Diagnosing customers experience, emotions and satisfaction in

Malaysian resort hotels

Faizan Ali1*, Kashif Hussain2 and Rosmini Omar3

Received: 31/05/2014 Accepted: 05/07/2015

1
Post-Doctoral Scholar, International Centre for Hospitality Research, Dedman School of Hospitality, Florida
State University, 288 Champions Way, B2200 University Center, P.O. Box 3062541, Tallahassee, FL 32306-
2541, phone: +1-850-459-2545, e-mail: faizanali7@hotmail.co.uk
2
Associate Professor, Faculty of Hospitality and Tourism Management, UCSI University, 56000 Kuala Lumpur,
Malaysia, e-mail: kashif.hussain@msn.com
3
Associate Professor, International Business School, Universiti Teknologi Malaysia, International Campus,
54100, Kuala Lumpur, Malaysia, e-mail: rosmini@ibs.utm.my
* Corresponding author
Abstract

Despite the increasing attention towards customer experience, empirical research to explain this
notion and its consequences is still limited. Hence, this study aims to examine the effect of
customers experience with four dimensions on their emotions and satisfaction. A convenience
sampling technique was used to select a sample of 600 at two tourist spots of Malaysia i.e.,
Langkawi and Penang. 450 questionnaires were returned back and the data was analysed using
partial least square based structural equation modelling. Findings reveal that all the four dimensions
of customer experience influence customer emotions which develop customer satisfaction. Resort
hotels are least focused facet of tourism industry; therefore, this study validates the customer
experience scale in the context of resort hotels and enhances the theoretical progress on the
experience concept in relation with customer emotions and satisfaction and offer important
implications for resort hotel marketers.

2016 Varna University of Management. All rights reserved

Keywords: Customer Experience, Emotions, Customer Satisfaction, Resort Hotels, Partial Least
Squares.

Citation: Ali F., K. Hussain and R. Omar (2016) Diagnosing customers experience, emotions and
satisfaction in Malaysian resort hotels. European Journal of Tourism Research 12, pp. 25-40

Introduction satisfy the needs and wants of the tourists

Resort hotels are becoming one of the fastest visiting these facilities (Ali et al., 2013). In the
growing segments of tourism attractions around recent decade, a drastic increase is observed
the world. Since economic boom from 1960s, in the number of tourists travelling to resort
resort hotels are gaining gradual popularity and hotels situated in the natural exotic locations to
the service providers are facing challenges to escape from their daily routine life and to enjoy

RESEARCH PAPER 25
 Diagnosing customers experience, emotions and satisfaction in Malaysian resort hotels.

and entertain themselves. Yang and Chan by Hosany and Witham (2010) in the context of
(2010) states that studying resort hotels are cruise holidays, however, they called for further
important as it can help the establishments to research to validate this measurement scale in
design better products and services to satisfy other service contexts and test its relationship
the customers, understand their decision- with consumer consumption evaluations.
making process and emotions. Therefore, this study aims to validate Oh et
al.s (2007) measurement model in the context
The rapid development in this tourism sector of resort hotels and examine the effects of four
makes it very competitive and enforces the realms of customer experience on customer
resort hotels to develop various marketing emotions and satisfaction levels. Specific
strategies for ensuring customer satisfaction objectives of the study include (i) to validate the
(Geissler and Rucks, 2011; Wu and Liang, experience economy scale proposed by Oh et
2009). Contextually, Gee (2000, p.22) stated al. (2007); (ii) to examine the effect of
that, the core principle of the resort concept is experience economy dimensions on customer
the creation of an environment that will promote emotions; and (iii) to examine how these
and enhance a feeling of well-being, enjoyment customer emotions develop customer
and satisfaction. Moreover, emperical studies satisfaction.
in hospitality industry observed that customer
satisfaction can be ensured by eliciting positive A report published by www.ey.com titled as
emotions (Lin and Liang, 2011; Kincaid et al., Global Hospitality Insights 2014 stated that
2010) and provision of memorable service the changes in leisure travel preferences and
experiences (Hou et al., 2013). In this regard, the rise of emerging markets has resulted in
Hosany and Witham (2010) posited that bookings for resort hotels increasing at a much
customer experience can effect their emotions higher rate than the industry average. Yet, it is
and satisfaction levels and also develops a very surprising that, despite being one of the
competitive advantge for service providers that fastest growing tourism industries, resort hotels
is difficult to imitate. are often overlooked by the researchers (Ali et
al., 2013). In this context, Line and Runyan
An initial conceptualisation of customer (2012) reviewed 274 articles published in four
experience was developed by Pine and top hospitality journals from 2008 to 2010. In
Gilmore (1999) who proposed four dimensions their review paper, they state that resort hotels
of customer experience including education, are the least studied comprising only 0.7% of
entertainment, escapism, and esthetics. Their the total industry studied. However, the
conceptualisation is based on the argument presence of research targeting this industry in
that customers no longer assess the functional top hospitality journals suggests its relevance
and technical attributes of the service quality to the field (Ali et al., 2013). Therefore, this
(Gentile et al., 2007); Rather, they look for study is conducted in the context of resort
affective memories to create a holistic personal hotels.
experience that dazzle their senses, engage
them personally, touch their hearts, and The remainder of this paper is organized as
stimulate their minds, while indulging in follows. The first section consists of the
fantasies, feelings and fun (Hosany and theoretical background and concepts that are
Witham, 2010). This concept served as base central to the study followed by the conceptual
for a number of studies focusing on the model and discusses the relationships among
understanding of consumer experiences model elements. The next section narrates the
(Gentile et al., 2007). However, with a few research methodology and data collection. The
exceptions, research on the measurement and last part consists of the findings, implications,
application of Pine and Gilmores (1999) and suggestion for future research directions.
dimensions of customer experience remain
sparse (Hosany and Witham, 2010). Conceptual Background of the Study
Contextually, Oh et al. (2007) developed a Experience Economy
measurement scale and tested it in bed-and- Experience economy is used as an overarching
breakfast industry. Later, this scale was tested concept for service providers in leisure and
26
 Ali F., K. Hussain and R. Omar (2016) / European Journal of Tourism Research 12, pp. 25-40

recreation industry whose primary goal is theatre, museum etc., (Bharwani and Jauhari,
providing high quality experiences (Heintzman, 2013; Mehmetoglu and Engen, 2011). With
2012; Mehmetoglu and Engen, 2011). The regards to the connection of customer with
concept of experiences were introduced by surroundings, it is divided into two points, i.e.,
Holbrook and Hirschman (1982, p. 132) who absorption or immersion. Absorption suggests
stated that, experiences trigger a steady flow that the customer has a certain distance to the
of fantasies, feelings, and fun. Pine and stage or the experience (e.g., watching a
Gilmore (1999) further explored the concept of movie) while immersion indicates that the
experiences by coining the term, experience customer gets drawn in the experience; as
economy, which is the final phase of economic shown in Figure 1.
progression that has developed from
commodity, product and service economy. In tourism and leisure industry, most of the
Experience economy is the final stage where offerings are related to the tourists experience
the service providers focus on staging of visiting, observing, watching, enjoying,
unforgettable satisfactory experiences (Wong, learning and living different life modes (Smith et
2013; Olsson et al., 2012) by adding value to al., 2013; Walls et al., 2011; Stamboulis and
their offerings in order to be successful (Berry Skayannis, 2003). Consequently, everything
et al., 2002). In this context, Pine and Gilmore that a tourist gets is a perception, emotional or
(1999, p. 12) defined experience as events behavioural experience offered by the tourism
that engage individuals in a personal way; and leisure service providers (Oh et al., 2007).
whereas Oh, Fiore and Jeong (2007, p. 120) Additionally, Sternberg (1997, p. 954) posits
define experiences as, enjoyable, engaging, that tourists are tourist because they want to
memorable encounters for those consuming compensate for their secular, disenchanted
these events. mundane lives through a temporary exposure
to the otherto the adventurous, foreign,
While discussing experience economy, Pine ancient, or spectacular. Tourism
and Gilmore (1998) identified four realms of establishments make it their business to shape,
customer experiences including entertainment, package and sell such experiences. Therefore,
education, esthetic and escapism. These four the challenge for the marketers is to grasp the
dimensions are differentiated across two axes distinctive characteristics of tourists (Perdue,
i.e., the degree of customer involvement and 2002) and provide them with experiences that
the connection of customer with the are unique, emotionally charged, and of high
surroundings (Hosany and Witham, 2010). personal value (Hosany and Witham, 2010).
Customer involvement can either be active
referring that customer is consuming and Various researchers have studied the tourist
producing the service i.e., rafting, rock climbing experience from many perspectives, however,
etc., or it can be passive referring that Pine and Gilomres (1999) four dimensions of
customer is not physically involved and rather experience including entertainment, education,
mentally involved in the experience i.e., esthetic and escapism has attained much more

Figure 1. Dimensions of Experience (adapted from Pine and Gilmore, 1999, p. 30)

27
 Diagnosing customers experience, emotions and satisfaction in Malaysian resort hotels.

prominence and attention (Mehmetoglu and Considering that resort hotel is an experience-
Engen, 2011). The first dimension is oriented industry sector, experience economy
entertainment which is developed when concept is a logical choice in the assessment of
passive absorption is observed by the consumer behaviour while visiting resort hotels.
customer such as watching a theatre
performance (Oh et al., 2007). It is one of the Emotions
oldest forms of experiences and transpires Customer emotion has been studied as a
when participants observe performances and central element by the researchers while
activities of others (Hosany and Witham, 2010). investigating perceptions of service
The second dimension is esthetic where the experiences (Lin and Liang, 2011). For
customer has a passive participation and example, Bagozzi et al. (1999, p. 184) define
immersion in the experience. Examples for emotion as a mental state of readiness that
esthetic dimensions include a beautiful arises from cognitive appraisals of events or
arrangement of historical relics in a museum, thoughts; has a phenomenological tone; is
an attractive servicescape or ambience in a accompanied by physiological processes; is
resort hotel or experiencing the breath-taking often expressed physically; and may result in
scenery of Niagara Falls (Mehmetoglu and specific actions to affirm or cope with the
Engen, 2011). For esthetic experiences, emotion, depending on its nature and the
according to Oh et al., (2007) participants are person having it. Similarly, Ortony, Chore and
expected to enjoy the experience without Collins (1987) state that emotion is an internal
changing the environment presented to them. mental state. Considering these definitions,
The third dimension is education which refers Farber and Hall (2007) discusses three
to an experience where the participant actively characteristics of emotions. Emotions are
participates but is in absorption such as considered as internal mental state and this
snorkelling, scuba diving or ski-schools. Pine notion is supported by many researchers
and Gilmore (1999) state that in educational (Petzer and Meyer, 2012; Teller and Dennis,
experiences, participants are expected to 2012; Svari et al., 2011; Palmer, 2010; Jang
increase their skills or knowledge. Oh et al. and Namkung, 2009; Bagozzi et al., 1999;
(2007) provides an example of a Living History Mehrabian and Rusell, 1979). Secondly,
Farm where parents and children go together emotions are not cognitive state, rather are
and attend demonstrations of historical farm affective states of subjective feelings (Rose et
skills, such as rope making, spinning, weaving, al., 2012; Jang et al., 2011; Jang and
wood carving, and chair caning etc. The fourth Namkung, 2009). The last characteristic of
and the last dimension is escapism which emotions is that they are incited due to some
happens when the participant is affecting the stimuli and episodic in nature (Plutchik, 2003).
actual performances in the real or virtual In this context, Burns and Neisner (2006)
environment for example, by rafting or playing emotions are considered to be a persons
in a casino (Hosany and Witham, 2010). positive (pleased, relaxed, etc.) and negative
According to Oh et al. (2007), participants who (nervous, annoyed, etc.) feelings. This study
engage in escapism experience usually want to also adopts the definition of emotions as the
take a break from their everyday routine and affective responses triggered by customers
escape for a while. To summarise, it can be experience.
stated that entertainment experience is about
feeling, the educational experience learning, The emotional responses elicited during the
the esthetic experience presence, and the experiences are described either by
escapist experience doing influence customers expressions, such as joy, anger, sadness, guilt,
emotions and satisfaction levels (Mehmetoglu and fear, or by emotional categories, such as
and Engen, 2011; Hosany and Witham, 2010; pleasantness/unpleasantness, elaxation/action,
Oh et al., 2007). Many scholars in service or calmness excitement (Russell, 1979).
marketing have applied experience economy to Studies by Bitner (1992), Ladhari (2009) and
investigate the multi-layered system of Pareigis et al.(2011) also support the notion
consumer experience (Hosany and Witham, that various facets of customer experience
2010; Mehmetoglu and Engen, 2011). develops customers emotional responses.
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 Ali F., K. Hussain and R. Omar (2016) / European Journal of Tourism Research 12, pp. 25-40

Similarly, Jani and Han (2011) conducted a In terms of its determinants, many researchers
research in hospitality industry and observed have observed the significance of emotions on
that customer emotions are strongly influenced customer satisfaction (Clemes et al., 2011;
by the service-encounter performance. This Jang and Namkung, 2009; Ladhari, 2009;
discussion thus concludes that customer expe- Martin et al., 2008; Oliver, 1997; Mano and
riences may influence the emotional states of Oliver, 1993; Westbrook and Oliver, 1991;
the customers. It is therefore, hypothesised as: Westbrook, 1987). Lin and Liang (2011)
investigated the extent to which emotions
Hypothesis 1: Educational experience has a influence customer satisfaction and behavioural
positive and significant influence on emotions. intentions. They stated that emotions affect
Hypothesis 2: Entertainment experience has a customer satisfaction and behavioural
positive and significant influence on emotions. intentions positively. Han and Back (2007)
Hypothesis 3: Esthetic experience has a investigated the influence of positive and
positive and significant influence on emotions. negative emotions on customer satisfaction
Hypothesis 4: Escapism experience has a and found the same results. The results are
positive and significant influence on emotions. also supported by other researchers (Ali and
Amin, 2014; Lin and Mattila, 2010; Lee et al.,
Customer Satisfaction 2009; Jang and Namkung, 2009; Ladhari,
Service providers in every industry strive for 2009; Martin et al., 2008; Burns and Neisner,
customer satisfaction because of its impact on 2006). This discussion thus concludes that
their performance and profits (Ali and Amin, emotions may influence the satisfaction of the
2014; Ryu et al., 2012; Jani and Han, 2011; customers. It is therefore, hypothesised:
Nadiri and Hussain, 2005). Because of its
benefits and impacts on service providers, Hypothesis 5: Emotion has a positive and
numerous researchers have studied its significant influence on customer satisfaction.
conceptualisation and measurement (Wong
and Dioko, 2013; Slatten et al., 2011). It is Research Methodology
mostly conceptualised as the difference of The target population for this study was limited
customers expectations and service providers to those guests who had stayed at resort hotels
performance (Ryu et al., 2012). Oliver (1997, p. in Malaysia for at least once. The survey was
13) defines customer satisfaction as a conducted through face-to-face interaction with
judgment that a product, or service feature, or the guests at two tourist spots of Malaysia i.e.,
the product or service itself, provides a Langkawi and Penang. Resorts in Malaysia are
pleasurable level of consumptionrelated competitive and establishes greater competitive
fulfilment, including levels of under or over advantages in Langkawi and Penang during
fulfilment. Another conceptualisation is September November 2013. A self-
presented by Day (1984, p. 497) who considers administered survey was used to collect the
satisfaction as a cognition and defines it as a using non-probability convenience sampling
post-choice evaluative judgment concerning a technique. Data collection was conducted by
specific purchase selection. Also customer distributing questionnaires to guests at different
satisfaction is considering it as an emotional times of the day, over three weeks period.
response (Jani and Han, 2011; Han and Back, Guests were explained with the purpose of the
2007). For instance, Westbrook and Oliver research. A total of 600 questionnaires were
(1991) posit that satisfaction is a post-choice distributed and after deletion of incomplete
evaluative judgment concerning a specific responses, 450 questionnaires were deemed
purchase selection using four emotions-laden complete to use further showing a response
items to study customer satisfaction. Oliver rate of 75% from the original target sample
(1997, p. 319) also supports this notion and population. This sample size is consistent with
states that emotion coexists alongside various sample size requirements for SEM (e.g..,
cognitive judgments in producing satisfaction. minimum of 10 respondents for each item in
This study also considers customer satisfaction the survey instrument (Chin, 1998a). This
as a central element to understanding sample size also fulfils the condition of
customer consumption experiences. necessary sample size of 231 respondents
29
 Diagnosing customers experience, emotions and satisfaction in Malaysian resort hotels.

Table 1. Demographic Profile of the Respondents (n=450)

Demographic Characteristic Percentage
Gender Male 58%
Female 42%
Age Less than 20 Years 3%
21-30 Years 20%
31-40 Years 37%
Above 40 Years 30%
Education Level Bachelor Degree 53%
Master Degree 39%
Others 8%

Table 2. Descriptive Statistics and Reliability Analysis

Mean Cronbach's
No. of Items Score Alpha
Educational Experience 4 3.62 0.889
Entertainment Experience 4 3.93 0.841
Esthetic Experience 4 3.74 0.731
Escapist Experience 4 3.99 0.880
Emotions 4 3.92 0.808
Customer Satisfaction 4 3.81 0.757

considering the 99% confidence level, standard 4-items (emotion-laden) proposed by

deviation of 0.5 and +/-1% margin of error Westbrook and Oliver (1991). All the items
(Bulpitt, 1987). Out of these 450 respondents, were required to be rated on a 5-point Likert
58% were male whereas 42% were female. scale, ranging from 1 (strongly disagree) to 5
About 3% were between 16-20 years of age, (strongly agree). The questionnaire was sent to
50% were between 21 and 30 years, 17% were one (1) hospitality practitioner and two (2)
between the ages of 31-40 years and 30% hospitality academics to check the face and
were older than 41 years. About 53% of the content validity. Based on their suggestions, a
total respondents had bachelor degree few modifications were made in the structure of
whereas 37% had a master degree. questions.
Demographic profile of the respondents is
shown in Table 1. Since a multi-item scale was used to measure
each of the construct, an inter-item analysis is
The constructs in this study were measured used to verify these scales for internal
using a five-point Likert-type scale with multiple consistency or reliability (Nunnally and
items. All measurement items validated in Bernstein, 1994). Specifically, Cronbach alpha
previous studies were borrowed and were was calculated for each scale. All scales were
adapted to match with the aim of this present deemed reliable as they surpass the minimum
study. The questionnaire was based on 24- threshold of 0.70 for Cronbach alpha values
items in total. Dimensions of experience were (Nunnally, 1978) as shown in Table 2.
measured using 4-items each adapted from
Hosany and Witham (2010) and Oh et al. Table 2 also shows the descriptive statistics
(2007), who studied the four dimensions related tp dimensions of customer experiences,
(Educational Experience, Entertainment emotions and customer satisfaction. Ratings on
Experience, Esthetic Experience & Escapist educational experience (mean=3.62),
Experience) in hospitality industry and find entertainment experience (mean=3.93),
them valid to apply further. Emotions were esthetic experience (mean=3.74), escapist
operationalised also using 4-items adapted experience (mean=3.99), emotions
from Lin and Liang (2011) whereas customer (mean=3.92), and customer satisfaction
satisfaction was operationalised also using the
30
 Ali F., K. Hussain and R. Omar (2016) / European Journal of Tourism Research 12, pp. 25-40

(mean=3.81) represents that respondents Following the procedure suggested by

agreed to the questions asked. Anderson and Gerbing (1988), validity and
goodness of fit of measurement model was
Findings estimated before testing the structural
For this study, hypotheses were tested based relationships outlined in the structural model.
on structural equation modelling using a Partial
Least Squares (PLS) method. In order to Measurement Model
conduct the analysis, Smart PLS M3 Version First, the measurement model was tested for
2.0 (Ringle et al., 2005) software was used. convergent validity. This was assessed through
Bootstrapping technique was applied to factor loadings, composite reliability (CR) and
determine the significance levels of the average variance extracted (AVE) (Hair et al.,
loadings, weights, and path coefficients. 2006). Table 3 shows that all item loadings

Table 3. Validity and Reliability for Constructs

a b
Measurement Items Loadings CR AVE
Education Experience
Ed1 The experience has made me more knowledgeable 0.882 0.924 0.753
Ed2 I learned a lot during my experience 0.883
Ed3 It stimulated my curiosity to learn new things 0.874
Ed4 It was a real learning experience 0.831
Entertainment Experience
En1 Activities at the resort were amusing to watch and perform 0.795 0.899 0.689
En2 Activities at the resort were captivating to watch and perform 0.858
En3 Activities at the resort were entertaining to watch and perform 0.862
En4 Activities at the resort were fun to watch and perform 0.803
Esthetics Experience
Es1 I felt a real sense of harmony 0.848 0.917 0.735
Es2 Just being here was very pleasant 0.881
Es3 The setting was very attractive 0.870
Es4 The setting really showed attention to design detail 0.830
Escapism Experience
Ec1 I felt I played a different character here 0.875 0.941 0.800
Ec2 I felt like I was living in a different time or place 0.908
Ec3 The experience here let me imagine being someone else 0.892
Ec4 I totally forgot about my daily routine 0.903
Emotions
E1 I have felt peaceful during my stay at this resort hotel 0.825 0.873 0.632

E2 I have felt happy during my stay at this resort hotel 0.797

E3 I have felt relaxed during my stay at this resort hotel 0.832
E4 I have felt relieved during my stay at this resort hotel 0.722
Customer Satisfaction
CS1 I am satisfied with my decision to stay in this resort. 0.764 0.846 0.579

CS2 My choice to stay in this resort was a wise one. 0.790

CS3 I think I did the right thing when I chose to stay in this resort. 0.767
CS4 I feel that my experience with this resort has been enjoyable 0.722
a
Composite reliability = (square of the summation of the factor loadings) / [(square of the summation of the factor
loadings) + (square of the summation of the error variances)]
b
AVE = (summation of squared factor loadings)/(summation of squared factor loadings) (summation of error variances)

31
 Diagnosing customers experience, emotions and satisfaction in Malaysian resort hotels.

exceeded the recommended value of 0.6 (Chin, model and hypotheses (Ringle et al., 2005). A
1998). Composite reliability values, which bootstrapping procedure with 2000 iterations
depict the degree to which the construct was performed to examine the statistical
indicators indicate the latent construct, significance of the weights of sub-constructs
exceeded the recommended value of 0.7 (Hair and the path coefficients (Chin et al., 2008). As
et al., 2006) while average variance extracted, PLS does not generate overall goodness of fit
which reflects the overall amount of variance in indices, the R2 is the primary way to evaluate
the indicators accounted for by the latent the explanatory power of the model (Wasko
construct, exceeded the recommended value of and Faraj, 2005). However another diagnostic
0.5 (Hair et al., 2006). tool is presented by Tenenhaus et al. (2005) to
assess the model fit and is known as the
The next step was to assess the discriminant goodness of fit (GoF) index. The GoF measure
validity, which refers to the extent to which the uses the geometric mean of the average
measures are not a reflection of some other communality and the average R2 (for
variables and it is indicated by the low endogenous constructs). Hoffmann and
correlations between the measure of interest Brinbrich (2012) report the following cut-off
and the measures of other constructs values for assessing the results of the GoF
(Ramayah et al., 2013; p. 142). Table 4 shows analysis: GoFsmall = 0.1; GoFmedium = 0.25;
that the square root of the AVE (diagonal GoFlarge = 0.36. For the model used in this
values) of each construct is larger than its study, a GoF value of 0.558 is calculated which
corresponding correlation coefficients pointing indicates a very good model fit as shown in
towards adequate discriminant validity (Fornell Table 5.
and Larcker, 1981). To conclude, the
measurement model showed an adequate Following the measurement model and
convergent validity and discriminant validity. goodness of fit, the hypothesized relationships
in the structural model were tested. Figure 2,
Structural Model shows the results of the analysis. The
2
SmartPLS 2.0 was used to test the structural corrected R s in the figure refer to the

Table 4. Discriminant Validity

1 2 3 4 5 6

Customer
Satisfaction 0.761
Education 0.599 0.867
Emotions 0.627 0.580 0.795
Entertainment 0.610 0.773 0.630 0.830
Escapism 0.587 0.617 0.587 0.605 0.894
Esthetics 0.502 0.435 0.510 0.456 0.508 0.857

Table 5. Goodness of Fit Index

2
AVE R
Customer Satisfaction 0.5795 0.3937
Education Experience 0.7529
Emotions 0.6324 0.4982
Entertainment Experience 0.6893
Escapism Experience 0.8003
Esthetics Experience 0.7352
a b
Average Scores 0.6983 0.4459
2
AVE * R 0.311
( ) 0.558

32
 Ali F., K. Hussain and R. Omar (2016) / European Journal of Tourism Research 12, pp. 25-40

explanatory power of the predictor variable(s) hypothesizing that educational experience will
on the respective construct. All four dimensions influence customer emotions positively and
of customer experience explains 49.8% per significantly. The results show a strong support
2
cent of their emotions (R = 0.498), whereas for this hypothesis (H1: b = 0.105, t = 1.980, sig
emotions of customer explains 39.4 per cent of < 0.05). Similarly, H2 hypothesised that
2
customer satisfaction (R = 0.394). In regard to entertainment experience will influence
model validity, Chin et al. (2008) classified the customer emotions positively and significantly.
endogenous latent variables as substantial, The results show a strong support for this
2
moderate or weak based on the R values of hypothesis (H2: b = 0.320, t = 4.499, sig <
0.67, 0.33, or 0.19 respectively. Accordingly, 0.01). A strong support was also found for H3
2
both emotions (R = 0.498) and customer and H4 hypothesising the positive and
2
satisfaction (R = 0.394) can be described as significant effect of esthetic experience and
moderate. escapist experience on customer emotions
(H3: b = 0.204, t = 4.082, sig < 0.01; H4: b =
The complete results of the structural model 0.225, t = 4.025, sig < 0.01). These results are
and hypotheses testing are presented in Table consistent with the study conducted by Hosany
6. The results show a strong support for all the and Witham (2010) who observed a significant
five hypotheses of the study. H1 was influence of dimensions of customer

Figure 2. Results of the Structural Model

Table 6. Structural Estimates (Hypotheses Testing)

Hypothesis Standard Standard T Statistics Decision
Beta Error
H1 Education Emotions 0.105 0.072 1.98* Supported
H2 Entertainment Emotions 0.320 0.071 4.499** Supported
H3 Escapism Emotions 0.225 0.055 4.082** Supported
H4 Esthetics Emotions 0.204 0.051 4.025** Supported
H5 Emotions Customer Satisfaction 0.627 0.034 18.358** Supported
*P<0.05; **P<0.01

33
 Diagnosing customers experience, emotions and satisfaction in Malaysian resort hotels.

experience over their emotions. Similarly, other Discussion and Managerial Implications
researchers such as Bitner (1992), Ladhari Based on the concepts of experience economy
(2009) and Pareigis et al. (2011) also supports presented by Pine and Gilmore (1998), Oh et
the notion that various facets of customer al. (2007) developed a scale for measurement
experience develops customers emotional of tourists experiences and tested it in bed and
responses. Similarly, Jani and Han (2011) breakfast accommodation. Hosany and Witham
conducted a research in hospitality industry (2010) tested this scale in cruise ship industry
and observed that customer emotions are and call for further validation of the scale in
strongly influenced by the service-encounter other facets of hospitality contexts. They also
performance. The last hypothesis was H5, suggested to investigate the mechanisms of
which hypothesises positive and significant how tourist experiences can elicit customer
effect of emotions on customer satisfaction. emotions. Considering this research call, this
The results strongly support this hypothesis study aimed to examine the effects of four
(H5: b = 0.627, t = 18.358, sig < 0.01). These realms of customer experience on customer
results are consistent with the previous studies. emotions and satisfaction levels in resort
Lin and Liang (2011) investigated the extent to hotels. Data was collected from the guests of
which emotions influence customer satisfaction Malaysian resort hotels. Structural equation
and behavioural intentions. They stated that modelling based on partial least squares
emotions affect customer satisfaction and method was used to analyse the data and test
behavioural intentions positively and the relationships between the constructs.
significantly. Han and Back (2007) also Overall, the findings of this study enhance the
investigated the influence of positive and understanding of experience economy
negative emotions on customer satisfaction concepts in resort hotels and their effect on
and found the same results. The results are emotions and satisfaction of customers. The
also supported by other researchers (Ali and study implications are discussed below and
Amin, 2014; Lin and Mattila, 2010; Lee et al., future research areas are highlighted.
2009; Jang and Namkung, 2009; Ladhari,
2009; Martin et al., 2008; Burns and Neisner, Results from this study indicate that customer
2006). experiences can be classified in four
dimensions including entertainment, education,
Common Method Variance esthetic and escapism. Analysis of the data
Common method variance refers to variance proves reliability and validity of all the four
that is attributable to the measurement method dimensions of customer experience. More
rather than to the construct of interest specifically, the findings of this study establish
(Podsakoff et al., 2003; pp. 879). It may exist the viability and generalizability of Oh et al.
due to the single survey method used to collect (2007) and Hosany and Withams (2010)
responses (Hair et al., 2006). This variance measurement model in a different consumption
was addressed by following the guidelines situation. However, the difference exists in
provided by Podsakoff et al. (2003) and these four dimensions based on their relative
presented the survey items (Lindell and importance in terms of predicting the outcome
Whitney, 2001). At the data analysis stage of variables of emotions and customer
the study, Harmans (1967) one-factor test was satisfaction. In contrast to study conducted by
also applied to control the common method Oh et al. (2007), the results from this study
variance. All the items of the study were show that entertainment was the main
entered into a principal component analysis determinant of customer emotions in Malaysian
with varimax rotation to assess if a single factor resort hotels. Entertainment was also
emerges from the factor analysis accounting for considered the second most important
more than 50 percent of the co-variation. The determinant of outcome variables in the study
results indicated that there was more than one conducted by Hosany and Witham (2010) on
factor that accounted for the majority of cruiser experiences. Entertainment is an
covariance and it does not appear to be a integral part of a tourism. Moreover, Gee
common method bias concern in the present (2000, p.22) states that, The core principle of
study. the resort concept is the creation of an
34
 Ali F., K. Hussain and R. Omar (2016) / European Journal of Tourism Research 12, pp. 25-40

environment that will promote and enhance a Findings from different studies suggest that the
feeling of well-being, enjoyment and four dimensions of customer experience have
satisfaction. In relative terms, escapism was differences in terms of their relative importance
the second most important dimension in to predict different outcomes. Therefore,
predicting customer emotions in this study. marketers should understand these differences
According to Snepenger et al., (2007) and as they offer practical implications for
Hosany and Witham (2010), escapism remains implementing segmentation and positioning
an important motivator for vacations and strategies based on experiences of customers
personal travel. Yang and Chan (2010, p. 58) (Hosany and Witham, 2010).
states, that to escape from normal life as the
main motivating factor to visit a resort hotel. The results also found that customer emotions
The findings of this study suggest that esthetics are very strong predictors of customer
is the third main determinants to predict satisfaction in resort hotels. These findings are
customer emotions. Many researchers have all in line with the previous studies who
discussed the influence of esthetics and observed that emotions evoked during the
physical environment on customer emotion in consumption experience influence satisfaction
any service setting (Pareigis et al., 2011; judgements (Ali and Amin, 2014; Pareigis et al.,
Ladhari, 2009; Bitner, 1992). Similarly, Oh et al. 2011; Hosany and Witham, 2010; Lin and
(2007) and Hosany and Witham (2010) declare Mattila, 2010; Jang and Namkung, 2009;
esthetics as the main determinant of Ladhari, 2009; Lee et al., 2009; Martin et al.,
experiential outcomes. A service settings 2008; Burns and Neisner, 2006; Bitner, 1992;).
physical environment is comprised of a variety Oliver (1997) states that a strong theoretical
of different elements including the esthetics support regarding the link between positive
and ambient factors such as color, air, scent, emotion and customer satisfaction is evident.
illumination, facilities, layout (Lin and Liang, While assessing a service experience,
2011; Han and Ryu, 2009; Baker et al., 1994). customers basically draw on their emotional
These factors are all interrelated and they work state and any change in this emotional state
together (Mehrabian and Russell, 1974) to influences their satisfaction levels (Lin and
influence consumer behavior holistically, not as Liang, 2011). Psychology literature has
separate individual factors (Bitner, 1992). For demonstrated that emotions can affect
example, in-store experiences developed by evaluative processes (Mehrabian and Russell,
the physical environment also trigger customer 1974). Consumers emotions and evaluations
emotions (Lin and Liang, 2011). In this context, are observed to have a strong correlation with
customers emotions are influenced by both the customer satisfaction (Burns and Neisner,
design and the ambient factors of physical 2006).
environment that generates excitement among
the customers (Harris and Ezeh, 2008). Resort hotels are becoming one of the fastest
Richardson (2000) identified two characteristics segments of tourism attractions around the
of a resort hotel including sufficient indoor world because a drastic increase has been
amenities encompassing pleasant physical seen in the number of people travelling to
environment and convenient entertainment resort hotels situated in the natural exotic
facilities. The second key characteristic of the locations to escape from their routine life and
resort hotel is its location which is in a unique enjoy and entertain themselves (Ali et al.,
vacation spot that is desirable because of its 2013). The fast development in this tourism
climate, scenery, and recreational attractions. sector makes it very competitive and forces the
For both these two characteristics, esthetics resort hotels to develop various strategies for
remain an integral part (Mill, 2008). With attracting and retaining customers by
regards to the educational dimension, while differentiating themselves from competitors
various resort hotels offers some opportunities (Mill, 2008). At the same times, resort hotels
for the guests to increase their knowledge and are facing the challenge of understanding
skills (e.g., massage techniques, cooking customer experiences and the resulting post
lessons), such experiences were of little consumption evaluations. The findings from
importance in predicting customer emotions. this study provide some insight on the
35
 Diagnosing customers experience, emotions and satisfaction in Malaysian resort hotels.

customer experience dimensions and their holistic approach to study factors of customer
relationship with emotions and customer experience are yet to be studied empirically.
satisfaction. More specifically, the study Therefore, future studies emphasizing on the
validates a measurement scale to examine identification of factors of customer experience
resort hotels guests experiences along the may be useful to find new dimensions of
four dimensions. This can help the customer experience specific to different
management of resort hotels to develop contexts. The findings of this study indicated
suitable promotional and marketing campaigns. that customer experience dimensions elicit
For instance, resort hotels should emphasize emotions in customers. Future studies can
the educational, esthetic, escapist, and investigate the effects of customer experience
entertaining values of the stay at their resort. on different types of emotions such as joy,
The pre-consumption performance pleasure, and love. Moreover, future studies
(advertisements) and during-consumption might also consider how people having
service performance of the resort hotels must different characteristics perceive service
elicit positive emotions of the guests as these experience and its effect on their emotions and
are the string predictors of customer behaviours. Moreover, in terms of the
satisfaction. In addition, resort hotels should antecedents of customer satisfaction, this study
focus on developing attractive and esthetically only considered customer experience and
pleasing environments as these are significant emotions. However, there might be other
in developing memorable experiences. This factors that can influence customer satisfaction.
offer additional support that resort hotels in Hence, future studies can also incorporate
Malaysia needs to consider physical other factors such as perceived price and
environment as an effective marketing strategy perceived social interaction etc. Finally, this
in order to appeal to customers from other research has sought to understand the resort
Asian or Western counties. Similarly, having a hotel experience dimensions using an existing
good quality services would be in vain if the measurement model. It might be interesting to
physical environment is not attractive and well develop other items for assessment of other
maintained, since a bad physical environment attributes and aspects of the resort hotel
can change customers, perception of the actual experience.
service quality levels resulting in negative
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