Relationships among Service Quality, Firm Innovativeness, Perceived Price Fairness, and Information Costs Saved in the Hotel Industry

This study proposed a theoretical model in order to investigate the interrelationships among three service qualitiesincluding physical environment quality, interactional quality, and outcome quality. This study also examined theeffects of three service qualities on firm innovativeness, and in turn, firm innovativeness increased both perceivedprice fairness and information costs saved. Lastly, this study conducted multiple group analyses to empirically testthe moderating role of customer involvement. A conceptual model was developed and tested using the empirical datacollected from 214 hotel guests. The results showed the significant interrelationships among three service qualities. In other words, each service quality is not separate but connected to other service qualities. In addition, physicalenvironment and outcome qualities had positive effects on firm innovativeness, which in turn positively affectsperceived price fairness and information costs saved. During this process, customer involvement played themoderating role in the relationship between firm innovativeness and perceived price fairness. Both theoretical andmanagerial implications of the results are discussed.