Purpose The purpose of this paper is to improve the appreciation of the moderating role of competitive intensity on the relationship between low-cost strategy and firm performance of restaurants. Design/methodology/approach The study uses empirical data collected from 118 restaurants operators, Ghana. The effects of relationships and the interaction of low-cost strategy and competitive intensity were tested using regression analysis. Findings The findings indicate the existence of a significant positive relationship between low-cost strategy and firm performance. The effect of competitive strategy on firm performance was found to be partially significant. The findings revealed that competitive intensity does moderate the relationship between low-cost strategy and firm performance of restaurants. Practical implications Implications of the findings for restaurant operators suggest that effective application of low-cost strategy and monitoring and managing competitive intensity results in high performance. Originality/value This study contributes to the existing literature on low-cost strategy, competitive intensity and firm performance. More specifically, the interaction terms of low-cost strategy and competitive intensity have been explored in this study and can be used for further investigations.

This study aims to examine the influence of service package and brand innovation on customer relational performance and customer profit performance of the hotel industry. Data were collected from 112 hotel operators. PLS-SEM was used to derive the path coefficient (β) and t statistics to determine the path relationship between service packages, brand innovation, customer based relational performance and customer based profit performance. This study shows that both service package and brand innovation have influence on both customer relational performance and customer profit performance. Brand innovation does not moderate the relationship between service package and customer relational performance of the hotel industry. The study findings may not be generalizable to other categories of the restaurant industry because of the relatively small sample size and the respondents selected from limited geographical area. The findings, however, will help hotel operators to implement critical packaging operations of the hotel services and improved brand innovations to elicit higher customers’ based performance. Unlike the previous studies on marketing performance, this study examines the combined effect of service package and brand innovation on customer based relational performance and customer based profit performance of the hotels.

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