Purpose Hospitality research tends to be concerned with linking the intangible, social and emotional aspects of consumer behaviour predominantly to luxury services, whereas for low-cost services the link is mainly to financial concerns. Building on the Value Attitude Behaviour Model and Consumption Value Theory, this study aims to investigate the effect of personalisation on guests' value perceptions of budget hotels – a growing yet often overlooked accommodation segment – and how consumption values impact upon behavioural intentions through the mediators of attitude and memorability. Design/methodology/approach Four value perceptions were included in the analysis – financial value, functional value, hedonic value and social value – each representing a different aspect of customer value. The analysis employed partial least-squares structural equation modelling, with online questionnaires used to capture the views of 264 guests of budget hotels. Findings Contrary to expectations, the findings emphasise the importance of hedonic value, rather than functional or financial value, in forming guests' attitude and memorability. Social value, meanwhile, was not found to be a significant determinant either of attitudes or memorability, suggesting that individual, rather than social motives, tend to be the generators of value for guests of budget hotels. Practical implications Those who market budget hotels should put more emphasis on personalising the experience for their guests. This will help to ensure that guests receive more than just a reasonably priced, functionally adequate stay. The study also demonstrates the importance of positive attitudes in determining revisit intentions to the hotel. This implies that delivering a memorable experience is not the only, or necessarily the optimal, marketing strategy for budget hotels. Originality/value While previous research had predominantly linked personalisation with luxury and up-scale experience of products and services, the present study examines personalisation in the budget hotel context. Beyond the contextual distinctiveness of the budget hotel setting, this study is among the first to employ a value-based analytical framework to empirically show that, within this industry, personalisation results in hedonic value surpassing functional value.
Oğuz et al. (Mon,) studied this question.