Multi-Dimensional Risk Components Influencing Hotel Patronage Decision
Keywords:
financial, patronage decision, performance, psychological, social and physical riskAbstract
Obtaining customer’s patronage is important for hotels to generate profit and business sustainability. As such there is a critical need to understand that customers’ decision to patronize a hotel is often associated with a variety of perceived risks. If high risks were perceived, patronage will not take place and vice versa. Thus, it is important to manage risks since low-risk perception will convince customers to patronize a hotel. This study examined the relationship between perceived risks and customers’ hotel patronage decision. The influence of performance risk, financial risk, psychological risk, social risk and physical risk on hotel’s patronage decision was examined in this study. A total of 100 business customers were selected for this study. The Google Form Survey was used to distribute questionnaires using WhatsApp application to customers’ mobile phone with the hotel’s assistance. 80 valid responses were obtained. Results of the study showed that performance risk, financial risk, social risk and psychological risk have significantly influenced customers’ hotel patronage decision. The results of the study postulated the need for an integrated approach such as providing periodic training to employees, offering privilege card to loyal guests and differentiating the hotel amongst key competitors as initiatives to minimize the said risks more efficiently and improve the hotel’s patronage
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