SAM ADVANCED MANAGEMENT JOURNAL

Global Value Perceptions: The Case Of Luxury Hotels

Ying Chen and Don Capener

DOI: http://doi.org/10.52770/WCNG5119

Citation: Chen, Y. & Capener, D.,(2021). Global value perceptions: The case of luxury hotels. SAM Advanced Management Journal, 86(2),32-44. http://doi.org/10.52770/WCNG5119

Abstract

This exploratory study analyses value perceptions of luxury hotels in cross-cultural contexts. Value perceptions between the two biggest luxury consumer groups, Americans and Chinese, are compared in the context of the upscale hotel business. Based on an established conceptual framework, this study uses the phenomenological approach, first introduced by C. E. Moustakas in 1994, to compare data from in-depth interviews exploring the perceptions of luxury hotels. The findings suggest adjustments to existing luxury frameworks to recognize tangible and intangible characteristics upscale hotels might consider when driving brand value and reputation. Offers, amenities, and services differ in value perception in ways previous studies did not address.

References

Babin, B. J., Darden, W. R., & Griffin, M. (1994). Work and/or fun: Measuring hedonic and utilitarian shopping value. Journal of Consumer Research, 20(4), 644–656. https://doi.org/10.1086/209376

Briley, D. A., & Aaker, J. L. (2006). When does culture matter? Effects of personal knowledge on the correction of culture-based judgments. Journal of Marketing Research, 43(3), 395–408. https://doi.org/10.1509/jmkr.43.3.395

Briley, D. A., Morris, M. W., & Simonson, I. (2000). Reasons as carriers of culture: Dynamic versus dispositional models of cultural influence on decision making. Journal of Consumer Research, 27(2), 157–178. https://doi.org/10.1086/314318

Briley, D. A., & Wyer, R. S. (2001). Transitory determinants of values and decisions: The utility (or nonutility) of individualism and collectivism in understanding cultural differences. Social Cognition, 19(3), 197–227. https://doi.org/10.1521/soco.19.3.197.21474

Brislin, R. W. (1970). Back-Translation for cross-cultural research. Journal of Cross-Cultural Psychology, 1(3), 185–216. https://doi.org/10.1177/135910457000100301

Brun, A., & Castelli, C. (2013). The nature of luxury: A consumer perspective. International Journal of Retail & Distribution Management, 41(11/12), 823–847. https://doi.org/10.1108/ijrdm-01-2013-0006

Chen, S., & Lamberti, L. (2015). Entering the dragon’s nest: Exploring Chinese upper-class consumers’ perception of luxury. Qualitative Market Research: An International Journal, 18(1), 4–29. https://doi.org/10.1108/qmr-01-2013-0002

Cronin, J. Joseph., Brady, M. K., & Hult, G. Tomas. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing, 76(2), 193–218. https://doi.org/10.1016/s0022-4359(00)00028-2

D’Arpizio, C., Levato, F., Kamel, M. A., & Montgolfier, J. D. (2017). Luxury goods worldwide market study, Fall–Winter 2017. Retrieved from Bain website: http://www.bain.com/publications/articles/luxury-goods-worldwide-market-study-fall-winter-2017.aspx

Eisenhardt, K. M. (1989). Building theories from case study research. The Academy of Management Review, 14(4), 532–550. https://doi.org/10.2307/258557

Glaser, B. G., & Strauss, A. (1967). The discovery of grounded theory: Strategies for qualitative research. New York: Aldine. https://doi.org/10.1097/00006199-196807000-00014

Godey, B., Pederzoli, D., Aiello, G., Donvito, R., Wiedmann, K., & Hennigs, N. (2013). A cross‐cultural exploratory content analysis of the perception of luxury from six countries. Journal of Product & Brand Management, 22(3), 229–237. https://doi.org/10.1108/jpbm-02-2013-0254

Hall, E. T. (1976). Beyond culture. New York, NY: Anchor Books.

Han, S., & Shavitt, S. (1994). Persuasion and culture: Advertising appeals in individualistic and collectivistic societies. Journal of Experimental Social Psychology, 30(4), 326–350. https://doi.org/10.1006/jesp.1994.1016

Hofstede Insights. (2020). National Culture. Retrieved from Hofstede Insights website: https://hi.hofstede-insights.com/national-culture

Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills: Sage Publications.

Hofstede, G. (1984). The cultural relativity of the quality of life concept. The Academy of Management Review, 9(3), 389. https://doi.org/10.2307/258280

Hofstede, G. (2013). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks: Sage.

Hofstede, G. H. (2010). Cultures and organizations: Software of the mind, intercultural cooperation and its importance for survival. Maidenhead: Mcgraw-Hill.

Jung Choo, H., Moon, H., Kim, H., & Yoon, N. (2012). Luxury customer value. Journal of Fashion Marketing and Management: An International Journal, 16(1), 81–101. https://doi.org/10.1108/13612021211203041

Lee, M., Ko, E., Lee, S., & Kim, K. (2015). Understanding luxury disposition. Psychology & Marketing, 32(4), 467–480. https://doi.org/10.1002/mar.20792

Leibenstein, H. (1950). Bandwagon, Snob, and Veblen Effects in the Theory of Consumers’ Demand. The Quarterly Journal of Economics, 64(2), 183. https://doi.org/10.2307/1882692

Markus, H. R., & Kitayama, S. (2010). Cultures and selves: A cycle of mutual constitution. Perspectives on Psychological Science, 5(4), 420–430. https://doi.org/10.1177/1745691610375557

McCracken, G. (1986). Culture and consumption: A theoretical account of the structure and movement of the cultural meaning of consumer goods. Journal of Consumer Research, 13(1), 71–84. https://doi.org/10.1086/209048

Mohsin, A., & Lockyer, T. (2010). Customer perceptions of service quality in luxury hotels in New Delhi, India: An exploratory study. International Journal of Contemporary Hospitality Management, 22(2), 160–173. https://doi.org/10.1108/09596111011018160

Moustakas, C. E. (1994). Phenomenological research methods. Thousand Oaks: Sage. https://doi.org/10.4135/9781412995658

Naylor, G., & Frank, K. E. (2001). The effect of price bundling on consumer perceptions of value. Journal of Services Marketing, 15(4), 270–281. https://doi.org/10.1108/eum0000000005506

Ochkovskaya, M. (2015). Perception and consumption of global luxury brands in Russia and Romania: Comparative cross-cultural aspects. Management Dynamics in the Knowledge Economy, 3(2). https://doi.org/10.2139/ssrn.2691107

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1984). A conceptual model of service quality and its implications for future research. Cambridge: Marketing Science Institute. https://doi.org/10.2307/1251430

Podoshen, J. S., Li, L., & Zhang, J. (2010). Materialism and conspicuous consumption in China: A cross-cultural examination. International Journal of Consumer Studies, 35(1), 17–25. https://doi.org/10.1111/j.1470-6431.2010.00930.x

Shukla, P., & Purani, K. (2012). Comparing the importance of luxury value perceptions in cross-national contexts. Journal of Business Research, 65(10), 1417–1424. https://doi.org/10.1016/j.jbusres.2011.10.007

Smith, J. B., & Colgate, M. (2007). Customer value creation: A practical framework. Journal of Marketing Theory and Practice, 15(1), 7–23. https://doi.org/10.2753/mtp1069-6679150101

Sun, G., D’Alessandro, S., & Johnson, L. W. (2016). Exploring luxury value perceptions in China. International Journal of Market Research, 58(5), 711–731. https://doi.org/10.2501/ijmr-2016-021

Triandis, H. C. (1989). The self and social behavior in differing cultural contexts. Psychological Review, 96(3), 506–520. https://doi.org/10.1037/0033-295x.96.3.506

Trompenaars, A., & Hampden-Turner, C. (1998). Riding the waves of culture: Understanding cultural diversity in global business. New York: Mcgraw Hill.

Tsai, S. (2005). Impact of personal orientation on luxury-brand purchase value: An international investigation. International Journal of Market Research, 47(4), 427–452. https://doi.org/10.1177/147078530504700403

Tynan, C., McKechnie, S., & Chhuon, C. (2010). Co-creating value for luxury brands. Journal of Business Research, 63(11), 1156–1163. https://doi.org/10.1016/j.jbusres.2009.10.012

Uggla, H. (2017). The price of luxury. IUP Journal of Brand Management, 14(2), 57–63. Retrieved from EBSCO.

Veblen, T. (1899). The theory of the leisure class. New York: A.M. Kelley.

Vigneron, F., & Johnson, L. W. (2004). Measuring perceptions of brand luxury. Journal of Brand Management, 11(6), 484–506. https://doi.org/10.1057/palgrave.bm.2540194

Wiedmann, K.-P., Hennigs, N., & Siebels, A. (2009). Value-based segmentation of luxury consumption behavior. Psychology and Marketing, 26(7), 625–651. https://doi.org/10.1002/mar.20292

Wong, N. Y., & Ahuvia, A. C. (1998). Personal taste and family face: Luxury consumption in confucian and western societies. Psychology and Marketing, 15(5), 423–441. https://doi.org/3.0.co;2-9″>10.1002/(sici)1520-6793(199808)15:5<423::aid-mar2>3.0.co;2-9

Wu, M.-S. S., Chaney, I., Chen, C.-H. S., Nguyen, B., & Melewar, T. C. (2015). Luxury fashion brands. Qualitative Market Research: An International Journal, 18(3), 298–319. https://doi.org/10.1108/qmr-02-2014-0016

Yang, S., & Stening, B. W. (2016). Antecedents of materialism in China-an intergenerational analysis. International Journal of Consumer Studies, 40(6), 701–711. https://doi.org/10.1111/ijcs.12284

Yang, W., & Mattila, A. S. (2016). Why do we buy luxury experiences? International Journal of Contemporary Hospitality Management, 28(9), 1848–1867. https://doi.org/10.1108/ijchm-11-2014-0579

Yi-Cheon Yim, M., L. Sauer, P., Williams, J., Lee, S.-J., & Macrury, I. (2014). Drivers of attitudes toward luxury brands. International Marketing Review, 31(4), 363–389. https://doi.org/10.1108/imr-04-2011-0121

Yoon, S., & Oh, J.-C. (2016). A cross-national validation of a new retail customer equity model. International Journal of Consumer Studies, 40(6), 652–664. https://doi.org/10.1111/ijcs.12289

Subscription or SAM Membership Required

Share This Article

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn