Professional Documents
Culture Documents
a r t i c l e
i n f o
Article history:
Received 28 October 2015
Received in revised form 4 February 2016
Accepted 11 March 2016
Keywords:
Customer satisfaction
Customer dissatisfaction
Antecedents
Hotel type
Online reviews
Text mining
a b s t r a c t
Customers online reviews play an important role in generating electronic word of mouth; these reviews
serve as an online communication tool that highly inuences consumers demand for hotels. Using latent
semantic analysis, which is a text mining approach, we analyze online customer reviews of hotels. We
nd that the determinants that create either customer satisfaction or dissatisfaction toward hotels are
different and are specic to particular types of hotels, including full-service hotels, limited-service hotels,
suite hotels with food and beverage, and suite hotels without food and beverage. Our study provides a
clue for hoteliers to enhance customer satisfaction and alleviate customer dissatisfaction by improving
service and satisfying the customers needs for the different types of hotels the hoteliers own.
2016 Elsevier Ltd. All rights reserved.
1. Introduction
Online booking and reviewing are becoming more popular for
customers with the rapid development of information technology.
Customers often post reviews, recommendations, or opinions on
websites after staying in a hotel. These reviews act as electronic
word of mouth, which can be dened as all the informal communication directed at customers through Internet-based technology
that is related to the usage or characteristics of special products and
services or their providers (Litvin et al., 2008). Compared with traditional word of mouth, electronic word of mouth has a wider reach
and creates faster interactions; therefore, it has a much greater
effect on inuencing demand (Cantallops and Salvi, 2014).
Positive reviews show customers satisfaction with their experience while negative reviews express dissatisfaction. These written
reviews describe customers experience staying in the hotel and
show their opinions toward the hotel and their corresponding
staying experience. Written reviews are more informative, and
therefore reect customer satisfaction or dissatisfaction in a more
detailed manner than customer ratings, which are usually the numbers evaluated by customers with the range from 1 to 10 toward
some specic aspect of the hotel services or overall staying expe-
Corresponding author.
E-mail addresses: xxu@csustan.edu (X. Xu), yibai.li@scranton.edu (Y. Li).
http://dx.doi.org/10.1016/j.ijhm.2016.03.003
0278-4319/ 2016 Elsevier Ltd. All rights reserved.
58
rity (Choi and Chu, 2001), unmet expectations, and service quality
(Su, 2004) are some of the factors leading to customer dissatisfaction.
Dissatisfaction with tourist services may be inuenced by the
emotions of anger and regret (Snchez-Garca and Currs-Prez,
2011), and may lead to negative consequences, such as complaint
behavior and negative electronic word-of-mouth communication
(Cheng et al., 2005). Besides, unsatised customers tend to leave
their current hotel for another hotel, and they tend to voice their
dissatisfaction to release tension, obtain sympathy from others,
and receive restitution (Szymanski and Henard, 2001). Retaining
customers and encouraging them to return is essential to a hotels
performance because the cost of retaining customers is only onefth that of searching for new customers (Hart et al., 1990). Thus,
identifying the source of customer dissatisfaction is the rst step to
alleviating it. The next step is to implement service recovery strategies that will improve services and customer loyalty (Craighead
et al., 2004).
3. Hypothesis development
According to the expectation-disconrmation model, which
describes individual cognitive processes, customer satisfaction and
dissatisfaction are measured based on the comparison of their
expectations with the actual perceptions of the service performed.
When the services meet or exceed their expectations, customers
are satised; otherwise, customers are dissatised (Oliver, 1980).
During the customers booking process, the absence of certain
factors can generate dissatisfaction, but their presence alone is
insufcient to create higher levels of satisfaction because these
factors are expected and do not have the ability to generate high
levels of satisfaction (Saleh and Ryan, 1992). Based on the preceding
discussion, this study proposes the following proposition:
Hypothesis 1. For each type of hotel, the determinants of customer satisfaction and dissatisfaction toward the specic type of
hotel are different.
The importance of each determinant in directing customer
satisfaction and dissatisfaction may be different. Multi-attribute
theory emphasizes the evaluation distinctions of attributes for their
n
Bi ai
(1)
i=1
59
60
The interpretation of LSA results is similar to the interpretation of factor analysis (Evangelopoulos, 2011). In this study, we
associated each factor with its high-loading terms and documents
to assist in factor interpretation. For each solution, we created a
Table containing all high-loading terms and documents sorted by
absolute loadings. Then, the factors were labeled by examining the
terms and documents related to a particular factor, interpreting the
underlying area, and determining an appropriate label. Thus, all of
these terms and documents were interpreted and the factors were
labeled with practical meaning according to their corresponding
high-loading terms.
5. Results
5.1. Factors leading to customer satisfaction and dissatisfaction
toward each specic type of hotel
We present an LSA based on positive and negative reviews for
customer satisfaction and dissatisfaction toward each hotel type in
order to gure out the inuential factors that determine positive
reviews (customer satisfaction) and negative reviews (customer
dissatisfaction) for specic types of hotels. Tables 14 exhibit the
top factors identied in the LSA, each of which represents an aspect
of positive and negative reviews. In each table, each factors significance is indicated by the singular value. Noticing that each factor
contains 6001500 terms, we selected the top ten terms as the
high-loading terms for demonstration purposes. The LSA results
indicate that these top factors cover over 95% of all the unique terms
and reviews, which means that these factors represent all aspects of
customers positive and negative reviews toward each hotel type.
5.2. Summary of determinants of customer satisfaction toward
various types of hotels
The determinants of customer satisfaction toward various hotel
types were generally the same: location, staff performance, and
room quality, all of which were among the customer satisfaction
factors discussed in Gu and Ryan (2008)Gu and Ryans (2008) study.
However, the importance ranking of each customer satisfaction factor toward various hotel types was different. Besides, there was
an additional customer satisfaction determinant toward each hotel
type: Good restaurant for full-service hotels; good value for both
of the limited-service hotels and suite hotels with food and beverage; and good complimentary breakfast for suite hotels without
food and beverage. The customer satisfaction factors for each type
of hotel are summarized in Table 5.
5.3. Summary of determinants of customer dissatisfaction toward
various types of hotels
The determinants of customer dissatisfaction toward the four
hotel types were different. Generally speaking, these factors
included Wi-Fi, facilities, parking, bathroom, noise, swimming pool,
and room cleanliness. In addition to there being more dissatisfaction factors compared with satisfaction factors, dissatisfaction
determinants were more specic and more diverse among the various hotel types, as Table 6 shows.
6. Discussion
6.1. Different determinants of customer satisfaction and
dissatisfaction toward hotels
Our results supported hypothesis 1. For each type of hotel, the
determinants of customer satisfaction and dissatisfaction were dif-
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Table 1
Determinants of Customer Satisfaction and Dissatisfaction towards Full-Service Hotels.
Factors
Singular Values
High-Loading Terms
Interpretations (Labels)
2.555
Factor 2
Friendly staff
2.512
Factor 3
2.049
Factor 4
Good restaurant
2.041
locat , great locat, view, nice hotel, excel, conveni locat, easi access, locat good,
walk distance, view great
friendli staff, friendli staff excel, staff excel, staff great, staff good, staff nice,
friendli help staff, excel staff, staff nice help, front desk
room nice, bed comfort, clean room, i like, size, nice clean, bedroom, room com,
room com clean, room awesom
restaur great, restuar bar, dinner, fantast, good food, bar, nice restaur, planti,
restur nice, cafe
2.245
Factor 2
Factor 3
2.145
1.979
Factor 4
Factor 5
Parking
Bathroom
1.937
1.776
wi, free wi, wi room, expens, wi low, signal, wi connect, internet, slow,
problem
staff, desk, front desk, call, unfriendly, twice, i ask, avail, rude, unhelp, front desk staff,
evel, lobbi, elev work, hotel old, wait elev, maintain, busi center, facil, hall way,
indoor pool
expens, expens park, park expens, charg, overpr, dai park, bag, luggag, valet park, long
shower, hot water, tub, water shower, towel, tub shower, water pressur,
drain take shower, bathroom, toilet
Table 2
Determinants of Customer Satisfaction and Dissatisfaction towards Limited-Service Hotels.
Factors
Interpretations (Labels)
Singular Values
High-Loading Terms
3.489
Factor 2
2.863
Factor 3
Good value
2.677
Factor 4
Nice room
2.518
locat good, good locat, hotel locat, locat good park, perfect locat, perfect, locat good i,
walk, conveni locat, great locat
front desk staff, smile, extrem help, attend staff, staff help friendli, person, help staff,
friendli nice, staff excel
valu, good valu, monei, great valu, price, value excel, rate cheap, worth monei,
money valu, decent valu
com, bed com, accomod, nice room, clean com, love room, com room,
room great, bed good, room comfort clean
3.098
2.344
Factor 3
Wi
2.296
Factor 4
Factor 5
Old facility
Hallway machine problem
2.151
2.142
lot nois, street nois, Nois, loud, noisi, street, hear, lobbi, hard sleep, neighbor
smell smoke, cigarette smoke, cigarett, non smoke room, air, room smell smoke,
ask non smoke, room smell, terrible, smoke alarm,
wi poor, wi low, poor wi, connect, wi , internet, internet connect, low speed,
slow wi, signal
facil, bit old, facil old, evel, hallway, furnitur, outdate, dcor, lobbi hall, bad updat
machin, ic machin, vend machin, vend, hallwai, soda, x, machine difcult work, coin,
hard nd
Table 3
Determinants of Customer Satisfaction and Dissatisfaction towards Suite Hotels with Food and Beverage.
Factors
Interpretations (Labels)
Singular Values
High-Loading Terms
3.070
Factor 2
Friendly staff
2.979
Factor 3
Nice room
2.765
Factor 4
Good value
2.306
locat good, great locat, walk, walk distanc, locat great, conveni, area, locat good easi,
conveni locat, locat nice
staff friendli, friendli help, staff friendli help, help staff, friendli help, excel staff,
waitress, great staff friendli, help i, polit staff
room clean, good room, clean big, spaciou, clean room, big room, good size,
comfort i, i love room, hotel room
price, reason, good price, price great, reason price, afford, price good, great price,
expect price, price room
2.524
Factor 2
Factor 3
Factor 4
Restaurant
Parking
Swimming pool
2.159
2.132
2.101
Factor 5
Air-condition
2.038
dirti, oor, carpet, room dirti, bathroom dirti, carpet dirti, toilet dirti, towel, toilet,
request
restaur, food, food restaur, smell, sugar, cereal, menu, dine, drink, buffet
valet park, park lot, lot, wait hour, charg, car, limit, block, car valet, park fee
pool area, pool hot, swim, swim pool, repair, pool close, pool area, work pool,
pool dirti, oor wet
air condition, ac, air, air condit, noisi air condit, sleep, sound, ac difcult work, hot,
temperature
suite hotels without food and beverage. Location and accessibility are important in generating customer satisfaction because they
help customers nd the hotel easily, provide a good view of the
surroundings, and save time for customers seeking to visit nearby
places of interest (Sim et al., 2006). In addition, a hotels ideal
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Table 4
Determinants of Customer Satisfaction and Dissatisfaction towards Suite Hotels without Food and Beverage.
Factors
Singular Values
High-Loading Terms
Interpretations (Labels)
3.272
Factor 2
Friendly staff
2.996
Factor 3
2.582
Factor 4
Good location
2.530
bed comfort, room clean, comfort room, quiet, clean room, nice room, spaciou, I like,
room great, size
friendli staff, staff nice, friendli help, front desk, staff friendli help, front desk staff,
staff good, staff nice, help staff, nice staff, staff great, love friendli staff,
breakfast good, breakfast, free breakfast, nice breakfast, fresh breakfast, fruit, food,
continent, continent breakfast, egg, breakfast cleanli, price breakfast, potato, decent,
decent breakfast
conveni locat, locat great, park, conveni, view, walk, free shuttl, distanc, locat nice,
minutes
2.351
Factor 2
Factor 3
Factor 4
Noise
Shower
Wi
2.301
2.260
2.248
Factor 5
In-room facility
2.193
smoke, smoke room, smell smoke, non smoke, room smell, i smell smoke,
smell smoke room, cigarett, smoke free, smell room
nois, loud, air condition, road, lot, hard sleep, road nois, noisi, trafc, hallwai nois
hot, water, tub, hot tub, hot water, lack, water shower, water pressur, shower, leak
wi, connect, slow, signal, low, problem, internet connect, wi access, wi terribl,
connect room,
microwav, microwav room, refriger, refriger room, fridg microwav, tv, hair dryer,
reger work, lamp bed, coffe maker
Table 5
Determinant Factors of Customer Satisfaction towards Each Type of Hotels.
Factors
Location
Staff
Room
Additional Factor
(Importance
Ranking)
Reections
Ranking
Full-Service
Hotels
LimitedService
Hotels
Suite Hotels
with Food and
Beverage
Suite Hotels
without Food
and Beverage
2
3
Good
restaurant (4)
2
4
Good value (3)
2
3
Good value (4)
2
1
Good
complimentary
breakfast (3)
Table 6
Determinant Factors of Customer Dissatisfaction towards Each Type of Hotels.
Factors
Wi
Staff
Facility
Parking
Bathroom
Noise
Smoking and in-room polluted
air
Hallway machine problem
Restaurant
Swimming pool
Air-condition
Dirty room
Reections
Ranking
Full-Service
Hotels
LimitedService
Hotels
Suite Hotels
with Food and
Beverage
Suite Hotels
without Food
and Beverage
1
2
3
3
N/A
4
N/A
N/A
N/A
4
N/A
5
4
5
N/A
N/A
N/A
N/A
1
2
3
N/A
N/A
N/A
N/A
3
2
1
N/A
N/A
N/A
N/A
5
N/A
N/A
N/A
N/A
2
4
5
N/A
N/A
N/A
N/A
N/A
N/A
N/A
63
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ing strategies (Lee and BradLow, 2011). This study collected data
from www.booking.com, an online third-party booking website.
Online reviews provide more up-to-date and detailed customer
concerns and have a stronger effect on word-of-mouth communication because they show communications between customers
and hotels and communications among customers. Both positive
and negative reviews inuence potential customers online booking behaviors because they inuence the online transaction stages
of both the information phase and the after-sales phase (Bauer et al.,
2006).
Specically, positive reviews have a signicant effect on hotels
online transaction volumes (Zhao et al., 2015), while negative
reviews adversely affect employees personal outcomes, professional outcomes, and hotels organizational outcomes (Bradley
et al., 2015). Negative reviews adversely affect hotel employees
personal outcomes, including subjective feelings of well-being, and
trigger emotions of anger and depression. Negative professional
outcomes include reduced employee job commitment, performance, and satisfaction. Negative organizational effects include
damage to a hotels brand and reduction in patronage (Bradley et al.,
2015). These factors all negatively inuence online hotel bookings
(Zhao et al., 2015). Thus, identifying the sources of customer satisfaction and dissatisfaction from online reviews and providing the
corresponding improvement actions are important steps for hotels
to take to improve their reputations, customer relationships, and
nancial performance (Cantallops and Salvi, 2014).
We used a text-mining technique, LSA, to explore the determinants of customer satisfaction and dissatisfaction toward hotels
through online customer reviews. Many previous studies use
qualitative methods to analyze the textual data, which has the
shortcoming of being subjective judgment-based (Lee et al., 2011).
Compared to an elementary summary, text-mining techniques provide a more objective approach to analyzing the content of reviews
due to their mathematical characteristics. As a quantitative textmining technique, LSA has recently obtained increased attention
from researchers (Visinescu and Evangelopoulos, 2014). LSA has
a strong strength of serving as both a theory and a method for
extracting and representing the meaning of human words (Kulkarni
et al., 2014). Textual data generated in an individual context, such
as an online review, is one of the main application domains of LSA
(Evangelopoulos et al., 2012). LSA provides an efcient approach
for analyzing large amounts of textual data and efciently solves
the information overloading issues. LSA can identify the factors
and their importance as well as the high-loading terms. The highloading terms support and explain the factors that serve as detailed
sources of customer satisfaction and dissatisfaction toward hotels
in our study, and can help hoteliers prioritize and then take the
corresponding improvement actions. LSA and other text-mining
approaches provide tools for researchers and give hoteliers a larger
picture as to how the customers voices form collectively (Berezina
et al., 2015). Hoteliers can also use text-mining approaches on a
regular basis to identify the determinants of customer satisfaction and dissatisfaction within a timeline. In this way, hoteliers
can determine the hotels performance and take corresponding
improvement actions dynamically (Berezina et al., 2015).
7.2. Managerial implications
Online reviews have eWOM effects that strongly affect the
tourism industry. Within the tourism industry, hotels are most
affected because positive eWOM generates more demand and
prot for hotels while negative eWOM decreases demand and
prot (Cantallops and Salvi, 2014). Identifying the determinants
of customer satisfaction and dissatisfaction could help hotel managers efciently utilize eWOM by implementing improvements to
the corresponding aspects of their services. To increase customer
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same for each hotel type, the ranking of importance of these determinants were different. Location was the most inuential factor
in determining customer satisfaction toward full-service hotels,
limited-service hotels, and suite hotels with food and beverage.
Room quality played the most inuential role in customer satisfaction toward suite hotels without food and beverage. Then,
we identied an additional determinant of customer satisfaction
toward each type of hotel. Good value was imperative for customers of both limited-service hotels and suite hotels with food and
beverage. A good restaurant was important for full-service hotel
customers, and a good complimentary breakfast was necessary for
customers of suite hotels without food and beverage.
For the determinants of customer dissatisfaction, we found both
the types and the rankings were different among different types
of hotels. Among the 12 factors identied as determinants of dissatisfaction, slow and/or weak Wi-Fi created the largest amount
of dissatisfaction among customers of full-service hotels. Noise
was the most inuential factor leading to dissatisfaction among
customers staying in limited-service hotels. A dirty room was
the biggest reason for dissatisfaction among customers of suite
hotels with food and beverage, whereas smoking and polluted air
caused the largest amount of dissatisfaction for customers staying
in suite hotels without food and beverage. Other determinants of
dissatisfaction included unhelpful staff, old facilities, poor parking,
unsanitary bathrooms, low-quality restaurants, and poorly maintained swimming pools.
8.2. Future extensions
Future studies could extend our study in the following ways.
First, our study compares the determinants of customer satisfaction and dissatisfaction from the perspective of different types of
hotels. Future studies can compare the determinants of customer
satisfaction and dissatisfaction from the perspective of customer
demographics. For example, future studies can explore whether
customers age, gender, or travel purpose (leisure vs. business) can
inuence their satisfaction and dissatisfaction toward hotels. Second, the impact of eWOM among various customer demographic
groups and types of hotel may be identied. For example, which
customer demographic group or type of hotel is most inuenced
by positive eWOM, and which customer demographic group or
hotel type is most inuenced by negative eWOM? Will the hoteliers online responses and communication inuence the eWOM?
Lastly, although improving the corresponding aspects of hotel services could enhance customer satisfaction and alleviate customer
dissatisfaction, thereby generating more demand, the cost of service efforts cannot be ignored. From the perspective of operations
management, the optimal service efforts should be based on the
trade-off between their benets and costs. Thus, theoretical modeling may be an efcient method for deciding the optimal service
efforts that will maximize a hotels prots.
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