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Dimensions of customer loyalty in hospitality micro-enterprises

Haghighi, Azin Mostajer and Baum, Thomas and Shafti, Farhad (2013) Dimensions of customer loyalty in hospitality micro-enterprises. Services Industries Journal. ISSN 0264-2069

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Abstract

This study aims to explore the role of customer loyalty as a managerial tool in the context of hospitality micro-enterprises (HMEs). In the absence of the concept of franchise customer loyalty becomes one of the key factors for survival. Analysis of data results in exploring the importance of customer loyalty to owner-managers, and their role in generating the antecedents of loyalty is also revealed. Encounter of owner-managers' motivations with small hospitality business characteristics appears to be influential. Motivation leads to creation of an ‘at home’ feeling and offering extra services. These directly influence customer loyalty in HMEs. A paradox has been highlighted: as a result of the same factors (host motivations and small business characteristics) customer loyalty cannot be built in its higher levels.