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DOI: https://doi.org/10.3727/108354219X15652651367433
Copyright 2019 Cognizant, LLC. E-ISSN 1943-3999 www.cognizantcommunication.com RESEARCH NOTE
EFFECT OF HOTEL GREEN SERVICE
ENCOUNTERS: EVIDENCE FROM INDIA
ABHISHEK MISHRA* AND ANSH GUPTA†
*Marketing, Indian Institute of Management, Indore, M.P., India
†CEO and Founder, Bogatchi Chocolates, New Delhi, India
Green marketing is an important research area in the marketing literature, with researchers explor-ing
how businesses can balance customer satisfaction, through outstanding services, with minimal
environmental impact. Yet the independent impact of specific green elements of hotel services on the
consumer–hotel brand relationship remains largely unexplored in the hospitality and tourism litera-ture.
Based on a review of relevant literature corroborated with qualitative in-depth interviews, fol-lowed by
empirical validation, a framework is proposed for brand loyalty towards green hotel services, measured
by attribute-based green service encounters and shaped through positive experiences.
Key words: Green service encounters; Experiential value; Green brand loyalty; Green hotel Introduction
remain underexplored, and additional research is
required to identify attributes that act as physical
Societal concerns, driven by media focus, about
evidence of a hotel’s green promises, as well as
environmental deterioration have resulted in ser-
the effects the attributes have on shaping meaning-
vices across all sectors, including hospitality, being
ful green experiences and brand loyalty. Service
increasingly transformed to include environmen-tally
encounters are moments of truth through which
friendly features (Manaktola & Jauhari, 2007). Hotel
customers often develop unique impressions about
patrons, for both business and leisure, now
a service firm. Each encounter is an opportunity
increasingly seek ecofriendly products and services
for the firm to sell its services, reinforce its offer-
and prefer to engage with brands that offer them.
ings, and satisfy the customer (Patiar, Davidson,
However, the effects of green service elements on
& Wang, 2012). Hence, green service encounters
consumer satisfaction in the hospitality sector
(GSEs) are defined as interactions between hotel
Address correspondence to Abhishek Mishra, Assistant Professor, Marketing, Indian Institute of Management, Indore, M.P., India. E- mail: abhishek@iimidr.ac.in 535
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guests and all ecofriendly service elements dur-ing
Green design elements, made up of functional and
their stay at a hotel (Bieak Kreidler & Joseph-
aesthetic aspects, constitute visible and tan-gible Mathews, 2009).
evidence of a green service. Finally, social
Experience of such green services, operation-
elements are made up of people, both customers
alized through experiential value, is a customer’s
and employees, that serve as enablers of green ser-
perception of interactions involving either direct
vices (Reichel, Fuchs, Pizam, & Poria, 2014). To
usage or indirect appreciation of specific service
find support for this proposed operationalization,
elements (Holbrook, 2006). Extending the argu-ment
25 guests at three five-star certified hotels in India
to ecofriendly services, green experiential value
were interviewed. Table 1 depicts the responses
(GEV) is defined as the customer’s percep-tions of
from these interviews converted into items for
four unique benefits from such green ser-vices, in
measuring GSE. Further, GSE is proposed as a
line with Holbrook’s (2006) classification. Green
higher order construct reflecting the primary
economic value is the mix of immediate benefits of
dimensions, which in turn reflect the second-level
reduced environmental impact along with long-term subdimensions.
ecobenefits; green social value is the perceived
social benefit of engaging in environ-mentally Research Propositions
friendly activities; green hedonic value is the
intrinsic pleasure generated by consuming
The economic dimension of GEV includes
environmentally safe products; and green altruistic
immediate cost savings due to the decreased con-
value is the psychological satisfaction derived from
sumption of valuable natural resources, such as water
helping others through ecofriendly consumption
and fossil fuels, which also impact future monetary
(Papista & Krystallis, 2013). Further, as suggested by
benefits (Hartman & Apaolaza-Ibáñez, 2012). Extant
Holbrook (2006), GEV is proposed as a higher order
literature shows that a customer’s judgment of the
construct reflecting these four individual values.
efficacy of ambience attributes not only enhances
their belief in the economic value of the hotel’s green
Service managers are increasingly recogniz-ing
service but also enhances their sensory perceptions,
that green initiatives help in marketing the hotel
generating heightened hedo-nic pleasure (Keng,
brand effectively to environmentally con-scious
Huang, Zheng, & Hsu, 2007).
customers and in gaining a loyal customer base
Consumers inherently appreciate ecofriendly
through this differentiation (Rivera, 2002). Based
tangible functional features, which form physical
on previous works on green branding, green brand
evidence for a service and consequently invoke
loyalty (GBL) is proposed as the strong
economic value embedded in the overall green
commitment of consumers to repatronize a green
service offering. Functional performance also has
hotel brand because of its environmental
social implications, as these elements assure users contributions.
that they are actually consuming ecofriendly ser-
vices, which makes them feel they are part of a Proposed Model
unique, nature-friendly group (Gao, Winterich, &
Zhang, 2016). Additionally, there is some literary Measuring GSE
support for the effect of aesthetic design on
A review of extant works, supported with quali-
positive customer emotions, achieved through a
tative interviews, is used to develop measures for
heightened sense of immersive enjoyment (e.g.,
GSE. A structured multidimensional framework is Keng et al., 2007).
proposed for defining GSE, which is suggested as
A primary motive for consuming ecofriendly
a combination of ambience, design, and social
services also lies in achieving altruistic, unselfish
encounters (Bieak Kreidler & Joseph-Mathews,
welfare for others who are immersed in the same
2009). Green ambience points to the intangible
environment, which, in the current case, are staff and
ecofriendly elements that tend to affect nonvi-sual
cocustomers. In accordance with service-dominant
senses and are composed of interior and exterior
logic, value in services is always cocre-ated, either
ambience (Haggag & Elmasry, 2011).
with service staff, acting as green value
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Green Service Encounters (GSE) Constructs and Items Construct/Measurement Items Ambience: Interior
1. The hotel ambience offers pleasant natural fragrance (AI1)
2. The hotel ambience is bright with natural light (AI2)
3. The temperature inside the room is not too hot or cold (AI3)
4. The quality of air in the hotel is fresh (AI4)
5. The hotel ambience feels natural with sound of running water (AI5) Ambience: Exterior
1. The hotel has pleasant natural aroma in the gardens (AE1)
2. The outdoor air of the hotel is fresh (AE2)
3. The outdoor area of the hotel has sounds of waterfalls (AE3) Design: Functional
1. The hotel has energy efficient lights (DF1)
2. Lights in the hotel are sensor controlled (DF2)
3. The hotel has low flow water fixtures (DF3)
4. The hotel offers organic foods (DF4)
5. The hotel offers reuse of consumables (DF5)
6. The hotel has other energy saving equipment (DF6)
7. The hotel offers recycling bins (DF7)
8. The hotel has glazed windows (DF8)
9. The hotel has other fitments which use less water (DF9) Design: Aesthetics
1. Objects used for decoration are made of recycled materials (DA1)
2. Local artifacts are used for décor (DA2)
3. No cut flowers are used for décor (DA3)
4. Lot of natural plants are used (DA4)
5. All pieces of decorations in the hotel go well together (DA5)
6. The color combination of décor items is good (DA6)
7. The environment makes one feel like being at a beautiful island (DA7) Social: Staff
1. The hotel has a separate ‘green team’ (SS1)
2. The staff on green team at the hotel seem well trained in practicing eco-friendliness (SS2)
3. The staff on green team very well explained some of the green features at the hotel (SS3) Social: Cocustomers
1. Other guests at the hotel are interested in eco-friendly activities (SC1)
2. Other guests at the hotel consciously separate organic from non-organic wastes (SC2)
3. Other guests at the hotel opt for reuse option for consumables (SC3)
enablers, or through interactions with other
H2: GEV positively affects GBL.
custom-ers, who may either inhibit or enhance the
overall green experience (Keng et al., 2007). Analysis
Finally, a customer’s decision to reengage with
a green hotel brand strongly depends on their prior
The respondents in this empirical study were all
green experiential evaluation of the hotel’s offer-
adults staying in a green hotel. For data collec-tion, a
ings. Direct support for this argument comes from
total of 14 green hotels across India were randomly
Kayaman and Arasli (2007), who argued for expe-
selected; subsequently, within each hotel, random
rience with a service firm as one of the
sampling of occupied rooms was adopted to
antecedents to service brand loyalty.
distribute questionnaires to 1,500 guests by the hotel
management. The questionnaire contained items for
H1: GSE, reflected by green ambience, design,
GSE, as outlined in Table 1, while three items for
and social encounters, is positively associated
each GEV component,and four items for GBL were
with GEV, reflected by green economic,
borrowed from Hartmann and Apaolaza-Ibáñez
hedonic, social, and altruistic values.
(2011) and Chen (2010), respectively, and IP: and page location. lOMoARcPSD|46342985 538 MISHRA AND GUPTA Table 2
Reliability and Validity Analysis Construct/Code Factor Loadings Mean (SD) CR AVE MSV ASV GSE internal ambience 0.86 0.58 0.57 0.45 AI1 0.75 5.9 (1.03) AI2 0.76 5.6 (1.12) AI3 0.76 5.8 (0.96) AI4 0.74 5.6 (1.11) AI5 0.80 5.5 (1.20) GSE external ambience 0.86 0.67 0.57 0.46 AE1 0.81 4.8 (1.52) AE2 0.86 5.1 (1.46) AE3 0.81 5.1 (1.56) GSE design functional 0.91b 0.59b 0.57b 0.46b DF1 0.68a 5.1 (1.17) DF2 0.78 5.6 (1.16) DF3 0.83 5.6 (1.23) DF4 0.38a 6.1 (0.88) DF5 0.34a 5.4 (1.13) DF6 0.38a 5.7 (1.23) DF7 0.41a 5.4 (1.3) DF8 0.74 5.7 (1.08) DF9 0.74 5.6 (1.26) GSE design aesthetics 0.91b 0.60b 0.54b 0.41b DA1 0.79 5.6 (1.13) DA2 0.78 5.6 (1.31) DA3 0.87 5.8 (1.18) DA4 0.83 5.9 (1.09) DA5 0.80 5.6 (1.08) DA6 0.69a 5.5 (1.18) DA7 0.71 5.9 (1.05) GSE social staff 0.87 0.63 0.57 0.48 SS1 0.73 5.8 (1.00) SS2 0.85 5.6 (1.1) SS3 0.77 5.4 (5.15) GSE social cocustomers 0.88 0.72 0.70 0.52 SC1 0.82 5.1 (1.22) SC2 0.83 5.2 (1.12) SC3 0.88 5.2 (1.13) GEV economic 0.97 0.89 0.73 0.53 EE1 0.89 5.8 (0.97) EE2 0.85 5.8 (0.94) EE3 0.82 5.9 (0.94) GEV hedonic 0.89 0.74 0.70 0.52 EH1 0.83 5.9 (0.92) EH2 0.89 5.9 (0.89) EH3 0.85 5.9 (0.96) GEV social 0.89 0.73 0.70 0.51 ES1 0.86 5.8 (1.00) ES2 0.89 5.8 (1.13) ES3 0.82 5.5 (1.23) GEV altruistic 0.92 0.80 0.69 0.55 EA1 0.89 5.9 (0.94) EA2 0.90 5.9 (1.00) EA3 0.88 5.9 (0.95) GBL 0.92 0.74 0.54 0.40 GBL1 0.71 5.8 (0.97) GBL2 0.91 5.5 (1.12) GBL3 0.91 5.4 (1.18) GBL4 0.89 5.5 (1.11)
Note. CR, composite reliability; AVE, average variance extracted; MSV, maximum squared shared vari-
ance; ASV, average squared shared variance. aDropped. bValues after dropping items with loadings <0.7.
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modified for the present context. A total of 523
usable responses were collected; this sample was oyalty 860.
randomly split into 223 and 300 responses for mea- GreenBrand L
surement and model validation. During data nor-
mality tests, skewness and kurtosis of both data sets
were found to be within prescribed limits. Confir- ltruistic alue
matory factor analysis with the first data set, using A V 0.89 0.74/0.37
AMOS software, shows that the measurement model
was satisfactory, with summaries presented in Table
2 (measurement model characteristics) and Table 3 alue Social V
850. 77/0.0.69 0.67/0.40
(interconstruct correlation/covariance). Five items of
the green design functional dimen-sion and one of
the green design aesthetics dimen-sion did not load
well, and were thus dropped for the model validation edonic alue H V
0.86 0.81/0.61 82/0.0.60 0.70/0.37 stage.
As seen in Table 2, all composite reliability (CR) ic
values are above 0.7, average variance extracted
(AVE) values exceed the recommended level of 0.50, conom alue E V 850.
84/0.0.65 0.77/0.67 82/0.0.68 0.69/0.42
and for all constructs CR values exceed AVE values,
suggesting sufficient reliability and con-vergent ers
validity. Further, as evident from Table 2, all AVEs
are greater than the average shared vari-ance (ASV) ther ustom O C 0.84 0.73/0.67
70/0.0.56 0.84/0.57 83/0.0.54 0.59/0.41
and maximum shared variance (MSV) between any
two constructs of interest, as further confirmed in
Table 3, suggesting discriminant validity for the Staff
constructs concerned (Hair, Black, Babin, & 790. 78/0.0.68
0.64/0.56 68/0.0.42 0.72/0.47 75/0.0.47 0.65/0.34
Anderson, 2010). Taking this measure-ment model
forward, the complete structural model of respective constructs. E
(measurement and path model) was executed with V
the second dataset. Figure 1 presents the path val- esign esthetics D A 0.77
0.74/0.51 56/0.0.51
0.69/0.54 61/0.0.42 0.62/0.48 65/0.0.48 0.53/0.32
ues, along with both first-order and second-order factor loadings.
Satisfactory fit indices are reported with GFI = 0.92,
NFI = 0.92, RFI = 0.91, IFI = 0.91, TLI = 0.91, CFI esign D unctional 760. F
75/0.0.56 0.68/0.55 70/0.0.67
0.72/0.61 71/0.0.54 0.65/0.53 67/0.0.54 0.57/0.36
= 0.92, RMSEA = 0.07, and SRMR = 0.05. All
fac-tor loadings retained from the measurement
model were found to be greater than 0.70. Further, bience
both paths, one from GSE to GEV and the other xternal m E A 0.81
0.76/0.72 62/0.0.61 0.77/0.74 75/0.0.67 0.71/0.61 67/0.0.66 0.62/0.58 65/0.0.69 0.55/0.48
from GEV to GBL, were found to be significant at
p < 0.01, and validate H1 and H2. ovariances bience m
n in italics; diagonal values are square-root of A Findings Internal A 760. 76/0.0.66
0.62/0.56 69/0.0.60 0.64/0.62 76/0.0.75 0.67/0.65 65/0.0.64 0.66/0.63 69/0.0.65 0.63/0.41
Through rigorous structural equation modeling, a orrelations/C
comprehensive framework was developed to mea- bience ers
sure GSE. GSE was empirically validated to reflect bience ic value
three dimensions—ambience, design, and social— ovariances are show
which in turn comprise two dimensions each. Satis- able 3 xternal am
esign functional esign aesthetics ther custom conom edonic value
ltruistic value reen brand loyalty ote. C
factory loadings of final individual items on their T Intercconstruct C Internal am E
D D Staff O E H Social value A G N IP: 109 page location. lOMoARcPSD|46342985 540 MISHRA AND GUPTA
Figure 1. Structural model.
respective constructs, as well as those of first-order
aspects of a hotel service. While the general effects
constructs on GSE, support the robustness of the
of service encounters on customer experience and
framework. The results further validate the pro-posal
loyalty have been explored, this work validates the
of GEV as a multidimensional construct with four
relationship in a green service setting using the con-
dimensions: economic, hedonic, social, and altruistic
textual constructs GSE, GEV, and GBL.
values. Further, there is ample empirical evidence
that effective GSE leads to positive GEV, which in
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