Customer Perceived Value (hessamaldin abolghassemi)

Customer Perceived Value
(Analysis of Customer perceived value in hotel industry)
Presented to
Peter Williamson
By
Hessamaldin Abolghassemi
5515142004
Independent study
2nd
Semester Academic Year 2014
A THESIS PRESENTED TO RAMKHAMHAENG UNIVERSITY
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION
(Marketing)
2014

Customer Perceived Value
(Analysis of Customer Perceived Value in hotel industry)
Hessamaldin Abolghassemi
5515142004
(Marketing)
2014
COPYRIGHT BY RAMKHAMHAENG UNIVERSITY

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Study Title Customer Perceived Value
(Analysis of Customer Perceived Value in Hotel industry)
Student´s name Hessamaldin Abolghassemi
Advisor Peter Williamson
Assessed with grade
(Marketing)
2014

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Introduction
Visitor perceived value can be a dynamic criterion in affecting the selection of
residence, in this case hotels. Value for money not only affects customers’ choice
behavior at the pre-purchase phase but also affects their intention to recommend
and return behavior at the post-purchase phase. Understanding the perceived value
as the factors which affect purchase behaviors is important to make important
progress in improving the quality of hotel performance. Because of the high costs
that are involved with investments in the hotel industry, it makes a lot of sense to
study, which product components the travelers appreciate.
The objectives of the study area to examine the key aspects visitor perceived
value. The data were collected through questionnaire. A total of 300 questionnaires
were distributed among the guests of two hotels located in Ramkhamhaeng,
Bangkok. One was a 3* hotel and the other a 4* hotel, out of which 240 were
completed (120 each hotel). The results of the research have provided a clearly
explanation to factors that determine long-term profits to hotel industry. Descriptive
statistics and analysis by difference were applied in the present study. The results
are consequently used to develop potential marketing strategies for the hotel sector.
Keywords: Perceived Value, Descriptive statistics, Hotels’ attributes, Analysis by
difference, Hotel Industry

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TABLE OF CONTENTS
Introduction 2
Table of contents 3
List of tables 5
List of figures 6
Chapter 1 Introduction 9
1-1Background and importance of the Problem………………….. 9
1-2-Importance of the research…………………………………………. 14
1-3-Purpose of the Study…………………………………………………… 16
1-4-Scope of the Study……………………………………………………… 18
1-5-Definitions of Key Terms………………………………………….... 19
1-6-Expected Benefits from the Study……………………..………. 20
Chapter 2 CONCEPTS AND RELATED LITERATURE 21
2-1-Creation of Customer Perceived Value ………………………… 22
2-2-Value for money……………………………………………………..…. 23
2-3-Customer Perceived Value ……………………………………….. 24
2-4-Hotel Industry ………………………………………………………….. 26
2-5-Research model ………………………………………………………….. 30
2-6- Hypothesis definition …………………………………………………. 30

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Chapter 3 RESEARCH METHODOLOGY 32
3-1-Research design ……………………………………………………… 32
3-2-Population and Sample …………………………………………. 33
3-3-Research Instrument……………….……………………………. 33
3-4-Measurement ……………………..………………………………… 34
3-5- Statistics analysis …………………………………………………. 35
Chapter 4 RESULTS, DISCUSSIONS AND CONCLUSION 36
4-1-Analysis section 1 ……………………………………………………… 37
4-2-Analysis section 2 …………………………………………. 43
4-3-Analysis section 3 …………………………………………. 59
4-4-Conclusion……………….…………………..………………. 73
APPENDICES ……………………………………………………………….. 75
Questionnaire ………………………………………………….. 75
BIBLIOGRAPHIES …………………………………………………………. 80
PLEDGE ……………………………………………………………………… 82

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List of Tables
1. Gender ……………………………………………………………………..…………………..…………………… 35
2. Age …………………………………………………………………………………………....………………………. 35
3. Level of education ……………………………………………….………………..…………………………… 36
4. Occupation …………………………………………………………..…………………………………………… 37
5. Income ……………………………………………………………………………………………………............ 37
6. Purpose of travel ……………………………………………….…………………………………………..…. 38
7. Nationality …………………………………………………………..……………………………………..…… 38
8. Factors in choosing hotels ………………………………………………………………………………… 39
9. Staff service quality …………………………………………………………………………………………. 41
10. Hotel facilities ………………………………………………………………………………………………. 44
11. Room facilities ………………………………………………………………………………………………… 46
12. Room and hotel quality ……………………………………………………..…………………………….. 49
13. Hotel location ………………………………………………………………….………………………………. 51
14. Safety and security …………………………………………………………………………………………. 53
15. Food quality and variety ………………………………………………………………………………… 54
16. Overall value for money ………………………………………………………………………………… 56
17. Room types ………………………………………………………………………………………………… 57
18. Room rates …………………………………………………………………………………………………… 61
19. Satisfaction on expectation ………………………………………………………………………….. 63
20. Customer loyalty ……………………………………………………..…………………………………… 66
21. Degree on recommendation ……………………………………………………………………….. 68
22. Room rates and likely to return ……………………………...…………………………………… 70

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List of figures
Fig1. ………………………………………………………………………………………………………………….. 10
Fig2. ………………………………………………………………………………………………………………….. 37
Fig3. ………………………………………………………………………………………………………………….. 38
Fig4. ………………………………………………………………………………………………………………….. 38
Fig5. ………………………………………………………………………………………………………………….. 39
Fig6. ………………………………………………………………………………………………………………….. 39
Fig7. ………………………………………………………………………………………………………………….. 40
Fig8. ………………………………………………………………………………………………………………….. 40
Fig9. ………………………………………………………………………………………………………………….. 41
Fig10. ……………………………………………………………………………………………………………….. 42
Fig11. ……………………………………………………………………………………………………………….. 42
Fig12. ……………………………………………………………………………………………………………….. 44
Fig13. ……………………………………………………………………………………………………………….. 44
Fig14. ……………………………………………………………………………………………………………….. 45
Fig15. ……………………………………………………………………………………………………………….. 46
Fig16. ……………………………………………………………………………………………………………….. 47
Fig17. ……………………………………………………………………………………………………………….. 47
Fig18. ……………………………………………………………………………………………………………….. 49
Fig19. ……………………………………………………………………………………………………………….. 49
Fig20. ……………………………………………………………………………………………………………….. 50
Fig21. ……………………………………………………………………………………………………………….. 51
Fig22. ……………………………………………………………………………………………………………….. 52

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Fig23. ……………………………………………………………………………………………………………….. 52
Fig24. ……………………………………………………………………………………………………………….. 53
Fig25. ……………………………………………………………………………………………………………….. 54
Fig26. ……………………………………………………………………………………………………………….. 54
Fig27. ……………………………………………………………………………………………………………….. 55
Fig28. ……………………………………………………………………………………………………………….. 55
Fig29. ……………………………………………………………………………………………………………….. 56
Fig30. ……………………………………………………………………………………………………………….. 57
Fig31. ……………………………………………………………………………………………………………….. 57
Fig32. ……………………………………………………………………………………………………………….. 57
Fig33. ……………………………………………………………………………………………………………….. 58
Fig34. ……………………………………………………………………………………………………………….. 58
Fig35. ……………………………………………………………………………………………………………….. 59
Fig36. ……………………………………………………………………………………………………………….. 60
Fig37. ……………………………………………………………………………………………………………….. 60
Fig38. ……………………………………………………………………………………………………………….. 61
Fig39. ……………………………………………………………………………………………………………….. 61
Fig40. ……………………………………………………………………………………………………………….. 62
Fig41. ……………………………………………………………………………………………………………….. 62
Fig42. ……………………………………………………………………………………………………………….. 63
Fig43. ……………………………………………………………………………………………………………….. 64
Fig44. ……………………………………………………………………………………………………………….. 64
Fig45. ……………………………………………………………………………………………………………….. 65

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Fig46. ……………………………………………………………………………………………………………….. 65
Fig47. ……………………………………………………………………………………………………………….. 66
Fig48. ……………………………………………………………………………………………………………….. 66
Fig49. ……………………………………………………………………………………………………………….. 67
Fig50. ……………………………………………………………………………………………………………….. 67
Fig51. ……………………………………………………………………………………………………………….. 68
Fig52. ……………………………………………………………………………………………………………….. 69
Fig53. ……………………………………………………………………………………………………………….. 69
Fig54. ……………………………………………………………………………………………………………….. 70
Fig55. ……………………………………………………………………………………………………………….. 70
Fig56. ……………………………………………………………………………………………………………….. 71
Fig57. ……………………………………………………………………………………………………………….. 71
Fig58. ……………………………………………………………………………………………………………….. 72

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CHAPTER 1
Introduction
Background and importance of the problem
The concept of perceived value has recently gained its importance and wide
popularity in the business environment because of its effect on consumer behavior and
providing strategic implications for the success of companies. It is recommended that
products offering value for money not only influence customers choice behavior at the
pre purchase phase but also affect their satisfaction, intention to recommend and
return behavior at the post purchase phase (Dodds, Monroe and Grewal 1991;
Parasuraman and Grewal 2000; Petrick 2001). Hence, perceived value is claimed to be a
major tool to help the service provider to gain a better competitive position in the
market (Woodruff 1997; Parasuraman 1997; Huber, Herrmann and Morgan 2001;
Naumann 1995; Stahl, Barnes, Gardial, Parr and Woodruff 1999).
Customer perceived value is the worth that a product or service has in the mind of the
consumer. The consumer's perceived value of a good or service affects the price that he or
she is willing to pay for it. For the most part, consumers are unaware of the true cost of
production for the products they buy. Instead, they simply have an internal feeling for how

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much certain products are worth to them. Thus, in order to obtain a higher price for their
products, producers may pursue marketing strategies to create a higher perceived value for
their products.
Customers will buy from the firm that they see as offering the highest perceived
value. Customer perceived value (CPV) is the difference between the prospective
customer’s evaluation of all the benefits and all the costs of an offering and the perceived
alternatives.
Perceived Value = Total Perceived Benefits – Total Perceived Costs
Total customer value is the perceived
monetary value of the bundle or economic,
functional, and psychological benefits
customers expect from a given market offering.
Total customer cost is the bundle of costs
customers expect to incur in evaluating,
obtaining, using, and disposing of the given
marketing offering.
Figure 1 Customer Perceived Value

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Product benefit
Product benefit accounts for the attributes of the product, which might entice a
potential consumer to decide to choose this product over others.
In case of Red bull, it will be the taste of the drink which has been especially designed to
suit the tastes of westerners.
Services benefit
Services benefit accounts for the attributes of the services offered along with the
product. Any kind of help, instructions or assistance offered with the product would fall
under this. In case of Red bull, the nutritional content, ingredients, customer helpline
numbers etc. will make up this benefit.
Personnel benefits
Personal benefits include the customer’s perception of the utility value of the personnel
in the system of the product to him/her. Better, knowledgeable and well trained personnel
assisting a customer would be a great help. In case of red bull, distribution of free red bull
drinks during events by the ‘red bull girls’, will entice their target customer to buy the
product and in a way add value to the product in terms of utility and satisfaction.

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Image benefit
Image benefit includes the image that a brand/product holds in the market. Reputation
and image together form a very crucial part of a customer’s transactions with a brand
depending upon circumstances he/she has experienced during his buying process. In case of
Red bull, it dominates the energy drink market with its image among the customers. People
associate red bull with something that gives them an instant burst of energy (the tagline –
‘red bull gives you wings’ helps too)
Monetary cost
Monetary cost encompasses the literal cost incurred by a customer in order to obtain
the product. The cost (in terms of money) that a customer incurs in travelling to the nearest
store that sells red bull and the cost per can multiplied by the number of cans purchased is
the total monetary cost in the case of red bull.
Time cost
Time cost is the total amount of time that has been invested by a customer during his
buying process. The time taken for the customer to reach a store and to buy the can of red
bull is the time cost here.

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Energy cost
Energy cost refers to the energy spent by the buyer during the entire process of buying
the product. It is a little complicated to calculate this in definable terms for red bull as
energy can’t be measured in anything except the scientific denotation of ‘work done’.
Psychological cost
Psychological cost is the total mental effort made during acquiring and using the
product from the moment it was bought to the moment it was consumed. It is also very
difficult to measure this as it would take lots of data to biologically decide what goes where.
Value
Value in marketing, also known as customer-perceived value, is the difference between a
prospective customer's evaluation of the benefits and costs of one product when compared
with others. Value may also be expressed as a straightforward relationship between perceived
benefits and perceived costs: Value = Benefits / Cost.
Value in marketing can be defined by both qualitative and quantitative measures. On the
qualitative side, value is the perceived gain composed of an individual's emotional, mental, and
physical condition plus various social, economic, cultural, and environmental factors. On the

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quantitative side, value is the actual gain measured in terms of financial numbers, percentages,
and dollars.
Importance of the research
A Customer sees value in a product or service from ‘their’ perspective not from the
supplier’s point of view. The perceived ‘value’ by a customer can be tangible, non-tangible, and
psychological or even be seen from a social perspective. Though ‘perception of value’ is the
benefit derived from the product, service and associated experience from a customer’s
perspective. Delivering perceived value is a key to success; it can make the difference between
a referring customer and a detracting customer. To be successful we need to tap into the basis
of that perception and provide the appropriate level of support that delivers an enhanced
perception.
To reveal the company's strengths and weaknesses compared to other competitors, it is
important to conduct a customer value analysis. This is the collection and evaluation of data
associated with customer needs and market trends. The steps are as follows:
 Identify the major attributes and benefits, such as ease of use or improved social
standing, that customers value for choosing a product. It is important to identify and
define benefits as opposed to features.

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 Assess the quantitative importance of the different attributes and benefits. In other
words, attempt to assign an actual price differentiation for products with value-adding
benefits.
 Assess the company's and competitors' performance on each attribute and benefit. It is
important to be honest with yourself about who your actual closest competitors are and
how they price their products.
 Examine how customers in the particular segment rated the company against major
competitors on each attribute.
 Monitor customer perceived value over time.
One way for an organization to increase its perceived value added is to improve its
quality/price ratio. When an organization delivers high quality but at a high price, the perceived
value may be low. When it delivers high quality at a low price, the perceived value may be high.
The key to delivering high perceived value is for a firm to make consumers believe that its
products will help them solve a problem, offer a solution, produce results, and make them
happy.
For a firm to deliver value to its customers, they must consider what is known as the "total
market offering." An offering in marketing is the total offer to your customers. An offering is
more than the product itself and includes elements that represent additional value to your
customers, such as availability, convenient delivery, technical support or quality of service. A

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strong offering differentiates your products from competitors and creates value by meeting
customers’ wider needs better than other options.
Guest’s perception of service is because of its nature difficult to assess, and it is necessary to
rely on guest’s satisfaction related to their expectations to communicate what their perception
are of the service. When measuring guest’s opinions through surveys, guests perceptions
become a vital part of guest satisfaction within a hospitality environment as it is the actual
judgment of the service experiences; which can be positive or negative. Some research argues
that guest perception should be defined as a comparison to excellence in service by the guest
and that these perceptions only exist post-consumption. This however seems rather unrealistic
within a hospitality environment where guest’s perceptions toward the service they are
receiving surely change continuously. Most hospitality professionals agree with this notion and
understand that it is probable that perceptions are being made during the entire service
delivery process, and then again after the service delivery.
Purpose of the study
The basic objective of the study is to focus on some hotel attributes and their weightings
that guests care about the most. The latest researches show that the below mentioned

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attributes have the highest ranking among those which guests appreciate: (Ranked the most
important (1) to the least important (14))
1) Convenient location
2) Service quality
3) Reputation
4) Friendliness of staff
5) Price
6) Room cleanliness
7) Value for Money
8) Hotel cleanliness
9) Security
10) Room standard
11) Swimming pool
12) Comfort of bed
13) Parking facilities
14) Room size
The purpose of this study can be summarized as:
1. To find out which factor is the most important in formulating the customer perception
towards hotel in general.
2. Evaluate customer’s perception towards various tangible and intangible parameters with
respect to the selected hotels.
3. To find the role of customer’s demographic information and its influence on various scales of
service quality perception.

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4. To explore the role of customer perceived value for retention and loyalty among the
selected hotels.
5. Reveal the hotel's strengths and weaknesses.
Scope of the study
Conducting an effective customer value analysis can lead a company to creating an accurate
value proposition. A value proposition is a promise of value to be delivered and a belief from
the customer that value will be experienced. A value proposition can apply to an entire
organization, or parts, or customer accounts, or products or services.
Developing a value proposition is based on a review and analysis of the benefits, costs and
value that an organization can deliver to its customers, prospective customers, and other
constituent groups within and outside the organization. Organizations can use value
propositions to position value to a range of constituents such as:
 Customers: to explain why a customer should buy from a supplier.
 Partners: to persuade them to forge a strategic alliance or joint venture.
 Employees: to "sell" the company when recruiting new people, or for retaining and
motivating existing employees.

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 Suppliers: to explain why a supplier should want to be a supplier to an organization or
customer.
Definitions of Key Terms
Customer perceived value
The anticipated benefit from a consumer's perspective of a product or service. The
customer perceived value stems from tangible, psychological and social advantages, and since it
affects demand for a product, it needs to be taken into account when setting prices.
Descriptive statistics
Descriptive statistics is the discipline of quantitatively describing the main features of a
collection of information, or the quantitative description itself.
Quantitative Data
Quantitative data are measures of values or counts and are expressed as
numbers.Quantitative data are data about numeric variables (e.g. how many; how much; or
how often).
Qualitative Data
Qualitative data are measures of 'types' and may be represented by a name, symbol, or
a number code.Qualitative data are data about categorical variables (e.g. what type).

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Expected benefit from the study
Knowledge of customer perception of value should influence the leaders, the strategy, the
products and services and the key functions in an organization. This has many benefits for the
organization, including sustaining competitive advantage, assisting in partnerships, improving
customer acquisition, promoting advocacy and assisting in achieving sustainable performance.

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CHAPTER 2
CONCEPTS AND RELATED LITERATURE
There are different types of value an item can have. Two specific values important to
marketing are intrinsic value and extrinsic value, or perceived value. “Intrinsic value is what
value you may personally place on something” (Pervez, 2007, p. 17). If your customer places the
same value on a product or service, you may reasonably expect to sell that product or service at
the price you think it is worth. If a company arbitrarily decides a widget is worth $123.95 and a
customer agrees with that price, then there is a reasonable possibility to consummate a sale.
However, what if the customer thinks the widget is worth only $95.00? What happens then?
When a product’s intrinsic value determined by the company does not match the intrinsic
value determined by the customer, the company must change the company’s intrinsic value
into a customer’s perceived value. Kotler and Keller (2009) argued that perceived value reflects
the price that is “reasonable in relationship to value” (p. 582). “The higher the perceived value,
the higher is expected consumer interest” (Kotler & Keller, 2009, p. 582). Basically, the
company is challenged to establish a price that the customer perceives to be appropriate for
the item being offered for sale. Pervez (2007) reminded his readers that “the world pays for
value. The value it pays for…is perceived value, not intrinsic value” (p. 17).

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One of the most fundamental principles of marketing is about converting the intrinsic
value of a product or service into perceived value. “This creates a compelling reason to buy”
(Pervez, 2007, p. 17). Those marketers who are able to create effective marketing alchemy will
reap exceptional profits from their labors.
A primary challenge facing a marketer, when marketing a product or service, is to establish
perceived value in the mind of consumers. Usually the effort to produce and deliver a product
to market does not have any direct relationship on a product’s price. If the company is
successful at meeting or exceeding a consumer’s expectation of value, that company has a high
probability of selling its product for the desired perceived value.
The creation of Customer Perceived Value
Marketers usually create value increasing the value of the customer offering by some
combination of raising functional or emotional benefits and/or reducing one or more various
types of costs.
Even if the same product is being offered by two different companies, if one of the
companies provides better customer services, post sales service, training, on-time delivery and
maintenance, the perceived value of the same product tends to increase because of the
reliability of the selling company and their added values when selling the product.

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Moreover, the more perceived value is also given to the company with a better
corporate image as it indicates that the company is reliable and trustworthy, as it is one of the
key factors in deciding when purchasing a product.
Customer Perceived Value is a useful framework that applies to many situations and
yields rich insights. Kotler and Keller (2003) also stated that the seller must assess the total
customer value and total customer cost associated with each competitor’s offer in order to
know how his or her offer rates in the buyer’s mind.
Then a seller who is at a customer perceived value disadvantage has two options which
are either to increase the value or to decrease total customer cost. If they increase the value,
this calls for strengthening the offer’s products or services, or if they reduce the price, this calls
for reducing the buyer’s costs by reducing the price, simplifying the ordering or delivery
processes.
Value for money
Concepts such as value and value for money are now essential parts of strategic thinking
(Woodruff 1997; Parasuraman 1997; Huber, Herrmann, and Morgan 2001; Naumann 1995;
Stahl et al. 1999). The growing realization of the importance of perceived value stems from its
dual function. Not only is it influential at the pre-purchase phase, but it also affects customer
satisfaction, intention to recommend, and return behavior at the post-purchase phase (Dodds,

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Monroe, and Grewal 1991; Parasuraman and Grewal 2000; Petrick 2001). However, despite its
strategic importance for marketing, perceived value has not received sufficient attention.
Some explanation for this may lie in the difficulties associated with its conceptualization.
With growing academic interest to the hotel industry, an increasing number of studies has been
increasingly addressing to customer perceived value and hotel selection in the hospitality and
tourism literature. A review of the marketing literature suggests that customer perceived value
can be a vital determinant in affecting the selection of tourism consumption experience for
tourists (Murray and Howat, 2002; Petrick, 2002).
Customer perceived value
Examining customer perceived value can help marketers improve their understanding of
why people make the consumption decisions by evaluating perceived benefits from the service
or products. Sanchez, Callarisa, Rodrıguez and Moliner (2006) attempts to elucidate the
relationship between perceived value as an antecedent variable and customers’ purchase
experience. Their study has suggested that customer perceived value would include numerous
major dimensions such as functional, emotional, social, epistemic and conditional perceived
value.
 Functional value is a perceived utility of the attributes of the products or services.

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 Emotional value is the feelings or the affective states obtained by the experience of
consumption.
 Social value is the acceptability or utility at the level of the individuals' relationship with
his social environment.
 Epistemic value is the capacity of the product or service to surprise, arouse curiosity or
satisfy the desire of knowledge.
 Conditional value is the perceived utility acquired by an alternative as a result of the
specific situation or set of circumstances facing the choice maker.
Understanding customer perceived value as attendant factors in affecting purchase
behaviors is significant to make substantial progress in improving the quality of hotel
performance. Thus, the research findings could provide insights to successful marketing and
managerial implications by examining dimensions of customer perceived value significantly
influence customer loyalty in the hotel industry.
In the hospitality industry, several studies have examined hotel attributes that guests may
find important when evaluating the performed service quality. Literature review suggests that
cleanliness (Atkinson 1988; Knutson 1988; Gundersen, Heide and Olsson 1996), security and
safety (Atkinson, 1988; Knutson, 1988; Gundersen et al. 1996), employees’ empathy and
competence (Atkinson 1988; Knutson 1988; Barsky and Labagh 1992; Gundersen, Heide and
Olsson 1996; Choi and Chu 2001; Markovi ´c 2004), convenient location (Knutson 1988; Barsky

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and Labagh 1992), value for money (Atkinson 1988; Gundersen, Heide and Olsson 1996; Choi
and Chu 2001) and physical facilities (Choi and Chu 2001; Markovi ´c 2004) are attributes that
hotel guests perceive as being important.
Very often managers conduct customer value analysis to reveal the company's strengths
and weaknesses compare to other competitors. The steps of which are as followed.
 To identify the major attributes and benefits that customers value for choosing a
product and vendor.
 Assessment of the quantitative importance of the different attributes and benefits.
 Assessment of the company's and competitors' performance on each attribute and
benefits.
 Examining how customer in the particular segment rated company against major
competitor on each attribute.
 Monitor customer perceived value over time.
Hotel industry
 The hotel industry is a sector of business that revolves around providing
accommodations for travelers. Success in this industry relies on catering to the needs of
the targeted clientele, creating a desirable atmosphere, and providing a wide variety of

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services and amenities. Managing hotels has grown from its modest roots in providing
the bare essentials of lodging into a large, multi-faceted, and diverse industry.
 The foundation of the hotel industry is, of course, the business of providing lodging.
Travelers depend on hotels to supply a secure, pleasant place for a temporary stay.
Whether the guests are business people on the road for work, families on vacation, or
groups of tourists, they all need comfortable accommodations, and they hotel industry
is where they turn to find them.
 Hotel stars explanation
 Hotel star ratings are systems that rank hotels according to quality. Star rating systems
are intended to serve as guidelines for guests who are making hotel reservations. While
star ratings can be helpful when booking hotels rooms, there is no standardized star
rating system. In Europe, hotels are usually ranked on a scale from one to four stars,
with four stars being the highest rating possible. In the United States, hotels are
generally ranked on a scale from one to five stars, sometimes using half star increments.
 Star ratings in Europe are determined by local government agencies or independent
organizations, and they vary greatly from country to country. In fact, star ratings in
Europe can also vary from city to city within the same country, and even between hotels
in the same city. In other words, there is no uniform measure that determines a hotel’s
star rating. Each hotel is rated based on details that often don’t matter to consumers,
such as the amount of tax a hotel pays annually.

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 Similarly, in the United States, star ratings are conferred upon hotels by several
organizations. National consumer travel organizations and guidebooks assign star
ratings to hotels, but each one uses its own set of criteria to determine the rating.
 Additionally, travel websites, consolidators and reservation services often rate hotels as
well. Most U.S. websites and organizations that rate hotels provide an explanation of
their rating system so that consumers can decode the rating. The bottom line, however,
is that a hotel may be given different ratings from different organizations, so it’s
important to inquire about what the rating means.
 Even though star ratings can seem arbitrary, they can still be beneficial and can help to
inform you about a hotel. For instance, a four or five star hotel is always going to be
more luxurious than a one or two star hotel. And there are some basic inferences you
can make about American star ratings. A one star hotel is going to be an economy motel
and a two star hotel will be a higher end motel or budget hotel. Even one and two star
hotels will usually have all of the amenities you require for a night’s sleep.
 However, if you’re seeking higher end amenities such as room service, Internet access,
movies, plush linens, fitness center access and the like, you’ll probably want to look at
hotels that are rated three stars and above. Three star hotels are moderately priced
hotels that are comfortable and absolutely adequate places to stay, but may lack some
of the luxury of four star hotels. A five star rating is reserved exclusively for the

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country’s highest end chain and boutique hotels. Expect to pay a premium for five star
luxuries.
 5-Star Rating: A luxurious hotel, offering the highest degree of personal service.
Elegance and style abound, and rooms are equipped with quality linens, VCR, CD stereo,
jacuzzi tub and in-room video. There are multiple restaurants on site with extensive,
gourmet menus, and room-service is also available 24-7. A fitness center, valet parking
and concierge service round out the experience.
 4-Star Rating: Formal, large hotels, with top-notch service. There will usually be other
hotels of the same caliber clustered nearby, as well as shopping, dining and
entertainment. Above-average service, beautifully furnished rooms, restaurants, room
service, valet parking, fitness center and a concierge are some amenities to expect.
 3-Star Rating: Usually located near a major expressway, business center and/or
shopping area, these hotels offer nice, spacious rooms and decorative lobbies. On-site
restaurants may be average in size but will offer breakfast, lunch and dinner. Valet and
room service, a small fitness center and a pool are often available.
 2-Star Rating: These hotels are generally part of a chain that offers consistent quality
and limited amenities. They are small or medium in size and rooms will have a phone
and TV. While you will not have the convenience of room service, there should be a
small restaurant on site.

30
 1-Star Rating: Expect a small hotel managed and operated by the owner. The
atmosphere will be more personal and the accommodations basic. Restaurant service
should be within walking distance, as well as nearby public transportation, major
intersections and entertainment that is reasonable in price.
Research Model
The research model studied in this research is based on the customer perceived value. The
research model consists of Independent Variables and Dependent Variables.
Independent variables Dependent variables
Hypothesis definition
Five hypotheses for this research are defined as follow:
H1: The differences in sex, nationality and hotel’s star affect the differences in CPV on
overall services in hotels in Bangkok.
H2: The differences in sex, nationality and hotel’s star affect the differences in CPV on staff
Sex
Hotel stars
Nationality
Staff service quality
Safety and security
Customer loyalty
Degree of recommendation
Overall services in hotels

31
service quality.
safety and security.
customer loyalty.
degree of recommendation.

32
CHAPTER 3
Research Methodology
This chapter discusses the research methodology including explanation about
survey, population and sample, research instrument, statistics applied in analyzing the data.
Research design
This research is a quantitative research that will be done by the survey of
customer perceived value on hotel tangible and intangible aspects of Bangkok Interplace,
Bangkok, Thailand.
In order to obtain data for the calculation of explicit and implicit importance, as well as the
level of customer perceived value, this study used questionnaires as a tool to get responses
from the subjects. The questionnaires were sent to their rooms upon arrivals, to rate the
performance of the proposed quality attributes after their make use of the services in hotel,
and also rating, in multiple items.

33
Population and sample
It was estimated that these two hotels each had about 300 persons
of monthly customers. Therefore, this amount of customer was considered as population of the
research. Eventually only 240 questionnaires were randomly collected as sample of this
research.
Research instrument
This research used the questionnaires as an instrument in studying the
customers’ perceived value. These questionnaires comprised three parts of questions:
Part 1: question on demographic characteristics of samples. Demographic data included
gender, age, level of education, occupation, income, purpose of visit and nationality.
Part 2: questions on customers’ perceived value scale. Perceived acquisition value was
measured using nine Likert statements modified from the scale presented by Grewal et al.
(1998). Respondents were asked to rate the attributes on a 5-point scale marked.
Part 3: questions on accommodation profile and customer loyalty.

34
Measurement
Level of customers’ perceived value had been measured by rating scale of 1 – 5.
1 Excellent value 2 Good value 3 Average value 4 Poor Value 5 Very poor value
Whereas, average of rating score had given meaning as following:
Averages mean score between 5.00 – 4.51 Excellent
Averages mean score between 4.50 – 3.40 Good
Averages mean score between 3.39 – 2.60 Fair
Averages mean score between 2.59 - 1.80 Poor
Averages mean score between 1.79 – 1.00 very poor
If the average value is between 4.51 and above, it means the CPV is high (Excellent).If it is
between 3.4 to 4.50, it means "good". If the value is between 2.60 to 3.39 the CPV is "average"
and if it is between 1.80 to 2.59, it means the perceived Value is "poor" and if less then 1.79 it
means the level of CPV is "very poor".

35
Statistics analysis
There are three sections of data analysis.
Section 1: Descriptive statistics, percents, is used to describe demographic characteristics of the
sample.
Section 2: Analysis by difference is applied to analyze the collected data in this section.
Question 9 to question 16 will be analyzed by difference over three variables (gender,
nationality and hotel’s stars).
Section 3: Descriptive analysis is used to describe the accommodation profile of the sample and
customer loyalty and post-purchase based on their recent experience at these hotels.

36
CHAPTER 4
Results, discussions and conclusion
Explains and discusses about the analysis of the data. In this chapter, detailed information
acquired from the questionnaire survey is presented and discussed in order to answer the
research objectives. This chapter consists of 3 sections as follows:
Section 1: Analysis of demographic characteristics such as sex, age, level of education,
occupation, income, nationality and purpose of travel and important factors in choosing these
hotels by using descriptive statistic.
Section 2: Analysis of level of CPV on mode of staff service quality, hotel facilities, room
facilities, room and hotel quality, location, safety and security, food quality and variety and
overall value for money.
Section 3: Analysis of accommodation profile of the sample, degree of recommendation and
the relationship between the room rates and customer loyalty.

37
Section 1: Analysis of demographic characteristics of the sample.
Percentage of demographic characteristics of sample
1. Gender
Gender Male Female
4* Hotel 60% 40%
3* Hotel 58% 42%
2. Age
Age Group 18-27 28-37 38-47 48-57 Over 57
4* Hotel 3% 13% 34% 44% 6%
3* Hotel 5% 20% 29% 32% 14%
0%
10%
20%
30%
40%
50%
60%
70%
Male Female
%age
Gender
Figure 2. Male and femal distribution of
respondents
4* Hotel
3* Hotel
Table1
Table2

38
3. Level of education
0%
10%
20%
30%
40%
50%
18-27 28-37 38-47 48-57 Over 57
%age
Age groups
Figure 3. Percentage of respondents of different age
groups
4* Hotel
3* Hotel
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Uneducated High School Technical
education
Associate
degree
Bachelor's
Degree
Graduate
degree
Figure 4. Level of education
4* Hotel
3* Hotel
Uneducated High School
Technical
education
Associate
degree
Bachelor's
Degree
Graduate
degree
4* Hotel 13% 38% 29% 11% 9% 0%
3* Hotel 14% 27% 31% 23% 5% 0%
Table 3

39
4. Occupation
Employed Unemployed
Government
officer
Self
Employed
Retired Student Other
4* Hotel 20% 31% 32% 9% 8% 0% 0%
3* Hotel 26% 27% 26% 18% 3% 0% 0%
5. Income
Less than $
20000
20000-
35000
35001-
50000
50001-
75000
More than
$ 75001
3* Hotel 6% 12% 16% 28% 39%
4* Hotel 13% 26% 28% 18% 16%
0%
5%
10%
15%
20%
25%
30%
35%
Figure 5. Occupation
4* Hotel
3* Hotel
0%
10%
20%
30%
40%
50%
Figure 6. Income
3* Hotel
4* Hotel
Table 4
Table 5

40
6. Purpose of travel
Business Leisure Leisure and business
Join a convention
or visit relatives
3* Hotel 19% 28% 35% 18%
4* Hotel 14% 46% 27% 13%
7. Nationality
Thai Non-Thai
3* Hotel 33% 68%
4* Hotel 18% 82%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Business Liesure Liesure and
business
Join a convention
or visit relatives
Figure 7. Purpose of travel
3* Hotel
4* Hotel
0%
20%
40%
60%
80%
100%
Thai Non-Thai
Figure 8. Nationality
3* Hotel
4* Hotel
Table 6
Table 7

41
8. Importance of factors in choosing hotels to stay in
Table8. Importance of factors in decision making to stay at a hotel
All
responders Male Female Thai
Non-
Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
8.1-Importance of location close to
transport links 3.07 3.02 3.15 2.98 3.11 3.74 2.41
8.2-Importance of location next to city
facilities 2.67 2.8 2.47 2.49 2.73 2.73 2.6
8.3-Importance of price 3.18 3.26 3.06 3.31 3.13 3.21 3.15
8.4-Importance of friends'
recommendation 3.07 3.08 3.07 3.09 3.07 3.06 3.09
8.5-Importance of additional available
facilities 3.18 3.31 3.01 3.19 3.18 3.1 3.27
8.6-Importance of past experiences 3.36 3.39 3.33 3.52 3.31 3.21 3.51
Male Female
8.1-Importance of location
close to transport links
3.02 3.15
8.2-Importance of location
next to city facilities
2.8 2.47
8.3-Importance of price 3.26 3.06
recommendation
3.08 3.07
8.5-Importance of additional
available facilities
3.31 3.01
8.6-Importance of past
experiences
3.39 3.33
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 9. Importance of factors in choosing hotels to stay Between
Males and females

42
Thai Non-Thai
8.1-Importance of location close
to transport links
2.98 3.11
8.2-Importance of location next
to city facilities
2.49 2.73
recommendation
3.09 3.07
3.19 3.18
experiences
3.52 3.31
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 10. Importance of factors in choosing hotels to stay Between Thais and
Non-Thais
3 Star 4 Star
8.1-Importance of location close
to transport links
3.74 2.41
8.2-Importance of location next
to city facilities
2.73 2.6
recommendation
3.06 3.09
3.1 3.27
experiences
3.21 3.51
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 11.Importance of factors in choosing a 3-star or 4-star hotel

43
Table 8 shows the importance of factors in decision making to stay at a hotel. It can be
understood that past experiences play a very important role in choosing a hotel to stay in,
both for males and females. On the other hand being close to city facilities has the least
importance. By looking at figure 11 we can see that being close to transport links is very
important in choosing a 3* hotel which is not true about 4* hotels.
Section 2: Analysis of level of CPV on mode of:
9. Staff service quality
Table 9. CPV for Staff Service quality
All
Non-
Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
9.1-Efficient services 2.78 2.8 2.76 2.63 2.83 2.68 2.89
9.2-Requests are understood by staff 2.94 2.93 2.95 2.93 2.94 2.78 3.1
9.3-staff helpfulness 3.05 3.06 3.05 3.34 2.96 2.91 3.2
9.4-Staff are polite and friendly 3.02 3.07 2.94 3.18 2.96 2.81 3.2
9.5-staff neat appearance 3.07 3.19 2.89 2.98 3.1 3.01 3.1
9.6-Multi-lingual skills 2.92 3.05 2.72 2.98 2.89 2.8 3.01
9.7-Reception service 3.41 3.56 3.2 3.37 3.43 3.36 3.4

44
Male Female
9.1-Efficient services 2.8 2.76
9.2-Requests are understood
by staff
2.93 2.95
9.3-staff helpfulness 3.06 3.05
9.4-Staff are polite and
friendly
3.07 2.94
9.5-staff neat appearance 3.19 2.89
9.6-Multi-lingual skills 3.05 2.72
9.7-Reception service 3.56 3.2
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 12. CPV of Staff Service quality , Males and females
Thai Non-Thai
by staff
2.93 2.94
friendly
3.18 2.96
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 13. CPV of Staff Service quality , Thais and Non-Thais

45
Table 9 shows CPV of Staff Service quality. By looking at the average point it can
be seen that all scores but reception service are considered at the fair level. Perceived value for
reception service is higher between males. Non-Thais receive more value for reception service
than Thai guests. It can be seen that based on staff service quality in 4* hotel more values are
perceived than 3* hotel.
3 Star 4 Star
by staff
2.78 3.1
friendly
2.81 3.2
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 14. CPV of Staff Service quality , 3* and 4* Hotel

46
10. Hotel facilities
Table 10. CPV for Hotel facilities
All
Non-
Thai 3 Star
4
Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
10.1-swimming pool 3.08 3.12 3.03 3.14 3.06 3 3.16
10.2-Fitness center 3.21 3.15 3.3 3.32 3.17 3.13 3.3
10.3-Spa and massage 3.19 3.26 3.08 3.26 3.16 3.1 3.28
10.4-Wifi internet 3.52 3.68 3.29 3.67 3.47 3.36 3.68
10.5-Car park 2.77 2.76 2.77 2.73 2.78 2.76 2.77
10.6-Tourist Information center 2.85 2.8 2.92 2.83 2.86 2.78 2.92
10.7- Facilities for disabled 3 3.04 2.93 2.98 3 2.9 3.09
10.8-Bar 3.1 3.14 3.05 2.83 3.2 3.06 3.15
10.9-Restaurant 3.21 3.38 2.96 2.96 3.29 3.37 3.05
10.10-Credit Card accept 3.16 3.02 3.73 3.26 3.13 3.18 3.15
10.11-Laundary 3.1 3.07 3.13 3.37 3 3.07 3.12
10.12-Smoking area 3.02 2.94 3.15 3.08 3 3 3.05
10.13-Elavator 2.92 2.99 2.83 3.14 2.85 2.88 2.97
0
2
4
Male Female
Figure 15. CPV of hotel facilities, Males and females
10.1-swimming pool 10.2-Fitness center
10.3-Spa and massage 10.4-Wifi internet
10.5-Car park 10.6-Tourist Information center
10.7- Facilities for disabled 10.8-Bar
10.9-Restaurant 10.10-Credit Card accept
10.11-Laundary 10.12-Smoking area
10.13-Elavator

47
0
1
2
3
4
Thai Non-Thai
Figure 16. CPV of hotel facilities, Thais and Non-Thais
10.13-Elavator
0
1
2
3
4
3 Star 4 Star
Figure 17. CPV of Hotel facilities, 3-star and 4-star hotel
10.13-Elavator

48
Table 10 shows CPV of Hotel facilities. By looking at the average point it can be seen that
all scores except for Wifi internet are at the fair level. CPV for wifi internet is at the good value.
Males received more value of wifi internet than females.
There is a difference in Perceived value for restaurant and laundry between Thais and
Non-Thais. CPV for restaurant is higher for Non-Thais. however; Laundry presented more values
for Thais. The data reveals that based on almost all hotel facilities specially fitness, spa and
massage, wifi internet, tourist information 4* hotel presents more value than 3* hotel.
11. Room facilities
Table 11. CPV for Room facilities
All
Non-
Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
11.1-Air conditioning 2.96 3.09 2.77 2.95 2.96 2.94 2.98
11.2-TV 3.04 3.11 2.93 2.98 3.06 2.96 3.11
11.3-Minibar 2.97 3 2.92 2.86 3 2.82 3.11
11.4-Ref 3.26 3.29 3.22 3.36 3.23 3.12 3.4
11.5-Safety box 3.27 3.3 3.23 3.36 3.24 3.16 3.38
11.6-room's wifi internet 3.22 3.33 3.08 3.34 3.18 3.2 3.25
11.7-Phone 3.17 3.24 3.08 3.18 3.17 3.09 3.26
11.8-Room services 3.16 3.16 3.16 3.31 3.11 3.08 3.24

49
Male Female
11.1-Air conditioning 3.09 2.77
11.2-TV 3.11 2.93
11.3-Minibar 3 2.92
11.4-Ref 3.29 3.22
11.5-Safety box 3.3 3.23
11.6-room's wifi internet 3.33 3.08
11.7-Phone 3.24 3.08
11.8-Room services 3.16 3.16
0
0.5
1
1.5
2
2.5
3
3.5
Figure 18. CPV for Room facilities. Males & females
Thai Non-Thai
11.2-TV 2.98 3.06
11.3-Minibar 2.86 3
11.4-Ref 3.36 3.23
11.5-Safety box 3.36 3.24
11.7-Phone 3.18 3.17
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
Figure 19. CPV for Room facilities.Thais & Non-Thais

50
Table 11 shows CPV of Room facilities. Analysis of data shows that CPV based on safety
box has the highest rank between the sample group. Males overall perceived more value than
females over the room facilities and it can be seen that all room facilities in 4* hotel creates
more value than 3* hotel. Perceived value of Mini-bar is at fair level which creates more value
for Non-Thais than Thais.
3 Star 4 Star
11.2-TV 2.96 3.11
11.3-Minibar 2.82 3.11
11.4-Ref 3.12 3.4
11.5-Safety box 3.16 3.38
11.7-Phone 3.09 3.26
0
0.5
1
1.5
2
2.5
3
3.5
4
Figure 20.CPV for Room facilities. 3-star & 4-star hotel

51
12. Room and hotel quality level
Table 12. CPV for Room and hotel quality
All
Non-
Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
12.1-Room size 3 3.04 2.93 3.09 2.96 2.95 3.05
12.2-Hotel and room cleanliness 3.28 3.37 3.15 3.37 3.25 3.18 3.38
12.3-Bathroom cleanliness and facilities 3.06 3.11 3 3.13 3.04 2.96 3.16
12.4-Room comfort 3.28 3.37 3.15 3.52 3.2 3.23 3.33
12.5-Bed comfort 3.3 3.21 3.42 3.55 3.21 3.2 3.39
Male Female
12.1-Room size 3.04 2.93
12.2-Hotel and room cleanliness 3.37 3.15
12.3-Bathroom cleanliness and
facilities
3.11 3
12.4-Room comfort 3.37 3.15
12.5-Bed comfort 3.21 3.42
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
Figure 21. CPV for Room & Hotel quality ,Males & females

52
Thai Non-Thai
12.1-Room size 3.09 2.96
facilities
3.13 3.04
12.5-Bed comfort 3.55 3.21
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
Figure 22. CPV for Room & Hotel quality ,Thais and Non-Thais
3 Star 4 Star
12.1-Room size 2.95 3.05
facilities
2.96 3.16
12.5-Bed comfort 3.2 3.39
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
Figure 23. CPV for Room & Hotel quality ,3-star & 4-star hotel

53
Table 12 shows CPV of Room facilities. By looking at the average point it can be seen
that generally all scores are at the fair level for all respondents. Males perceived more values
based in room and hotel qualities. But perceived value on bed comfort by females are higher.
There is a difference of perceived value between Thais and Non-thais in room comfort
and bed comforts. Scores show that CPV for Thais based on room and bed comfort are at good
level but perceived value for Non-Thais based on these two factors is at a fair level.
Analysis also describes that perceived value for 4* hotel is higher than 3* hotel based on
all issues.
13. Hotel location
Table 13. CPV for Hotel Location
All
Non-
Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
13.1-access to hotel 3.14 3.09 3.21 3.01 3.18 3.1 3.18
13.2-Close to shopping center 3.07 3.05 3.09 3.08 3.06 3.11 3.02
13.3-access to public transportation 3.25 3.29 3.12 3.49 3.13 3.2 3.24
Male Female
13.1-access to hotel 3.09 3.21
13.2-Close to shopping center 3.05 3.09
13.3-access to public
transportation
3.29 3.12
2.9
2.95
3
3.05
3.1
3.15
3.2
3.25
3.3
3.35
Figure 24. CPV for Hotel location, Males & females

54
Table 13 shows CPV of Hotel location. By looking at the average point it can be seen that
all scores are considered at the fair level. Perceived value for access to public transportation is
higher between Thais, males. It can be understood perceived value for both 3* and 4* hotel is
almost at the same level.
Thai Non-Thai
transportation
3.49 3.13
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
Figure 25. CPV for Hotel location, Thais & Non-Thais
3 Star 4 Star
transportation
3.2 3.24
2.9
2.95
3
3.05
3.1
3.15
3.2
3.25
3.3
Figure 26. CPV for Hotel location, 3-star & 4-star hotel

55
14. Safety and security
Table 14. CPV for Safety and security
All responders Male Female Thai Non-Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
14.1-Fire alarms 2.94 2.97 2.9 3.24 2.84 2.82 3.06
14.2-Chain lock 3.16 3.12 3.22 3.31 3.11 3.04 3.29
14.3-Safty box 3.03 3.06 3 2.96 3.06 2.95 3.11
14.4-Security personnel 3.1 3.11 3.1 3.06 3.12 3 3.21
Male Female
14.1-Fire alarms 2.97 2.9
14.2-Chain lock 3.12 3.22
14.3-Safty box 3.06 3
14.4-Security personnel 3.11 3.1
2.7
2.8
2.9
3
3.1
3.2
3.3
Figure 27. CPV for Safety & security,Males & females
Thai Non-Thai
14.1-Fire alarms 3.24 2.84
14.2-Chain lock 3.31 3.11
14.3-Safty box 2.96 3.06
14.4-Security personnel 3.06 3.12
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
Figire 28. CPV for Safety & security, Thais & Non-Thais

56
Table 14 shows CPV of safety and security. Perceived value for security personnel is at a
higher level than other factors. Fire alarms and chain locks make much more value for Thais
than Non-Thais. By looking at the average point it can be seen that generally 4* hotel makes
much more value for guests than 3* hotel.
15. Food quality and variety
Table 15. CPV for Food quality & variety
All responders Male Female Thai Non-Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
15.1-Variety of food & beverage 2.87 3.02 2.65 2.96 2.83 2.65 3.09
15.2-Quality of food & beverage 2.96 3.14 2.7 3.18 2.89 2.63 3.3
Table 15 shows CPV of food quality and variety. By looking at the scores it can be seen
that with no doubt 4* Hotel creates more value than 3* hotel in food variety and quality. Thais
perceive more than Non-Thais.
3 Star 4 Star
14.1-Fire alarms 2.82 3.06
14.2-Chain lock 3.04 3.29
14.3-Safty box 2.95 3.11
14.4-Security personnel 3 3.21
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
Figure 29. CPV for Safety & security, 3-star & 4-star hotel

57
Male Female
15.1-Variety of food & beverage 3.02 2.65
15.2-Quality of food & beverage 3.14 2.7
2.4
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
Figure 30. CPV for Food quality & variety, Males & females
Thai Non-Thai
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
Figure 31. CPV for Food quality & variety, Thais & Non-Thais
3 Star 4 Star
0
0.5
1
1.5
2
2.5
3
3.5
Figure 32. CPV for Food quality & variety, 3-star & 4-star hotel

58
16. Overall value for money
Table 16. CPV for Overall value for money
All responders Male Female Thai
Non-
Thai
3
Star
4
Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
16.1-Hotel rooms are value for money 3.02 3.25 2.7 3.9 2.73 2.8 3.25
16.2-Hotel food & beverage are value for money 2.79 2.68 2.95 3.08 2.69 2.41 3.17
16.3-Hotel's ambience value for money 3.2 3.29 3.09 3.37 3.15 3.15 3.26
Male Female
16.1-Hotel rooms are value for
money
3.25 2.7
16.2-Hotel food & beverage are
value for money
2.68 2.95
16.3-Hotel's ambience value for
money
3.29 3.09
0
0.5
1
1.5
2
2.5
3
3.5
Figure 33. CPV for Overall value for money, Males & females
Thai Non-Thai
16.1-Hotel rooms are value for
money
3.9 2.73
16.2-Hotel food & beverage are
value for money
3.08 2.69
16.3-Hotel's ambience value for
money
3.37 3.15
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Figure 34. CPV for Overall value for money , Thais & Non-Thais

59
Table 16 shows CPV of overall value for money. Scores show that perceived value for
money is at a fair level for all respondents. But by looking into the details Hotel food and
beverage value for money is at a poor level in 3* hotel which is at a fair level for 4* hotel. Thais
receive more value for hotel rooms over money than Non-Thais.
Section 3: Analysis of level of CPV on mode of:
17. Accommodation profile
Table 17. Accommodation profile- Room types
All
responders Male Female Thai Non-Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
Single bed 33 14 19 10 23 26 7
Twin bed 43 25 18 8 35 29 18
Double bed 81 50 31 23 58 38 43
King size bed 83 52 31 20 63 27 56
3 Star 4 Star
16.1-Hotel rooms are value
for money
2.8 3.25
16.2-Hotel food & beverage
are value for money
2.41 3.17
16.3-Hotel's ambience value
for money
3.15 3.26
0
0.5
1
1.5
2
2.5
3
3.5
Figure 35. CPV for Overall value for money , 3-star & 4-star hotel

60
10%
18%
35%
37%
Figure 36.Male preference for room types
Single bed
Twin bed
Double bed
King size bed
19%
18%
32%
31%
figure 37.Female preference for room types
Single bed
Twin bed
Double bed
King size bed

61
16%
13%
38%
33%
Figure38. Thai preference for room types
Single bed
Twin bed
Double bed
King size bed
13%
20%
32%
35%
Figure 39.Non-Thai preference for room types
Single bed
Twin bed
Double bed
King size bed

62
22%
24%
32%
22%
figure 40. Preference of room types in 3-star hotel
Single bed
Twin bed
Double bed
King size bed
6%
14%
35%
45%
figure 41. Preference of room types in 4-star hotel
Single bed
Twin bed
Double bed
King size bed

63
18. Room rates
Table 18. Room rates preferred by guests
All
responders 3 Star 4 Star
n:240 n:120 n:120
1-1000 baht 29 15 14
1001-2000 60 27 33
2001-3000 59 33 26
3001-4000 30 16 14
4001-5000 32 11 21
Single bed
14%
Twin bed
18%
Double bed
34%
King size bed
34%
Figure 42. Percentage of room types selected by guests
Single bed
Twin bed
Double bed
King size bed

64
Table 18 shows that majority of the guests stayed at rooms with the rate of 1001-2000 and
2001-3000.
14%
29%
28%
14%
15%
Figure 43. Tendency of guests for room rates
1-1000 baht
1001-2000
2001-3000
3001-4000
4001-5000
3 Star 4 Star
1-1000 baht 15 14
1001-2000 27 33
2001-3000 33 26
3001-4000 16 14
4001-5000 11 21
0
5
10
15
20
25
30
35
Figure 44. Tendency for room rates in a 3-star and a 4-
star hotel
1-1000 baht
1001-2000
2001-3000
3001-4000
4001-5000

65
19. Satisfaction regarding expectation
Table 19. customers satisfaction regarding their expectations
All
n:240 n:141 n:99 n:61 n:179 n:120 n:120
Exceeded expection 38 20 18 12 26 21 17
In line with expectation 68 36 32 16 52 40 28
below expectation 78 49 29 21 57 34 44
far below expectation 56 36 20 12 44 25 31
14%
25%
35%
26%
Figure 45. To what level Males meet their expectations
Exceeded expection In line with expectation
below expectation far below expectation
18%
33%29%
20%
Figure 46.To what level Females meet their expectations
Exceeded expection
In line with expectation
below expectation
far below expectation

66
20%
26%
34%
20%
Figure 47. To what level Thais met their expectations
Exceeded expection
below expectation
14%
29%
32%
25%
Figure 48.To what level Non-Thais met their
expectations
Exceeded expection
below expectation

67
18%
33%28%
21%
Figure 49.To what level expectations are met in 3-star
hotel
Exceeded expection
below expectation
14%
23%
37%
26%
Figure 50.To what level expectations are met in 4-star
hotel
Exceeded expection
below expectation

68
Table 19 is about customer satisfaction regarding their expectations. It can be seen that
for 33% of the total respondents overall hotel experience had not met their prior expectations
which can have negative effects on post-purchase. Figure 49 reveals that in 3* hotel 33% of the
total hotel experience is in line with the guests’ expectations. At the same time total hotel
experience in 4* hotel is below the guests’ expectation.
20. a)Customer loyalty.
Table 20. customer loyalty- purchase intention
All responders Male Female Thai
Non-
Thai 3 Star 4 Star
n:240 n:141 n:99 n:61 n:179 n:120 n:120
Insist to choose this hotel again 41 24 17 7 34 19 22
prefer to stay at this hotel 67 37 30 18 49 34 33
No preference 82 47 35 18 64 42 40
Prefer not to stay at this hotel again 21 13 8 7 14 10 11
Insist not to stay ay this hotel 29 20 9 11 18 15 14
16%
28%
33%
23%
Figure 51. To what level all guests have met their
expectations
Exceeded expection
below expectation

69
Table 20 describes customer loyalty. By looking at figures 52 and 53, it can be
understood that almost 35 % of customers have no preference to come back to these hotels
which is not good news. These hotels must try by adding more value to decrease this
percentage. The preference to stay in these hotels in future is 28%.
16%
28%
35%
8%
13%
Figure 52. How likely guests are to return to this 3* hotel
Insist to choose this hotel
again
prefer to stay at this hotel
No preference
Prefer not to stay at this
hotel again
Insist not to stay ay this
hotel
18%
28%
33%
9%
12%
Figure 53. How likely guests are to return to this 4* hotel
Insist to choose this hotel
again
prefer to stay at this hotel
No preference
Prefer not to stay at this
hotel again
Insist not to stay ay this
hotel

70
20. b)Customer loyalty.
Table 21. customer loyalty- Degree of recommendation to others
All
n:240 n:141 n:99 n:61 n:179 n:120 n:120
Very positive recommendation 43 25 18 12 31 18 25
positive recommendation 88 46 42 21 67 45 43
Neutral recommendation 67 45 22 13 54 32 35
Negative recommendation 29 16 13 10 19 16 13
Very negative recommendation 13 9 4 5 8 9 4
15%
37%27%
13%
8%
Figure 54. Degree of recommendation to others for 3*
hotel
Very positive
recommendation
positive recommendation
Neutral recommendation
Negative
recommendation
21%
36%
29%
11%
3%
Figure 55. Degree of recommendation to others for 4*
hotel
Very positive
recommendation
Negative
recommendation
Very negative
recommendation

71
Table 21 describes customer loyalty and degree to recommendation to others. The
majority of the responders have this tendency to recommend these hotels to others. Almost
29% of the total responders have neutral recommendation tendency. These hotels must take
advantage of this situation and by adding more value on the weak points get more
18%
33%32%
11%
6%
Figure 56. Degree of recommendation to others by
males
Very positive recommendation positive recommendation
Neutral recommendation Negative recommendation
Very negative recommendation
18%
43%
22%
13%
4%
Figure 57. Degree of recommendation to others by
females
Very positive
recommendation
Negative
recommendation
Very negative
recommendation

72
recommendation for others. By looking at figures 56 and 57, it can be seen that females have
more tendency to recommend these hotels to others more than males. By adding more values
for males these hotels can get more recommendations of males.
Relationship between Room rates and likely to return
Table 22.Relationship between Room rates and likely to return
Room Rates 1-1000 1001-2000 2001-3000 3001-4000 4001-5000
Likely to return 2.62 2.61 2.67 2.7 2.9
By looking at the table 22, it can be understood that the more guests pay for rooms the more
they are likely to return. It means that there is a direct relationship between room rates,
perceived value and tendency to return.
1-1000 1001-2000 2001-3000 3001-4000 4001-5000
Likely ro return 2.62 2.61 2.67 2.7 2.9
2.45
2.5
2.55
2.6
2.65
2.7
2.75
2.8
2.85
2.9
2.95
Figure 58
Likely ro return

73
Conclusion
This research was attempted to 1) study the levels of customers’ perceived value of a 3*
hotel and 4* hotel. 2) Compare the differences in demographic characteristics of the customers
such as sex, nationality and hotel stars affect the level of customers’ perceived value as a
whole and aspect of staff service quality, hotel facilities, room facilities, room and hotel quality,
location, safety and security, food quality and variety and overall value for money 3) describing
the differences to find which parts create more value and where the business suffer from the
lack of value making for customer for more efficiency and effectiveness in management.
This research was quantitative method that collection of data had been done through 240
persons of customers who were randomly drawing from 300 persons of customers, by using
questionnaires as the tool of the research. The statistics such as percentage and average were
applied to use in describing the demographic characteristics of the sample and level of
customers’ perceived value. In this research no test had been used in hypothesis testing.
Conclusion
1. Level of customers’ perceived value
The results of data analysis on level of CPV on services and facilities of a 3* hotel and 4*
hotel located in Bangkok as a whole and aspect of staff service quality, hotel facilities, room
facilities, room and hotel quality, location, safety and security, food quality and variety and
overall value for money were at fair level. It was needed to improve in every aspect.

74
Especially, staff service quality, room and hotel quality, safety and security and food quality and
variety in 3* hotel create low value for the guests. Overall value for money in 3* hotel is lower
than overall value for 4* hotel.
2. Model of relationship between room rates and customers likely to return
From the research it were found that, as room rates go up the customer’s tendency to
return goes up.

75
APPENDICES
Questionnaire
Value amongst Bangkok hotels
This questionnaire is concerned with the perceived value various hotels in Bangkok represent for
customers. Value is what you, as an individual, feel are the benefits of the service quality and
facilities you get from the hotel compared to the amount of money you are paying for it.
There are no right or wrong answers and it is entirely your own personal perception.
The survey is being conducted by the Institute of International Studies at Ramkhamhaeng
University here in Bangkok.
Any and all information is provided under the assumption of total anonymity. Results will only
ever be analyzed in aggregate format and no individual will ever be identified.
This questionnaire consists of three sections.
Section 1:
The following questions are related to demographic information. For each
question, Please choose one answer that is the most appropriate for you.
1. What is your gender? Male Female
2. What is your age?
 18 – 27
 28 – 37
 38 – 47
 48 – 57
 Over 57
3. Please indicate your level of education.
 None
 High School Diploma or GED
 Some technical school or college
 Associates degree
 Bachelor’s degree
 Graduate degree

76
4. Occupation status:
 Employed
 Unemployed
 Government officer
 Self-employed
 Retired
 Student
 Other
5. What is your annual income in US Dollars?
 Less than $20000
 Between $20000 – $35000
 Between $35001 - $50000
 Between $50001- 75000
 More than $75001
6. What is your purpose of this travel?
 For business
 For leisure
 For leisure and business
 To join a convention Visit relatives
7. Nationality:
 Thai
 Non-Thai
8. How important are each of the factors below in your decision to stay at Bangkok Inter
Place Hotel ? (Circle the number that best corresponds to your opinion)
Very important Of no importance
Location close to transport links 1 2 3 4 5
Location next to city facilities 1 2 3 4 5
Price 1 2 3 4 5
Recommendation from friend 1 2 3 4 5
Additional available facilities 1 2 3 4 5
Past experience at hotel / chain 1 2 3 4 5

77
Section 2:
Please indicate in terms of what you are paying, what level of value you feel each of the
elements below represent. Circle the most appropriate option to you. The options are as follows:
1 Excellent value 2 Good value 3 Average value 4 Poor Value 5 Very poor value
9.Staff Service quality Excellent value Very poor value
9.1 Staff provide efficient services 1 2 3 4 5
9.2 Staff understand your requests 1 2 3 4 5
9.3 Staff are helpful 1 2 3 4 5
9.4 Staff are polite and friendly 1 2 3 4 5
9.5 Staff have neat appearance 1 2 3 4 5
9.6 Staff have multi-lingual skills 1 2 3 4 5
9.7 Hotel check-in/check-out service are efficient 1 2 3 4 5
10.Hotel facilities N/A Excellent value Very poor value
10.1 Swimming pool 1 2 3 4 5
10.2 Fitness center 1 2 3 4 5
10.3 Spa and massage room 1 2 3 4 5
10.4 Wifi internet access 1 2 3 4 5
10.5 Car park 1 2 3 4 5
10.6 Tourist information center 1 2 3 4 5
10.7Facilities for disabled guests 1 2 3 4 5
10.8 Bar 1 2 3 4 5
10.9 Restaurant 1 2 3 4 5
10.10 Credit card accept 1 2 3 4 5
10.11 Laundry 1 2 3 4 5
10.12 Smoking area 1 2 3 4 5
10.13 Elevator 1 2 3 4 5
11.Room facilities Excellent value Very poor value
11.1 Air conditioning 1 2 3 4 5
11.2 Television 1 2 3 4 5
11.3 Minibar 1 2 3 4 5
11.4 Refrigerator 1 2 3 4 5
11.5 Safety box 1 2 3 4 5
11.6 Wifi internet access in room 1 2 3 4 5
11.7 Telephone 1 2 3 4 5
11.8 Room services 1 2 3 4 5
12.Room and hotel quality Excellent value Very poor value
12.1 Room size 1 2 3 4 5
12.2 Hotel and room cleanliness 1 2 3 4 5
12.3 Bathroom cleanliness and facilities 1 2 3 4 5

78
12.4 Room comfort 1 2 3 4 5
12.5 Bed/mattress/pillow are comfortable 1 2 3 4 5
13.Location Excellent value Very poor value
13.1 Convenient to access to hotel 1 2 3 4 5
13.2 Close to shopping center 1 2 3 4 5
13.3Convenient to access to public transportation 1 2 3 4 5
14.Safety and security Excellent value Very poor value
14.1 Fire alarms 1 2 3 4 5
14.2 Chain lock 1 2 3 4 5
14.3 Safety box is available 1 2 3 4 5
14.4 Presence of security personnel 1 2 3 4 5
15. Food quality and variety Excellent value Very poor value
15.1 Variety of food and beverage 1 2 3 4 5
15.2 Quality of food and beverages 1 2 3 4 5
16. Overall value for money Excellent value Very poor value
16.1 Hotel room is value for money 1 2 3 4 5
16.2 Hotel food and beverage is value for money 1 2 3 4 5
16.3 Hotel provide comfortable ambience 1 2 3 4 5
Section 3: Accommodation Profile
17. What type of room are you staying at?
 Single bed
 Twin bed
 Double bed
 King size bed
18. What is the rate for the room you are staying at?
 1-1000 Baht
 1001-2000 Baht
 2001-3000 Baht
 3001-4000 Baht
 4001-5000 Baht
 Do not know

79
19. To what degree has your overall hotel experience met your prior expectations?
 Exceeded expectations
 In line with expectations
 Below expectations
 Far below expectations
20. On the basis of your most recent experience at this hotel, can you tell me,
(a). How likely you are to return to it in the future, if you are given the choice
 Insist on staying at this hotel
 Would prefer to stay at this hotel
 No strong preference to staying at this hotel
 Would prefer not to stay at this hotel
 Would insist on not staying at this hotel
(b). What degree of recommendation would you give this hotel for friends and family
seeking accommodation in Bangkok?
 Very positive recommendation
 Positive recommendation
 Neutral recommendation
 Negative recommendation
 Very negative recommendation

80
BIBLIOGRAPHIES
Kotler, P. and Keller, K. L. (2009). Marketing management (13th ed.). Upper Saddle River, NJ:
Prentice Hall.
Pelsmacker, P., Geuens, M, and van den Bergh, J. (2007). Marketing communications: A
European perspective. Harlow, UK: Pearson.
Pervez, A. (2007). Marketing is king. Garden City, NY: Morgan James Publishing.
Singh, D. (2006). Emotional intelligence at work: A professional guide. New Delhi: Sage
Publications.
B. Schitt, 2003, Customer Experience Management, Wiley and Sons, Canada
Bradley, F, 2005, International marketing strategy, 5th ed. Pearson Education
D. Hall, R. Jones, C. Raffo, I. Chambers and D Gray (2007), “Business Studies”, Pearson
Education, Third edition, UK
G. Lancaster, L. Massingham and R Ashford, 2002, Essentials of Marketing, McGraw Hill, UK
Gupta, C. (2005) “Business Studies”, McGraw-Hill, New Delhi
Kotler, P, 2003, Marketing Insights from A to Z, John Wiley & Sons, Inc.
Raab, G, 2008, Customer Relationship Management, Gower Publishing
Shaw C. & Ivens J., 2002, Building Great Customer Experiences, 1st edition, Licensing Agency.
"Perceived Value Definition | Investopedia." Investopedia. N.p., 21 Dec. 2010. Web. 10 Nov.
2014.
"What Is an Offering in Marketing?" Business & Entrepreneurship. N.p., 10 Mar. 2010. Web. 13
Nov. 2014.
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"Value (marketing)." Wikipedia. Wikimedia Foundation, 4 Feb. 2009. Web.
"Perceived Value." Perceived Value. N.p., 5 Feb. 2009. Web.
"Effect of Customer Perceived Value on Satisfaction and Customer Loyalty in Banking Service:
The Moderating Effect of Main-bank Status." Effect of Customer Perceived Value on Satisfaction
and Customer Loyalty in Banking Service: The Moderating Effect of Main-bank Status. N.p., 2
Feb. 2010.
"Wyndham Worldwide (WYN)." The Hospitality Industry Is Highly Competitive, and We Are
Subject to Risks Relating to Competition That May Adversely Affect Our Performance. for
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Alaine, T., and John Allen. WiseGeek. Conjecture, n.d. Web.

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Pledge
I, hereby certify that this document is the work that I did by myself.
If the University checked and found later that it has been plagiarized from any source or from
documents of others, including the request for others to do on my behalf, whether with
remuneration or not, I herewith give my consent to the University to revoke my degree without
any objection whatsoever.
Signed………………………………………………………………
(………………………………………………………………………)
Identification Number……………………………………..

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