The Impact of Customer Experience on Brand Loyalty Among Customers of Smart Hotel Chains in China: The Mediating Role of Customer Trust and the Moderating Role of Technology Readiness

Abstract

The hospitality industry is undergoing a transformation with the assistance of mobile apps, AI, automated check-in and check-out systems, smart-room controls, digital payment, Robotic service and integrated hotel platforms that have completely changed the guests' experience in the smart hotel environment. This is, therefore, a pivotal element in the results of a customer relationship particularly in customer loyalty and trust. In this study, the researchers explored two relationships based on the proposed conceptual model: (1) the direct relationship of customer experience and brand loyalty; and (2) the relationship between customer experience and customer trust for customers of smart hotel chains in China. The research, theoretically, draws from the customer experience theory, as well as the relationship marketing theory and the technology oriented research in the hospitality industry. The five dimensions of customer experience (CE): functional, emotional, sensory, cognitive and technological are seen as a multi-dimensional assessment of customer experience in their journey with the hotel. Revisit intention, preference, resistance to switching, and recommending to others are indicators of brand loyalty while reliability, competence, security and service promise fulfilment are indicators of customer trust. In this purpose, it is recommended to use a quantitative research design, measurement (structured questionnaire) and Structural Equation Modelling (SEM) with partial least squares. To illustrate the analytical process an example of 400 respondents is chosen. The findings of the illustrative model confirm that there is a positive and statistically significant relationship between customer experience and brand loyalty (β = 0.58, t = 12.34, p < 0.001) which in turn supports the first hypothesis. Further, the results of the analysis show that customer experience has positive and statistically significant relationship with customer trust (β = 0.64, t = 14.22, p < 0.001) which supports H2. The results suggest that customer experience is emerging as one of the key drivers of both behavioural loyalty and relational trust in the context of a smart hotel. The results also give the theoretical basis for further analysis of customer trust as a mediator throughout the entire research model and technology readiness as a moderator in further structural paths. The study contributes to the smart hospitality research by merging two approaches in explaining the reactions of customers toward the hotel service by technology: experience approach and relationship approach.