been violated. Again the same value dimensions (received functional value and received social value) were not significantly related to satisfaction. Discussion Several value dimensions were shown to impact on satisfaction, in particular when value was measured at the end of a consumption experience. This supports the views of a number of authors who have empirically tested this relationship in other contexts (e.g. Anderson, Fornell and Lehmann, 1994; de Ruyter et al, 1997; Ennew and Binks, 1999; Patterson and Spreng, 1997; Woodruff, Schuman and Gardial, 1993). It seems adventure tour operators who succeed in providing customer value, particularly emotional value, value for money and novelty value, are more likely to have satisfied customers. The results support the applicability of Sheth, Newman and Grosss (1991) value model in an adventure tourism context. Various customer value dimensions contributed additively and incrementally to satisfaction. The use of a multidimensional value scale provided a richer portrayal of the dynamics surrounding satisfaction and improved the potential explanatory power of the value construct (McDougall and Levesque, 2000). The present study also examined the predictive ability of received and disconfirmed measures of value. The received value dimensions explained more of the variance in satisfaction (77%) than did the disconfirmed value dimensions (15%). This raises questions about the use of the expectancy-disconfirmation paradigm in a value framework and also its use in a tourism context. Several satisfaction studies have been based on the theoretical conceptualisation that satisfaction or dissatisfaction occurs when consumers make a comparison between perceived performance and a pre-consumption comparison standard (Yi, 1990). This disconfirmation model has received considerable empirical support (Boulding et al., 1993; Churchill and Suprenant, 1982; Oliver, 1980; Oliver and DeSarbo, 1988; Westbrook and Oliver, 1991). The present study, however, lends support to a number of other studies that have shown the expectancy disconfirmation to be a less useful predictor of satisfaction than direct performance measures (Babakus and Boller, 1992; Anderson and Sullivan, 1993; Cronin and Taylor, 1994; Baker and Crompton, 2000). Although these earlier studies primarily focussed on service quality and its relationship with customer satisfaction, the disconfirmation approach to measuring value, initially suggested by Woodruff (1997) and Parasuraman (1997), may not be as useful as the performance only approach, reducing the need to obtain expectancy data and the complexity and costs of data collection in such studies.

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