The hospitality industry is characterized by a close interdependence between retailers and suppliers. Retailers depend on suppliers to provide the necessary goods and services to operate effectively, while suppliers rely on retailers to buy and market their products. With intense competition in the industry, effective supplier selection has become a critical asset for companies. Traditional supply chain management approaches that focus solely on increasing economic value are insufficient in the face of growing pressure for socially and environmentally responsible business practices. As a result, new criteria, including environmental, social, political, and customer satisfaction considerations, have been added to the pre-existing factors in supplier selection. While restaurants strive to select suppliers who meet their quality, social, and environmental standards, these suppliers may still face internal issues such as food safety, ethical malpractice, environmental concerns, and human rights issues. When such issues arise, it is unclear whether customers hold restaurants accountable for the mistakes of their suppliers, even when the restaurant has not been directly involved in these issues. The first part of this dissertation aims to explore how consumers associate negative news about supplier food quality and practices with the restaurants they patronize. By doing so, this study contributes to a better understanding of the indirect link between supplier issues and restaurant market value.
On another note, Online Travel Agents (OTAs) play an important intermediary role in the two-sided travel distribution market. A critical factor that enhances a firm's competitive advantage is innovation. Yet, the analysis of innovation in the OTA context is scarce. The main objective of the second part of this dissertation is to fill this gap and examine the effect of OTA innovations on firm performance. We analyze the effect of two-sided market specific innovations (same-side and cross-side) on performance and contribute to the literature by expanding the theoretical understanding of innovations. We find that producer-to-consumer innovations have a greater effect on OTA performance than producer-to-producer and consumer-to-consumer innovations. A fundamental managerial implication is that exchange management is an area to be enhanced when innovating in travel market distribution.
Lastly, with the unprecedented increase in food delivery demand due to the new consumption habits of individuals, delivery pricing is an issue to consider keeping consumers happy and continuously demanding this service. Research in economics and in service marketing have described how consumers do recognize the "free" under a product's price differently. This pricing approach is based upon that widespread notion that providing free goods or services to customers adds value to them and so increases their desire to buy. In the last part of the dissertation, we study the Zero price model on a multicomponent product with Food being the first component (where its price is always positive) and the delivery service as the second (where its price will eventually hit the zero-price tag). Elaborating more on previous studies and filling their gaps, we will be dividing the zero-price model into three scenarios: The true free scenario, the true free scenario with different discounts, and the fake-free scenario as each one is expected to yield different consumer behaviors in the process, but all should act similarly when the price hits the "free" tag. / Doctor of Philosophy / The hospitality industry is deeply intertwined, as retailers and suppliers rely on one another for success. Retailers depend on suppliers for essential goods and services, while suppliers count on retailers for purchasing and promoting their products. With increasing competition, it is vital for companies to select the right suppliers. Merely focusing on profit maximization is no longer sufficient, as there is growing pressure to adopt socially and environmentally responsible practices. Factors such as environmental, social, political aspects, and customer satisfaction now play a role in supplier selection. Restaurants strive to collaborate with suppliers that meet their criteria, but these suppliers may still encounter issues like food safety, ethical dilemmas, environmental issues, and human rights problems. The question remains whether customers hold restaurants accountable for their suppliers' mistakes. The first part of this dissertation investigates consumer responses to negative supplier news and its impact on their choice of restaurants.
In another aspect, Online Travel Agents (OTAs) significantly influence the travel market. Innovation is a critical factor in achieving success, yet there has been limited research on innovation within the OTA context. The second part of this dissertation seeks to bridge this gap by examining how OTA innovations affect their performance. The study reveals that certain innovations have a more significant impact on OTA performance than others, indicating that enhancing exchange management is essential for innovation within the travel market.
Lastly, the surge in food delivery demand has made delivery pricing a crucial aspect in maintaining customer satisfaction and promoting continued use of the service. Research indicates that consumers perceive "free" items or services distinctively, with "free" offers increasing their inclination to purchase. The last part of this dissertation explores the Zero price model for food delivery, wherein the food is the first component with a positive price, and the delivery service is the second component with a potentially free price. We categorize the zero-price model into three scenarios: true free, true free with different discounts, and fake-free, anticipating that they will result in different consumer behaviors, but all should exhibit similar effects when the price is "free."
| Identifer | oai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/115277 |
| Date | 31 May 2023 |
| Creators | Raad, James Elias |
| Contributors | Hospitality and Tourism Management, Nicolau, Juan Luis, Khan, Mahmood A., Ruiz Moreno, Felipe, Singal, Manisha |
| Publisher | Virginia Tech |
| Source Sets | Virginia Tech Theses and Dissertation |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | ETD, application/pdf |
| Rights | In Copyright, http://rightsstatements.org/vocab/InC/1.0/ |
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