The moderating effect of cost orientation on RMO adoption in the hospitality industry

Abstract

This study explores insights on the effect of relationship marketing orientation (RMO) implementation in the hotel industry when competitive pressures compel hotels to trade off longer-term gains from relational strategies for transactional profit measures aligned to a cost-orientation (CO) implementation. When relational practices succumb to price/cost-based competitive pressures, a focus on cost cutting moderates the importance afforded by business to service quality and customer satisfaction. Developing theory to examine CO's moderating effect on RMO implementation for enhanced business performance can clarify RMO adoption efficacy. This study contributes to enhancing understanding of the essentiality of long-term consistency of RMO strategies implementation in the hotel industry, and how these can be compromised by temporary adoption of CO.