Assessing Green Practices on Eco-Friendly Hotel Customer Loyalty: A Partial Least Squares Structural Equation Modeling and Fuzzy-Set Qualitative Comparative Analysis Hybrid Approach

Abstract

With a global focus on environmental sustainability, hotels worldwide are actively transitioning their services from conventional to eco-friendly practices. This study aims to comprehensively understand the factors that contribute to visitors’ satisfaction in eco-friendly hotels and how this satisfaction influences customers’ future reactions towards such environmentally conscious establishments. Employing the Stimulus-Organism-Response theory, this study collected data from 277 respondents using a robust quantitative research strategy. A combined approach of Partial Least Squares Structural Equation Modeling (PLS-SEM) and Fuzzy-Set Qualitative Comparative Analysis (fsQCA) was employed, to uncover deep insights into visitors’ satisfaction and their reactions towards eco-friendly hotels. The PLS-SEM results reveal significant associations between customers’ satisfaction towards eco-friendly hotel services and service quality, green practices, perceived value, and environmental sensitivity. Moreover, this study highlights a positive correlation between satisfaction and crucial outcomes like revisit intention (RVI), willingness to pay a premium (WTPP), and word-of-mouth intention (WOMI). Complementing these findings, the fsQCA analysis uncovers intricate causal relationships among antecedents that influence customer satisfaction in eco-friendly hotels. By offering critical marketing insights, this study provides guidance for hotels, the tourism industry, and policymakers on attracting customers to eco-friendly hotels, to meet the increasing demands for environmental sustainability.