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Asia-PacificJournal of

Innovation inHospitality and

Tourism

APJIHTVol 7 No 2 2018 (September)

PP 17711/04/2013 (032291)

Asia-Pacific Journal of Innovation in Hospitality and Tourism

(APJIHT)

Vol 7 No 2 2018 pp. 1-119

Published byTaylor’s University Sdn Bhd

Research PapersEmotional Intelligence, Perceived Organisation Support and Organisation Citizenship Behaviour: Their Influence on Job Performance among hotel employees 1 Ruth Sabina Francis, Elangkovan Narayan Alagas and Manimekalai JambulingamTaylor’s University, Malaysia

Empowerment in Hospitality Service Leadership: A Moderated Mediation Approach 21Rupam KonarTaylor’s University, MalaysiaFaizan AliUniversity of South Florida, USAKashif HussainUSCI University, Malaysia

In-Depth Review of Micro-Economic Analysis of Business Tourist Spending 39Jeetesh Kumar and Anshul GargTaylor’s University, MalaysiaLeena Nitin FukeyChrist University, India

Western Celebrity Chefs and Restaurants: A View from Singapore 51Joan C. Henderson Nanyang Technological University, Singapore

Key Attributes of Malaysian Specialty Coffee Shops: An Exploratory Investigation 69 Michelle Lee G.W., Sushila Devi Rajaratnam and Rupam KonarTaylor’s University, Malaysia

An Investigation of Malaysian Wine Connoisseurs’ Socio-Cultural Implications During their Learning Path 85Joaquim Dias Soeiro Taylor’s University, Malaysia

The Bubble Drink Industry of Malaysia: An Empirical Assessment of Repurchase Intention 103Kandappan Balasubramanian, Fan Wai Mun and Vinesh Ramalingam Taylor’s University, MalaysiaVivien Chai Su Hui Grand Park Orchard, Singapore

Vol. 7 No. 2 September 2018

Asia-Pacific Journal of Innovation in Hospitality and Tourism(APJIHT)

Taylor’s University Sdn Bhd

ii Ahmad Rasmi AlBattat, Ahmad Puad Mat Som & Chiang, Li-Ting

APJIHT Vol. 7 No. 2 September 2018


About the JournalThe aim of the journal is to promote and enhance research development and innovation in the field of hospitality and tourism. The journal seeks to provide an international platform for hospitality and tourism educators, postgraduate student and researchers, to debate and disseminate research findings, facilitate the discussion of new research areas and techniques, and highlight best practices for industry practioners. The articles published in the journal take a multi-disciplinary and inter-disciplinary approach to study the marketing, finance, economics and social aspects of hospitality and tourism. Papers dealing with theoretical, conceptual and empirical aspects of the subject matter will be considered for publication.

Article Categories

•Annualreviewoftrends •Managementstyles•Appliedresearch •Methodsandprinciples•Empiricalresearch •Shortresearchnotes•Techniquesandinnovations •Bookreviews

The Review ProcessAll articles are reviewed (double blind) by at least two academic experts in the particular field of the submitted paper prior to acceptance. A maximum of 45 days/1.5 months is envisaged for the completion of the blind review process.

Paper ContributorsPapers are accepted from public and private institutions of higher education, the industry, non-governmental organizations, research centres and associations.

FrequencyIt is a bi-annual journal with the issues being published in March and September of each year.

AssociationThisjournalisofficiallyassociatedwithASEANTourismResearchAssociation(ATRA)since2015.

Sponsor and PublisherThe journal is sponsored by the Center for Research and Innovation in Tourism (CRiT), Faculty of Hospitality, Food and Leisure Management and published by Taylor’s University Sdn. Bhd.

iiiHospitality Emergency Management and The Dirty Twelve:A Dozen Reasons for Failure


Editorial Board

Editor-in-ChiefPaolo Mura, Faculty of Hospitality, Food and Leisure Management, Taylor’s University, Malaysia

Managing EditorRupam Konar, Faculty of Hospitality, Food and Leisure Management, Taylor’s University, Malaysia

Founding Editor-in-ChiefProfessor Muhamad Muda

Board Members

Dimitrios Buhalis, Bournemouth University, UKKaye Chon, The Hong Kong Polytechnic University, Hong KongKadir Din, Universiti Utara Malaysia, MalaysiaDogan Gursoy, Washington State University, USAMicheal C.Hall,UniversityofCanterbury,NewZealandAmran Hamzah, Universiti Teknologi Malaysia, MalaysiaBadaruddin Mohamed, Universiti Sains Malaysia, MalaysiaFevzi Okumus, University of Central Florida, USAJean-Pierre Poulain, University of Toulouse Jean Jaurès, France John Tribe, University of Surrey, UKBihu (Tiger) Wu, Peking University, China

Advisory Members

Nuraisyah Chua Abdullah, Universiti Teknologi Mara, MalaysiaFaizan Ali, Florida State University, USALevent Altinay, Oxford Brookes University, UKNeethiahnanthan Ari Ragavan, Taylor’s University, MalaysiaNorman Au, Hong Kong Polytechnic University, Hong KongAhmet Ozturk Bulent, Central Florida University, USAChristina Geng-Ging Chi, Washington State University, USAChong Li Choo, Taylor’s University, MalaysiaAllan de Guzman, University of Santo Tomas, Manila, PhilippinesYusel Ekinci, Oxford Brookes University, UKFaridah Hassan, Universiti Teknologi MARA, MalaysiaSotiris Hji-Avgoustis, Ball State University, Indiana, USA

iv Ahmad Rasmi AlBattat, Ahmad Puad Mat Som & Chiang, Li-Ting


Stanislav Ivanov, Varna University of Management, BulgariaJay Kandampully, Ohio State University, MalaysiaSuresh Kannan, Taylor’s University, MalaysiaWoody Kim, Florida State University, USAAzilah Kasim, Universiti Utara Malaysia, MalaysiaSonia Khan, H.P. University, IndiaCatheryn Khoo-Lattimore, Griffith University, AustraliaCyrille Laporte, University of Toulouse Jean Jaurès, France Emily Ma, Griffith University, AustraliaParikshat Singh Manhas, University of Jammu, IndiaPaul J. McVety, Johnson and Wales University, USAElise Line Mognard, Taylor’s University, MalaysiaSalleh Mohd Radzi, Universiti Teknologi MARA, MalaysiaPaolo Mura, Taylor’s University, MalaysiaHalil Nadiri, EasternMediterraneanUniversity,NorthCyprusPradeep Kumar Nair, Taylor’s University, MalaysiaVikneswaran Nair, University of Bahamas, BahamasRuben Mediona Nayve, JR,CouncilofEconomicsEducators,PhilippinesAlexandru Nedelea, Stefan cel Mare University of Suceava, RomaniaChristy Ng Yen Nee, Institute for Tourism Studies (Macao), ChinaRosmini Omar, Universiti Teknologi MalaysiaNor’ain Othman, Universiti Teknologi MARA, MalaysiaMicheal Ottenbacher, Heilbronn University, GermanyRadesh Palakurthi, University of Memphis, USARamachandran Ponnan, Taylor’s University, MalaysiaSridar Ramachandran, Universiti Putra Malaysia, MalaysiaScott Richardson,TheEmiratesAcademyofHospitalityManagement,UAEHeike Schanze,AucklandUniversityofTechnology,NewZealandRegina Schlüter,UniversidadNacionaldeQuilmes,ArgentinaMohit Shahi, Taylor’s University, MalaysiaAhmad Shuib, Universiti Putra Malaysia, MalaysiaMarianna Sigala, University of the Aegean, GreeceVineetha Sinha,NationalUniversitySingapore,SingaporePimtong Tavitiyaman,SPEED,HongKongToney K. Thomas, Taylor’s University, MalaysiaLaurence Tibere, University of Toulouse Jean Jaurès, FranceMuzaffer S. Uysal, Virginia Polytechnic Institute and State University, USAPaul Williams, Staffordshire University, UKAtila Yuksel, Adnan Menderes University, Turkey

vHospitality Emergency Management and The Dirty Twelve:A Dozen Reasons for Failure


Research PapersEmotional Intelligence, Perceived Organisation Support and Organisation Citizenship Behaviour: Their Influence on Job Performance among hotel employees 1 RuthSabinaFrancis,ElangkovanNarayanAlagasandManimekalaiJambulingamTaylor’s University, Malaysia

Empowerment in Hospitality Service Leadership: A Moderated Mediation Approach 21Rupam KonarTaylor’s University, Malaysia

Faizan AliUniversity of South Florida, USA

Kashif HussainUSCI University, Malaysia

In-Depth Review of Micro-Economic Analysis of Business Tourist Spending 39Jeetesh Kumar and Anshul GargTaylor’s University, Malaysia

LeenaNitinFukeyChrist University, India


Vol. 7 No. 2 September 2018


vi Ahmad Rasmi AlBattat, Ahmad Puad Mat Som & Chiang, Li-Ting

Key Attributes of Malaysian Specialty Coffee Shops: An Exploratory Investigation 69 MichelleLeeG.W.,SushilaDeviRajaratnamandRupamKonarTaylor’s University, Malaysia

An Investigation of Malaysian Wine Connoisseurs’ Socio-Cultural Implications During their Learning Path 85DiasSoeiroJoaquimTaylor’s University, Malaysia

The Bubble Drink Industry of Malaysia: An Empirical Assessment of Repurchase Intention 103Kandappan Balasubramanian, Fan Wai Mun and Vinesh Ramalingam Taylor’s University, Malaysia

Vivien Chai Su Hui Grand Park Orchard, Singapore


APJIHT Vol. 7 No. 2 September 2018 pp. 1-20ISSN 2289-1471

Research Paper

Emotional Intelligence, Perceived Organisation Support and Organisation Citizenship Behaviour: Their Influence on Job Performance among Hotel Employees

Ruth Sabina Francis, Elangkovan Narayan Alagas and Manimekalai Jambulingam Taylor’s University, Malaysia

© The Author(s) 2018. This article is published with open access by Taylor’s Press.

Abstract: The hotel industry in Malaysia is under constant pressure to develop strategies for employee retention. The dearth of qualified managerial and non-managerial human resources posits a threat to the job performance of hotel employees and thereby the industry itself. This study examines how hotel employees in Kuala Lumpur perceive their emotional intelligence, organisation support, organisational citizenship behaviour and job performance and the causal relationship among these variables. A total of 100 employees from various hotel departments participated in this study. The data collected was analysed using the Partial Least Square modelling with Adanco software. Results reveal that there is a significant positive relationship between emotional intelligence, perceived organisation support, organisational citizenship behaviour and job performance. The hotel employee’s emotional intelligence and psychological empowerment positively influence their job performance through their organisational citizenship behaviour. The findings of this study proposes a number of theoretical and managerial implementations.

Keywords: Organisational citizenship behaviour (OCP), emotional intelligence, hospitality employees, Malaysia

Suggested citation: Francis, R.S., Alagas, E.N. & Jambulingam, M. (2018). Emotional intelligence, perceived organisation support and organisation citizenship behaviour: Their influence on job performance among hotel employees. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 1–20.

Introduction

The hospitality industry is ever glamorous and requires talents to be culturally adaptive. Being a part of the hospitality industry, it has always been a big challenge for one to manage work, home and social life. Especially in the service industry, where after one too many encounters with difficult guests, the hotel employee is often left completely

Correspondence: Ruth Sabina Francis, Taylor’s University, Malaysia. Email: [email protected].


2 Ruth Sabina Francis, Elangkovan Narayan Alagas and Manimekalai Jambulingam

demotivated to carry on with the rest of the day’s chores. Although employees are considered invaluable assets to hotels when compared to the other industries (Ariffin & Ha, 2015), they often have very limited routine holidays and are expected to work 7 days a week for a minimum of 14 hours a day (Bustamam, Teng, & Abdullah, 2014). As a result, the hotel labour market suffers from both attracting and retaining talents that result in the loss of human capital investments (Davidson, Timo & Wang, 2010). Studies on the Malaysian hotel industry have proven that employees who are given recognition tend to have higher self-esteem, confidence and willingness to take on new challenges (Pratheepkanth, 2011). In their study among Malaysian working adults, Kuean, Kaur and Wong (2010) claimed that if organisations promote a rewarding strategy to applaud their employee’s efforts, their performance will be enhanced. When employees are aware of their emotional stability and perceive strong organisation support, this generates their organisational citizenship behaviour which in turn enhances their job performance.

Literature Review

Emotional Intelligence

Emotional intelligence is a type of social intelligence or generated feeling that amplifies the ability to monitor one’s own feelings and another’s emotions, to distinguish them and use that information to promote attitudes that are more positive and behaviours and outcomes that contribute towards intellectual growth (Salovey & Mayer, 1990). Goleman (1998) defined emotional intelligence (EI) as the capacity for recognising our own feelings and those of others, for motivating ourselves and for managing emotions well in ourselves and in our relationships.

The concept of EI is a widely accepted strategy by the business community for hiring, training, leadership development and team building (Joseph, Newman, & O’Boyle, 2015). Goleman’s (1995) book has been flaunted as one of the 25 most influential business management books of all time by Time magazine (Sachs, 2011), and Goleman’s (1998) article published in Harvard Business Review has become the most requested reprint for this journal in the last four decades (Sardo, 2004). Goleman (1995) claimed that EI predicts as much as 80% of one’s life successes whereas IQ predicts about 20% only. However, many researchers are sceptical about the concept of EI, given the lack of harmony with regard to its definition, measurement and validity (Landy, 2005; Murphy, 2014). The first sort of EI construct is the ability to carry out accurate reasoning about emotions and the ability to use emotions and emotional knowledge to enhance the thought process (Mayer, Roberts, & Barsade, 2008) which supports EI as an definite ability or an aspect of intelligence (Daus & Ashkansay, 2005; MacCann, Joseph, Newman, & Roberts, 2014). The second definition of EI is the summed combination of personality traits, affect, and self-perceived abilities, rather than definite abilities (Bar-On & Parker, 2000; Goleman, 1995; Petrides, Furnham



3

& Martin, 2004). Emotional intelligence in various fields enables the best leaders, female and male, to use their obtained skills rationally and successfully according to their work environment (Abdalla, 2014). Kumar Mishra (2014), in her study on Indian executives in various organisations like call centres, hotels, hospitals and banking sectors, found that the more experienced executives scored higher on EI in comparison to less experienced executives. Shanta and Connolly (2013) confirmed that nurses with longer work experience had greater EI scores that helped them develop aptitudes such as stress management, conflict management, problem-solving and leadership skills. This corroborates with the claims by Dusseldrop, Meijel & Derksen (2011) that employees with high EI use their skills to create change and inspire others to follow them. Based on literature review, EI is an important factor that predicts the organisational citizenship behaviour (OCB) of employees in this century. Therefore, the study used a construct to find out the relationship between EI and OCB.

H1 : There is a significant positive relationship between Emotional Intelligence and Organisational Citizenship Behaviour among hotel employees.

Perceived Organisation Support

Perceived organisation support (POS) refers to the extent employees feel that their employer recognise their contributions and value their well-being (Eisenberger, Huntington, Hutchinson, & Sowa, 1986; Stamper & Johlke, 2003). Stamper and Johlke (2003) found that an organisation would provide enough support for its employees to perform to a desired level. Yoon, Seo, & Yoon (2004) explained that POS also enhances employees’ expectancy that their consistent efforts to achieve organisation goals would be recognised. POS also has a positive effect on in-role performance (Rhoades & Eisenberger, 2002) and a negative effect on turnover intentions amongst employees. Muse and Stamper (2007) postulated that POS also influenced and enhanced task performance. Empirical research linking to the processes that may moderate the influence of POS on performance outcome is really scant (Chen, Li, & Zhou, 2005; Muse & Stamper, 2007), especially in the field of hospitality. Many studies also proved the mediating role of job satisfaction in the relationship between POS and performance outcomes based on data collected from frontline employees in the service sector (Karatepe, 2012a; Kim, Cable, Kim, & Wang, 2009). According to Yoon & Suh (2004), job satisfaction fully mediated the effect of POS on service performance among South Korean frontline bank employees. Sadly, much of the POS research has been conducted in developed countries (Chen & Zhou, 2005; Tumesigye, 2010). Kuvaas and Dysvik (2010) stated that employees believed that POS reciprocates with OCB such as organisational commitment, loyalty and less turnover. POS has a positive impact on creativeness (Bhatnagar, 2014) as well as encourages effective commitment, mutual expectations and willingness to work (Neves & Caetano, 2009).



Based on literature review, POS has a positive relation with OCB. Therefore, this study investigated the relation between POS and OCB in the context of hospitality.

H2: There is a significant positive relationship between Perceived Organisational Support and Organisational Citizenship Behaviour among hotel employees.

Organisational Citizenship Behaviour (OCB)

Organisational citizenship behaviour or OCB refers to the extra-role behaviour and unrestricted behaviour which enhance an employee’s performance beyond the basic requirement of their duties (Organ, 1988; Ruiz-Palomino, Ruiz-Amaya, & Knörr, 2011; Yadav & Punia, 2016). Basically, OCB comprises five dimensions such as alturism, conscientiousness, courtesy, sportsmanship and civic-virtue (Costa & MacCrae, 1992; Organ, 1988; Podsakoff, MacKenzie, Moorman, & Fetter, 1990). Altruism refers to all the voluntary deeds of employees with the notion of helping other employees in work-related tasks or problems (Ariani, 2012; Organ, 1997; Smith, Organ, & Near, 1983). Conscientiousness refers to behaviours such as obeying organisational rules and regulations, working extra-long hours beyond the normal working hours to complete unfinished tasks and assist co-workers with task-related issues (Nnedum et al., 2017). Courtesy is the deed of discussing issues before actions are taken such as giving reminders to co-workers (Basu, Pradhan, & Tewari, 2017) while sportsmanship refers to employees who willingly embark on difficult tasks without complaining (Nnedum et al., 2017). Lastly, civic-virtue is the active participation of employees in organisation’s affairs and activities (Basu et al., 2017). While OCB has a positive influence on job performance, it is not formally rewarded (Emami, Alizadeh, Nazari & Darvishi, 2012). Despite the fact that OCB is not clearly documented or rewarded, it distinctively enhances organisational performance (Abdullah & Boyle, 2015). Bolino, Turnley, and Bloodgood (2002) contended that OCB promotes loyalty and trust among employees and enhances their participation in the organisation; it creates social capital in the organisation. Previous studies have also shown that OCB enhances employee job satisfaction, reduces turnover and increases productivity (Lapierre & Hackett, 2007); induces loyalty towards organisation at an emotional and cognitive level (Paille & Grima, 2011); and enhances job performance and organisational functioning (Podsakoff, Mackenzie, Paine & Bachrach, 2000; Organ, 1988; Ehrhart, Bliese & Thomas, 2006). With regard to hospitality settings, OCB elicits job performance (Chiang & Hsieh, 2012; Walz & Niehoff, 1996) whereby the intervention of social exchange is a motivator that enhances OCB among hotel employees (Ma & Qu, 2011); the positive mood of the employees elicits OCB (William & Shiaw, 1999) and in turn, OCB aids in achieving the organisation’s goal (Lemmon & Wayne, 2015). However, the mediated influence of OCB on emotional intelligence



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and psychological empowerment still remains to be verified in the hospitality industry (Langhorn, 2004; Jung & Yoon, 2012; Varca, 2004; Korkmaz & Arpaci, 2009; Kim & Agrusa, 2011; Hancer & George, 2003). Based on previous studies, OCB was employed as a mediator in this study and the following hypothesis was formed:

H3: Organisational Citizenship Behaviour significantly influences hotel employees’ Job Performance.

Job Performance

Job Performance (JP) refers to the volitional actions and behaviours on the part of organisational members or employees that contribute to or negatively impact the directions of an organisation (Campbell, Henry, & Wise, 1990; Murphy, 1989; Griffin, Neal, & Parker, 2007). There are three significant types of work behaviours that explain job performance : task performance, OCB & CWB (counterproductive work behaviour) (Rotundo & Sackett, 2002). According to Borman (2004) and Borman and Motowidlo (1993), job performance refers to the proficiency with which employees perform the basic core activities that are officially recognised as part of their job. Job performance varies considerably with individuals (Kane & Lawler, 1979) and can be measured on an occasional or short-term basis or as an overall general evaluation of a person’s typical performance (Beal, Weiss, Barros, & MacDermid, 2005; Gooty, Gavin, Ashkansay, & Thomas, 2014). Raub and Liao (2012) claimed that with the existence of environmental constraints, work role reinforcement achieves only a fraction of the scope of behaviours expected of an employee. Griffin et al. (2007) argued that the more uncertain an organisation is, the greater need for role flexibility. Based on the social exchange theory, OCB is an outcome of POS (Ahmed, Rasheed, & Jehanzeb, 2012) and Work Environment (WE) (Schaufeli, Salanova, Gonzalez-Roma & Bakker, 2002).

The Relationship between Emotional Intelligence, Organisational Citizenship Behaviour, Perceived Organisation Support and Social Exchange Theory

Various studies on emotional intelligence confirmed that it has a positive impact on job performance (Langhorn, 2004; Bar-On & Parker, 2000; Cherniss & Goleman, 2001; Goleman, 1995, 1998; Orme, 2001; Ryback, 1998; Stein & Book, 2000; Weisinger, 1998). For example, Jung & Yoon (2012) and Dimitriades (2007) found a positive direct influence of emotional intelligence on counterproductive work behaviours among food & beverage (F&B) employees in deluxe hotels. A meta-analysis conducted by O’Boyle, Humphrey, Pollack, Hawver & Story (2011) on the relationship between EI and JP found that EI significantly affects JP with a predictive average change of 14% on the latter.



The Social Exchange Theory (SET) was initially framed to account for the expansion and conservation of interpersonal relationships. Since then, it has been employed in relation to workplace relationships or employment relationship as well (Shore, Tetrick, & Barksdale, 1999). According to Liden, Sparrowe, & Wayne (1997), workers can form distinguishable social exchange relationships with their immediate supervisors, co-workers (Flynn, 2003) and their organisations (Moorman, Blakely, & Niehoff, 1998). These relationships have implications for behaviour, precisely because individuals return benefits they receive and they are likely to match goodwill and helpfulness toward the party with whom they have a social exchange relationship (Mitchell, Cropanzano, & Quisenberry, 2012). This creates a feeling of obligation on the employee’s part and since its human nature for individuals to return the benefits they receive, employees are likely to reciprocate the organisation’s favourable treatment with behaviours that promote its goal attainment efforts.

Other relevant literature corroborate that POS positively influences OCB (Eisenberger, Fasolo & Davis-LaMastro, 1990; Shore & Wayne, 1993; Wayne, Shore, Bommer, & Tetrick, 2002; Wayne, Shore, & Liden, 1997; Chiang & Hsieh, 2012). The employees in an organisation feel good when the organisation values their personal contributions which is reflected in the employees’ OCB (Moorman et al., 1998; Piercy, Cravens, Lane, & Vorhies, 2006; Podsakoff et al., 2000; Settoon, Bennett, & Liden, 1996; Chiang & Hsieh, 2012); this relates back to the social exchange theory.

Chiang and Hsieh’s 2012 study proved that Perceived Organisation Support (POS) has no direct influence on Job Performance but that OCB positively influences Job Performance (JP). On the other hand, a study of 407 valid respondents from various hotels in 7 China regions showed a link between the social exchange theory and OCB and revealed a significant relationship between employees’ OCB and their job performance (Ma & Qu, 2011).

There are a limited number of studies on the relationship between EI, OCB, POS and JP. Hence conducting this study in the context of hotel employees in Kuala Lumpur will help develop a better understanding of the implications of EI and POS in organisational settings. Moreover, this study investigates the significance of POS on JP among hotel employees, which in itself has not been extensively studied. It is much anticipated that understanding the effects of EI on OCB and JP will add to the existing body of knowledge in the hotel industry.

Many studies have explored the relationship between employee organisational citizenship behaviour (independent variable), perceived organisation support (independent variable) and job performance (dependant variable) in various settings (Farooqui, 2012; Salahuddin, 2016; Cho & Johanson, 2008; Karatepe, 2012a; Guest, Ramos, & Gracia, 2016; Walz, & Niehoff, 2002; William & Shiaw, 1999; Lemmon & Wayne, 2015). Similarly, studies linking emotional intelligence (independent variable)



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and job performance (dependant variable) in various fields have been undertaken (Langhorn, 2004; Jung, & Yoon, 2012; Dimitriades, 2007; Varca, 2004; Kim, Yoo, Lee, & Kim, 2012). However, the role of emotional intelligence and psychological empowerment as independent variables mediated through organisational citizenship behaviour and moderated through perceived organisation support on job performance as the dependant variable, remains unmapped. The model proposed by this study aims to fill the gap by investigating the moderating influence of perceived organisation support on employee behaviours and stances to explain their job performance. To date, a review of existing literature on Emotional Intelligence and Organisational Citizenship Behaviour have diclosed varied relationships and effects on Job Performance (Farooqui, 2012; Salahuddin, 2016; Cho, & Johanson, 2008; Karatepe, 2012b; Latorre, Guest, Ramos, & Gracia, 2016; Walz & Niehoff, 1996; William & Shiaw, 1999; Lemmon & Wayne, 2015; Langhorn, 2004; Jung & Yoon, 2012; Dimitriades, 2007; Varca, 2004; Kim et al., 2012).

Chiang and Hsieh (2012) claimed that the hotel employees’ OCB significantly and positively influence job performance; however, the motivation for OCB is related to the employees’ POS and PE. Further to this, Chiang, & Hsieh (2012) highlighted that employees’ OCB offers solutions to employers in inspiring employees towards better performance in the hospitality industry, where employee management is extremely complex and employee retention is nearly impossible. Thus building on this model, this study proposes that employees’ OCB and POS influence Job Performance through employees’ behavioural responses. This research aims to add to the extant literature by conceptualising and measuring OCB and POS from the employee’s perspectives.

Research Methodology

The study adapted questionnaires that have been validated in previous studies (Schutte et al., 1998; Spector, Bauer, & Fox, 2010; Rhoades & Eisenberger, 2002; Borman & Motowildo, 1993; Tseng & Huang, 2011) to measure EI with 33 measurement items, OCB with 20 measurement items, POS with 8 measurement items and JP with 15 measurement items. A total of 76 items were measured for the four constructs on a five-point Likert scale ranging from 1 as ‘Strongly Disagree’ to 5 as ‘Strongly Agree’. Demographic variables, such as gender, were included as a categorical variable while age, educational background and experience were counted in as ordinal variables.

Data Sample

A total of 100 hotel employees from Kuala Lumpur took part in this study and were chosen based on their availability and willingness to participate using a



non-probability sampling method. All necessary ethical principles were strictly adhered to during the collection of data. The respondents were first shown the letter of approval from the university of the researcher and prior approval was obtained from each respective hotel employer before data collection work commenced.

Results

Table 1 shows the profile of respondents; of which 79% were males and 21% were females.

Table 1. Demographic details of respondents

Characteristic Description Percentage (%)

Gender

Nationality

Age

Department

MaleFemale TotalMalaysianNon-Malaysian18–20 years21–30 years31–40 years41–50 years51–60 yearsTotalF&BKitchen Front OfficeHousekeepingAdministrationOthersTotal

7921

10090103

3139252

100301116204

19100

Table 2 shows the constructs’ validity and reliability : Dijkstra-Henseler’s rho (ρA) was more than 0.7, Jreskog’s rho (ρc) was 0.7 (Henseler, 2015) and Cronbach’s α was more than 0.6 (Fornell & Larcker, 1981), The convergent validity test is necessary in any measurement model to determine if the indicators in a scale load together on a single construct (Vratskik, Al-Lozi, & Maqableh, 2016). The value of convergent validity AVE was found to be more than 0.5 (Sijtsma, 2009; Fornell & Larcker, 1981) which confirmed that the constructs were reliable and valid.



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Table 2. Construct reliability and validity

Construct Indicator ItemLoading

Dijkstra-Henseler’srho (ρA)

Jreskog’s rho (ρc)

Cronbach’s alpha(α)

AVE

EI

OCB

POS

JP

EI2EI6EI8EI9

OCB2OCB4OCB5OCB6OCB8POS1POS4POS6POS8JP1JP2JP3JP4JP6JP7

0.7300.7330.7960.8130.8920.8360.8170.7720.7870.8310.8640.7520.8260.7620.7430.8320.7120.7230.849

0.770

0.882

0.851

0.882

0.852

0.912

0.891

0.898

0.769

0.879

0.837

0.863

0.591

0.676

0.671

0.597

Figure 1. Framework for the study

EI2

POS1

OCB2

JP1

EI6

POS4

OCB4

JP2

EI8

POS6

OCB5

JP3

EI9

POS8

OCB6

JP4

OCB8

JP6

JP7

EI

POS

OCBR2 = 0.599

JPR2 = 0.518

0.7300.892

0.762

0.743

0.832

0.712

0.723

0.849

0.836

0.817

0.772

0.787

0.831

0.796

0.752

0.733

0.864

0.813

0.826

0.665***

0.175*

0.720***



Discriminant Validity

The discriminant validity test evaluates if the items used to measure the different constructs are correlated amongst them (Vratskikh, Al-Lozi, & Maqableh, 2016). Discriminant validity is measured by Henseler’s (2015) criterion of Heterotrait-Monotrait Ratio of Correlations (HTMT) and Fornell–Larcker’s (1981) criterion which compares each construct’s average variance extracted (AVE)(based on consistent loadings) with its squared consistent construct correlations. Table 3 presents the value of AVE as more than 0.5 and its score between two variables is more than the squared correlation. Table 4 shows HTMT’s discriminant validity. HTMT estimates factor correlation and to differentiate between two factors, it should be significantly smaller than one. The results shows all the HTMT have values between 0.85 to 0.9 (Gold, Malhotra, & Segar, 2001). The findings confirmed that all the variables show discriminant validity.

Table 3. Discriminant validity of constructs: Fornell–Larcker criterion

Construct EI OCB POS JP

EIOCBPOSJP

0.59110.57730.29610.4113

0.67570.28790.5185

0.67140.2935 0.5957

Squared correlations; AVE in the diagonal.

Table 4. Discriminant validity : HTMT

Construct EI OCB POS JP

EIOCBPOSJP

0.9020.6650.764

0.6180.820 0.627

Table 5 shows the co-efficient of determination, R2, of the endogenous constructs, Organisational Citizenship Behaviour (0.593) and Job Performance (0.518). The R2 value shows that 60% of the variance of organisational citizenship behaviour is explained by Emotional Intelligence and Perceived Organisation Support, while Job Performance indicates that only 51% can be predicted. The assessment of the inner model quality is based on its ability to predict the endogenous constructs and it can be established through coefficient of determination (R2) or cross-validated redundancy (Q2) or path coefficients or the effect size (f 2) (Hair, Sarstedt, Hopkins, & Kuppelwieser, 2014). The model of this study was based on the R2 value of its endogenous constructs.



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Table 5. Coefficient of determination (R2)

Construct Coefficient of determination (R2) Adjusted R2

OCBJP

0.59880.5185

0.59050.5136

Table 6. Structural relationship and hypothesis testing result

Hypothesis Path α Standard error

t-Value p-Value (2-tailed)

p-Value (1-tailed

Decision

H1H2H3

EI–OCBPOS–OCBOCB–JP

0.6650.1750.720

0.0600.0490.074

11.0652**2.3579*

14.7887**

0.00000.01840.0000

0.00000.00920.0000

SupportedSupportedSupported

2-tailed *1.96 (5% significant), **2.57 (1% significant)

Table 6 shows that the three hypotheses are supported by the results. The results show that EI does have a direct significant influence on OCB (α = 0.665, t-value = 11.065, p < 0.00), and POS on OCB (α = 1.175, t-value = 2.357, p < 0.01), and OCB on JP (α = 0.720, t-value = 14.788, p < 0.00), thereby supporting H1, H2 & H3.

Discussion

The purpose of the study was to investigate the relationship between Emotional Intelligence (EI), Perceived Organisation Support (POS), Organisational Citizenship Behaviour (OCB) and Job Performance (JP) for a sample of hotel employees working in Kuala Lumpur, Malaysia. The study found strong evidence for the three alternative hypotheses that indicates strong potential for the model in explaining JP in terms of EI, OCB and POS. Next, the hypotheses will be discussed together with the findings followed by limitations, recommendations for further study and the conclusion.

The current study found that there is a positive relationship between EI and OCB. This finding is similar with past studies in populations other than the hospitality industry which showed a positive relationship between EI and OCB (Korkmaz & Arpaci, 2009; Modassir & Singh, 2008; Jung & Yoon, 2012). These studies showed that employees who are emotionally intelligent tend to have better OCB attributes at work. According to the social exchange theory, people feel obligated to reciprocate when they feel they have benefited from some other person or through the action of some entity (Coyle-Shapiro, Kessler, & Purcell, 2004). Thus, this is a mutual exchange and according to Sharma and Mahajan (2017), emotional intelligence and OCB have a significant relationship, too. Their findings proved that people with higher EI possessed higher ability to regulate emotions and perform under pressure.



The current study found a significant relationship between POS and OCB among hotel employees in Kuala Lumpur. This finding concurs with past results from different sets of population that proved employees with less Perceived Organisation Support (POS) had lesser OCB skills exhibited at work and vice versa (Guchait, Cho, & Meurs, 2015; Jain, Giga, & Cooper, 2013). The employees in an organisation feel good when the organisation values their personal contributions, which is reflected in the employees’ OCB (Moorman et al., 1998; Piercy et al., 2006; Podsakoff et al., 2000; Settoon, Bennett, & Liden, 1996; Chiang & Hsieh, 2012); this validates the social exchange theory. This study revealed similar results too that POS positively influences hotel employees’ OCB. Basically, it is evident that for employees who feel good when their organisation values their personal contributions, it is reflected in their OCB attributes (Moorman et al., 1998; Piercy et al., 2006; Podsakoff et al., 2000; Settoon, Bennett, & Liden, 1996; Chiang & Hsieh, 2012).

The results of this study confirmed the predictive value of OCB on JP among the hotel employees in Kuala Lumpur. OCB emphasises on both the antecedents and consequences for employees towards their job performance in any organisation (Podsakoff et al., 2000). While past studies have claimed that OCB influences Job Performance significantly (Farooqui, 2012), these were conducted in different cultural settings. The social exchange theory emphasises on the relationship between OCB and Job Performance even though past studies were conducted in different cultural settings using samples of hotel employees (Chiang & Hsieh, 2012; Ma & Qu, 2011). The researchers themselves have claimed that their findings cannot be generalised to other cultural contexts. However, our confirmed hypothesis has proven that OCB positively influences hotel employees’ Job Performance in the Malaysian context too.

Managerial Implications

In summary, this study is the first attempt to investigate the relationship of different behavioural constructs such as EI, POS, OCB on employees’ Job Performance in the Malaysian hotel industry. If hotel managers are aware that their employees feel better when they are treated well in terms of emotional intelligence and appropriate support, their job performance will eventually improve. Turnover intentions, the most prevalent management problem in the industry, could also be significantly reduced.

Limitations and Recommendations for Future Studies

As with other studies, this study has its own limitations too. One of which is the small sample size. Another limitation is location of the study sample which is focused in Kuala Lumpur. Hotel employees in other locations may have different attitudes and behaviours at work. Thus, it is recommended future studies expand the scope of the sampling frame for better generalisability.



13

Conclusion

The concept of EI adds more value to the existing body of knowledge and in the organisational settings. EI is an ability that can be learnt and put into practice (Mayer et al., 2008) similar to OCB which enhances employees’ cohesiveness at workplace. It is also known to improve HR policies at the workplace towards the attainment of organisational outcomes (Sarwar & Aburge, 2013). Similar to past studies, the present study also found that POS has a significant influence on JP. Therefore, organisational management teams should find effective ways to implement methods to improve EI and POS which will in turn promote OCB and increase JP. In conclusion, the hotel industry can benefit much from understanding the positive influences of EI, POS and exhibiting OCB traits that will enhance employees’ JP.

Open Access: This article is distributed under the terms of the Creative Commons Attribution License (CC-BY 4.0) which permits any use, distribution and reproduction in any medium, provided the original author(s) and the source are credited.

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Research Paper

Empowerment in Hospitality Service Leadership: A Moderated Mediation Approach

Rupam KonarTaylor’s University, Malaysia

Faizan AliUniversity of South Florida, USA

Kashif HussainUSCI University, Malaysia


Abstract: The hospitality industry is a service industry that is constantly evolving with innovated service models, especially the hotel sector. However, hotel sector jobs are always associated with low paid salaries, unstable employment procedures, socially undesirable working hours and low-esteem job status with poor benefits. In such conditions, service leaders require high levels of motivation, work values, job attributes and job satisfaction in order to effectively interact with both customers and subordinates. Most hotel management recognise that effective leadership is one of the most powerful competitive advantage that one can possess through employee job satisfaction; alternatively, several research findings identify that job satisfaction and leadership effectiveness may not have a linear relationship but rather it intercedes through the level of empowerment given to service leaders and distinguished further by gender. This study examines how the antecedents of job satisfaction influence leadership effectiveness and further tests the mediating effect of empowerment between them whilst moderating across male and female frontline service leaders. A total of 118 supervisory and managerial level employees from four (4) five-star hotels in Klang Valley were surveyed using a self-administrative survey questionnaire. The PLS-SEM approach was used to assess the higher-order moderated mediation model. One of the major findings reveal that all the antecedents of job satisfaction are positively related to the endogenous variable; interestingly, empowerment partially mediates the relationship between job satisfaction and leadership effectiveness across both genders. With regard to practical implications, it is important for hotel management teams to appraise the identified underlying factors as these increase employees’ performance which boost the overall service quality of the organisation and meet organisational goals.

Keywords: Leadership effectiveness, job satisfaction, empowerment, hospitality, gender, moderated mediation, PLS-SEM, Malaysia

Correspondence: Rupam Konar, Taylor’s University, Malaysia. Email: [email protected]


22 Rupam Konar, Faizan Ali and Kashif Hussain

Suggested citation: Konar, R., Ali, F., & Hussain, K. (2018). Empowerment in hospitality service leadership: A moderated mediation approach. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 21-38.

Introduction

The modern hospitality industry is highly reliable on effectiveness and quality of service where leadership plays a decisive role in transforming organisational success and gaining competitive advantage (Kuchinke, Kang, & Oh, 2008; Avery, 2005; Worsfold, 1989). The frontline service leaders have an important role in ensuring effective service performance as well as self-effectiveness (Hussain, Konar, & Ali, 2016) within hospitality organisations. Further, for service leaders to be more effective, job satisfaction is a crucial across the board (Starks, 2007) and their work should be valued in a more affective and cognitive manner (Baum et al., 2016; Maier, Tavanti, Bombard, Gentile, & Bradford, 2015). However, frontline leaders’ often face major challenges such as predictability and consistency of service quality (Ali, Hussain, Konar, & Jeon, 2017) due to the “service-driven culture” (Bharwani & Butt, 2012) found in the hospitality industry which requires a high level of motivation (Wang, 2016) and eventually leads to job satisfaction and performance. In the past, researchers (Lan, Okechuku, Zhang, & Cao, 2013; Sarwar & Khalid, 2011; Kwak & Kim, 2015; Ling, Lin, & Wu, 2016; Koyuncu, Burke, Astakhova, Eren, & Cetin, 2014) extensively measured the job satisfaction of frontline service leaders and a few extended their research to measure the impact of service environment effectiveness and service performance in relation to leadership. While research on empowerment in relation to gender is generally limited (Ayman, Korabik, & Morris, 2009; Ayman & Korabik, 2010; Paustian-Underdahl, Walker, & Woehr, 2014), it is even more so in the Malaysian context. Thus, this study primarily measured the effectivity of frontline service leaders in five-star hotels of Malaysia. Realising that resource-based services and value-added services are essential to achieving higher quality service delivery and customer experience (Ali, Hussain, & Ragavan, 2014), hospitality sectors continuously empower their service operation supervisors to help them execute different job tasks (Lashley, 1996). Thus, the secondary objective of this study was to examine “empowerment” as a mediating factor to identify its influence on the “leadership effectiveness” of frontline service leaders. Additionally, this study explored the gender composition of the hospitality industry and their effectivity of leadership in this dynamic industry. This study further tested the path goal theory (Polston-Murdoch, 2013) by demonstrating how gender with empowerment can impact on leadership effectivity within the hospitality industry. Leadership composition in the Asian hospitality industry context has been under-researched and the emerging importance of context-based studies and lack of evidences


Empowerment in Hospitality Service Leadership: A Moderated Mediation Approach 23

has attracted attention for further studies in this specific topic (Gursoy, Maier & Chi, 2008; Ko, Kotrba, & Roebuck, 2015; Lan et al., 2013). By investigating these relationships, the present researchers hope to not only shed on light job satisfaction and leadership effectiveness measurement but on the relationship between effectivity and the gender of leaders.

Literature Review

Work Values

Work values is a factor that is likely to significantly influence job satisfaction and the effectivity of transformational leaders. Surprisingly, many recent studies investigated the work values of employees in different contexts and in extension, determined their effectivity and behaviours (Maier et al., 2015; Sinha & Srivastava, 2013; Tomaževič, Seljak, & Aristovnik, 2016). Furthermore, many recent studies (Ko et al., 2015; Lan et al., 2013; Ling et al., 2016) have also identified that by understanding work values, the affective, cognitive, efficiency and behavioural dimensions that are closely related to the motivation and satisfaction of frontline hospitality leaders can be unravelled. Thus far, the majority of research has focused on identifying components of the work value domain or testing the existing structures of work values in different cultural contexts. While there have been many studies on work values, the role of hospitality frontline leaders’ work values on job satisfaction has yet to be explored extensively, including the correlational relationship between work values and leadership effectiveness. Froese and Xiao (2012) found that various facets of mediators can affect the relationship between job satisfaction and leadership effectiveness. Hence, this study’s model set forth the first hypothesis:

H1: Work values influence service leaders’ job satisfaction

Motivation

White (2006) highlighted that similar to work values, motivation can be an essential factor which can ensure the retention of hospitality leaders through job satisfaction. However, according to Bono and Judge (2003), relating motivation to transformational leadership mechanisms can be difficult without any clear approach. Contextually, the approach used in relating motivation and job satisfaction may vary due to the high degree of coalescing factors such as culture, operational process, skill level and behaviours (Plangpramool, Worasuwan, Lema, & Agrusa, 2015) but such a relationship is still worth exploring. Furthermore, based on an organisation’s creativity and innovation, higher levels of task motivation promotes job satisfaction and boosts job performance amongst individual leaders (Mkono, 2010; Wang, 2016). However, Lan et al. (2013) argued that based on the motivation theory, hospitality workers view their work as just a job and are motivated primarily by



security and financial needs. The effectivity of leaders often depend on their level of satisfaction with their job description which is intrinsically affected by their level of motivation (Bono & Judge, 2003; Delia Davila Quintana, Mora Ruiz, & Vila, 2014). Thus, this study proposed the second hypothesis to measure the relationship between motivation and job satisfaction.

H2: Motivation influences service leaders’ job satisfaction.

Job Attributes

Miller (1980) contended that job attributes have a significant impact on the effectiveness of employees in any organisation. This is further supported by Starks (2007) who reiterated that employees are likely to be satisfied when their qualifications fit their job attributes. The job characteristics or attributes are formally connected with the position of an individual and are often associated with variety, autonomy, identity, significance and feedback (Pearson & Duffy, 1999). Further, by correlating job attributes with job satisfaction, employees recognise satisfaction when they receive benefits such as promotional opportunities, rewards for contribution and improved working conditions; all these tap into the psychological needs of any working individual in the hospitality industry (Meyer & Smith, 2000; Scott-Ladd, Travaglione, & Marshall, 2006). When benefits lead to job satisfaction, employees become more effective by taking on more responsibilities and engaging according to the demand and resources that best fit their organisational goals (Tims, Bakker, & Derks, 2013; De Beer, Tims, & Bakker, 2016). The validation of the relationship between job characteristics and satisfaction which the current study aimed to reflect in a different context led to the third hypothesis.

H3: Job attributes influences service leaders’ job satisfaction.

Job Satisfaction

Defined by Locke (1976, p.1304) as “…a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences’’, job satisfaction is the construct which has been intensely studied in organisational social sciences. While various meta-analyses have shown that the predictors of job satisfaction can differ from each other in various research contexts (Kuchinke et al., 2008), the current study has chose work values, motivation and job attributes as predictors for measuring service leaders’ job satisfaction in line with previous studies (De Beer et al., 2016; Froese & Xiao, 2012; Lan et al., 2013; Quintana et al., 2014). In the hospitality industry, job satisfaction is important for both cognitive and affective levels (Robbins & Judge, 2007) due to the socially undesirable working hours, low wages, and variable working shifts which can easily demoralise and dissatisfy employees. When frontline service leaders are rewarded in a satisfactory manner, they tend to perform better and often beyond



expectation. Work by Judge and Piccolo (2004) proved that satisfied transformational leaders not only perform beyond expectations but they are more effective in urging their subordinates towards better performance. Furthermore, some studies (Sarwar & Khalid, 2011; Wong Humborstad & Perry, 2011) that explored the relationship between hospitality service leaders’ job satisfaction and empowerment found that job satisfaction directly affects the effectivity of employees, even in different contexts due to the wide range of work environments found in the hospitality industry.

Empowerment as a Mediator

Empowerment is a powerful tool applied by hospitality managers which can shape the perception and priorities of service quality in order to gain a competitive advantage by influencing the feelings of employees being empowered (Lashley, 1996). Specifically, empowered frontline hospitality leaders can bring about some impressive advantages to the hospitality sector and those who implement it in their organisation, can engage their leaders and employees towards customer satisfaction in their own way (Huang, Li, Qiu, Yim, & Wan, 2016). The sense of empowerment enables frontline hospitality leaders to own their own locus of control and commitment towards the organisation. Research in the past (Gursoy et al., 2008; Huang et al., 2016; Ling et al., 2016) have proven that empowering employees is the most intrinsic way to be competitive in the hospitality service industry. In this respect, Wan (2010) in his study reiterated that the empowerment given to frontline hospitality leaders and employees is manifested through their personal feelings and effectiveness that enhances their contributions to the organisation and paves the way for a more satisfactory engagement (Lashley, 1996). Thus, this study proposed another hypothesis to measure the predictability of empowerment factors towards satisfaction of hospitality leaders at their workplace.

H4: Empowerment mediates between job satisfaction and leadership effectiveness.

Leadership Effectiveness

Amongst the many definitions of leadership, Chemers’ (1997, p. 378) stands out — “a process of social influence in which an individual enlists and mobilises the help of others in attaining a collective goal”. A successful leader requires an effective placement of internal resources to serve the external demand, especially in the hospitality industry (Ling et al., 2016). Based on the theory of leadership effectiveness by Fiedler (1967), effectiveness is dependent on the degree of predictability and control that leaders face in different situations. In the hospitality industry, effectivity of service leaders can be fostered through motivation, training and human resource practices to increase leadership skills, specific job attributes and levels of structural empowerment given to leaders (Chen, Kirkman, Kanfer, Allen, & Rosen, 2007; Ling, Shahrim, Karim, &



Othman, 2010; Ling et al., 2016). However, leadership effectiveness not only depends on the level of structural empowerment given but also their gender which is a salient aspect (Ko et al., 2015). Previous studies (Ko et al., 2015; Thoroughgood, Sawyer & Hunter, 2013) have clearly identified that there are distinct differences between male and female leadership effectivity, style and competencies. However, there remains a dearth of Asian-centric research to support this, specifically in the hospitality industry as most studies have been conducted in the west. Thus, in the Asian context, due to prevalent negative stereotypes and expectations (Ko et al., 2015), women’s leadership capabilities are constantly questioned. This study proceeded to explore the differences with the fifth hypothesis below:

H5: Gender moderates the mediating relationship of empowerment, job satisfaction and leadership effectiveness.

Figure 1. Framework for the study

W O R K V A LU ES

M O TI V A TI O N

J O B A TTR I B U TE S

E M P O W E R M E N T

J O B S A TI S F A C TI O N LE A D E R S H I P E F F E C TI V E N E S S

G E N D E R

H1

H2

H3

H4

H5


Measures

This study aimed to explain the degree of leadership effectiveness in Malaysia’s hotel industry and explore gender as a moderating variable between job satisfaction and leadership effectiveness of hospitality leaders. A quantitative approach was utilised for the study’s sample which consisted of hotel employees in leadership roles. The research



instrument, a questionnaire, measured work values using six items adapted from Kuchinke et al. (2008) and motivation using six items adapted from Bono & Judge (2003) whilst empowerment was measured using seven items adapted from Chen et al. (2007) and Sarwar & Khalid (2011). Five items for assessing job satisfaction were adapted from Froese & Xiao (2012). In this study, all the variables were measured using a 5-point Likert scale starting from 1 (strongly disagree) to 5 (strongly agree). When a factor loading with varimax rotation was conducted to validate the survey questionnaire with a total of 30 measurement items, 3 items were removed due to lower loadings (<0.60). The survey instrument’s 27 items were then further tested for reliability in SPSS, and results surpassed a reliability score of 0.89.

Sampling and Data Collection

The targeted population for this research was limited to employees working in Klang Valley’s five-star luxury hotels (i.e. Hotel Pullman; Palace of Golden Horses; Shangri-La; Hilton Kuala Lumpur; Hilton Petaling Jaya) in a supervisory position. Respondents for this self-administered survey were drawn based on non-parametric judgemental sampling due to the nature of the study which focused on hotel employees in supervisory roles and possess similar traits of interest. The survey questionnaires were distributed to selected employees at different times of the day over a two week period. A total of 118 valid questionnaires with a response rate of 78.6% were collected back after the distribution of 150 questionnaires.

Data Analysis

The analyses for the data collected were conducted on the Statistical Package for Social Science (SPSS) v23 and Partial Least Square based software (SmartPLS v3.2.4) SPSS v23 is usually used for demographics analysis and normality while SmartPLS is used to validate measurements and structural models containing reflective variables due to the breaching of multivariate normality assumptions (Gefen & Straub, 2005; Hair, Hult, Ringle, & Sarstedt 2017). The path-goal theory was the theoretical framework used to assess the variables of this study.

Demographic data showed that the majority of respondents were male (82.2%) while 17.8% were female. In regard to their age, the majority of the respondents were between 21–40 years old (44.9%), whereas 24.6% were made up of a more mature group aged 41–60 years old. The education levels of the respondents were fairly distributed between diploma, degree and postgraduate degree. With respect to the section/department where respondents worked, the majority of them belonged to operations (52.2%), followed by administrative (28.8%) and other categories included security and marketing, both at 9.5%. When asked about their working experience, a majority of them replied of having between 3 to 5 years of working experience (80.5%), followed by the next group who



had 5 years or more (19.5%). Overall, the demographic results imply that the majority of respondents were young, energetic and willing to become future industry leaders. They are indeed motivated and understand the importance of work values and getting experience in their role within the hospitality industry.

Measurement Model

For the measurement model, all the standardised factor loadings were above the recommended value of 0.60 (Chin, Peterson, & Brown, 2008). The values of composite reliability which refer to the degree that construct indicators indicate to the latent construct were found above 0.708 and similarly for average variance extracted, which refer to the overall amount of variance noticed among the indicators accounted for the latent construct, the values were above the critical point of 0.50 ensuring indicator validity and reliability for the measurement model (Table 1).

Table 1 Indicator validity and reliability

Items Loadings

Work Values (AVE = 0.606; Composite Reliability = 0.889)

My work gives me status and prestige My work provides me with an income that is needed My work helps keep me busy/occupiedMy work lets me meet interesting peopleMy work is the useful way for me to contribute to society My work is interesting and satisfying to me

0.7910.7390.7070.7470.8140.862

Motivation (AVE = 0.572; Composite Reliability = 0.867)

Management’s vision for the future enthusiastically motivates meManagement talks enthusiastically about how to achieve this ‘vision’Management encourages me to work towards achieving the ‘vision’Management talks about improving my job performanceManagement gives me positive feedback when I perform wellManagement puts the good of the group before its own interests

0.7920.7590.6850.7440.7990.754

Job Attributes (AVE = 0.679; Composite Reliability = 0.863)

I am responsible at workI am confident about my ability to do my jobI have mastered the skills to do my jobI find significant meaning behind every task I do regularlyI always show integrity and honesty in my work

0.5490.8220.8670.8410.753



Items Loadings

Empowerment (AVE = 0.586; Composite Reliability = 0.907)

I can choose the best way of doing my jobI have influence over what happens in my work groupI have a great deal of control over my jobI am aware that I can make my own decisions at work

0.7150.7660.7530.841

Job Satisfaction (AVE = 0.723; Composite Reliability = 0.887)

My daily work duties gives me satisfaction I have a satisfactory pay scale (my wage / salary)I am satisfied with the people I work with

0.8430.9040.801

Leadership Effectiveness (AVE = 0.503; Composite Reliability = 0.797)

My goals can be achieved through effectiveness I feel more effective, I have been given liberation My job satisfaction is crucial for my work performance

0.7770.8280.707

Note: Critical Values: AVE = 0.50; Indicator Loadings = 0.65

The next step was to assess discriminant validity which refers to the extent a variable is not related to another which in turn indicates low correlation between constructs. Table 2 shows an additional measure, the Heterotrait-Monotrait Ratio (HTMT) which was calculated due to recent criticisms on Fornell and Larcker’s (1981) criterion suggesting that discriminant validity cannot be detected in common research situations (Henseler, Hubona, & Ray, 2016). The values of HTMT ratio shown in Table 2 are between 0.85 and 0.90 which is an accepted criterion (Henseler et al., 2016).

Table 2 Discriminant validity

EMPT MOTI JB_ATT JB_SAT LDR_EFT WRK_VALFornell and Larcker’s (1981)EMPTMOTIJB_ATTJB_SATLDR_EFFECTWRK_VAL

0.766**0.7620.6120.7570.6460.646

0.756**0.5320.8640.6840.762

0.824**0.4960.5990.575

0.850**0.5800.601

0.709**0.663 0.778**

Heterotrait-Monotrait Ratio (HTMT)EMPTMOTIJB_ATTJB_SATLDR_EFFECTWRK_VAL

0.8640.8990.8530.8680.893

0.8690.8870.8990.884

0.9030.8780.886

0.8660.895 0.851

Table 1 (con’t)



**Values on the diagonal (bolded) are square root of AVE while the off-diagonals are correlations.The shaded boxes is the standard procedure for reporting HTMT ratio. EMPT- empowerment; MOTI- motivation; JB_ATT- job attributes; LDR_EFFECT- leadership effectiveness; WRK_VAL- work value.

Structural Model

A bootstrapping procedure with 5,000 iterations and 118 cases were used to assess the significance of the path coefficients (Chin et al., 2008; Hair et al., 2017) of the structural model and hypotheses testing. Further, the coefficient values were measured according to recommended level of the t-statistics value (Hair et al., 2017) of 1.96 (significance level 5%) and 2.57 (significance level 1%). The PLS does not generate overall goodness-of-fit indices (GoF). Instead, Henseler et al. (2016) recommended applying the standardised root mean square residual (SRMR) as the appropriate model fit criterion. The recommended value of 0.08 or less is adequate for the PLS path analysis model. For this study, a value of 0.058 for SRMR was observed, signifying an acceptable model fit. Further, the results for the hypotheses testing are presented in Figure 2. The standardised R2 values refer to the explanatory power of the predictor variables on outcome variable. The first-order variables of work values, motivation and job attributes predicted 77.3% of their job satisfaction (R2 = 0.773). Further, job satisfaction was found to predict 45.5% of leadership effectiveness (R2 = 0.455). In regard to model validity, Chin et al. (2008) classified the effect of endogenous variables as substantial, moderate or weak based on the R2 values of 0.67, 0.33 or 0.19, respectively. Consequently, job satisfaction (R2 = 0.773) and leadership effectiveness (R2 = 0.455) can be described as substantial and moderate effects, respectively.

The complete results of the structural model and hypotheses testing are presented in Table 3. The analytics of the results indicate that the job satisfaction of employees at supervisory roles substantially depends on work values, motivation and job attributes; specifically, a higher predictability of motivation factor affecting job satisfaction has been observed and boosting this job satisfaction positively affects leadership effectiveness. Using the second-order of the model, the study intended to measure the mediating influence of empowerment as a mediator between job satisfaction and leadership effectiveness while gender as a dichotomous construct moderating the mediating relationship through a moderated mediation approach.

Moderated Mediation Analysis

The study hypothesised that gender will have a moderating effect on the mediating relationship of empowerment, job satisfaction and leadership effectiveness. This study has undertaken moderated mediation (Lowry & Gaskin, 2014) to measure

Table 2 (con’t)



the differences between male and female employees. This study incorporated Vinzi, Trinchera & Amato’s (2010) formula procedure as demonstrated by Gaskin (2013) to determine the statistical differences between groups (e.g. male and female) using stats tool package (X2-Threshold calculation). Table 3 shows, a 36.5% (beta value = 0.365, t-value = 2.52, p-value = 0.01) estimated path coefficient difference between male and female with gender being considered as a moderator on leadership effectiveness which falls in the acceptable level of probability (0.365; p < 0.001). The result suggests that there is a significant moderating effect of gender between employee job satisfaction and leadership effectiveness while mediated by empowerment. Hence, H5 is accepted.

As recommended by Preacher and Hayes (2008), the study used SmartPLS to test mediation and the sampling distribution of the indirect effect was bootstrapped (Hair et al., 2016) in order to understand how much job attributes as a mediator absorbs the value of variance accounted for (VAF) and determines the size of indirect effect in relation to the total effect (Nitz et al., 2016). Figure 2 shows the values of the direct, indirect and total effects paths. The VAF value was determined using the following formula, VAF = (indirect effect/total effect) specific paths, that is, B x C / (B x C) + A] = VAF. Thus, the VAF value calculated was 0.496 x 0.412 / (0.496 x 0.412) + 0.376] = 0.3521. This implies that 35.21% of the job satisfaction effect on leadership effectiveness is explained via the job attributes mediator. Since the VAF value is larger than 20% in the current analysis, this can be categorised as “partial mediation” or “complementary mediation” (Nitz et al., 2016). Thus, this study confirms that work values, motivation, empowerment and job satisfaction significantly influence leadership effectiveness through the mediating effect of job attributes.

Table 3 Hypotheses testing

Hypotheses beta t-values Decision f-Square

Direct Effects (bootstrapping results)H1: Work Value → Job SatisfactionH2: Motivation → Job SatisfactionH3: Job Attributes → Job SatisfactionH4: Job Satisfaction → Leadership

Effectiveness H5: Gender* → Job Satisfaction ×

Empowerment × Leadership Effectiveness

Indirect Effects (bootstrapping results)Job Satisfaction → Empowerment Empowerment → Leadership Effectiveness

0.1720.8030.2470.376

0.365++

0.4960.412

2.97**11.96**3.10**3.90**

2.52*

5.68**4.42**

SupportedSupportedSupportedSupported

Supported

––

0.1550.8200.1070.199

–

0.3260.239

Notes: Critical t-values. *1.96 (p < 0.05); **2.57 (p < 0.01).*Gender is a dichotomous construct ++Path coefficients value: difference of total effects



W O R K V A LU E

M O TI V A TI O N

J O B A TTR I B U TE S

E M P O W E R M E N T

J O B S A TI S F A C TI O N

R 2 7 7 . 3 %Q 2 0 . 5 5 8

R 2 4 5 . 5 %Q 2 0 . 2 2 5

LE A D E R S H I P E F F E C TI V E N E S S

G E N D E R

0.172**

0.803**

0.247**

0.412**

(B)

0.376**(C)

0.49

6**

(A)

0.38

8*Critical t-values. **2.57 (p <0.01); *1.96 (p <0.05)R2 = Coefficient value; Q2 = Predictive relevance Indicated paths for mediation analysis: (A), (B), (C)

Figure 2. Structural model

Discussion and Conclusion

While most prior research has intensively investigated service leaders’ job satisfaction, there has not been much focus on leadership effectiveness; thus, this study has further expanded the scope by integrating empowerment as a mediator between job satisfaction and leadership effectiveness across the female and male genders. Using a survey-based quantitative research method on a sample of 118 frontline service leaders from four (4) five-star luxury hotels in Malaysia, the analyses reveal some interesting insights. Primarily, all the hypotheses were found positively related with the endogenous variables (e.g. job satisfaction and leadership effectiveness). Consequently, “empowerment” as a mediator exhibited partial mediation between the relationship of job satisfaction and leadership effectiveness, which proves that empowerment can be used as an effective tool by hotel managers and management teams across different levels for empowering their hospitality workforce while gaining a competitive advantage through service quality. In addition, a moderated mediation relationship was implied by using gender as a moderator which examined service leaders’ leadership effectiveness.



In comparison to previous studies (De Beer et al., 2016; Lan et al., 2013), the confirmation of Hypothesis 1 proves that the work values of frontline leaders especially that of their individualism and willingness to take risks have statistically significant impacts on job satisfaction although the relationship value has a lower significant effect. Other past studies (Froese & Xiao, 2012; Xiao & Froese, 2008) also have contended that the relationship of work values may differ across different socio-cultural contexts. In contrast, by proving the second hypothesis, the present study’s finding contradicts with previous studies (Quintana et al., 2014; Sledge & Miles, 2012) regarding a strong relationship between motivation and job satisfaction of leaders. However, a majority of hospitality management teams agree that motivation plays a crucial role within the hospitality industry, inspiring different levels of employees beyond their personal interests and creating a sharing culture that leads to organisational service performance at its peak (Hussain, Konar, & Ali, 2016). While they may be intangible, the job attributes of any hospitality industry personnel are highly correlated with their job satisfaction (Skalli, Theodossiou, & Vasileiou, 2008) and can lead them to higher performance output. As the hospitality industry is a highly perishable service-based industry, many leaders strive to distinguish themselves based on their level of skills and attributes (Quintana et al., 2014). Similarly, this current study has identified that the job attributes of frontline hospitality leaders are quite unique and reflect on their performance as a majority of them use their job attributes to distinguish themselves from the other employees in similar positions. Further, the higher-order model of the current study explored two paths: firstly, the relationship value between job satisfaction and leadership effectiveness and consequently, the mediating effects of employee empowerment between job satisfaction and leadership effectiveness. Contextually, the findings of this study illustrate that empowerment partially mediates the relationship of frontline leaders’ job satisfaction towards their effectiveness. Although the samples were gathered from only five Klang Valley, these results can be generalised beyond the hospitality industry across different contexts.

The contemporary hospitality industry practices and promotes empowerment of hotel employees to increase performance outcome through service delivery and performance which ultimately contributes to greater profitability and organisational success. Hotels groups such as Marriott International, Hilton Worldwide and Accor Group of Hotels have already started incorporating empowerment for frontline hospitality leaders and employees in their human resource management practices; as a result, such practices will expand the limits of creativity of service delivery while crafting guest experiences in a more personalised way. Additionally, the current study extended its objectives to understand how the mediating relationship of empowerment between job satisfaction and leadership effectiveness moderates across the gender in the Asian context. Interestingly, in contrast to a number of western studies (Ko et al., 2015; Sümer, 2006) that proved that a marginal difference exists



between males and females in respect to their leadership effectiveness, this study has identified a significant difference between male and female frontline hospitality leaders in the Asian context. Findings prove that male hospitality leaders are given more empowerment (38.8%) than females within the Asian context, which results in a more effective performance output compared to female leaders although the difference between their job satisfaction levels are marginally similar.

Managerial Implications

The findings from this research study propose some significant practical implications for management teams in developing effective leadership programmes or practices for frontline hospitality leaders without any gender discrimination. Further, it is important for management teams to understand the baseline level predictors of employee job satisfaction such as work values, motivation beyond personal interests and further understanding of job attributes. Most importantly, empowering them to craft and deliver unique and novel services according to the needs and wants of guests or customers. Hospitality leaders must be encouraged and empowered without any gender discrimination, raising their self-awareness and keeping them abreast with the current developments of the hospitality industry. The hospitality industry in the Asian context is often dominated by male hospitality employees but in light of the rapid globalisation that continues to take place, hospitality organisations must adopt multicultural practices and global customs rather than sticking to contextual sociocultural dynamics; failing to do so, will result in incapable employees who cannot meet the requirements of the ever-evolving market.

Limitations and Avenues for Future Research

The study has its own set of limitations. Firstly, due to time constraint and limited access to hotels, data were only collected from five luxury hotels without taking into account the organisational structure and practices of the hotels. Further, limited access within hotel staff areas only allowed a small study sample of 118.

Based on the findings, two possible avenues of future research have presented themselves. First, cross-cultural comparative studies are encouraged for a cross-cultural rationality. While the current research was done within the Asian context, similar studies in different contexts within Asian countries with different socio- demographic or socio-economic statuses are urged. Second, organisations with different styles of leadership may reveal more in-depth information for a more complete picture of different predictors and mediators related to the respective contexts.




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Research Paper

In-Depth Review of Microeconomic Analysis of Business Tourist Spending

Jeetesh Kumar and Anshul Garg Taylor’s University, Malaysia

Leena Nitin FukeyChrist University, India


Abstract: Most prior research used tourist arrivals to examine international tourism demand. However, tourist arrival is not an accurate factor to determine international tourism demand as it does not show the actual spending pattern of tourists which includes goods and services purchased. Literature has proven that business tourists always spend more than leisure tourists; thus, tourist expenditure is an essential measure of international tourism demand. For the current research, we summarised 31 studies to review several variables that could affect tourism demand and expenditure. The current research concludes that microeconomic modelling should be the focus and given priority for studying tourism demand and the factors that affect business tourist expenditure.

Keywords: Business tourists, spending, destination-related factors, microeconomic analysis, psychological factors, economic modelling destination atmospherics, zone of tolerance, tourist

Suggested citation: Kumar, J., Fukey, L.N. & Garg, A. (2018). In-depth review of microeconomic analysis of business tourist spending. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 39–50.

Introduction

Studies that use figures of tourist arrivals to examine international tourism demand fail to take into account that tourism is not a single product; it includes a range of goods and services purchased by tourists. Further, the purchasing behaviour and power vary from tourist to tourist depending on factors such as demographics, length of stay, accommodation used, mode of travel, purpose of visit, alone or in a group

Correspondence: Jeetesh Kumar, Taylor’s University, Malaysia. Email: [email protected]


40 Jeetesh Kumar, Anshul Garg and Leena Nitin Fukey

and many others (Song & Witt, 2000; Song & Li, 2008; Kumar & Hussain, 2014a). All these factors lead to variations in tourist expenditure. Hence, tourist arrival by itself is not an accurate measure to determine international tourism demand as it does not show the actual spending pattern of tourists. It is a well-known fact that business tourists always spend more than leisure tourists. A study on international passengers in 2000 by the United Kingdom revealed that 851,000 conference delegates brought in £591 million in income; per capita spending was £694 compared to an average leisure visitor who spends £507 and a business tourist who spends £554. Similarly, exhibition visitors spend £151, which is three times higher than the average all other types of visitors (Business Tourism Partnership, 2003; Hussain, Ari Ragavan, Kumar, & Nayve, 2014). If we look at the total number of international tourists since 1990, almost 15% were travelling for business purposes; this translates to 145 million worldwide in 2012 and 139.3 million in 2011 (UNWTO, 2013, 2015).

It is essential to understand tourist expenditure because tourism is a crucial industry that drives many economies. In addition, utilisation of tourism is the focal point of the financial estimation of tourism and the financial effects of tourism (Mihalic, 2002). Studies of tourism demand which dominate financial planning at the national level requires aggregate data including that of total arrivals and expenditure in a particular destination (Lim, 2006). This identifies with a high level of fluctuation in cross-sectional data, which makes displaying an individual’s interest for an item more overwhelming and less precise than demonstrating the interest for a group of individuals. Accumulation tends to normal out individual characteristics and therefore, as the level of collection increases, both the unwavering quality and exactness of the model move forward. All things considered, utilisation of very aggregated information is less significant to tourism planning and strategy making than those in possession of information of a lower level of accumulation (Smith, 1995).

This review of microeconomic tourism demand studies identified several that used expenditure as a measurement of an individual’s demand for tourism. The following sections present these studies in terms of sample size, modelling method, as well as the dependent and independent variables used. Even though macro- and microeconomic studies serve different purposes, microeconometric models have three advantages over macroeconometric models (Alegre & Pou, 2004). Firstly, the models do not stray too far from theoretical economic consumer models. Secondly, they allow for the control of participation bias, which could be incorporated while the analysis is taking place for aggregated data. Thirdly, they acknowledge the diversity and heterogeneity of consumer behaviours, which are ignored in studies that use highly aggregated data. Figure 1 shows a summary of the number of empirical studies undertaken on international tourism demand to explain the possible factors that influence tourist flows worldwide.


In-Depth Review of Microeconomic Analysis of Business Tourist Spending 41

Figure 1 Types of tourism demand studies

Therefore, business tourist’s expenditure is an important measure of international tourism demand. The aim of the paper is to review several tourism/business tourism expenditure studies focusing especially on micro areas of expenditure, model specification, sample size as well as dependent and independent variables. The study finds that microeconomic modelling should be the focus and priority for understanding tourism demand and the factors that affect business tourist expenditure including psychological and destination-related factors.

Review of Literature

Tourism Demand and Type of Products

Tourism demand can be predicted at the macro- or microeconomic level. For the macroeconomic level, analyses require aggregated demand, including time series or cross-sectional analysis (Hanke, Wichern, & Reitsch, 2001). For time series analysis, a big sample size is required (Lim, 1997) while cross-sectional analysis works by collecting data at a single point in time across a number of units to compare tourism demand across regions/countries at one point in time instead of over time periods.

There are twelve (12) sub-sectors, which help to design tourism-related products as acknowledged by UNWTO (2006). These sub-sectors are hotels, second home, restaurants, rail services, road services, air transport services, water transport services, transport supporting services, transport equipment rental, travel agencies, cultural services, and sporting/recreational activities. All the sub-sectors can be categorised into three types of products as follows.



Tourism Characteristic Products are products whose consumption goes down significantly once tourists stop visiting a destination. Tourism Connected Products are products known as tourism-related in a particular country but not on a worldwide basis. Tourism Specific Products are also known as tourism-related products and they are a combination of tourism characteristic and tourism connected products.

Microeconomic Analysis of Business Tourist Spending

As business tourism is an economic activity that generates income, it is vital to understand the patterns of business tourist spending. This pattern of spending or expenditure can help measure the economic impact of business tourism on a nation’s economy and a particular destination (Kumar & Hussain, 2014b). Even though macro- and microeconomic studies serve different purposes (Alegre & Pou, 2004), Lim (2006) contended that there is a need for more microeconometric studies in this area which is inundated with macroeconometric studies. Very few microeconomic studies have used spending as the measurement for studying tourism demand.

Table 1 Number of studies and year of publication

Year Number of studies

1995 and prior years 5

1996 – 2000 5

2001 – 2005 13

2006 – 2010 4

2010 and subsequent years 4

Total 31

Sample Size and Modelling Methods

For a microeconomic analysis of business tourist spending, it is very important to work with similar-sized samples. Prior studies used varied sample sizes with a majority of them having less than 1,500 observations. Some studies worked on survey data collected by researchers or tourism bureaus for other purposes and the sample sizes reported sometimes refer to the total number of questionnaires received rather than the number of cases used in a modelling (Moisey, Yuan, & McCool, 1990).



Table 2 Distribution of study sample sizes

Sample size/observations Number of studies

300 – 500 8

501 – 1000 5

1,001 – 1500 6

1,501 – 2000 10

2,001 and more 2

Total 31

Multiple regression models were found to be the most widely used model in studies. The researcher can conduct separate exploration for individual or joint effects of two or more than two individual variables on business tourist spending (Nicolau & Más, 2005).

Table 3 Modelling method used

Modelling method Number of studies

Multiple Regression Models 13

Tobit Regression Models 6

Equations 2

General Linear Models 4

Money Generation Models 1

Path Analysis 3

Structural Equation Models 2

Total 31

Dependent Variable — Spending

In microeconomic analysis, business tourist spending can be used as the dependent variable. There are several categories of spending, varying from 4 to 20. Kumar and Hussain (2014b) highlighted that a higher number of categories will lead to a more accurate estimation of economic impacts, as accurate spending data can increase the validity and reliability of the economic estimates.

There are several items that can be used as dependent variables – expenditure of business tourists including registration fees, cost of international flight, cost of domestic flight, cost of hotel/accommodation and other lodging services and cost of



local/cultural tours. Apart from these, others such as local transportation, food and beverages, shopping and leisure activities can be used to identify the total average spending per tourist per event (Hussain, Kumar, Kannan & Nor, 2017). Surveys with 20 spending categories that normally have a smaller sample size cannot be used specifically in the analysis but can be accumulated to derive new categories with reasonable sample sizes (Moisey, Yuan, & McCool, 1990; Thrane, 2002). Literature shows that studies with 7 spending categories represent almost 85% of all spending that takes place in an economy. To measure the various areas that business tourists spend on during their business trip, it is pertinent to identify those areas because sometimes, tourists can spend unknowingly in areas which are not covered by economic impact research (Hussain et al, 2014).

Independent Variable —Destination and Psychological

Demand is driven by push factors (endogenously) or pull factors (exogenously) (Laesser & Crouch, 2006). Psychological variables include type of destination, destination attractions, purpose of travel, psychological characteristics and evaluation of travel. In examining tourist taste based on importance of psychological characteristics, factors that attract, visiting purpose and evaluation of the travel were found to be major pull factors (Aguilo Perez & Juaneda Sampol, 2000; Hussain et al., 2017; Kumar & Hussain, 2014a). Destination-related variables such as activities offered at the destination also influence travel spending after controlling for income (Hussain et al., 2014; Jang, Bai, Hong, O’Leary, 2004). With regard to travel evaluation–destination type, available attractions and quality of tourist products offered at a particular destination are reflected to a certain degree in its price. Thus the price factor explicates why a particular destination is preferred over another which offers the same quality product with an affordable price (Chhabra, Sills & Rea, 2002; Henthorne, 2000; Hussain et al., 2014). At the macro level, the quality and characteristics of tourists products can have a huge effect on price and overall organisational revenue (Mak, Moncur, & Yonamine, 1977). We cannot assume the quality of a product from price only and perspective demand cannot be changed with actual spending by tourists. Previous studies also supported that the quality of tourism products can be measured through the evaluation of travel and the product itself by tourists. In addition, the mindset of tourists can also affect their spending (Chhabra et al., 2002). The facilities and activities available for tourists at a destination also influence travel spending. A number of studies also proved that the level of spending is associated with certain tourist activities at a destination (Jang, Cai, Morrison, & O’Leary, 2005; Laesser & Crouch, 2006; Pouta, Neuvonen, & Sievanen, 2006).



Table 4 Destination and psychological-related variables

Studies

Aguilo Perez & Juaneda Sampol (2000) ✓ ✓

Chhabra et al. (2002) ✓

Henthorne (2000) ✓

Hussain et al. (2014) ✓ ✓ ✓ ✓ ✓

Hussain et al. (2017) ✓ ✓ ✓

Jang et al. (2005) ✓

Kumar & Hussain (2014a) ✓ ✓ ✓

Laesser & Crouch (2006) ✓

Thrane (2002) ✓

Wang, Rompf, Severt, & Peerapatdit (2006) ✓

Independent Variable — Economic

With regard to economic variables, income and price are the two most important factors for tourism, in particular, business tourism. Economic theory suggests that when an individual’s income increases, his/her demand for travel is also likely to increase. In general, tourism demand is income-elastic although travel demand for business, luxury, and VFR (visiting friends and relatives) are relatively less income-elastic than leisure travel demand (Bull, 1995).

The majority of studies reviewed have included income as an independent variable, where income refers to summative household income, gross annual income, total income of the visiting party, disposable income, total household spending, wage rate, etc. For economic analysis–modelling, it is important to keep income as a continuous variable instead of a categorical variable. However in reality, the majority of respondents avoid confirming their actual income, which results in a lower response rate. Therefore, it is advisable to collect income as a categorical variable (Downward & Lumsdon, 2003). Price is also another crucial determinant of tourism spending; demand never changes with any other factor but it increases when prices go down (Tribe, 2005). Literature also illustrates that perception also has an effect on spending; one who perceives a destination to be expensive tends to spend more money as compared to others (Aguilo Perez & Juaneda Sampol, 2000).

Des

tina

tion

Typ

e

Des

tina

tion

Att

ract

ions

Purp

ose

of T

rave

l

Psyc

holo

gica

l C

hara

cter

isti

cs

Eval

uati

on o

f Tra

vel

Tour

ist A

ctiv

itie

s



Table 5 Economic and socio-demographic variables

Studies

Aguilo Perez & Juaneda Sampol (2000) ✓ ✓ ✓ ✓

Cannon & Ford (2002) ✓ ✓ ✓ ✓

Downward & Lumsdon (2002) ✓ ✓

Hussain et al. (2014) ✓ ✓ ✓ ✓ ✓ ✓

Hussain et al. (2017) ✓ ✓ ✓ ✓ ✓

Jang et al. (2005) ✓

Kumar & Hussain (2014a) ✓ ✓ ✓ ✓

Laesser & Crouch (2006) ✓

Mak et al. (1977) ✓ ✓ ✓ ✓ ✓

Nicolau & Mas (2005) ✓ ✓ ✓ ✓

Thrane (2002) ✓ ✓ ✓ ✓

Wang et al. (2006) ✓ ✓ ✓ ✓

Independent Variable—Demographic

Besides the economic variable, it is also important to take into account the socio-demographic variable for micro-economic analysis. Literature shows that socio-demographic features, specifically age and marital status, affect a business tourist’s spending. Therefore, it is necessary to look at behavioural patterns along with spending patterns of tourists while conducting micro-economic analysis. Agarwal & Yochum (2000) found in their research that while gender is not a substantial determinant of spending, age is the most significant and determining factor. Mak et al.(1977) also highlighted that single tourists spend more than married tourists. This was however, in contrast to Cannon & Ford’s (2002) and Wang et al.’s (2006) work that confirmed spending and marital status were unrelated.

Table 6 Influence of age on spending

Studies Age factor

Agarwal & Yochum (2000) Age doesn’t have any influence on spending

Aguilo Perez & Juaneda Sampol (2000) Tourist aged 30 or below spend less

Chhabra et al. (2002) Age doesn’t influence spending

Inco

me

Pric

e

Age

Gen

der

Mar

ital

Sta

tus

Nat

iona

lity

Occ

upat

ion

Educ

atio

n Le

vel



Studies Age factor

Hussain et al. (2017) Age influences spending

Mak et al. (1977) Tourist aged 40 or above spend more

Thrane (2002) Older tourists spend more than young tourists

Wang et al. (2006) Young tourists spend more than older tourists

Table 7 Influence of marital status on spending

Studies Marital status factor

Cannon & Ford (2002) Marital status doesn’t have any influence on spending

Hussain et al. (2017) Marital status influences spending

Nicolau & Mas (2005) Married tourists spend less than single tourists

Wang et al. (2006) Marital status doesn’t have any influence on spending

Conclusion and Implications

Business tourism has grown into an important economic sector in many regions throughout the world. For the sustainability and ongoing contribution of business tourism, it is important to examine closely demand for business tourism at the micro or macro level. At both levels, a large number of economic, social, political and psychological factors affect the demand. Compared to studies at the macro level, micro-economic models have the advantage of closely mimicking theoretical economic consumer models and they can include the diversity and heterogeneity of consumer behaviour that is often cancelled out when aggregate information is used. The present research reviewed 31 studies on modelling tourist spending, and presents the following conclusion and recommendations for future research.

Macro level analysis are often conducted to examine international travel demand and tourists’ spending, which requires figures on total tourist arrival and spending. However, every destination is different from another in terms of spending, consumption, behaviour and spending patterns. Therefore, researchers look at spending at the micro level and utilise modelling techniques instead of multiple regression. The present study analysed literature on tourists’ spending including, sample size, models, and variables used. It found that destination, psychological, economic–income and demographic characteristics are the most commonly used variables for economic analysis.

Table 6 (con’t)



The study also observed that tourist expenditure-related studies at the micro level are very common in the western world while on the other hand, the Asian literature, especially the Asia-Pacific region, lacks research work on tourist spending and its impacts on a particular destination. This is a major issue of concern considering that understanding the consumption and spending patterns of tourists in these developing nations/destinations will be highly valuable for continuous product development and suitability.


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Wang, Y., Rompf, P., Severt, D. & Peerapatdit, N. (2006). Examining and identifying the determinants of travel expenditure patterns. International Journal of Tourism Research, 8(5), 333-346.



Research Paper

Western Celebrity Chefs and Restaurants: A View from Singapore

Joan C. Henderson Nanyang Technological University, Singapore


Abstract: This paper is concerned with the modern celebrity chef phenomenon and its implications within the tourism context and more widely. A qualitative approach is adopted, making use of the case study methodology. The meanings and significance of celebrity chefs in general and their tourism role in a globalising world are discussed. Overseas activity in terms of restaurant opening by selected celebrity chefs based in Western countries is considered with particular reference to Singapore. The Southeast Asian city state is the choice for an increasing number of celebrity chef restaurants which are highlighted in destination marketing. There is evidence of interest in setting up restaurants in major Asian cities and opportunities to do so, but also of operational challenges with some uncertainties about future prospects. Celebrity chef restaurants are seen to be a distinctive foodservice outlet and tourism resource. However, further research is necessary to properly evaluate awareness of chefs and the influence of their fame on demand and satisfaction of customers who comprise both visitors and residents.

Keywords: Celebrity chefs, restaurants, Singapore, tourism

Suggested citation: Henderson, J.C. (2018). Western celebrity chefs and restaurants: A view from Singapore. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 51–67.

Introduction

Celebrity chefs have risen to prominence in recent decades assisted by exposure on television and other media. They engage in various commercial activities, but restaurants are a core business which are often associated with fine dining and can be a tourism resource. The phenomenon is observable worldwide, not least in Asia where several well-known Western chefs have opened restaurants. Asian chefs too are becoming famous, but the highest profile celebrity chefs still tend to be based

Correspondence: Joan C Henderson, Nanyang Technological University, Singapore. Email: [email protected]


52 Joan C. Henderson

in Europe and North America and their cooking is rooted in these food cultures. The causes and consequences of such happenings have not been extensively studied by scholars, yet merit attention and are the subject of this paper. The purpose is to enhance understanding of the roles, operations and prospects of these internationally prominent celebrity chefs and their restaurants generally and within Asia, including their contributions to tourism in a globalising world. Particular reference is made to Singapore which is recognised as an international centre of business, finance and tourism and renowned for its food offerings. It is the location of an increasing number of restaurants linked to non-Asian celebrity chefs and is a fitting illustration of trends and their implications.

A qualitative approach is advocated for an exercise of this nature, employing the case study methodology (Rowley, 2002; Yin, 2009). Instances were selected, in the advised manner (Flyvberg, 2006), on the grounds of their representativeness of a particular sort of celebrity chef while Singapore is an Asian global city. Although the chefs and locale have distinctive characteristics, the analysis does allow the deriving of some general observations and inferences (Stake, 2005). Overall findings are based on secondary data, assembled from assorted sources as recommended (Beeton, 2005; Woodside, 2010), which included restaurant/chef websites, media reporting and academic publications.

After a review of the literature, the paper is organised into sections aligned with the research questions pertaining to the international activity of a sample of celebrity chefs and the global distribution of their restaurants. The sample is derived from those present in Singapore which is used as a case study to allow examination of the issues in greater depth encompassing restaurant type, location, menus and tourism contribution. A final section suggests operational difficulties and possible future developments in Singapore and more widely. Opportunities and challenges are identified in light of the evolving role of the celebrity chef in an era of globalisation where foodservice industries are being affected by the interactions amongst Asian and Western influences.

Celebrity Chefs, their Restaurants and Tourism

Chefs from the past acquired great fame during their lifetimes which persists today in a few cases, but the commonly understood concept of the modern celebrity chef is distinct. It embraces writers and television performers without the formal training or restaurant kitchen experience which qualifies them as chefs (Henderson, 2011). The origins of the phenomenon are often traced to 1960s USA where television was instrumental in creating awareness and reputations, exemplified by Julia Child. The trend was mirrored in countries such as the UK and it has been claimed that famous broadcasters have shaped aspects of the British diet over the years (Rohrer,


Western Celebrity Chefs and Restaurants: A View from Singapore 53

2009). Food programmes helmed by experienced chefs and other cooks continue to be popular around the world and have dedicated television channels, despite their detractors (Wood, 2000). Additionally, social media is providing new and persuasive means of communication (Clarke, Murphy, & Adler, 2016) and individuals can exercise considerable influence over food choices and cooking habits (Abbots, 2015; Lane & Fisher, 2015).

Once informers and educators, television chefs and cooks are now primarily entertainers (Caraher, Lange, & Dixon, 2000; Rousseau, 2012; Villani, Egan, Keogh, & Clifton, 2015) and the possession of culinary skills seems less pertinent than personality (Scholes, 2011). Some are selling a lifestyle depicted in programmes and books which might be watched and read by those with no intention of trying recipes or seeking out eponymous restaurants. It is suggested that chefs construct personas designed to bolster their commercial appeal (Johnston, Rodney, & Chong, 2014) which may be at odds with reality, but can endow iconic status (Lewis & Huber, 2015). Some have been compared to rock stars (Abend, 2010) and the celebrity chef movement has improved awareness of the profession. Younger people are thereby encouraged to contemplate it as a career choice (Pizam, 2016), although unrealistically glamorous expectations may also have been inspired. The award of Michelin stars can reinforce personal prestige and augment financial returns (Henderson, 2017a; Stringfellow, McLaren, Maclean, & O’Gorman, 2013), even though stars are bestowed on the restaurant and not the chef. However, chefs of restaurants receiving the coveted three stars do not necessarily conform to conventional notions of a celebrity chef and may be relatively unknown by the general public domestically and overseas.

Certain chefs have developed lucrative businesses which incorporate restaurants of different types and prices, shops, cookery book and magazine publications, television shows, and cookery schools. They have diversified into kitchenware and foodstuffs under their own names and endorsed the goods of other suppliers. A few head large organisational structures which generate substantial revenues such as Wolfgang Puck whose three companies are estimated to be worth around US$400 million (Marikar, 2017). It is also interesting to note how some prominent chefs have now assumed an advocacy stance, backing causes related to ethical food and healthy eating (O’Neal & Joassart-Marcelli, 2018). An illustration is Jamie Oliver’s campaign aimed at ensuring access to “good, fresh and nutritious food” by the world’s children (Jamie Oliver Food Foundation, 2018). These initiatives have drawn criticisms about hypocrisy when espoused altruistic social and environmental objectives are seen to be undermined by other actions, often directed at profit maximisation (Lewis & Huber, 2015; Phillipov, 2017). Views of celebrity chefs and responses to their various messages are, however, complex and a topic of enquiry for sociologists exploring the chef ’s mediating function (Barnes, 2017).



Several figures such as Puck and Oliver have gained recognition beyond their home country and are involved in restaurants overseas. Modes of restaurant operation and expansion include ownership and running, licenses, franchises, management, partnerships and strategic alliances (Henderson, 2011). Each has its own advantages and disadvantages, but ownership is costly and the less expensive and more flexible alternatives which facilitate faster growth appear to be increasingly preferred (“Gordon Ramsay’s....”, 2017) Partnering with luxury hotels is a regular practice for celebrity chef ’s fine dining restaurants which can benefit both parties given their similar positioning and potential for synergies.

Celebrity chefs can be considered a manifestation of the commercial and sociocultural processes at work in a globalising world. Their restaurants are places where the local and global communities interact in relationships which can be harmonious or contentious. Modern globalisation implies closer integration of economic and political systems, prompting complaints of the erosion of sovereignty and identity, but resistance is marked by attempts to protect national and sub-national interests and individuality (Ritzer, 2007). Debate about the nature and outcomes of globalisation resonates in arenas of both tourism (Hjalanger, 2007) and food (Inglis & Gimlin, 2009) in which demand and supply are internationalised. There are concerns about the power of external agents and imposition of attitudes and behaviour which threaten traditional practices and domestic enterprises. The resulting standardisation and homogenisation is epitomised by the spread of Western fast-food chains in the sphere of dining (Watson, 1997). An alternative view is that the local and global can co-exist with the former perhaps bolstered by exposure to the latter and also tourist curiosity and custom (Mak, Lumber, & Eves, 2012). Food cultures in particular are dynamic and able to assimilate external influences in ways which are evident in Asia (Cwiertka & Walraven, 2015). Fusion is also apparent in some restaurant menus, albeit with mixed success (Scarpato & Daniele, 2003).

Restaurants of celebrity chefs are a tourism resource and relations between food and tourism is a theme of a growing body of research. The concept of eating out meets many tourist needs besides those of physical sustenance and has a sociocultural significance (Getz, Robinson, Andersson, & Vujicic, 2014; UNWTO, 2017). It is a form of entertainment and features prominently in promotion (Horng & Tsai, 2010), but can also cause anxiety about being denied accustomed foods (Cohen & Avieli, 2004). Fine dining is frequently acknowledged by researchers as a dimension of a destination’s food offerings and, although it is rarely the focus of studies, there are signs of positive consequences of celebrity chef associations (Busby, Huang, & Jarman, 2013). The tourism role of celebrity chef restaurants is striking in some cities, notably Las Vegas which is home to a large number (Chen, Raab, & Chen, 2017), and reflected in promotions by Destination Marketing Organisations (Chaney & Ryan, 2012; Henderson, 2011). For example, the Hong Kong Tourism Board promises a



city where “celebrity chefs from across the globe compete to showcase their talent” (HKTB, 2018). The Board supports a yearly Wine and Dine Festival and Great November Feast in which eminent chefs participate and celebrity chefs are some of the well-known figures invited to Hong Kong for publicity purposes, sharing their experiences on video and taking part in media events (HKTB, 2015, 2017). Such activities occur in other Asian cities too where the emphasis has traditionally been on indigenous cuisines and street foods (Winarno, 2017).

A review of the literature reveals alternative disciplinary perspectives on the subject of celebrity chefs alongside a restricted volume of work which usually centres on Western instances. Analyses which have been conducted cover facets of business, operational matters, media relations and social and cultural meanings with limited attention to the tourism contribution of celebrity chef restaurants. The celebrity chef label emerges as something of a misnomer which is applied to persons of often vastly different backgrounds with gradations of fame from local through to international and possibly global. A distinction can perhaps be made between those who have gained celebrity by performing mainly on television or through other media and those who have exhibited outstanding culinary talent in restaurant kitchens and might be described as celebrated chefs. Celebrated chefs actively working in kitchens may have television and publishing careers and the two are not mutually exclusive, but hard to balance satisfactorily. Demands on chefs also intensify as their businesses expand, especially international restaurant operations (Henderson, 2011).

Selected Celebrity Chefs and their Restaurants Worldwide

While acknowledging the diversity of individuals who are commonly designated celebrity chefs and definitional uncertainties, it is possible to identify a group from the West who have ventured into opening overseas restaurants. A presence in Singapore can be interpreted as evidence of an interest in Asia and seven celebrity chefs were identified for discussion in this section according to this criterion. Selected chefs are listed in Table 1 which contains details of the number and geographic locations of their restaurants around the world in early 2018. Airport restaurants, 21 run by Puck and one by Ramsay, as well as Robuchon’s four cafes in Hong Kong and café and bar in Tokyo are omitted. Ducasse will not be launching his restaurant in Singapore until 2019, but has been included to broaden the comparison. The data conceals differences in restaurant types and several celebrity chefs have added more informal and affordable options to their expensive fine dining outlets. Puck is a leading exponent whose overseas brands are CUT, Spago, Wolfgang Puck Bar and Grill and Wolfgang Puck Kitchen and Bar with others which are restricted to the USA. Oliver is an exception because of his concentration on casual eateries which are dominated by Jamie’s Italian.



Table 1 Celebrity chef restaurants by location and number

Celebrity chef Country in which based and number of restaurants

Overseas restaurant location and number

Total located overseas

Mario Batali USA (24) Singapore (2) 2

Daniel Boulud USA (14) Canada: Montreal and Toronto (2), UK: London (1), Singapore (1)

4

Alain Ducasse France (12) Hong Kong (1), Japan: Tokyo (2), Monaco (2), Qatar: Doha (1), UK: London (2), USA (2),

10

Jamie Oliver UK (27) Australia: Adelaide, Brisbane, Canberra, Parramatta, Perth, Sydney (6), Austria: Vienna (1), Brazil: Campinas and Sao Paulo (2), Canada: Mississauga and Toronto (2), Cyprus: Nicosia (1), Hong Kong (2), Hungary: Budapest (2), Iceland: Reykjavik (1), India: Haryana, Mumbai and New Delhi (4), Indonesia: Kuta Beach, Bali (1), Ireland: Dublin (1), Netherlands: Rotterdam and The Hague (3), Portugal: Lisbon (1), Qatar: Doha (1), Russia: Moscow and St Petersburg (2), Singapore (2), South Africa: Johannesburg (1), Taiwan: Taipei (1), Thailand: Bangkok (1), Norway: Oslo (1), Sweden: Stockholm (1)

37

Wolfgang Puck USA (25) Bahrain (1), China: Shanghai (2), Japan: Osaka and Tokyo (2), Qatar: Doha (1), Singapore (2), Turkey: Istanbul (1), UK: London (1)

10



Celebrity chef Country in which based and number of restaurants

Overseas restaurant location and number

Total located overseas

Gordon Ramsay UK (17) France: Bordeaux and Versailles (3), Hong Kong (2), Italy: Sardinia and Siena (2), Qatar: Doha (2), Singapore (1), UAE: Dubai (1), USA: Atlantic City, Baltimore, Las Vegas (6)

17

Joel Robuchon France (1) Canada: Montreal (1), China: Shanghai (1), Hong Kong (2), Japan: Tokyo (3), Macau (1), Monaco (1), Singapore (2), Taiwan: Taipei (2), Thailand: Bangkok (1), USA: Las Vegas and New York (2)

14

Sources: Batali, 2018; Boulud, 2018; Ducasse, 2018; Oliver, 2018; Puck, 2018; Ramsay, 2018; Robuchon, 2018

Chefs tend to have the most restaurants in the country where they are based, but some have a greater share outside as shown in Table 1. Alongside European and North American locations, Tokyo and Shanghai are popular Asian choices together with Hong Kong and Singapore. Robuchon especially appears to favour Asia and has restaurants in the capitals of Taiwan and Thailand. His is the only restaurant of the sampled chefs in the gambling hub of Macau which has relatively few celebrity chef restaurants compared to Las Vegas, although two by Ducasse are scheduled to open there in 2019 (Michelin Guide Singapore, 2018). Ducasse has been present in the region for some time, partnering with InterContinental Hotel in Hong Kong since 2003 (City Life, 2015). Another cluster of restaurants is in the Gulf States where they are found in Dubai in the United Arab Emirates, the Qatar capital of Doha and Bahrain.

Despite variations, a pattern can be discerned when individual celebrity chefs venture overseas and choose major metropolises which regularly lead global city indices (Cities Research Centre & JLL, 2016). The leaning is unsurprising given the defining characteristics of such cities as places that draw capital, people and ideas from around the world and are very well connected by transport and communications networks. Populations are large and cosmopolitan and there are high volumes of tourist traffic, especially for business (Henderson, 2017b). Any moves into Asia are reflective of economic advances there and attendant burgeoning middle classes which

Table 1 (con’t)



have benefitted consumer foodservice industries as a whole. Full-service restaurants earn the most revenue and are evolving in parallel with the expectations of modern customers and dining trends (Euromonitor International, 2017a; Shandwick, 2015). Hong Kong, Singapore and Tokyo are already established global cities and prosperous business, finance and tourism centres. It would seem that these attributes appeal to restaurant investors and celebrity chefs and similar circumstances in Singapore are examined next.

Selected Celebrity Chefs and their Restaurants in Singapore

Food and eating is a central theme in destination marketing by the Singapore Tourism Board (STB), the government agency responsible for tourism promotion and development. The city state is depicted as a “true foodies’ paradise” and assorted dining recommendations feature on the official website (STB, 2018a). Singapore’s inbound tourists reached a record 17.4 million in 2017 when total revenue was S$26.8 (US$20.3) billion (STB, 2018b). Food accounted for 12% of their expenditure in 2016 which was an annual increase of almost 25%, explained by greater spending on restaurants and street food (STB, 2017). Variety is emphasised by the STB with celebrity chef restaurants at one end of the spectrum and hawker stalls at the other. International chefs are said to bring “glamour to the local dining scene”, but enterprises with kitchens headed by Singaporeans are also categorised as celebrity chef restaurants (STB, 2018c). The publication of the inaugural Michelin Guide Singapore in 2016 and occasions such as the annual Food Festival backed by the STB are hailed as further proof of Singapore’s status as a “world-class culinary destination” (STB, 2018d), echoing the claims of Hong Kong.

Of the sample set, Puck (CUT and Spago), Ramsay (Bread Street Kitchen) and Robuchon (Joel Robuchon Restaurant and L’Atelier Joel Robuchon) are amongst the celebrity chefs and their restaurants highlighted by the STB (2018b). While airport restaurants are excluded from the analysis, it is worthy of note that Puck opened a branch of The Kitchen at Singapore’s Changi Airport in 2017 which is his third such outlet outside USA after Dubai and Sydney. Batali has two restaurants (Osteria Mozza and Pizzeria Mozza), Boulud one (DB Bistro Moderne) and there are two branches of Jamie’s Italian by Oliver. Dining experiences thus span from fine dining at Joel Robuchon, through what the Gordon Ramsay Group calls “high-end casual dining” (“Gordon Ramsay’s....”, 2017) and Batali’s “elegant yet relaxed surroundings” (Batali, 2018), to the “buzzy and stylish yet cosy” ambience at Jamie’s Italian (Oliver, 2018). Prices vary accordingly; the most expensive advertised set menu being around S$500 (US$381) for the Robuchon degustation menu in comparison to just under S$50 (US$38) for lunch at Bread Street Kitchen.

Menus are decidedly not Singaporean or Asian as conveyed by many restaurant names which are emblematic of the internationalisation of Singapore’s foodservice



industry, if not globalisation. Batali (2018) promises an “Italian dining experience” and Oliver (2018) “beautiful rustic dishes” from Italy. French cooking is the speciality of Robuchon (2018) whose eponymous restaurant boasts the “very best of French haute cuisine” and L’Atelier provides “avant-garde French dining”. Boulud (2018) mixes “traditional French bistro cooking with contemporary American flavours” and Puck’s Spago offers “California cuisine with global accents” while CUT is a “classic steakhouse” with a “contemporary twist” (Puck, 2018). “Traditional British fare” is served by Ramsay (2018) whose approach is also, somewhat confusingly, described as “European British”. Ingredients appear to be sourced internationally and regional foods are rarely mentioned, apart from Japanese beef and seafood. There are no discernible attempts to introduce Singaporean elements into the menus of Batali, Oliver, Ramsay and Robuchon restaurants. Chinese, Japanese, Korean and Vietnamese styles are referenced in certain Puck offerings, albeit of American interpretation. However, Spago has dishes of kaya toast foie gras and pan roasted snapper laksa which incorporate local staples of coconut jam (kaya) and curried coconut broth (laksa). A kaya French toast dessert, sorbet combining durian and mangosteen (tropical fruits) and “Singapore’s finest selection of market oysters” are also available at DB Bistro (Boulud, 2018).

The commercial significance attached to the celebrity status of the chefs is revealed by its prominence in promotion materials. These herald the three Michelin stars of one of the Robuchon restaurants, the only such recipient in Singapore, and the single stars of his other restaurant and Puck’s CUT. Allusion is made to the starred restaurants elsewhere in the world by Boulud and Ramsay. However, it is not the figureheads alone who are acknowledged and advertisements name Robuchon’s chef de cuisine, pastry chefs and director of operations; Puck’s executive chefs; and Boulud’s executive chef and pastry chef. Such citations are perhaps a reminder to diners that the celebrity chef is not going to be cooking for them and some might be disappointed to discover that the chef visits the restaurant three or four times a year at most. Batali restaurants are identified as “by Nancy Silverton”, one of the trio behind the concepts, and the appellation may be an attempt to minimise commercial damage after Batali admitted to acts of sexual harassment in the wake of the 2017 Harvey Weinstein scandal. He was reported to have taken leave from his culinary businesses in late 2017 and the situation shows how celebrity chef restaurants can be tarnished by the personal life and conduct of the chef (Henderson, 2011).

Restaurant venues afford further insights into aspects of management decision making and marketing strategies. Oliver’s are in retail malls, one in the primary shopping belt of Orchard Road, and those of the other chefs are in Singapore’s two integrated casino resorts which opened in 2010. Both complexes contain assorted amenities alongside a casino and hotels and have become very popular visitor attractions, despite controversy about the government reversal of the ban on casinos



(Henderson, 2016a). Marina Bay Sands (MBS) was built in the new downtown area and is oriented to business and conference trade whereas Resorts World Sentosa (RWS) on the small offshore island of Sentosa which is zoned for recreation, is directed more at families and leisure. MBS houses the Batali, Ramsay and Puck restaurants while those of Boulud and Robuchon are at RWS.

Location is a key consideration for any restaurant and access to suitable sites at the integrated resorts may have been crucial in persuading the chefs to start up in Singapore (Abidin, Panchal, & Thirumaran, 2017). In turn, they are sought after as tenants who stimulate awareness and transmit images of quality of the resorts at large. Such a value appears to be appreciated especially by MBS which boasts of an “epicurean paradise of ten restaurants by seven of the world’s finest celebrity chefs” (MBS, 2018). Ducasse’s restaurant will be in the historic Raffles Hotel, part of the Accor chain since 2016, when it re-opens after extensive refurbishment (Michelin Guide Singapore, 2018). As a luxury colonial heritage hotel which is designated a National Monument, Raffles is an unsurprising choice of setting for an upmarket restaurant.

Challenges and Future Prospects

While a degree of confidence is implicit in the above summary of selected celebrity chef restaurants in Singapore, questions arise about current operational challenges and future prospects. Not all the city state’s celebrity chef enterprises have been successful in the past and Guy Savoy, for example, closed his four-year-old fine dining MBS outlet in 2014. However, Singapore’s foodservice sector seems to be prospering overall (Euromonitor International, 2016) and perceptions of commercial opportunities are demonstrated by the steady stream of new entrants. However, there is fierce competition and many ventures are short-lived (Ee & Loi, 2018). Rental charges are mounting and there is a heavy reliance on imported ingredients because land is officially judged too scarce to devote to farming and other sorts of fresh food production on any significant scale. Staffing is another critical issue, particularly for fine dining restaurants which are defined by their superior service quality. Locals are deterred by the hospitality industry’s modest wages and arduous work and a tightening of labour laws has made it harder to hire foreigners (Henderson, 2016b), leading to a serious shortage of staff. At the same time, restaurants linked to well-known chefs may have a capacity to entice talented individuals keen to be associated with and learn from exemplars of the profession.

An apparent limited resident enthusiasm for eating in celebrity chef restaurants is an additional problem for proprietors and the Savoy closure was partly explained by a preference for casual dining at lower prices (“MBS celebrity chef.....”, 2014).Singaporeans have a marked propensity to eat outside the home, but many favour hawker centres and food courts which are ubiquitous and inexpensive (Henderson,



2016b). A survey found that only 23% would be more inclined to visit a restaurant if it was endorsed by a celebrity chef; any such effect being strongest amongst the younger generation. Around a third of respondents said endorsement would actually discourage them from patronage and the remainder were indifferent (Shandwick, 2014). It should be noted that not all citizens are wealthy and income is unequally distributed in Singapore which has a relatively high Gini index (Economist Intelligence Unit, 2017).

In terms of tourists, who comprise a source of demand alongside residents in Singapore and other destinations, some may be drawn by the reputation of the chef and anticipation of quality (and possibly familiar) food. Special events in which celebrity chefs participate such as Singapore’s Gourmet Summit backed by the STB (Chaney & Ryan, 2012) also represent a tourist attraction. The presence of celebrity chef restaurants can thereby enhance trip satisfaction, yet it is unlikely to be a primary motivation for visiting. In addition, many tourists are seen to be searching for the authentic (Timothy, 2016) and non-local chefs serving non-local dishes may not appeal. Almost 75% of Singapore’s arrivals are from within Asia and principal markets are China, Indonesia and India (STB, 2018b). These visitors may be less aware of and receptive to Western chefs and their menus. Expensive restaurant food may be beyond the reach of tourists, irrespective of nationality, or a greater priority is allocated to other items of expenditure when travelling. Restaurants in Singapore and beyond, except at places with very large tourist populations throughout the year, cannot therefore depend solely on visitors. They must cultivate sufficient resident demand if they are to survive, but this is no easy task as observed earlier.

While the Singapore case has unique attributes, reservations about the robustness and sustainability of the celebrity chef restaurant business pertain more widely and there have been instances elsewhere of commercial setbacks and failures (Passy, 2013). Media celebrities may decline in popularity, replaced by new faces and fresh approaches in closer correspondence with social and culinary trends. Customer expectations are elevated when patronising a celebrity chef restaurant (Chen et al., 2017) and standards and consistency in food and service delivery must be maintained. Adverse reactions to perceived shortcomings could be exacerbated by the celebrity connection and even incite media coverage. Strict control is essential, yet its exercise becomes more daunting with the number of restaurants to oversee. Chefs are in danger of being overstretched and must ensure that they have proper support and sound advisors. Some celebrity chef restaurant businesses have grown rapidly, paying insufficient attention to questions of finance and administration, and proved unsustainable (Henderson, 2011). Rivalry from established and new restaurants more attuned with the local scene must also be confronted and demand can be undermined by changing trends in dining out and unforeseen external occurrences such as economic recession (Jones, 2009).



One commentator forecasts the eventual demise of the celebrity chef restaurant due to collaborations in which the emphasis is on the overall dining experience created by a team (Kitchen Theory, 2017). Such an outcome is debatable in light of the cult of celebrity which pervades the modern era and its allotted commercial value, although the impacts of celebrity chefs on customer behaviour and cross-cultural comparisons have not been extensively researched. Nevertheless, there are signs that more foodservice consumers globally prefer casual eating environments (Euromonitor International, 2017b, 2017c). The shift could have adverse repercussions for some celebrity chef formal restaurants and lead to greater endeavours to construct a more diverse portfolio of outlets.

Celebrity chefs and their restaurants can be conceptualised as both an embodiment of and conduit for globalisation. Individuals have a following and operate businesses which transcend national borders, relying on modern information communication technologies to reach out to international markets. Chefs from the West tend to be pre-eminent and practice cooking styles unconnected to Asian indigenous foods and methods, prompting criticisms akin to those about a globalising world in general that they are instruments of Western cultural imperialism. Such complaints echo those about the Michelin Guide with its apparent privileging of expensive classic haute cuisine dining which is condemned as elitist and exclusionary (Barrere, Bonnard, & Chossat, 2010). A counter argument is that some celebrity chefs may be championing a national cuisine or variant of it, albeit not local, and thereby opposing the homogenisation often seen as concomitant with globalisation. Singapore’s foodservice sector remains a diverse mix of East and West and the former does not appear at risk of being overwhelmed by the latter. In addition, authenticity is generally valued by customers as previously stated and they expect restaurants advertising Italian or French cooking, for example, to specialise in dishes grounded in that culture. Michelin is also making efforts to be inclusive by listing more affordable types of establishment particular to a place, notably street food vendors in recent Asian city guides (Henderson, 2017a).

Conclusion

The modern celebrity chef is a striking phenomenon in many parts of the world with analyses revealing multiple economic and sociocultural factors and forces underlying its development. Many of these can be linked to globalisation, although the exact nature of the relationship and whether it is positive or negative is debatable. These dynamics mean that the concept is constantly evolving, alongside celebrity chef restaurants in practice, and gives rise to definitional ambiguities. Nevertheless, a number of figures have a reputation, sometimes combined with commercial interests, which endows them with a high degree of fame within and beyond their home countries. The Western chefs considered in this paper exhibit such qualities



and have been shown to be active in selected Asian centres, demonstrated by circumstances in Singapore, where they serve as a tourism asset. Restaurants have been welcomed by the STB and marketing organisations elsewhere keen to promote destination images with which celebrity chef dining is aligned. However, attitudes towards celebrity chefs amongst residents and visitors and the ways in which their status affects restaurant choice and satisfaction in a globalising era are questions for further enquiry. Strategies pertaining to restaurant opening and operational models also merit examination as do longer-term survival rates.

Finally, it should be noted that culinary influences are not unidirectional and some flows are from East to West. This is evidenced by the history of Chinese restaurants in the Americas and Europe and the growing popularity of noodle and sushi chains as well as Thai food there. Interest in emerging cuisines such as those of Vietnam is another recent trend in Western countries. Chefs of Asian origin have also attained celebrity within Asia and beyond. In Singapore, for example, MBS and RWS promotions showcase other chefs besides those who have been the focus of this account such as the Japanese-born Australian Tetsuya Wakuda. There may therefore be as many opportunities for Asian celebrity chefs in the West as for Western celebrity chefs in Asia in the years ahead.


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Research Paper

Key Attributes of Malaysian Specialty Coffee Shops: An Exploratory Investigation

Michelle Lee G.W., Sushila Devi Rajaratnam and Rupam Konar Taylor’s University, Malaysia


Abstract: In the thriving specialty coffee industry in Malaysia, it is imperative for specialty coffee shop entrepreneurs to understand the important attributes that motivate consumers to patronise specialty coffee shops so as to have a competitive advantage and sustain their businesses. The existing published literature highlights the lack of research on this aspect, particularly in the context of emerging economies. This study adopted both qualitative and quantitative approaches in an exploratory sequential mixed method design to explore and identify the attributes used by Malaysian coffee consumers when selecting specialty coffee shops. The findings from the qualitative approach were used to develop the survey questionnaire. Based on purposive sampling, responses from 437 respondents were analysed using exploratory factor analysis. Nine factors were extracted using principal component analysis with promax rotation. The nine factors were labelled as: Tangibles, Coffee Quality, Service Quality by Staff, Brand Preference, Promotional Activities, Social Responsibility and Recreation, Food & Drinks Selection, Social Place and, Other Amenity. The nine factor solution explained 59.15% of the total variance. Consequently, these nine factors are perceived as key attributes of specialty coffee shops in Malaysia.

Keywords: Specialty coffee shops, attributes, services, exploratory factor analysis, consumption behaviour, Malaysia

Suggested citation: G.W. M.L., Rajaratnam, S.D., & Konar, R. (2018). Key attributes of Malaysian specialty coffee shops: An exploratory investigation. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 69-83.

Introduction

Specialist or specialty coffee shops are the fastest growing restaurant category with global sales increasing by 9.1% from 2014 to 2015 and outlets in Asia Pacific are projected to reap the largest sales increase, totalling more than US$3.7 billion dollars from 2016 to 2020 (Friend, 2016).

Correspondence: Michelle Lee, Taylor’s University, Malaysia. Email: [email protected]


70 Michelle Lee G.W., Sushila Devi Rajaratnam, and Rupam Konar

In Malaysia, a traditionally tea-drinking nation, coffee drinking culture hasbecome popular, particularly among the young and the professionals (Lee, 2014a, 2014b). Additionally, the rising purchasing power and sophisticated taste of consumers has led to a noticeable trend in the consumption of premium coffee (“How coffee culture …”, 2015). According to Euromonitor International, urban and young consumers, specifically millennials, middle- and high-income professionals are more willing to patronise specialist coffee shops to enjoy freshly-brewed coffee (Friend, 2016). The booming coffee culture has subsequently led to the mushrooming of coffee outlets in Malaysian cities and towns in recent years (Lee, 2014a, 2014b). The coffee outlets comprise of branded coffee shop chains such as the internationally famous Starbucks and The Coffee Bean & Tea Leaf as well as numerous locally owned independent outlets. The specialty coffee outlets which attract younger affluent consumers are very different from the conventional coffee shops or kopitiams that serve unbranded, strong bitter and black coffee, frequented by the older generations (Ravagan, n.d.).

In Malaysia’s thriving specialty coffee industry, entrepreneurs and marketers require clear insights on the important attributes that attract and retain patronage for a competitive edge and sustainability. Customers today, particularly the young urbanites, are more discerning and have higher expectations. Hence, coffee outlets including specialty coffee shops need to find new ways of creating a competitive advantage. Additionally, as a multi-ethnic country, it is likely that Malaysian specialty coffee drinkers may be motivated by attributes that are different from consumers in other countries. By having a clearer understanding on how coffee lovers select outlets to patronise, entrepreneurs can formulate the relevant marketing strategies to attract and retain these customers. Further, existing literature reveals the dearth of research in this area despite the booming coffee culture in many emerging economies including Malaysia. The study therefore attempts to address this gap by identifying the important attributes that coffee consumers in Malaysia seek when selecting specialty coffee shops to patronise.

Literature Review

Coffee Consumption Trend in Malaysia

Specialty coffee refers to “gourmet coffee made from exceptional beans grown in ideal coffee-producing climates. They tend to feature distinctive flavours, shaped by the unique characteristics of the soil that produces them” (Merwe & Maree, 2016, p.502). Specialty coffee shops are outlets that sell premium and specialty coffee and other foods and beverages, with more than 55% of their sales coming from coffee or coffee-related products (Report Buyer, 2017).


Key Attributes Of Malaysian Specialty Coffee Shops: An Exploratory Investigation 71

Unlike twenty years ago, when coffee consumption was not popular in Malaysia (“How coffee culture…..,” 2015), coffee drinking, especially among the younger generation, is now a trendy lifestyle with coffee being consumed out of the home (Lee, 2014a). The booming coffee culture has been credited to Malaysians who returned after having studied or worked abroad (Poskod Malaysia, n.d), most likely in countries with developed coffee consumption cultures. Interestingly, according to Statista data, a survey on regular beverage consumption in Malaysia in 2016 found that 60.83% of Malaysians were regular coffee drinkers. While the local coffee consumption market is dominated by instant coffee, the trend towards consuming specialty coffee is growing due to the increasing affluence of consumers (“How coffee culture…………….,” 2015).

Coffeehouse Selection Attributes

Attributes are defined as the descriptive features that typify a product or service (Chen & Hu, 2010). Discussions regarding attribute importance in understanding consumer behaviour with regard to making purchase and patronage decisions have dominated research in recent years (Chen & Hu, 2010). Within the foodservice segment, prior studies have investigated the important attributes that influence customers’ perceptions of service quality, satisfaction and revisit intention in restaurants or coffee outlets (Han & Ryu, 2009; Kim, Lee, & Kim, 2016; Ko & Chiu, 2008). According to Tan and Lo (2008), their empirical study was the first to identify the attributes considered important by customers when patronising specialty coffeehouses.

In their study on specialty coffeehouse consumers in Hong Kong, Tan and Lo (2008) identified a total of nine attributes or factors: staff attitude and service, coffee quality and selection, atmosphere and comfort, menu and expeditiousness, price and value, other food and drinks selection, marketing activities and entertainment, other amenities and, socially responsible reputation. Staff attitude and service referred to the attitude and ability of the staff in providing quality service. Coffee quality and selection was associated with coffee product features and the variety of coffee available. Atmosphere and comfort was related to the ambience and physical environment of the coffee shops. Menu and expeditiousness was associated with clear signage and appropriate menu, while price and value referred to the reasonable price for the food, coffee and service provided. Other food and drinks selection was related to the variety of the food and drinks served. Marketing activities and entertainment was mainly concerned with promotional events at the coffeehouses while other amenities concerned the availability of facilities for customers. Finally, socially responsible reputation pertained to corporate social responsibilities. In addition, the study determined four attributes considered most important by customers and these were



coffee quality and selection, followed by price and value, staff attitude and service and, atmosphere and comfort.

Due to the paucity of literature on attribute importance in the context of specialty coffeehouses, previous research undertaken on coffee outlets in general were also reviewed to obtain an insight into the various attributes used by consumers to patronise these outlets. The findings of these individual studies are presented next.

In a study among university student consumers at coffee chain stores in Taiwan, Ko and Chiu (2008) found that good service, friendly and relaxing ambience were the most important factors pertaining to customer satisfaction. Coffee chain stores provide a more affordable alternative to specialty coffee shops for university students who live on limited budgets (Ko & Chiu, 2008).

In another study, Chen and Hu (2010) identified five attributes used by customers when choosing to patronise chain and independent coffee outlets in Melbourne, Australia. These attributes or factors were coffee quality, service, food and beverage, atmosphere and extra benefits. Coffee quality was associated with coffee product features, in particular coffee freshness, smoothness, taste, temperature and aroma. Service was associated with the process of service delivery, particularly the service approach and staff aptitude in fulfilling customer needs. Food and beverage was associated with the food and beverage products that coffee outlets served. Atmosphere was related to the physical environment and ambience and extra benefits concerned the availability of materials to browse and loyalty programmes. With regard to the order of importance, customers perceived service as the most important attribute followed by coffee quality, atmosphere, food and beverage and extra benefit.

In the United States, Waxman (2006) explored the physical and social characteristics of coffee shops that encourage people to patronise and become attached to these places. His study revealed that coffeehouses serve as a ‘third place’ to regularly interact with other members of the community. Waxman (2006) also found that the most important physical design characteristics for customers were cleanliness, appealing aroma, adequate lighting, comfortable furniture and view of the outside. Regarding the social characteristics of the coffee shops, the attributes identified were: opportunity to linger; ownership and territoriality; trust, respect and anonymity; productivity and personal growth; social beings and familiar strangers; and support.

Unlike Waxman (2006), Tumanan and Lansangan (2012) did not specifically identify the attributes that attracted consumers to coffeehouses in the Philippines. Instead, they examined whether cultural, social, physical and environmental dimensions were associated with Filipinos’ attachment to local coffeehouses. Their findings revealed that the physical and social dimensions were highly associated with Filipinos’ attachment to coffee houses. However, the specific components or attributes of these dimensions were not explicitly explained in their paper. Their



study also highlighted that Filipinos regarded these outlets as a third place to be, with home being first and workplace as second. This implies that consumers view coffee not just as a product but also as an experience.

Lin (2012) investigated the characteristics or attributes that attracted customers to Starbucks coffee outlets in Taiwan. The study identified six main characteristic or factors: hope, dream and image (first factor), surrounding atmosphere (second factor), total quality (third factor), special social function (fourth factor), normal basic function (fifth factor) and, reputation and chatting (sixth factor). The main findings of the reviewed past studies are summarised in Table 1.

Table 1. Summary of important attributes in coffeehouse selection

Author Year Country of study

Important Attributes

Chen and Hu 2010 Australia Service, coffee quality, atmosphere, food and beverage and extra benefit

Ko and Chiu 2008 Taiwan Good service, friendly and relaxing ambience

Lin 2012 Taiwan Hope, dream and image, surrounding atmosphere, total quality, special social function, normal basic function, and reputation and chatting

Tan and Lo 2008 Hong Kong Coffee quality and selection, price and value, staff attitude and service and, atmosphere and comfort.

Tumanan and Lansangan

2012 Philippines Physical environment and social environment

Waxman 2006 United States Physical design (cleanliness, appealing aroma, adequate lighting, comfortable furniture and view to the outside); social interaction (opportunity to linger; ownership and territoriality; trust, respect and anonymity; productivity and personal growth; social beings and familiar strangers; and support).

The information presented in Table 1 indicates that although the number and type of important attributes sought by consumers of coffee outlets varied across the different studies, there are some similar attributes which are considered important. These are coffee quality, physical environment, atmosphere or ambience



and customer service. Although this limited number of findings provide some pertinent information on the attributes that are important to coffee consumers in their selection of coffee outlets, they are not comprehensive as there may be other important attributes that may not have been researched yet, but would specifically attract and retain specialty coffee shop consumers. Hence, the research objective of this study focuses on identifying key attributes that customers seek when patronising specialty shops.

Method

Qualitative Phase—Online Blog

Qualitative research methodology is commonly used to explore why or how a phenomenon occurs, to develop a theory, or describe individuals’ experiences while quantitative methodology addresses questions about the generalisability or magnitude of effect (Fetters, Curry, & Creswell, 2013). This study adopted both qualitative and quantitative approaches in an exploratory sequential mixed method design (Berman, 2017; Creswell & Creswell, 2003) to explore and identify the attributes used by Malaysian coffee consumers to patronise specialty coffee houses. The qualitative phase involved developing an online blog with four open-ended questions to gather the required information. A total of eight individuals who regularly patronise specialty coffeehouses in Malaysia participated by answering the open-ended questions. The findings from the online blog were then coded using “magnitude coding” (Saldana, 2009) and analysed to identify additional attributes that may be unique to specialty coffee consumers in the Malaysian context. Two additional contextual attributes were identified and these were labelled “social place” and “brand preference”.

With regard to the attribute “social place”, some participants regarded specialty coffeehouse as a place to meet people and to relax during their leisure time, as seen in the following interview excerpts.

“…to meet customers, to relax, go with family, with friends...” (Respondent 3)“…It could be just a casual gathering with buddies.” (Respondent 7)

The attribute ‘brand preference’ referred to coffee consumers’ preference for dining in specialty coffee shops they were familiar with which serves good quality coffee and prepares customised coffee, based on the excerpts below.

“…familiarity and the environment of the coffee house” (Respondent 1)“…The quality of the coffee including the way the coffee was prepared and the type of beans used.” (Respondent 7)



“To experience and enjoy good quality of beans and freshly brewed coffee.” (Respondent 6)“Specialty coffeehouse provide the ambiance and the quality product that we can always trust, where the mental satisfaction comes. …moreover, (it) provides ‘customizable’ coffee (mix of different ingredients), that the youth generation like us always like.” (Respondent 4)

Both these contextual attributes (social place and brand preference) were then included in the survey instrument developed for the quantitative phase.

Quantitative Phase — Research Instrument

The literature review and exploratory data gathering exercise resulted in a total of twelve factors being included in the survey instrument. These were staff attitude & service, coffee quality & selection, atmosphere & comfort, menu & expeditiousness, price & value, other food & drinks selection, marketing activities & entertainment, other amenities, social responsible reputation, social place, brand preference, customer satisfaction, and customer loyalty. The instrument’s six (6) variables were directly adapted from Tan and Lo (2008), five (5) composite variables were developed from the online blog as well as adapted from Tan and Lo (2008) and finally, two (2) variables were adapted from Pai and Tsai (2011). Two assistant professors who specialise in hospitality and tourism studies reviewed and validated the instrument and, based on their feedback, the format and clarity of the items in the survey instrument were improved. All the survey statements were measured using a 5-point Likert type scale ranging from 1–very unimportant to 5–very important. In addition to analysing reliability and data normality (skewness and kurtosis), exploratory factor analysis (EFA) using SPSS version 20 was used to identify the factors and their respective measurements.

Sampling and Data Collection

The sample of specialty coffeehouse consumers for this study were selected using purposive sampling. An online survey form was used as the primary method to collect data. It was possible to procure large samples of specific professional or interest groups when the survey was placed on their respective websites. At the same time, a total of 300 printed questionnaires were distributed in a few coffeehouses located at Sunway and 241 completed questionnaires were returned. The survey instrument carried a filter question, asking respondents whether they had been to any speciality coffee shop within the last six months. After filtering and removing response records with systematic missing values, a total of 437 responses were retained. The finalised response rate of 88.9% was subjected to non-bias using wave



analysis, and the descriptive statistics of the respondents’ demographic profile was analysed as shown in Table 2.

Table 2. Demographic profile of respondents

Characteristics Frequencies Percentage (%)

Gender MaleFemale

216221

49.450.6

Country of origin MalaysiaOthers

308129

70.529.5

Ethnicity MalayChineseIndianOther

5325514115

12.158.43.226.3

Age 20 years and less21-30 years31-40 years41-50 years51 years above

1462117640

33.448.317.40.90

Marital status SingleMarried

37760

86.313.7

Education level PrimarySecondaryDiplomaDegreeMaster PhD

749118229322

1.611.227.052.47.30.5

Consumed coffee in the last 6 months

YesNo

4370

100.00

Results

Promax is an oblique rotation which allows factors to be correlated. This rotation can be calculated quickly and is useful for large datasets. The Kaiser-Meyer-Olkin Measure (KMO) Measure of Sampling Adequacy was valued at 0.907, exceeding the recommended value of 0.5 (Hair, Black, Babin, Anderson, & Tatham, 2006). Further, the Bartlett’s Test of Sphericity showed statistical significance (p=0.00, >.05) and indicated that sufficient correlations exist among the variables to proceed (Hair et al., 2006). Factors with eigenvalues greater than 1 are considered significant. Table 3 shows factors whose eigenvalues were greater than 1. Factor loadings in the range



of ±.30 to ±.40 are sufficient to meet the minimal level for interpretation of structure (Hair et al., 2006), and this is further supported with Catell’s (1966) scree test.

This study used a factor loading cut-off point of 0.40 for retaining items in the factor analysis. From the initial list of 54 items, a total of 9 items did not load significantly and were subsequently excluded. The remaining 45 items were factor analysed again, with the items loading onto nine factors. The nine factors were extracted using principal component analysis with promax rotation and were labelled as follows: Tangibles, Coffee Quality, Service Quality by Staff, Brand Preference, Promotional Activities, Social Responsibility and Recreation, Food & Drinks Selection, Social Place and, Other Amenities. The nine dimensions reflected respondents’ perceptions of important attributes of specialty coffee houses in Malaysia.

The first factor Tangibles, involved 11 items with significant factor loadings ranging from 0.422 to 0.810. This factor was perceived to reflect friendly, helpful and courteous staff, reasonably priced coffee and food offered together with quality service, clean dining premises and toilets, easily readable menus, sufficient spacing between tables and a quiet atmosphere. These are the tangible elements associated with the specialty coffeehouses. Coffee Quality as the second factor, contained 9 items with factor loadings that ranged from 0.508 to 0.886. This factor reflected the perception that specialty coffeehouses offer coffee with high quality, freshly roasted beans, served with the right brewing skills, freshly brewed all the time, in accordance to preferred taste, aroma and at the right temperature, customised coffee and consistent quality. The third factor, Service Quality by Staff consisted of 6 items with factor loadings ranging from 0.516 to 0.729. This factor reflected the perception that staff of specialty coffeehouses play an important role in the delivery of quality customer service by performing the service right the first time, offering individualised attention, being knowledgeable about the products offered, providing prompt service as well as being attentive to customers’ specific needs and orders. Brand Preference as the fourth factor had four items and their factor loadings ranged from 0.621 to 0.852. This factor demonstrated the perception that customers frequent coffeehouses they are familiar with and trust as well as for the ambience and quality of products served.

The fifth factor, Promotional Activities contained five items and the factor loadings ranged from 0.503 to 0.737. This factor portrayed the perception that coffeehouses engage in free trial of coffee and food items, availability of merchandise items and private rooms, sales promotion and selection of magazines. The sixth factor, Social Responsibility and Recreation used five items whose factor loadings ranged from 0.422 to 0.726. This factor conveyed the perception that specialty coffeehouses are environmentally friendly and socially responsible, are places to relax during leisure time and gather with friends and provide warm lighting. Food &



Drinks Selection as the seventh factor had two items, with each item having a factor loading of 0.710. This factor was perceived to reflect the variety of drinks (other than coffee) and food offered at specialty coffeehouses. The eighth factor, Social Place had only one item with a factor loading of 0.779 and reflected the perception that the coffeehouse is a place to socialise with prospective clients. Lastly, the ninth factor, Other Amenities also had only one item with a factor loading of 0.834 and portrayed the perception that a designated smoking area is provided for customers.

Table 3 shows the nine factors with all variables (items) showing strong loadings (more than 0.4) and all items loading substantially on only one factor. The nine factor solution explained 59.15% of the total variance, with Tangibles contributing 28.17%, Coffee Quality (6.85%), Service Quality by Staff (5.99%), Brand Preference (4.05%), Promotional Activities (3.41%), Social Responsibility & Recreation (2.98%), Food & Drinks Selection (2.71%), Social Place (2.55%) and, Other Amenities (2.4%). In summary, the results of this analysis support the use of positive effect items while the promax rotation solution explains the variance percentile by strongly loading the measurement items on their respective construct components.

Table 3 Exploratory factor analysis (EFA)

Factor and Variables Factor Loadings

Eigenvalues Variance (%)

Factor 1 – Tangibles 12.67 28.17

Friendly staff .810

Helpful staff .793

Reasonable price with quality service .734

Reasonable price with quality coffee .694

Reasonable price with portion size .650

Dining area that is thoroughly clean* .608

Restrooms that are thoroughly clean* .598

Easy-to-read menus .537

Adequate spacing between tables .534

Courteous staff .463

Quiet atmosphere .422

Factor 2 – Coffee Quality 3.08 6.85

Coffee with high quality of beans* .886



Coffee with freshly roasted beans* .846

Coffee with the right brewing skills* .835

Freshly brewed coffee all the time* .747

Coffee with preferred taste .747

Coffee with preferred aroma .670

Coffee with the right temperature .657

Customised coffee* .613

Coffee with consistent quality .508

Factor 3 – Service Quality by Staff 2.69 5.99

Staff perform service right the first time .729

Staff offer individual attention .729

Staff knowledgeable about tste products .624

Staff give prompt service .566

Staff attentive to specific needs .560

Staff attentive to orders .516

Factor 4 – Brand Preference 1.82 4.05

Frequently visit a particular coffeehouse familiar with*

.852

Frequently visit a trusted particular coffeehouse*

.848

Frequently visit a particular coffeehouse for its ambience*

.696

Frequently visit a particular coffeehouse for the quality of products it serves*

.621

Factor 5 – Promotional Activities 1.53 3.41

Free testing of coffee and food items .737

Availability of merchandise items .709

Availability of private rooms .678

Sales promotion .560

Selection of magazines .503

Table 3 (con’t)



Factor 6 – Social Responsibility and Recreation

1.34 2.98

Environmentally friendly coffeehouse .726

Socially responsible coffeehouse .691

Place to relax during leisure time* .563

Casual gathering place with friends* .552

Warm lighting .422

Factor 7 – Food & Drinks Selection 1.22 2.71

Variety of drinks (other than coffee) .710

Variety of food .710

Factor 8 – Social Place 1.15 2.55

Place to meet potential clients* .779

Factor 9 – Other Amenities 1.08 2.4

Smoking area .834

Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO-MSA): 0.907; Bartlett’s Test of Sphericity, significance at 0.00. *Attributes developed from exploratory study

Discussion and Conclusion

By identifying the key attributes customers seek when dining in specialitycoffeehouses, the findings contribute to the existing literature and offer useful implications for specialty coffee shop entrepreneurs in Malaysia and other emerging economies.

The present study identified nine factors or attributes of specialty coffeehouses that are considered important by coffeehouse patrons. Overall, the findings are consistent with that of Tan and Lo (2008) who also identified a total of nine important attributes. However, only two of the nine factors in Tan and Lo (2008) have the same label as the factors in this study, specifically Food & Drinks Selection and, Other Amenities. Further, both these factors were not included as among the four most important factors identified by Tan and Lo (2008), as shown in Table 1.

Since Tangibles contributed the most to the total variance in this study, it is perceived as the most important feature of specialty coffeehouse. Although Tangibles was not explicitly labelled as a factor in Waxman’s study (2006), nevertheless the

Table 3 (con’t)



cleanliness variable was recognised as an important characteristic in the factor, Physical Design. It should be noted that tangibility is acknowledged as an important dimension of service quality (Ali, Hussain, Konar, & Jeon, 2017) and specialty coffeehouse operators should definitely focus on the tangible elements in order to attract and retain customers. For example, an operational checklist that includes essential elements such as appropriate staff behaviour, clean premises, reasonable product pricing and legible menus, can be prepared and regularly monitored by the management to ensure customers’ basic expectations are always fulfilled.

The study also proved, consistent with that of Tan and Lo (2008) and Chen and Hu (2010), that coffee quality is an important attribute. Undoubtedly, coffee is the core product served in specialty coffeehouses just like food is regarded as the main product in restaurants. Thus, it is imperative that coffeehouse operators consistently maintain a high standard of coffee-related products by sourcing for reasonably priced high-quality beans, recruiting and training baristas with the right technical and people skills, as well as providing customised coffee beverages based on customers’ preferences. This would create the “wow” experience for customers and help to retain their loyalty and patronage.

It is well acknowledged that service quality is an essential criteria for the success of any service organisation. Indeed, as employees are a critical resource in service organisations, the quality of service delivered significantly affects overall service quality. As the third most importantly perceived factor/attribute of specialty coffeehouses, this results confirms the important role of service personnel (Chen & Hu, 2010; Ko & Chiu, 2008; Tan & Lo, 2008). To ensure their staff are motivated to provide excellent service and build long-term customer relationships, coffeehouse operators/management could institute appropriate reward and recognition schemes that reinforce positive service behaviour. In addition, regular trainings should be provided on grooming, customer service and job-related operational skills to ensure staff stay abreast with current trends and customer’s ever-changing needs.

Apart from these important implications, the study has a few limitations that can suggest future directions for research. As the present study did not distinguish the different ethnicities or nationalities of the customers, future studies can focus on this aspect to identify if the attributes differ across ethnicity or nationality. Further, this study did not differentiate between international chain and independently-owned specialty coffeehouses. Hence, this aspect can be considered for future research to ascertain if there are differences between the attributes of independent and international chain outlets. Finally, the current study used mainly a quantitative research design. In future, an appropriate qualitative research approach (such as individual interviews or focus group discussions) can be employed to obtain more in-depth insights or additional attributes.




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Research Paper

An Investigation of Malaysian Wine Connoisseurs’ Sociocultural Implications during Their Learning Path

Joaquim Dias SoeiroTaylor’s University, Malaysia


Abstract: With more than 65% of the population being Muslims, Malaysia is not a country where alcohol is the most frequently consumed beverage. Also, wine is not the main alcoholic beverage consumed by non-Muslims, except during celebrations and social occasions. Furthermore, studies show that the Malaysian wine market is well segmented into novices, drinkers, consumers and connoisseurs. As the sociocultural environment of the country does not favor and does not support wine aficionados, the current study aims to explore the social and cultural implications that occurr during the learning path of five Malaysian wine connoisseurs. Customised and structured interviews were used to collect information across the Klang Valley and Kuala Lumpur area. The results reveal the social and cultural inferences that are necessary for a Malaysian wine consumer to become a connoisseur. This study aims to contribute to the neglected field of wine studies in Malaysia by helping wine professionals and marketers understand better the sociocultural and educational insights of connoisseurs.

Keywords: Social learning, cultural learning, adult self-education, wine connoisseur, Malaysia

Suggested citation: Dias Soeiro, J. (2018). An investigation of Malaysian wine connoisseurs’ sociocultural implications during their learning path. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 85–101.

Introduction

Malaysia’s population reached 28.7 million in 2017 and comprised 69% Malays, 23% Chinese, 7% Indians and 1% Others (Mahidin, 2017). Of this population, less than 30% consumed alcohol and even fewer consumed wine. Thus, the Malaysian wine market is relatively small and young, with only imported wine being available (GAIN, 2014). However, it has recorded by far the highest and most robust growth

Correspondence: Joaquim Dias Soeiro, Taylor’s University, Malaysia. . Email: [email protected]


86 Joaquim Dias Soeiro

within the food and beverage sector for the past decade and the consumption of red versus white wine is at a ratio of around 60/40 (New Zealand Trade and Enterprise, 2006). Alcohol including wine is not only a big business; it has become a part of social relationships (Wilson, 2004). Likewise, wine consumption in Malaysia appears to be more than just a drink; it involves a social dimension and is regarded as much more than a simple product. From a connoisseur’s perspective, wine has various connotations involving aspects of knowledge, know-how, artistry, symbolism or etiquette (Ghosh, 2006). Historically, Malaysia does not have a strong wine drinking culture which makes the fundamental understanding of this beverage even more difficult. Most of the drinkers are located in urban areas where wine is a part of their lifestyle. However, the wine consumer’s relationship is based on an acquired and not an innate need as in the case of food. Thus, as a foreign product, the means by which Malaysians acquire wine knowledge remains unexplored and requires investigation. The consumption of wine in Malaysia could be considered a hedonic experience — a sensual and pleasurable activity intentionally devoted to personal enjoyment within the context of a number of potential social experiences (Bruwer & Alant, 2009). Austrian wine connoisseur, Andreas Rudd who shared his observation with Ghosh (2006) highlighted the heightened awareness and level of knowledge among Malaysian wine consumers as well as the progressive changes taking place in the Malaysian culture. Rudd also mentioned that wine is much more accepted today than ten years ago.

The environmental background in which Malaysian wine connoisseurs are evolving and the cultural mastery expected from a connoisseur gives rise to the following research question: What are the social and cultural inputs that contribute to the learning development which leads one to become a wine connoisseur? This research question will develop an understanding of how a consumer can develop a particular expertise in an unsupportive environment. This study aims to examine the types and influences of the educational tools used, the social context of the knowledge gained and the transformations that occur during the learning and development process.

Literature Review

Wine and the Concept of Terroir

The French Wine Guide (2014, p. 1) defines terroir as “a group of vineyards (or even vines) from the same region, belonging to a specific appellation, and sharing the same type of soil, weather conditions, grapes and wine making know-how, which contribute to give its specific personality to the wine; Terroir = Region + Appellation + Grapes + Know How + Culture”.



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The understanding of terroir is important for a connoisseur as terroir can carry different meanings. Dedeire and Tozanli (2007) categorised terroir in three different ways: (1) natural terroir as the connection between wine and its geographical area; (2) social terroir as the social connection between wine and humans, and (3) patrimonial terroir as the tangible and intangible connections considered as heritage. Among these three types, the social and patrimonial terroirs are evolving types as they are linked to human habits which change over time. These two dimensions can spread naturally and be transmitted via social and cultural means to other individuals and become diffused in the consumer space. Its transmission is based on information and exchange. However, the third dimension of terroir (natural terroir) requires experience due to its intangible nature.

Becoming a Connoisseur

D’Hauteville (2003) defined a wine connoisseur as an expert judge of wine which involves tasting wine often, going on wine tours, drinking almost daily, seeking out new products and understanding the origins of the wine. The connoisseur is a person who reads extensively about wine, visits wineries and attends wine courses. In the Malaysian context, the cultural environment cannot support d’Hauteville’s definition; therefore, connoisseurs here need to adjust their cultural practices and norms. For Spawton (1991), a wine connoisseur is a person who is knowledgeable and a regular wine drinker with a broad spectrum of tastes. A wine connoisseur has to be a person who appreciates, tastes, and consumes wine for different purposes, alone or with different persons, with pleasure and curiosity. The connoisseur has mastered tasting skills to differentiate different types of wine and is well-versed in wine knowledge in order to be able to choose the right wine according to specific situations. In summary, a wine connoisseur is a multi-skilled person able to automatically interpret sensorial information and highlight different themes of characteristics better than novices, drinkers or consumers.

Social Learning

The social dimension plays an important role in wine culture. Literature shows that consumption of wine at events is associated with social status (Bourdieu, 1979), for example, champagne is used for meaningful celebrations. Indeed, social and cultural behaviours and attitudes differ according to the environmental context. Visser (1991) explored the symbolic aspects of a drink on social occasions and highlighted that in certain contexts, offering a drink on arrival can be a sign of friendship or hospitality to a guest. When a group of people drink the same beverage, it creates a powerful symbol of community. French, Blair and Booth (1994) refer to “social learning” as the social and emotional effects that occur in the learning process when people drink



and eat. The process of social learning is long as it requires exchanges with other people over a period of time to acquire the norms.

The Development of a Wine Connoisseur in Malaysia

Figure 1 The development of a wine connoisseur in Malaysia

Dias Soeiro (2012) highlighted the importance of a guide, mentor or advisor, referred to as the third person in this study, who can influence at any point in the path from consumer to a wine connoisseur, as presented in Figure 1. The development of knowledge and skills seems to follow a clear progressive and cumulative learning path. A Malaysian wine connoisseur will go through numerous phases in theory, people, practices and travels to reach a certain level of expertise. In order to develop skills and knowledge, the wine connoisseur needs to undergo diverse experiences to learn, control, understand and complete the full development. But what are the tools and methods used by a consumer to become a connoisseur? What is the social and cultural input required to reach the status of a connoisseur?

METHODOLOGY

For the investigative aspect of this research, information was collected from participants based on their own experiences. Emotions, feelings, needs, wants and other factors affect individuals’ interpretations (Dupuis, 1999; Beard & Wilson, 2013) and make the information shared by participants unique. Therefore, “understanding” these unique experiences is the main purpose guiding this study. Each connoisseur creates his or her own epistemological and ontological experiences

Third Person Influences



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as only they can understand the interpretation of their knowledge and deal with the complexities of their experiences (Stake, 2010). Consequently, the subjective aspect of the constructs built by wine consumers leads to a qualitative and constructivist-interpretivist paradigmatic strategy (Denzin & Lincoln, 2008).

Data was collected via structured interview sessions, designed as a 30–45 minutes face-to-face discussion. Three different interviews were designed in order to match the different profiles of connoisseurs: (1) Connoisseurs with formal education, (2) Connoisseurs with professional training, and (3) Connoisseurs without training or education. By using these three categories, it was possible to cover all types of wine connoisseurs. Also, it is important to note that not all the participants were from the wine industry. Being a wine connoisseur does not necessarily involve work or employment as it can be a hobby, a pleasure of everyday life or a career prospect. As such, the composition of interviewees was planned by thinking broadly as to how a wine connoisseur could acquire knowledge: academically, professionally or via self-study.

Taking into account ethical considerations, participants were guaranteed anonymity and confidentiality for their voluntary participation. The names of the interviewees were replaced by letters and references to any location and connection to any people were removed. It was clearly mentioned to participants during the introduction to each interview, that their names would not be revealed and all information given will be strictly used for research purposes only. The interviews were recorded, then typed before being processed and analysed.

Results

Social Status among Stakeholders

Dias Soeiro (2012) highlighted the importance of the third person involvement during the learning and development process of a consumer becoming a wine connoisseur. In Malaysia, consumption of wine requires a certain budget due to the expensive taxes and levies imposed on alcohol products. Additionally, accessibility to particular wines is also limited due to the supplier-driven wine market. Interestingly, the data collected revealed two different situations.

The first situation exposed the difference of status between the consumer learning to become a wine connoisseur and the third person. The difference of social position may have helped the wine consumer to access certain types of wine and provided exposure to wines that they would not have been able to afford or access, otherwise.

The second situation is where both parties are from the same social status. What differs from the first case is that both come from a higher social status. Therefore, the social exposures and influences are different. Being from a higher social status allows people to access wine more easily. Consequently, if both individuals come



from a higher social status, it may be understood that influencer has a higher cultural capital, meaning more wide-ranging or in-depth knowledge and skills.

Conversely, if the wine consumer is from a lower social class, it is still possible to be exposed to specific types of wine but only with the help of a person from an upper social class.

Wine consumption requires a high budget and in order to become a connoisseur with a high level of expertise, the financial requirements are naturally high. There is a need to access rarer types of wine which will be even more expensive. Thus, a connection with people of higher social statuses will help the consumer to enhance his/her experience and diversify his/her opportunities.

Figure 2. Representation of the social status among the actors

Figure 2 summarises the social status of the wine consumer and the third person; the shaded area highlights the social origins of the participants. The wine consumer could come from a low or high class but the third person was always from the higher class. From Figure 2, the following conclusions can be drawn:• Therewasnoparticulardominantway toacquire awineculturebut it always

involved a human factor which assisted in gaining access.• Thethirdperson,menforallparticipants,maycomefromahighersocialclassor

a better cultural and experienced background but he significantly influenced the consumer.

• TheleftpartofthegraphinFigure2isemptywhichmeansnothirdpersonwhoinfluenced the process of a consumer becoming a connoisseur is of low social status.

• Thestatusofawineconnoisseurisaccessibletoeveryone.

Closeness of the Stakeholders

Malaysia is a relatively new independent country and may still carry cultural influences from the British colonial era. Hence, certain drinking habits and wine consumption can be explained as mentioned by participant C.

Third person



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“In Malaysia, those people who drink are very much influenced by British culture. And British Culture […] only recently they drink wine, before when they drink wine it was red Bordeaux in upper class, the general people drink beer or Whisky and Brandy, for special occasions.”— C

The choice of certain types of wine, the slow democratisation of the wine market in Malaysia and the “conservative” profile of Malaysia could justify why wine consumption has taken time to grow and diversify to what it is today.

In terms of drinking habits, people seldom drink at home as it is not their culture and most participants acknowledged that they seldom drink wine with their families.

“I drink more with friends, […] my immediate family do not drink wine”—A

“All of us are getting closer to each other as friends, in that case you are more able to enjoy”— B

Those involved in wine tasting or drinking sessions are often friends, colleagues and wine professionals. From the data collected, it was possible to conclude that being friends helped the exchange of information between stakeholders. Results reveal the effective aspect of the exchanges as people are able to share and learn more when their bond is relatively close. Based on the participants’ feedback, these exchanges tended to be more significant when the drinking sessions were with friends rather than family members. Additionally, as shared by most participants, their immediate family did not drink wine, so it was harder for Malaysians to get involved with wine at an early age, unlike in wine-producing countries.

Figure 3. Relation between closeness and people

Figure 3 summarises the results by illustrating participants’ tendency to have an important close relationship with the third person. The results illustrate that the degree of closeness between people helps in various ways, such as:



• providingbetterefficiencyandflowofinformationshared• reducingthesocialgapbetweenindividualsofdifferentstatuses

Unfortunately, the data collected did not allow us to explore the degree of proximity or the degree of intimacy between the individuals. It would have been useful to know if people only met during wine tasting or also outside such occasions, to consider if they are friends or just drinking buddies.

Nature of Interests and Discussions during Exchanges

As a point of interest, results show that all discussions that took place during the wine tastings were related to wine, as becoming a wine connoisseur required a lot of knowledge. However, as a wine consumer, it seemed that the discussions were driven by a variety of motivations. The motivators can be listed as: envy and thus desire to know more; a willingness to acquire various opinions about wine-related topics; and for personal development. The consumers who wanted to become wine connoisseurs were trying to get a better understanding of wine so that they too can obtain key knowledge and skills to discuss wine-related questions quickly, promptly and easily.

“I still want to try, I still want to learn. I feel it is part of my life … wine is my first thought“ —A

“When you start to learn and learn more, then you can differentiate and discern “—E

The need to stay updated, the desire to know more, the curiosity to discover new products, the enthusiasm to learn more were all the different motivations offered by the participants in their interviews. Further, the participants also highlighted the importance of another aspect of the development process, “listening to others”, as it allowed them to accumulate varied opinions either from educators, other connoisseurs or the third person. The level of interest towards wine also influenced discussions as each individual deliberated on how to use the knowledge acquired and make it meaningful for them, both personally and professionally. Participants acknowledged that wine is a complex product as it embodies complex meanings and understanding.

“I need to know wine because it’s my job scope and I have to design the wine list; I need to learn for […] business, personal development and personal interest” —A

“At first it was very difficult because it was complicated but then as I began to understand what it was, it became more interesting” —C



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The discussions did not always focus on wine as a product. There were different topics were discussed as well such as culture in wine-producing countries and understanding wine sociocultural symbolic values. The findings show that cultural knowledge and understanding of terroir related to wine-producing countries is something that a wine consumer must acquire when aspiring to become a connoisseur.

“To be a connoisseur it’s a need to know about the culture, people, lifestyle. It is one of the parts which makes a difference between a wine drinker and a connoisseur” —A

“Then you realized the factors that contribute to the whole process… is incredible, human, nature, history, religion, food […] that is how wine should be appreciated by itself; wine should never be something by itself” —C

“I make the point to try the local wine. In Basque region, they drink the Txakoli, in a glass like whisky glass with pinchos. I am quite adventurous. In Tuscany, I tried the Vincento and Biscotti” —E

Symbolic notions, professional views, self-development and self-satisfaction, challenges facing the industry were some of the different discussion topics the participants partook in while developing themselves to the connoisseur level.

During the interviews, all the participants expressed common opinions on the effectiveness of participating in wine tasting. Wine tasting, with professionals or peers, helped the participants to develop olfactory skills which allowed them to differentiate one wine from another. The mastery of the olfactory senses is essential as believed by all the participants.

“Wine for me is two parts, one you have the knowledge and then you have the palate” —C

For theory learning, the participants used various media such as books, magazines and the internet which provide plenty of information on the wine culture in various ways. The symbolic value of luxury is indirectly communicated to readers, as wine magazines not only focus on wine, but also market luxury items such as watches, cigars or travels, meant for expatriate reading. The wine magazines were by far the most important print media used for learning and for reference. These magazines provide information on latest industry trends and developments, descriptive and comparative data between producers and suppliers, and illustrations. It is also a common way to become versed in the upper social classes and their lifestyle. However, this is still not sufficient for the wine connoisseur to excel in this field. Printed media



can only provide information but cannot explain or describe the notion of taste and aesthetic.

“You can get so much … information from the books” —A “Always have to read a lot of magazines” —B “One of the biggest influences was from the books that I read” —C“I started appreciating when I started to learn more about wine through magazines and all that” —D

Figure 4. Significant dimensions of practice

The second source of information that contribute to learning is related to wine tasting. As presented in Figure 4, the practice of wine tasting played a more important role in personal development than theoretical knowledge. Some of the participants shared that they tasted wine to understand wine better, to help them memorize wine characteristics, or to develop sensory skills. Also, wine tasting helped them understand how others (consumers, foreigners or other wine connoisseurs) could enjoy it.

“The real appreciation came because I tried more wines I like, I appreciate. I knew wine had different types so I just kept on trying” —A

“Definitely, these bring more knowledge than magazines cannot provide” —B

“If you want to appreciate something you must go with it all the time, especially with something you are not used to. So, the more you try then only you start to appreciate” —C

“I started appreciating wine when I started understanding, understanding is important, and tasting it” —E



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Understanding different aspects of wine through wine tasting is an important skill that will help a wine connoisseur in various ways. First of all, wine tasting develops a significant ability to discern different fragrances and helps in methodically using a cognitive approach in tasting (sight, smell and taste). Secondly, wine tasting builds sensory memory, as it is important for a wine connoisseur to differentiate the characteristics of different types of wine. When wine connoisseurs learn about wines, they create their “olfactory checklist” for each grape variety. Along with theoretical knowledge from books, magazines, reviews or internet, this helps them identify a wine or differentiate different wines. Tasting wine in a properly organised and systematic way is not a way of showing off but rather a need to understand wine deeply, as mentioned by one of the participants.

Transformations during the Transition Process

When a consumer becomes a connoisseur, specific outcomes and transformations are brought forth and particular abilities and capabilities are developed. The results reveal four resulting transformational outcomes that take place when a consumer transitiones to a connoisseur. Additionally, the duration of experience varied from one participant to another, from six years as the shortest to thirty years as the longest.

Knowledge

Undoubtedly, after such a long exposure to wine and related topics, it is understandable that the connoisseur would be very knowledgeable. From wine as a product to the development of a palate, there is a wide range of different expertise where connoisseurs could excel. Concerning wine as a product, participants revealed that they were able to differentiate locations, grape varieties, and any information written on the label. However, it is interesting to note that they were also able to identify the characteristics of a wine by taste, smell, wine ageing or evolution and aroma perception. This ability was the accumulated result of years of tasting and meeting other connoisseurs, as well as amassed theoretical knowledge.

“The biggest change is in the palate as I know when it’s good. I was not able to do that before.” —A

“When I look for wine I am more aware of what is the different among the wines” —D

Skills

In terms of skills, the focus concerns a systematic approach to tasting and the ability to use this knowledge. For example, appreciation skills, the ability to distinguish



possible faults and the ability to choose a wine for a particular event were skills that came into play at avenues such as food and wine pairing and organising wine dinners. According to the participants, these skills reflect a mastery of the fundamentals as it involves remembering the organoleptic characteristics of wine such as bitterness, sourness, sweetness, strength, aromatic length, aroma, and so on.

“I like to do … wine dinner or whisky dinner where I do a wine pairing that not many people will do …”—B

“The way I choose wine at home or restaurant is according to cuisine type, company, for more sophisticated wine drinkers I will choose better wines…”—E

Attitude

As consumers acquired skills and knowledge, their attitude also changed. Their level of confidence rose including becoming more comfortable or confident with wine. New connoisseurs were able to teach, suggest, influence, guide or surprise their guests, friends or family members. Changes in their consuming behaviour could also be detected, which can be attributed to third person influences and the exposure to wine. The variety of choice, wine tasting, influences from others and varied experiences have all strengthened the capabilities of the new connoisseur. Participants shared that they were able to take risks during decision making which they were unwilling to take before. These risks could be financial, social, functional, or personal in nature.

“Choosing the wine and providing to the guest involve personal perception and their perception” —A

“My consumption is changing […] once you drink entry level wine [that are] inexpensive, they tend to have very little variation […]I am drinking less because with […] expensive wine you just don’t open up and just drink it like that” —D

Symbolic

“Symbolic” is referred to the appropriation of wine symbols. The participants were not passive consumers of knowledge but active and constructive in the development of knowledge. Wine was seen by the participants as a living product that can be modified and transformed following a life cycle. Wine descriptions also include a lot of values and social symbols. For example, wine is presented as a symbol of commensality and a social lubricant, having the ability to connect people during events, a tool to bond people and create an enjoyable time together.



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“Wine is something alive […] it is representative to that particular country, a mixture of the culture. For us a sommelier it is important to experience it because the way we talk about wine it is as a living product”—A

“That is how wine should be appreciated by itself; wine should never be something by itself” —C

“It can be a simple drink just like water and it can make a good wine it doesn’t need to cost you thousands of euro or dollars but it’s meant to be enjoyed with family, friends” —C

“I like wine for what it represents and the wine is really a center of meal and social occasions. It’s a binder, it binds people, it brings a meal together. Because there is alcohol it helps to develop the conversation.” —E

Discussion

The findings illustrate that the social interactions between the participants and their social groups are not the same. Those from a lower social status tended to interact more with locals than with foreigners, which could be attributed to their background. By necessity, they could learn with friends more than family members due to the very low or non-existent consumption of wine at home. At a later stage, they would opt for more interactions with professionals and obtain certifications in order to build their experience. For this category of wine connoisseurs, another concern that was raised regarding the legitimacy of the third person was their level of knowledge and experience on wine.

For those with higher social status, interacting with locals was important as a form of friendship and part of the local culture. Compared to the earlier category, the development process of this group involved family members as well as foreigners. Their lifestyle tended to differ which affected the background of each participant and their development curve. Findings also reveal the existence of a wine culture within the family. Due to more interaction with foreigners and longer exposure to a wine culture, this group of wine connoisseurs dealt less with professionals and in obtaining certifications. The degree of affectivity and closeness of relationships were still important as these helped in the transmission of information between the wine connoisseur and their connections.

The findings reveal that buying a bottle of wine is not simply about buying an alcoholic beverage. The purchase of a bottle of wine involves purchasing its characteristics as well such as bouquet, colour, taste and a certain intellectual prestige through knowledge and understanding. Understanding wine is a complex endeavour which involves knowledge and practices (Spawton, 1991; d’Hauteville, 2003).



Groves, Charters and Reynolds (2000) stated that wine quality is composed of hedonistic and aesthetic components which involve the knowledge of extrinsic and intrinsic cues mastered by wine connoisseurs. The symbolic approach and perceptions become much more relevant as they become more realistic and clearer. At this level, the connoisseur can perceive and understand the symbolic characteristics of the wine. The perception of wine as a social symbol was transformed into a sociocultural symbol as it involved exposure, experience, connections, and interactions that included people, tasting and travels. This study reveals important ideas related to the sociocultural dimensions experienced by consumers during their transformative journey to become a wine connoisseur. Each individual (1) acquired different and higher expectations, (2) developed higher confidence, (3) built higher self-esteem, and (4) was able to take on more risks and deal with challenges.

As a non-wine-producing country, Malaysia presented an interesting case study in understanding the reasons and factors involved in the transformative journey to becoming a wine connoisseur. As a consumer, the ability to taste wine was probably guided by books, magazines and / or the internet. Thanks to training and education, the consumer was then able to acquire more refined knowledge and build the necessary skills. Understanding why a consumer would aspire to become a wine connoisseur involves understanding why people like wine, why wine is so expensive and what is beyond the drink itself. Unlike the wine consumer, wine connoisseurs can fully comprehend and appreciate the cultural and social role of wine.

From a social standpoint, the wine consumer can gain access to social classes different from their own background. Once mastering wine knowledge, they can mingle with the seasoned ones. This important social stratagem will help the wine consumer to understand and gain access to information and people. It is noted that the learning development of the wine connoisseur takes place where it is easy to communicate and rarely, this is home. Information exchanges between people are extremely important and the guide or mentor influencing the wine consumer tend to come from a higher social status. Even if the individuals are from the same social status, there will still be a difference in terms of their sociocultural capital.

The cultural factor is the second key dimension of the learning process. The qualitative advantage of a connoisseur is their ability to express themselves and influence others due to their experience and exposure. This cultural factor can be shared among Malaysians who have been exposed and are familiar with the wine culture. According to Dias Soeiro (2012), visits to wineries, vineyards, and expositions are important activities when training to become a connoisseur. The best way for a Malaysian to become a connoisseur is to travel to vineyards, visiting and communicating with wine makers, oenologists, suppliers, professionals, or even locals in order to acquire the wine culture. Talking to a friend who has been to a



99

wine-producing country and going to a wine-producing country itself makes a big difference as it will create memories and unique experiences for the wine consumer. These experiences convert the theoretical knowledge learned into something real and authentic. Once the wine consumer finds himself or herself deeply immersed in a wine culture, multiple and diverse sources of information can be blended together and absorbed. Rituals, festivals, habits, food matching, drinking patterns are all the cultural experiences that the wine consumer can adopt and absorb. This learning process is referred to as incorporation and acculturation where the consumer adds these cultural experiences to his or her own background.

Conclusion

Reflecting back on the research question expressed in the introduction, the primary conclusion from this research is the existence of social and cultural diffusions and incorporations during the learning and development process of a wine consumer into becoming a wine connoisseur. The results imply that in Malaysia, a wine consumer goes through a long process divided into many important phases: theoretical needs, social needs, human needs and cultural needs before they become a connoisseur.

Knowledge acquisition can take place through training, print media, internet or from friends, which will help the wine consumer to adapt to different situations. The social inputs usually come from someone of a higher social status or with higher cultural and social capital. The social connections that the wine consumer develops help him or her gain access to a higher level wine culture. The human factor appear necessary either at the beginning, during or at the end of the learning process. Nevertheless, these cultural and social inputs help complete the learning process towards becoming a wine connoisseur.

This research contributes to understanding the wine connoisseur development process in Malaysia by examining the implications and influences involved. The findings of this study can help professionals and marketers to develop customised content for wine consumer and wine connoisseurs. Becoming a wine connoisseur is achievable for any interested Malaysian but it takes a complex but fruitful and wonderful journey to reach there.

While the present study explored the stages and elements of the transition process from wine consumer to wine connoisseur, future research can expand by investigating the motivation and interests that drive this process. Additionally, identifying patterns, similarities or differences among the different Malaysian ethnic groups can provide better insights from a cultural viewpoint. Further investigations could also determine the different levels of Malaysian wine connoisseurs and eventually, identify the different phases leading from non-wine drinker to wine connoisseur.




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Dias Soeiro, J. (2012). From drinking to tasting: An exploration amongst Malaysian wine connoisseurs. In A. Zainal, S.M. Radzi, R. Hashim, C.T. Chik & R. Abu (Eds.), Current issues in hospitality and tourism: Research and innovation, (pp. 281-285). London: CRC Press.

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French Wine Guide. (2014). Definition of terroir. Retrieved from: http://www.terroir-france.com/theclub/meaning.htm.

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Groves, R., Charters, S., & Reynolds, C. (2000). Imbibing, inscribing, integrating and imparting: a taxonomy of wine consumption practices. Journal of Wine Research, 11(3), 209-222.

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Stake, R. E. (2010). Qualitative research: Studying how things work. NY: The Guilford Press.Visser, M. (1991). The rituals of dinner: The origins, evolution, eccentricities and meaning of

table manners. London: Viking.Wilson, T. (2004). Globalization, differentiation and drinking cultures, an anthropological

perspective. Retrieved from: http://aof.revues.org/index261.html



Research Paper

The Bubble Drink Industry in Malaysia: An Empirical Assessment of Repurchase Intention

Kandappan Balasubramanian, Fan Wai Mun and Vinesh Ramalingam Taylor’s University, Malaysia

Vivien Chai Su Hui Grand Park Orchard


Abstract: The food and beverage market is one of the largest growing industry in Malaysia with an annual growth rate of 25.4% and an expected increase from the current revenue of USD34 million to USD38 million in 2022. According to the Malaysian market forecast of 2018, there will be an increase of 1.6% in consumers eating out from the current one (5.2%). Given the growing number of customers in the Malaysian food and beverage industry, there is also a rising trend of bubble drink outlets. Considering the limited research that exists on the repurchase intention of bubble drinks among Malaysian consumers, this study examines the relationships between perceived value, affective emotions, interactional fairness and price fairness over customer satisfaction and their repurchasing intention behaviour in the bubble drink outlets. Data collected from 200 Klang Valley consumers were analysed using SPSS and SEM. Research findings show that there is a positive relationship among affective emotions, interactional fairness and perceived value over customer satisfaction while the price fairness relationship was not significant. The findings have important implications for the long-term sustainability of bubble drink outlets by increasing customer satisfaction. Additionally, this study defined a meaningful and real understanding of repurchase intention.

Keywords: Repurchase intention, bubble drink outlets, customer satisfaction, Malaysia.

Suggested citation: Balasubramanian, K., Fan W.M., Ramalingam, V. & Chai, V.S.H. (2018). The bubble drink industry in Malaysia: An empirical assessment of repurchase intention. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 7(2), 103–119.

Correspondence: Kandappan Balasubramanian, Taylor’s University, Malaysia. Email: [email protected]


104 Kandappan Balasubramanian, Fan Wai Mun, Vinesh Ramalingam and Vivien Chai Su Hui

Introduction

The global beverage industry is growing rapidly due to the increase of disposable incomes, shift in consumer food preferences and the introduction of wide-ranging flavours and modifications in the trendy non-alcoholic beverages sector. The beverage industry is considered an established sector which comprise companies that offer non-alcoholic and alcoholic drinks to the global market. In Malaysia, the beverage sectors are expected to continue to play a sturdy role in building a stronger growth rate for the economy. Despite Malaysia’s economic uncertainties in 2016, the beverage market was seen as the most energetic industry (Mahalingam, 2016). In the global market, tea is considered as the most popular non-alcoholic beverage with an increasing rate of approximately 3 billion kg every year besides water (Kris-Etherton & Keen, 2002; Kuriyama et al., 2006). The growing consumption of tea can be attributed to the rising consumer concern for health and the benefits of tea consumption.

In the late 1990s, the popularity of bubble tea drinks went global with the concept of Ready To Drink (RTD). This beverage phenomenon was actually discovered in Taichung, Taiwan during the early 1980s. The unique feature of this beverage is the tapioca balls known as “black pearls” that are placed at the bottom of plastic cups and topped with assorted tea flavours. According to Martin (2007), the bubble tea is well-liked and very famous in Taiwan. Its popularity started growing rapidly across other countries in Asia, Americas and Canada. In 2012, the high market demand for bubble tea in Southeast Asia spurred on some of the well-known bubble tea companies such as Gong Cha, Ochado and Chatime to establish themselves in Malaysia. In particular, Chatime Malaysia is a licensed franchise business founded by Chatime, a Taiwanese global franchise teahouse chain. Currently, there are 66 Chatime stores in Malaysia with plans of expanding to more than 100 stores in the future. Due to its huge success, other bubble tea competitors have penetrated the Malaysian market to capitalise from this latest trend.

It is important to ensure that the customer satisfaction level remains high to generate repeat purchases as well as retain customer loyalty. Burns and Neisner (2006) stressed that one of the most important elements in generating repeat business and purchasing deeds is customer satisfaction. This is corroborated by Saesie (2016) who studied the elements that play a major role in influencing customers’ decision to purchase bubble teas in Bangkok and Kusuma, Wahab and Widad’s (2015) research on identifying customers’ loyalty in purchasing “Chatime” bubble tea in Palembang, Indonesia. Despite the importance of understanding repurchase intention, there have been limited research in the Malaysian context. Hence this study sets forth to explore customers’ repurchase intention by analysing the bond between service fairness, perceived value, emotions and price fairness in relation to customer satisfaction. Based on literature review, it is evident that there is a paucity of work on customer


The Bubble Drink Industry in Malaysia: An Empirical Assessment of Repurchase Intention 105

satisfaction and repurchase intention for bubble drinks. Therefore, this paper also attempts to provide further insight on the best indicators in achieving customer satisfaction and repurchase intention using the Chatime bubble drink outlet in Malaysia as a case study. This empirical study integrates an extension of customer satisfaction of bubble drinks and key attributes that provide a more effective method to increase the repurchase intention among Malaysian consumers. To achieve the purpose of this research context, the present study attempts to examine the relationship of price fairness, perceived value, interactional fairness, and affective emotions towards customer satisfaction and repurchase intention of bubbles drinks among several competing beverage products in Klang Valley, Malaysia. Therefore, it contributes to existing empirical research on consumer repurchase intention as well as the evaluation of consumer decision making in the beverage industry. The paper ends with conclusions and suggestions for future research in this area.

Theoretical Background

Price Fairness and Customer Satisfaction

According to Xia, Monroe and Cox (2004), price fairness is defined as the way a customer would assess and link their emotions as to whether differences between the price of one seller and another is acceptable, reasonable and sound. Findings from Hermann, Xia, Monroe and Huber (2007) highlighted that price sensitivities and pricing techniques will impact customers’ general level of satisfaction while Hanif, Hafeez & Riaz (2010) discovered that price fairness directly impacts on consumer satisfaction especially when it is based on the judgement of “sensibility, rationality or reasonability”. Similarly, customers feel it is unfair if prices are increased in order for companies to gain better profits (Martin-Consuegra, Molina & Esteban, 2007) and fairness in pricing helps promote customer satisfaction together with service quality and service convenience (Kaura, Prasad, & Sharma, 2015).

Additionally, a study by Wirtz and Kimes (2007) using questionnaires centred on multiple-item measurement concluded that any organisation or company that shows unfairness in pricing would generate a lot of negative reactions. This finding is further supported by Bei and Chiao (2001) and Liang and Zhang (2009), whose research on the relationship between price fairness, service quality and customer satisfaction proved that payment fairness or perceived equality is a determining element in consumer satisfaction.

Affective Emotions and Customer Satisfaction

According to Cronin et al. (2000), affective elements include many emotions, for example, “surprise, disappointment and happiness”. Titz (2008) and Schoefer and Diamantopoulous (2008) contended that in service settings, the discrepancies



between emotion and affect is an important matter to look into. Additionally, both of these terms are used interchangeably by other researchers. A study by Yu and Dean (2001) which focused on the relationship between affective emotions, cognitive emotions, consumer loyalty and consumer satisfaction revealed that there is a strong bond between affective emotions and consumer satisfaction. The researchers added that consumer satisfaction is “possibly a salient dimension” and emotions plus experience reliance must be given due consideration. Another research by Jani and Han (2011) also studied the impact between affect and consumer satisfaction. Their results emphasised that consumer satisfaction is not solely based on cognitive emotions but is influenced by affect as well. This outcome is also supported by Edvardsson (2005) and Liljander and Strandvik (1997). Evident results from Lashley (2008) also revealed that affective emotions generated more impact on consumer satisfaction in contrast to cognitive emotions.

Perceived Value and Customer Satisfaction

Perceived value is described as a customer’s detailed evaluation of value service in the context of their rating on the service provided and hidden expenditures (Hellier, Geursen, Carr, & Richard, 2003). In the service industry, perceived value is considered as one of the utmost essential components for understanding customers (Ostrom & Lacobucci, 1995; Jensen, 1996). Previous studies have examined perceived values such as hedonic and utilisation in various service industriees including restaurant settings (Jones, Reynolds, & Arnold, 2006; Overby & Lee, 2006; Park, 2004). Perceived value is one of the most important marketing concept for understanding customer’s behavioural outcomes to measure their satisfaction and intention (Hwang & Kandampully, 2015). According to Meng, Liang, and Yang (2011), there is a link between perceived value and satisfaction of customer; the value is a subjective assessment of consumers’ emotions and equalisation.

From both the marketing and academic perspectives, perceived value has an incredible effect on customer fulfilment as it has been customarily distinguished. According to Gallarza and Saura (2006), perceived value involves the customer’s budget and psychological value; two important fundamental areas that affect decision making in product choice in relation to perceived quality and satisfaction. It is also observed that perceived value is vital to customer satisfaction and demonstrate a positive influence on it. Generally with money, quality, benefits and social psychology are key areas that customers will observe in relation to perceived value (Kuo, Wu and Deng, 2009). In conclusion, customers evaluate on the best value they can get in terms of benefits and sacrifices, for example, monetary and non-monetary costs during transaction, negotiation and purchasing time (Cronin, Brady, & Hult, 2000; Zeithaml, 1988).



Interactional Fairness and Customer Satisfaction

Interactional fairness can be referred as interpersonal behaviours in the enactment and delivery of outcomes (Tax, Brown, & Chandrasekaran, 1998). Restaurant settings involve intensive human interactions, which mainly results in customer satisfaction or frustration (Smith & Bolton, 1998). The impact of consumption interaction that displays substantial respect and attention and makes customers feel good is also referred as interactional fairness (Nikbin, Marimuthu & Sunghyup, 2016). In evaluating the link between fairness, interaction, distribution and customer satisfaction predominantly in the service sectors whereby consumers will observe and assess staff by their fairness of interaction, product knowledge, distribution and procedural fairness, there is a positive interaction of fairness between customer satisfaction and overall satisfaction and this has created a positive impact during service engagement towards service standards (Severt & Rompf, 2006).

According to Namkung and Jang (2009), in the hospitality industry service, fairness is important for human relations as it is the first communication point between an employee and customer. Insights on instructional fairness and its consequences such as satisfaction and behavioural intentions has been limited even though interaction fairness has been identified as a key factor that influences customer satisfaction. Further, the authors found that the customer will feel fairly treated when they are given respect and attention by the service provider and the fairer the level of service, the greater the amount of satisfaction felt. Further, customer’s satisfaction is based on procedural, distributive and interactional justice which are directly related to service failure or recovery experience. Service failure refers to the recovery effort made by the service provider to make up for losses to a customer who has had a bad experience during a service engagement. In conclusion, a business should focus on service failure or recovery engagement to ensure that the experience of customer satisfaction is not affected.

Customer Satisfaction and Repurchase Intention

The repurchase intention is a concept based on the customer’s belief in purchasing a product again based on their previous purchase experience and satisfactions. Many studies have proven that customer satisfaction influences customers in repurchasing a product or service (Olivier, R.L., 1980; Cronin & Taylors, 1992; Zboja & Voorhees, 2006; Park & Na, 2015). Another study proved that customer satisfaction is considered the most important factor in influencing consumer behaviour towards repurchase intention (He & Song, 2009). While prior research generally confirms that there is a significant positive relationship between customer satisfaction and repurchase intentions, there remains an unanswered debate whether trust or customer satisfaction is the foremost antecedent that drives the latter. Many researchers, though, claim that it



is due to overall customer satisfaction (Fornell, 1992; Hutchinson, Wang & Lai, 2010; Taylor & Baker, 1994; Zboja & Voorhees, 2006).

In another study, empirical results showed a tie between satisfaction and word-of-mouth as the two most important intention constructs significantly associated with repurchase intentions (Soderlund & Ohman, 2005). A number of studies on post-dining behavioural intention found that higher levels of customer satisfaction have a positive significant relationship to support the growing restaurant industry through repurchase intentions. Similarly, many researchers agreed that the increase in repurchase intention is attributed to a higher level of customer satisfaction during their dining experience (Kivela, Inbakaran, & Reece, 1999; Yu, 2002).


Framework and Hypotheses

A conceptual framework (Figure 1) was developed to examine the relationship of perceived value, affective emotions, interactional fairness and price fairness towards customer satisfaction and repurchase intention in the Malaysian population of bubble drink customers.

Price Fairness

Perceived Value

Affection Emotions

Customer Satisfaction

Repurchase Intention

Interactional Fairness

H1

H2

H3

H5

H4

Figure 1. Conceptual framework

Based on findings from prior research which generally show a positive relationship between all the variables mentioned earlier, the following hypotheses were formulated to address the research question of this study:

H1: There is a positive significant relationship between price fairness and customer satisfaction.H2: There is a positive significant relationship between affective emotions and customer satisfaction.



H3: There is a positive significant relationship between perceived value and customer satisfaction.H4: There is a positive significant relationship between interactional fairness and customer satisfaction. H5: There is a positive significant relationship between customer satisfaction and repurchase intentions.

Study Sample

Respondents for the sample were selected using the convenience sampling method by approaching consumers buying bubble drinks at outlets in and around Klang Valley. This sampling method is commonly acceptable for this kind of study (Carlson & O’Cass, 2010; Bizri, 2014) and was adopted for this study to avoid any systematic basic when selecting respondents (Cui & Adam, 2002).

A total of 320 questionnaires were distributed randomly across various age groups and gender at bubble drinks outlets in and near higher education institutions. After the initial screening process, only 200 returned questionnaires were found to be usable and valid (response rate of 62.5%). The questionnaire contained items to measure all the constructs of the research framework and collected demographic details such as gender, age and income to understand the respondents’ backgrounds. Table 1 presents the demographic characteristics of the respondents.

Table 1. Demographics characteristics of the sample

Demographic characteristics Numbers Percentage (%)

Gender MaleFemale

87113

43.558.5

Age Below 18 years 18 – 25 years 26 – 35 years36 – 45 years

45 years and above

15119371712

7.559.518.58.56.0

Income (Malaysian Ringgit) 500 – 1,0001,001 – 1,5001,501 – 2,000Above 2,000

87293747

43.514.518.523.5

Research Instrument

This study used four constructs, namely price fairness, affective emotions, perceived value, interactional fairness to measure customer satisfaction and repurchase intention. A 5-point Likert scale was employed ranging from 1 (strongly disagree) to



5 (strongly agree) which were adopted from similar past studies (Namkung & Jang, 2010); Hanaysha, 2016; Namkung & Jang, 2009). There were some self-constructed items included in the questionnaire according to the nature of the study after it was tested for reliability and content validity.

Data Analysis

In this study, the Statistical Package for Social Sciences (SPSS) version 23.0 was used to analyse the descriptive information of the respondents and to clean missing values from the collected data. After setting aside errors, the 200-sample set was used to analyse the conceptual framework and test the hypotheses using the partial least squares structural equation modelling (PLS-SEM). The PLS-SEM was considered as a more appropriate analytical tool due to the nature of the study (Hair, Hult, Ringle, & Sarstedt, 2014). Further, the measurement model was estimated using the statistical software, ADANCO 2.0.1 (Henseler, 2017).

Measurement Model

It was important to assess the collected data for validity and reliability before we proceeded to hypotheses testing (Ting & Thurasamy, 2016). The internal consistency of constructs is proven when the value of composite reliability (CR) is greater than 0.70 and the same thumb rule also applies to Cronbach alpha values (Genfen et al., 2000). It also equally important to demonstrate good convergent validity with a minimum threshold value of 0.5 for Average Variance Extracted (AVE) (Bagozzi & Yi, 1988). It should be noted that items with more than 50% of the construct’s variances were not removed from observation (Hair et al., 2014). It is also important that all standardised construct loadings were found to above the recommended value of 0.60 (Chin et al., 2018).

Table 2. Loadings and weights for the measurement model (total sample)

Constructs SFL α CR AVE

PRICE FAIRNESS (PF) 0.6912 0.6480 0.6141

I am satisfied with the price charged for a bubble beverage.The billing accuracy will influence my satisfaction level.I will not be satisfied if bubble drink price is changed frequently.

0.8065

0.8372

0.7006



Constructs SFL α CR AVE

AFFECTIVE EMOTION (AE) 0.6787 0.6360 0.6061

I am satisfied with the ambience, mood and atmosphere of bubble drink outlets.I will be satisfied if my psychological needs are fulfilled.The atmosphere of an outlet influences my satisfaction level.

0.8134

0.7463

0.7745

PERCEIVED VALUE (PF) 0.7039 0.6120 0.5303

I will be satisfied if my expectations are exceeded.I would choose bubble drink outlets over others because it caters to my personal needs.I visit bubble drink outlets because it offers a wide range of beverages.The quality and service provided by a bubble drink outlet will influence my satisfaction level.

0.63790.6789

0.7462

0.6560

INTERACTIONAL FAIRNESS (IF) 0.7704 0.690 0.5952

The service staff in bubble drink outlets are competent and have good knowledge of the menu.I visit bubble drink outlets because the service staff are polite and have good interpersonal skills.I was satisfied with the overall service procedure in my previous visit.I will be satisfied when the service staffs are fair to all customers.

0.8103

0.7796

0.8237

0.6618

CUSTOMER SATISFACTION (CS) 0.8547 0.932 0.8731

Overall, I am satisfied with my visits to the bubble drink outlets.I am pleased with the service experienced at bubble drink outlets.

0.9316

0.9372

REPURCHASE INTENTION (RI) 0.4469 0.772 0.6330

My overall satisfaction will influence my intentions to repurchase beverages from bubble drink outlets.I have intention to return to bubble drink outlets in the near future.

0.6714

0.9030

SFL = Standardised factor loading, α = Cronbach alpha, CR = Composite reliability & AVE = Average variance extracted

Table 2 (con’t)



In assessing the discriminant validity of a pair of constructs using heterotrait-monotrait (HTMT) ratio of correlations, the criterion value should be significantly smaller than 1 or clearly below 0.85 (Henseler, 2017). Results in Table 3 support the HTMT 0.85 criterion and helped establish the validity of all the constructs in the measurement model.

Table 3 Discriminant validity of constructs

PF PV IF AE CS RIFornell and Larcker’s (1981)PF 0.6141**PV 0.3624 0.5303**IF 0.3130 0.3833 0.5952**AE 0.1994 0.2867 0.2402 0.6061**CS 0.2909 0.3806 0.4271 0.2657 0.8731**RI 0.1548 0.1652 0.1810 0.1164 0.2730 0.6330**Heterotrait-Monotrait Ratio (HTMT)PFPV 0.8581IF 0.7464 0.8475AE 0.6595 0.7756 0.6675CS 0.6825 0.7895 0.8025 0.6664RI 0.6633 0.6898 0.7202 0.5926 0.8052**Values on the diagonal line (bolded) are square root of AVE while the off-diagonals are correlations.The shaded boxes is the standard procedure for reporting HTMT ratio. PF – price fairness; PV– perceived value; IF – interactional fairness; AE – affective emotion; CS – customer satisfaction; RI – repurchase intention

Structural Model

Collinearity issues between constructs should be examined before latent variable analyses are performed in a structural model. The bootstrapping procedure with a sub-sample of 5,000 cases was used to validate the model of each sub-sample (Hair et al. 2014) before hypotheses were tested. Their results are shown in Table 4. Four out of five relationship path analyses were found to be significant at 99% and 95% confidence intervals (Affection Emotion → Customer Satisfaction, β = 0.1571, p < 0.05; Perceived Value → Customer Satisfaction, β = 0.2325, p < 0.01; Interactional Fairness → Customer Satisfaction, β = 0.3616, p < 0.01; Customer Satisfaction → Repurchase Intention, β = 0.5225, p < 0.05). This confirms that all the aforementioned



four hypotheses have a positive relationship among the variables to support the study while one relationship (H1: Price Fairness → Customer Satisfaction, β = 0.1270, p > 0.05) is not supported as the p-value did not satisfy the significant level. It is also important to examine the coefficient of determination (R2) and their effect size (f 2) apart from the hypotheses results. The coefficient of determination (R2) values of 0.5389 and 0.2730 denote that 53.89% of variance in customer satisfaction and 27.30% of variance in repurchase intention can be attributed to the independent variables; this is an indication of substantial explanatory capacity (Cohen, 1988).

Price Fairness

Perceived Value

Affection Emotions

Customer SatisfactionR2 = 0.589

Repurchase Intention

R2 = 0.273

Interactional Fairness

0.127***

0.361**

0.157*

0.232**

0.522**

Figure 2. Research model (Critical t-values. *1.96 (p < 0.05); **2.57 (p < 0.01); *** (p > 0.05))

Table 4 Summary of the structural model

Hypotheses beta t-values Decision f-Square

Direct Effects (bootstrapping results)

H1: Price Fairness → Customer SatisfactionH2: Affection Emotion → Customer

SatisfactionH3: Perceived Value → Customer SatisfactionH4: Interactional Fairness → Customer

SatisfactionH5: Customer Satisfaction → Repurchase

Intention

0.12700.1571

0.23250.3616

0.5225

1.8377***2.4219*

3.3943**4.8361**

8.4148**

Not SupportedSupported

SupportedSupported

Supported

0.01790.0227

0.07760.1380

0.3755

Indirect Effects (bootstrapping results)

Price Fairness → Repurchase IntentionAffective Emotion → Repurchase Intention Perceived Value → Repurchase IntentionInteractional Fairness → Repurchase Intention

0.06230.06740.14750.1802

1.70482.29233.0348**4.2946

––––

0.06230.06740.14750.1802

Notes: Critical t-values. *1.96 (p < 0.05); **2.57 (p < 0.01); *** (p > 0.05)



Findings and Discussions

The findings of this study reveal the repurchase intention of bubble drink customers in an increasingly competitive marketplace and confirm that exogenous constructs such as price fairness, affection emotion, perceived value and international fairness affect customer satisfaction. This study also further elucidates the relationships between the exogenous constructs with customer satisfaction and repurchase intention.

Firstly, as hypotheses 1 in this study is not supported, there is no positive relationship between price fairness and customer satisfaction. This result concurs with Martin-Consuegra et al.’s (2007) finding that price fairness does not directly impact customer satisfaction especially when it is based on the judgement of sensibility and rationality. However, it is in contrast to other findings (Hermann et al., 2007; Kaura et al., 2015) that showed changes in price fairness, together with service quality and service convenience, do impact the level of customer satisfaction.

Looking at individual exogenous constructs, interactional fairness was found to be the strongest construct influencing customer satisfaction (β = 0.3616). This suggests that customers who purchase bubble drinks are more likely to see the interaction of the service provider as a human relations skill which contributes to their satisfaction. A similar finding has been reported by Namkung and Jang (2009) and by Severt and Rompf (2006). The second most important factor that affected customer satisfaction was perceived value (β = 0.2325). In fact, most customer intentions in buying any product will involve perceived budget and psychological values. This corroborates with prior findings by Gallarza and Saura (2006) and Meng et al. (2011). The third significant predictor of customer satisfaction is affective emotions such as happiness, disappointment and surprise which are experienced when purchasing a new or favourite bubble drink (β = 0.1571). Previous research also found similar result (Cronon et al., 2000; Jani & Han, 2011; Yu & Dean, 2001).

Conclusion and Recommendations

By identifying the factors that affect customer satisfaction and repurchase intention bubble drink outlet proprietors can focus on the right attributes for new product development, manufacturing and effective sales and marketing. Using structural equation modelling (SEM) to test four hypotheses against customer satisfaction, three factors (affective emotion, interactional fairness, perceived value) were found to impact significantly on customer satisfaction, which in turn was found to significantly affect repurchase intention. The study also demonstrates that price fairness had no impact on customer satisfaction as the majority of the respondents were from the millennial generation who are not really concerned about price fairness as long as the drinks fulfill interactional fairness and perceived values. The findings of this study also suggest that healthy and natural flavoured bubble



drinks be manufactured to increase customer satisfaction and repurchase intention. Repurchase intention can be improved in the long run by adopting sustainable practices in the manufacturing process and packaging, developing new products to meet the millennials’ sophisticated taste and carrying out attractive promotions that trigger sensory factors. The findings of this study offer a number of implications for academicians, practitioners, businesses and management teams. First, this study is significant in the sense that it reveals invaluable insights to marketers, producers and retailers of the bubble drink industry in understanding the purchasing behaviour of their customers in light of the paucity of data on the bubble drink market. Secondly, it provides an effective brand positioning method that can help businesses understand the nature of their own brands, as well as customers’ repurchasing intention and demands. In today’s competitive and disruptive business environment, every sector inclusive of bubble drink companies face numerous challenges including new entrants, substitute and alternate products and established household brands. Hence these findings can help young and upcoming entrepreneurs to capture their market share not only in Malaysia but also globally. The findings also provide insights on customising products based on the requirements of the future generation.

This study has some limitations that should be considered. Firstly, the population of the study included only customers from Klang Valley, Malaysia; therefore, the findings on customer satisfaction and repurchase intention of bubble drinks may not be representative of other parts of Malaysia. This is because the different customer expectations, buying behaviours and economic levels in other parts of Malaysia might give different results. Additionally, time constraint was another factor that limited the study to only Klang Valley. Future research can be expanded to include comparison studies between two groups, generations or across regions of Malaysia to understand the effect of cultural diversity.

Future research should also explore the drinking habits of millennial consumers in a rapidly changing world and finally, it will be interesting to study about customer’s intention to participate in loyalty programmes and brand images.


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Reviewers

Appreciation is extended to the following reviewers for the review of the articles published in APJIHT, Volume 7, Issue 2, 2018.• VikneswaranNairSehkaran,University of Bahamas, Bahamas • SeyyedMostafaRasoolimanesh,Taylor’s University, Malaysia• FaizanAli,University of South Florida, Sarasota-Manatee, Sarasota, USA• AnshulGarg,Taylor’s University, Malaysia• KarenHoKaiHui,Taylor’s University, Malaysia• SureshKannan,Taylor’s University, Malaysia• MayukhDewan,Taylor’s University, Malaysia

108 KashifHussain,NeethiahnanthanAriRagavan&JeeteshKumar


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(Ed.),Trends in outdoor recreation, leisure and tourism(pp.47-61).Oxon:CABInternational



Article in a journalKaratepeO.M.&Avci,T.(2002).Measuringservicequalityinthehotelindustry:Evidence

from northernCyprus. Anatolia:An International Journal of Tourism and Hospitality Research,13(1),19-32

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esteem: A meta-analysis. Psychological Bulletin, 125, 470-500. Doi: 10.1037/0033-2909.125.4.470

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10.1126/science.1188537

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Dissertation(PhDormasters)MacDonalds, A. (1991). Practical dissertation title (Unpublished doctoral dissertation).

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Online article based on a print source, with DOi (e.g., a PDF of a print source from a database)Krueger,R.F.,Markon,K.E.,Patrick,C.J.&Iacono,W.G.(2005).Externalisingpsychopathology

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E-mail or other personal communication (cite in text only)Monterey,personalcommunication,September28,2001



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Mission and Vision• Establishing a network of

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• Providingarecognizedmulti-siteresource and expertise related to ASEANTourism.

• Contributingtothedevelopmentof theTourismHumancapacityforASEANCountries.

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outstudies,researchandraiseissuesinaccordancewiththeobjectivesoftheAssociation.• Integrate, publish and disseminate materials, such as books, research reports and

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• MaintainadatabaseoftourismresearchexpertisewithafocusonASEAN.• Assistmembers of the association to find the right expertise and clusters for research

collaborationsincompliancewiththeobjectivesoftheassociation.• Accept and raise grants, endowments and financial support from available legitimate

sources in support of its programmes and activities.• CollaboratewithotherrecognizedassociationsorbodieswithinoroutsideASEAN,which

subscribetotheassociationsobjectives.

Objectives

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Asia-PacificJournal of

Innovation inHospitality and

Tourism

APJIHTVol 7 No 2 2018 (September)

PP 17711/04/2013 (032291)

Asia-Pacific Journal of Innovation in Hospitality and Tourism

(APJIHT)

Vol 7 No 2 2018 pp. 1-119

Published byTaylor’s University Sdn Bhd

Research PapersEmotional Intelligence, Perceived Organisation Support and Organisation Citizenship Behaviour: Their Influence on Job Performance among hotel employees 1 Ruth Sabina Francis, Elangkovan Narayan Alagas and Manimekalai JambulingamTaylor’s University, Malaysia

Empowerment in Hospitality Service Leadership: A Moderated Mediation Approach 21Rupam KonarTaylor’s University, MalaysiaFaizan AliUniversity of South Florida, USAKashif HussainUSCI University, Malaysia

In-Depth Review of Micro-Economic Analysis of Business Tourist Spending 39Jeetesh Kumar and Anshul GargTaylor’s University, MalaysiaLeena Nitin FukeyChrist University, India


Key Attributes of Malaysian Specialty Coffee Shops: An Exploratory Investigation 69 Michelle Lee G.W., Sushila Devi Rajaratnam and Rupam KonarTaylor’s University, Malaysia

An Investigation of Malaysian Wine Connoisseurs’ Socio-Cultural Implications During their Learning Path 85Joaquim Dias Soeiro Taylor’s University, Malaysia

The Bubble Drink Industry of Malaysia: An Empirical Assessment of Repurchase Intention 103Kandappan Balasubramanian, Fan Wai Mun and Vinesh Ramalingam Taylor’s University, MalaysiaVivien Chai Su Hui Grand Park Orchard, Singapore