Importance‐performance analysis with benefit segmentation of spa goers

Abstract

Purpose-Spas have become increasingly popular with consumers and have emerged as important profit centers for hotels. However, the uniqueness of this market has been largely overlooked in hospitality literature. The purpose of this paper is to fill the research gap by identifying different market segments among spa goers, based on a set of benefit variables. Design/methodology/approach-A survey was administered to customers visiting hotel spas in Texas. Factor analysis was performed on 214 completed surveys to identify the dimensions underlying the benefits sought by spa goers. Cluster analysis was then applied to classify spa goers into different groups based on the benefit variables. Finally, importance-performance analysis (IPA) was performed according to the groups to determine significant patterns. Findings-Three distinct customer segments are identified based on the benefits sought by spa goers: escapists, neutralists, and hedonists. IPA results showed what each segment perceives as important and how well the hotel spas perform to meet expectations. The results of this paper support the effectiveness of the use of IPA with benefit segmentation. Research limitations/implications-The results of this paper should be interpreted cautiously and considered tentatively until they are replicated by a larger spa population. Currently, there are very few benchmark studies on spas to aid in the understanding of this promising market segment. It is hoped that this paper will stimulate much-needed spa research in hospitality literature. Originality/value-Future researchers and industry practitioners can gain insight into the motives and benefits sought by spa goers through the use of IPA in conjunction with benefit segmentation.

Segmenting Spa Customers Based on Rate Fences Using Conjoint and Cluster Analyses

“…Chen et al, 2013;Gustavo, 2010;Koh et al, 2010;Mueller & Kaufmann, 2001;Pesonen & Komppula, 2010;Pesonen et al, 2011). For example, in a study conducted by Koh et al (2010), which was to identify market segments among spa goers, based on a set of benefit variables.…”

“…Chen et al, 2013;Gustavo, 2010;Koh et al, 2010;Mueller & Kaufmann, 2001;Pesonen & Komppula, 2010;Pesonen et al, 2011). For example, in a study conducted by Koh et al (2010), which was to identify market segments among spa goers, based on a set of benefit variables. First, factor analysis was performed on 21 benefit variables to explore the dimensions underlying the benefits sought by spa goers.…”

“…Only a few studies have previously concentrated on spa customers (e.g. Kim, Kim, Huh, & Knutson, 2010;Koh, Yoo, & Boger, 2010;Mak, Wong, & Cheng, 2009). Limited guidance is available to spa managers with respect to how to meet customers' needs and demands, and maximize spas' revenue.…”

“…Specifically, this study extends the limited literature regarding spa market segmentation (e.g. Chen, Liu, & Chang, 2013;Koh et al, 2010;Pesonen, Laukkanen, & Komppula, 2011) by segmenting spa customers from a rate fences perspective. Additionally, this study extends previous spa revenue management literature by identifying different customer segments' preferences and perceptions regarding rate fences.…”

Benefit Segmentation of Outbound Summer Package Tourists

“…Different tourists can seek and obtain different benefits from the same product (Alford, 1998;Koh et al, 2010). Based on the importance they attach to different benefits they seek form their vacation, tourists make decisions on their travel.…”