SOCO's impact on service outcomes of tour guides ...

Current Issues in Tourism

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SOCO's impact on service outcomes of tour guides: the moderating effect of customers’ shopping orientation Sheng-Hshiung Tsaur, You-Yu Dai & Jui-Shiang Liu To cite this article: Sheng-Hshiung Tsaur, You-Yu Dai & Jui-Shiang Liu (2015): SOCO's impact on service outcomes of tour guides: the moderating effect of customers’ shopping orientation, Current Issues in Tourism To link to this article: http://dx.doi.org/10.1080/13683500.2015.1118444

Published online: 08 Dec 2015.

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Date: 08 December 2015, At: 21:09

Current Issues in Tourism, 2015 http://dx.doi.org/10.1080/13683500.2015.1118444

Downloaded by [National Taiwan University], [Sheng-Hshiung Tsaur] at 21:09 08 December 2015

SOCO’s impact on service outcomes of tour guides: the moderating effect of customers’ shopping orientation Sheng-Hshiung Tsaura, You-Yu Daib*

and Jui-Shiang Liuc

a

Graduate Institute of Recreation, Tourism, and Hospitality Management, National Chiayi University, No. 580, Sinmin Rd., West Dist., Chiayi City 60054, Taiwan ROC; bDepartment of Tourism Management, Dhurakij Pundit University, CHINA-ASEAN International College (DPU CAIC), 110/1-4 CAIC, Prachachuen Road, Lasksi, Bangkok 10210, Thailand; cDepartment of Tourism, Providence University, 200, Sec. 7, Taiwan Boulevard, Shalu Dist., Taichung City 43301, Taiwan ROC (Received 17 September 2014; accepted 5 November 2015) This research examines the effects of both sales-oriented and customer-oriented service strategies of tour guides on service outcomes: rapport, customer satisfaction, customer loyalty, and willingness to tip. This research also investigates how customers’ shopping orientation moderates the above relationships. A convenience sampling was conducted and 370 valid questionnaires were obtained. The data were analysed using structural equation modelling. The findings are as follows: (1) customer-oriented strategy of tour guides has a significantly positive impact on the service outcomes; (2) selling-oriented strategy of tour guides has a significantly negative impact on customer satisfaction and customer loyalty; and (3) shopping orientation of tour members moderates the relationships between selling orientation and service outcomes. Thus, if tour guides can provide service for customers in a suitable way, they will then improve the customers’ perception of services. These findings provide practical information for travel agencies and tour guides. Keywords: customer orientation; selling orientation; shopping orientation; tour guide

Introduction Tour guides play an essential role in effecting the overall impression and satisfaction of a tour (Tsaur & Wang, 2009; Wang, Hsieh, & Chen, 2002). They are mentors for the tour members (Cohen, 1985), while a subtle role they always play is an entrepreneur who needs to make the trip profitable because their main income is from tips and commissions (Mak, Wong, & Chang, 2010). In other words, tour guides live by selling something on tour. Heung (2008) suggested that a tour guide’s major responsibility is to lead the group, solve problems, and ensure customer satisfaction, and that they should avoid a hard approach to gain short-term benefits, such as tips and commissions. Therefore, it is critical for tour guides to use their expertise to create a cooperative relationship in this complex task in order to ensure their personal earnings. Selling orientation–customer orientation (SOCO) is a concept measuring customer orientation in salespeople (Knight, Kim, & Crutsinger, 2007). Customer orientation (CO) focuses on awareness of and fulfilment of consumer’s needs (Saxe & Weitz, 1982).

*Corresponding author. Email: [email protected] © 2015 Taylor & Francis


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Knight et al. (2007) pointed out that a salesman adopting the CO strategy not only gains short-term profit, but also ensures long-term loyalty feedback. In contrast, salespeople using the selling orientation (SO) strategy place their focus on quick performance and may have less concern about the customer’s interests (Wachner, Plouffe, & Grégoire, 2009). Though the SO strategy might increase sales performance due to a salesman’s good selling skills (Wachner et al., 2009), they could cause poor service (Huang, 2008). Saxe and Weitz (1982) argued that the effects of SOCO are relevant in some situations: (1) a salesperson has the expertise to assist the customer with multiple alternatives; (2) the purchase is complex; (3) there is a cooperative exchange between the salesperson and customer; and (4) the business depends on referrals and repeat sales. The features of exchange between the tour guides and the members are educational and cooperative; thus, the concept of SOCO can be applied to explore tour guides’ service outcomes. Previous studies indicated that SOCO directly or indirectly affects various service outcomes: (1) rapport and customer satisfaction in restaurants (Kim & Ok, 2010); (2) B2B customer satisfaction (Singh & Koshy, 2011); (3) loyalty and word-of-mouth of business travellers (Macintosh, 2007); (4) customer satisfaction and retention in book/CD retails; (5) travel agencies (Hennig-Thurau, 2004), and so on. CO has been found to positively affect aforementioned service outcomes (Goff, Boles, Bellenger, & Stojack, 1997; Hennig-Thurau, 2004; Kim & Ok, 2010; Macintosh, 2007; Singh & Koshy, 2011). However, confusion still exists in SO’s outcomes. SO is found to lead to customer dissatisfaction with the salesperson (Goff et al., 1997) and poor customer relations (Huang, 2008). In addition, it did not significantly affect the salesperson’s job performance (Boles, Babin, Brashear, & Brooks, 2001). Intriguingly, in a B2B context, SO does not contribute to value creation, but positively links to relationship development in the short term (Singh & Koshy, 2011). Thus, the mixed findings imply other potential moderators certainly exist. Further studies across diverse settings and cultures are needed to scrutinize potential moderators (Jaramillo, Ladik, Marshall, & Mulki, 2007). Shopping orientation denotes consumer patterns of activities, interests, and opinions pertaining to shopping (Moschis, 1992, p. 231). A recreational shopper regards shopping as a recreational activity, and he/she finds fulfilment in shopping (Farrag, EI Sayed, & Belk, 2010). Because shopping is a popular tourist activity (Timothy & Butler, 1995), tourists may spend as high as one-third of their total trip expenditure on shopping (Turner & Reisinger, 2001). Package tours often include shopping and optional tours to cater to tour members’ needs. For tour members who do not enjoy shopping activities or optional tours, excessive additional tours may not be enjoyable (Wang, Hsieh, & Huan, 2000). On the other hand, if tour members are recreational shoppers, tour guides using the SO strategy may provide exactly what these customers desire. The presence of needs–supplies (N–S) fit, the fit between individual needs and the ability of the environment to fulfil those needs (Yu, 2014), may moderate SO and its service outcomes. Will CO lead to positive service outcomes in the context of the package tour? Will the SO strategy impair service outcomes? How does shopping orientation of tour members moderate the relationship between SO and service outcomes? In order to fill this research gap, this study not only investigates SOCO on tour guides’ service outcome, such as tour members’ perceptions of rapport, satisfaction, loyalty, and willingness to tip, but it also explores the moderating effect of tour members’ shopping orientation between SO and these service outcomes. The answers to these questions can assist travel agencies with assigning suitable tour guides for groups with specific preferences, and tour guides in selecting appropriate service strategies when conducting tours.


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The paper is organized as follows: after reviewing the SOCO literature, service outcomes, and shopping orientation, the research model and hypotheses are articulated. Next, methodological and measurement-related details are explained, as are descriptions and characteristics of the sample. The findings are then highlighted with a discussion of the study’s implications. Finally, the contributions and limitations of this study are articulated along with recommendations for future research. Literature review and hypotheses Tour guide Tour guides escort tourists and provide commentaries on the sites where they have expertise, while tour leaders conduct tourists to the destination and give local practical information throughout the tour (World Federation of Tourist Guide Associations, 2003). Sometimes tour leaders are called tour guides because they perform both roles and execute the entire tour alone (Liu & Tsaur, 2014; Pond, 1993; Tsaur & Lin, 2014). While tour guides are indispensable troubleshooters for tour members, they may spoil tour experiences since they play many conflicting roles. Cohen (1985) identifies the four major roles of modern tour guides as pathfinder, mentor, animator, and tour leader. Controversially, the role of entrepreneur is proposed to denote the role of tour guides for low-cost tours (Mak, Wong, & Chang, 2011) because they have to promote optional tours and shopping. Tour guides may look after their own economic interest since they might not receive a per diem, and sometimes have to pay poll tax while conducting a tour. Expanding their entrepreneurial role may impair their service quality and professionalism (Mak et al., 2011) because a sales mentality can undermine tour guides’ CO (Heung, 2008). Though sometimes strongly criticized, tour guides are regarded as Cinderella (Mak et al., 2011) and orphans (Pond, 1993) of the travel industry because they suffer from malpractice by tour operators. Inexperienced tour guides often conduct low-cost tours and rely on commissions from shopping and optional programmes. These tour guides face the dilemma of having a glamorous job but risk losing money. Selling orientation–customer orientation Saxe and Weitz (1982) proposed the SOCO concept to measure CO in salespeople. The characteristics of CO are as follows: (1) wanting to help customers make satisfactory purchase decisions; (2) helping customers to assess their needs; (3) offering products that satisfy those needs; (4) describing products accurately; (5) adapting sales presentations to match customers’ interests; (6) avoiding deceptive or manipulative tactics; and (7) avoiding use of high pressure on customers. Accordingly, CO is regarded as an approach which concerns customers and may sacrifice immediate sales and commissions in favour of the customers’ best interest (Saxe & Weitz, 1982). Customer-oriented tour guides provide good service, diagnose the needs of tour members to assure their satisfaction, put members’ interests ahead of their own and implement a low-pressure selling approach (Heung, 2008; Huang, Huang, Hsu, & Chang, 2009). In other words, tour guides’ CO strategy focuses on detecting and catering to customers’ needs and preferences. Selling Orientation is to stimulate customers’ interests in the products or services in order to obtain sales outcomes (Saxe & Weitz, 1982). Salespeople who adopt this strategy


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may demonstrate less concern for the customers’ interest when an easy sale can be acquired (Wachner et al., 2009). Wang et al. (2000) argued that the tour guides sometimes add extra optional tours in order to gain commissions since commissions from shopping and optional tours is one of tour guides’ main incomes. Therefore, using the SO strategy, tour guides may promote shopping or optional tours to increase their earnings. The more shopping and optional tours tour members participate in, the more commission tour guides can earn. In addition, tour guides also use service tactics to persuade members to be more willing to pay tips. According to the above arguments, this study defines tour guides’ selling-oriented strategies as based on tour guides’ self-interests, focused on stimulating the members’ desires to participate in shopping activities or optional tours on the one hand, and encouraging the members’ to pay more tips on the other hand. If tour guides adopt the SO approach, they focus on short-term profits and their concern for their own interests more than that of the tour members.

Service outcomes Rapport The experiential and interactive features of the service may encourage customers and service employees to establish strong ties in the business process, and may even become friends (Goodwin & Gremler, 1996; Kim & Ok, 2010). One of the most critical constructs in explaining the relationship between customers and service employees is rapport because it demonstrates a quality exchange between two parties. Rapport is defined as a relational state when customers perceive an enjoyable interaction with the service providers and have a personal connection with them. Enjoyable interaction is a relational assessment of the customers’ exchange with the contact employees and is measured by six affective items: enjoyment, warmth, relationships, harmony, sense of humour, and comfort (Gremler & Gwinner, 2000). The authors argue that enjoyable interaction is the foundation in building the initial relationship with the customers. The personal connection refers to the association between two parties (Gremler & Gwinner, 2000) and is measured by five items: bonding, care, personal interest, closeness, and looking forward to seeing each other again. Personal connection can facilitate further relationship development between contact employees with the customers (Kim & Ok, 2010). Thus, rapport can indicate the quality of the relationship between customers and contact employees. The present study contends that rapport is an outcome of employees’ CO. CO is regarded as an approach which is concerned about the customers’ best interest instead of service that provides short-term benefits (Saxe & Weitz, 1982). Customer-oriented tour guides care about tour members’ needs and satisfaction, put their interests first and implement a soft approach for sales (Heung, 2008; Huang et al., 2009). When tour guides adopt the CO strategy, tour members may perceive warmth in the exchange and feel close to the tour guides. Hence, tour guides using the CO strategy can build rapport with tour members. On the other hand, selling-oriented tour guides are not very concerned about members’ interests but push them to engage in shopping and optional tours in order to receive commissions. Consequently, adopting SO might undermine rapport. Thus, the following two hypotheses are proposed: H1: CO cultivates rapport. H2: SO negatively impacts rapport.


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Customer satisfaction Satisfaction is an assessment of a consumption experience (Oliver, 1981). Bigné, Sánchez, and Sánchez (2001) pointed out that recreational satisfaction is the tourists’ overall evaluation of the journey. Contact employees deliver the service to customers; they can significantly affect overall customer satisfaction (Kim & Ok, 2010). In the travel industry, the tour guide is regarded as the key person responsible for customer satisfaction (Chang, 2006). Adopting CO, employees care for the customers’ needs in order to enhance customer satisfaction. The effect of CO on customer satisfaction was empirically verified in the selling (Hennig-Thurau, 2004) and hospitality industries (Kim & Ok, 2010). In contrast, the SO approach focuses on obtaining sales outcomes rather than on customer needs (Saxe & Weitz, 1982). Hence, the customers may feel dissatisfied with the service employees. Employees’ selling-oriented behaviours were found to negatively relate to customer satisfaction (Goff et al., 1997). Tour participants join group package tours (GPTs) expecting professional service from tour guides. If the tour guides adopt the CO strategy, they will anticipate the needs of tour members and try to cater to these needs. This study infers that tour guides adopting the CO strategy can lead to customer satisfaction. In contrast, when tour members perceive tour guides’ use of SO to promote shopping and optional tours without considering their needs, they will feel dissatisfied with the tour guides. Therefore, the following two hypotheses are proposed: H3: Customer orientation improves customer satisfaction. H4: Selling orientation negatively impacts customer satisfaction.

Customer loyalty Customer loyalty reflects customers’ psychological attachment to enterprises or frontline employees. Loyalty is measured by loyalty intention (Conze, Bieger, Laesser, & Rillin, 2010), which includes repurchasing and recommendations (Senders, Govers, & Neuts, 2013). In the tourism industry, employees’ good service significantly influences customer loyalty (Hsu, Shih, Huang, Lin, & Lin, 2009). Employees adopting CO were found to increase loyalty intention (Dean, 2007; Homburg, Müller, & Klarmann, 2011). In contrast, a selling-oriented service provider who uses a high-pressure selling approach and attempts to sell service to customers without much consideration of customers’ needs may cause dissatisfaction by not meeting the customers’ needs and further negatively affects their loyalty. This study proposes that when a tour guide exerts the CO strategy, tour members are more willing to have the same tour guides for their next tour and recommend them to others. On the other hand, the SO strategy may damage members’ loyalty. Therefore, the following two hypotheses are proposed: H5: Customer orientation improves customer loyalty. H6: Selling orientation negatively impacts customer loyalty.

Willingness to tip Tipping is a way that consumers reward good service quality (Lynn & Graves, 1996) and is a common practice in the tourism industry. Tipping is related to service quality and expected by tour guides (Hsieh & Wu, 2007). The better the service quality is, the higher the tip is (Bodvarsson & Gibson, 1999). Customer-oriented employees care about


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their customers’ needs and try to cater to these needs. Kim and Ok (2010) found that CO enhances repurchase intention in the food service industry. Even though the SO strategy might increase sales performance due to a salesman’s selling ability (Wachner et al., 2009), they might cause poor service (Huang, 2008). Chang (2006) argued that tour members might not feel obligated to tip their tour guides. When tour guides perform better and make more effort to serve, tour participants are more willing to tip (Hsieh & Wu, 2007). This study infers that when tour guides use CO the tour members perceive a high quality of service and are more willing to tip. However, when tour guides use SO, the tour members perceive a lower quality of service and are less willing to tip. H7: Customer orientation increases the willingness to tip. H8: Selling orientation decreases the willingness to tip.

Shopping orientation Shopping orientation refers to the consumers’ mental state, attitude, and motivation pertaining to shopping (Moschis, 1992; Solomon, 2013). Shopping is a common and preferred tourist activity (Timothy & Butler, 1995). Recreational shopping denotes consumers enjoy shopping as a leisure activity (Gehrt, Onzo, Fujita, & Rajan, 2007). In addition, some tourists are shopping lovers who enjoy all aspects of airport shopping. This group shares some characteristics of dedicated fringe shoppers who continuously look for new products and new ways of shopping (Geuensa, Vantommeb, & Brengman, 2004). This study argues that tour members who like recreational shopping will enjoy shopping on tour. The SO strategy focuses on stimulating consumers’ needs to purchase products. Tour guides employing this approach will cultivate a shopping atmosphere, create favourable shopping conditions, and provide shopping opportunities to convince members to purchase. Thus, using the SO strategy, tour guides may materialize members’ needs and provide exactly what shopping lovers desire. According to the Person–Environment Fit (P–E fit) theory, N–S fit is a type of complementary fit denoting the fit between individual needs and the ability of the environment to fulfil those needs. In organization study, an N–S fit is strongly related to job satisfaction (Yu, 2014). Applying this finding to the tour context, positive outcomes may be expected if there is an N–S fit between tour members and tour guides. This study then infers that tour guides who adopt SO can fulfil the needs of tour members who love shopping. These members will have closer interaction and personal connection with the tour guides. Not only are they willing to join GPTs led by the same tour guides but also recommend them to others, and are willing to pay higher tips. On the other hand, members who have low shopping orientation will have negative responses to SO. In summary, the presence of shopping orientation will moderate the relationship or even result in torsion effect between SO and service outcomes. The following hypothesis is proposed: H9: Shopping orientation moderates the relationships between selling orientation and service outcomes.

Methodology Research model This study explores service outcomes of tour guides’ SOCO strategy. Tour guides’ CO strategy is to perceive and meet tour members’ needs and preferences, whereas the SO strategy


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puts the benefits of tour guides as first priority. These two approaches result in different service outcomes. Particularly, the presence of shopping orientation will moderate the relationship between SO and service outcomes. These proposed relationships are shown in Figure 1.


Sample collection A convenience sampling was conducted using Taiwanese GPTs participants. First, the researchers contacted travel agencies or tour guides who were willing to assist with the research; then the travel agencies arranged various GPTs for the survey. The tour guides were requested to ask tour members to fill out questionnaires on their return flight or in the hotel on the last night of the tour. Before conducting the survey with tourists, the researchers conducted a pre-test with a sample of 59 students to measure the Cronbach’s α value of each construct. Tour guides from three outbound travel agencies, Lion Travel, Gloria Tour, and Four Seasons Travel & Tour, assisted with the investigation. The survey data were collected between 3 November 2009 and 10 January 2010. In total, 500 questionnaires were distributed, 403 were collected, and 33 were invalid. Therefore, 370 valid questionnaires were obtained. The subjects to item ratio is 11:1, which is better than 5:1, the criteria suggested by Gorsuch (1974, p. 296). A larger sample size may produce a sample pattern that is more stable and approximates the population pattern (Guadagnoli & Velicer, 1988). The descriptive statistical analysis of the sample reveals that 61.6% respondents were female; 63% of the respondents were 21–40 years old; and 73.8% had a degree of college education or above. The majority of the respondents (68.6%) joined GPTs travelling to nearby Asian countries, such as Japan, China, and Thailand. About 48.5% of the respondents had participated in less than three tours. In 2013, about 37.7% of Taiwanese overseas travel was with group tours; 88% of the trips were in nearby Asian countries (Tourism Bureau of ROC, 2014). Many package tours to Asian counties are referred as shopping tours because of the low tour price, add-on optional tours, and shopping arrangements. Thereby, the socio-demographic profile proved itself representative. Measures The CO dimension adopted Macintosh’s (2007) CO scale. Three items not applicable to this study were removed; thus, four items were retained. Personal interviews with the managers of five major travel agencies provided the basis for developing five scale items in relation to the SO strategy of tour guides. The rapport variable included six items on enjoyable

Figure 1.

Proposed research model.


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interaction and five items on interpersonal connection from the rapport scale of Gremler and Gwinner (2000). Customer satisfaction was measured by using four questions from Wu (2004). Conze et al.’s (2010) customer loyalty scale was used to measure repurchase intention and recommendation to others. Two items of willingness to tip were assessed using Tse’s scale (2003). Shopping orientation was measured using the 6-item recreational shopping scale proposed by Gehrt et al. (2007). All the items of SOCO, service outcomes, and shopping orientation were tested on a 5-point Likert-type scale from 1 (strongly disagree) to 5 (strongly agree).

Results Validity and reliability This study employed maximum likelihood estimation of confirmatory factor analysis (CFA) to assess validity and dimension, and used LISREL 8.80 to analyse structural equation modelling (SEM) (Jöreskog & Sörbom, 2006). Model fits are χ2 = 2229.93 (df = 506, p = .000), GFI = 0.87, AGFI = 0.86, NFI = 0.96, NNFI = 0.97, CFI = 0.97, IFI = 0.97, RFI = 0.95. As given in Table 1, the standard factor loadings of all observed variables in the research model are greater than 0.7. The t-values are statistically significant (p < .05). Square of multi-correlation of each item ranges from 0.50 to 0.95, which is higher than 0.4 (Bagozzi & Yi, 1988). Composite reliability of each construct ranges from 0.70 to 0.96, greater than 0.6, the value recommended by Bagozzi and Yi (1988). Average variances extracted (AVE) ranges from 0.64 to 0.91, greater than the value 0.5, proposed by Bagozzi and Yi (1988). In addition, Cronbach’s α values of each construct are greater than 0.7, ranges from 0.88 to 0.96, in line with the detection of reliability (Hair Jr, Black, Babin, & Anderson, 2010). Overall, the CFA results of this research are reasonable, which indicate that this model has good reliability. Bollen (1989) had recommended t-tests to examine the extent of correlation between the intended measure and other measures used to measure the same construct. This has also been referred as convergent validity test (Clark-Carter, 1997). All contributions of measurement items to their posited underlying constructs were found to be statistically significant, which suggests adequate convergent validity of the measurement scales (Hung & Petrick, 2012). Discriminant validity was also analysed in this study. Relationships among constructs were verified by SEM. The covariance of each construct is significantly less than 1. Table 2 presents the descriptive statistics and correlated coefficients matrix associated with each construct. The square root of each AVE was compared with the correlation coefficients of other constructs (Fornell & Larcker, 1981). The diagonal values given in Table 2 represent the mean square roots of each AVE. The lower-triangular matrix below mean square roots are the standardized correlation coefficients. The square roots of the AVE values are greater than the correlation coefficients in each column, which means that each construct of this study has discriminant validity.

Hypothesis testing The results of the structural model path analysis are depicted in Figure 2. The overall goodness-of-fit values of this model are, χ2 = 1721.47 (df = 341, p = .000), CFI = 0.96, RMSEA = 0.09, NNFI = 0.96 (Bagozzi & Yi, 1988). The path coefficients are 0.91 for CO to rapport, 0.91 for CO to customer satisfaction, 0.88 for CO to customer loyalty, and 0.67


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Table 1. Results of CFA (n = 370).


Constructs/items Customer orientation This tour guide seems to have my best interests in mind. This tour guide offers me services suited to my needs. This tour guide seems to genuinely enjoy helping me. This tour guide is easy to talk to. Selling orientation This tour guide continually introduces special local products in the tour, such as selling what he was dressed, to stimulate my purchase interests. This tour guide would stay longer at shopping stores to create shopping opportunities. This tour guide would shorten the stay at scenic spots, to let me have more ample time to buy souvenirs. This tour guide would introduce those attractions not in the tour, to give me opportunities for additional optional tours. This tour guide would provide favourable conditions (such as more secure and cheaper) to convince me shopping. Rapport I enjoy interacting with this tour guide. This tour guide lets me feel warmth. This tour guide relates well to me. I have a harmonious relationship with this tour guide. This tour guide has a good sense of humour. I am comfortable interacting with this tour guide. I feel a “bond” with this tour guide. I look forward to seeing this tour guide again when I participate in group package tour next time. I strongly care about this tour guide. This tour guide has taken a personal interest in me. I have a close relationship with this tour guide. Customer satisfaction I am satisfied with the service quality of this tour. I am satisfied with the service provided by this tour guide. I am satisfied with the professional ability of this tour guide. I get what I want in this tour. Customer loyalty

SFL

tvalue

Mean

SD

SMC

3.63

0.04 0.73 15.58

0.52

3.97

0.03 0.89 21.29

0.79

4.11

0.03 0.85 19.56

0.71

4.17

0.03 0.86 19.92

0.73

3.18

0.05 0.85 19.71

0.73

3.17

0.05 0.86 20.05

0.74

3.08

0.05 0.84 19.06

0.70

3.11

0.05 0.76 16.60

0.58

3.36

0.05 0.70 14.82

0.50

3.84 3.88 3.87 4.02

0.03 0.03 0.03 0.03

19.17 20.54 20.29 19.58

0.74 0.73 0.70 0.64

3.90 3.97

0.04 0.80 18.23 0.03 0.84 19.79

0.71 0.69

3.58 3.83

0.04 0.83 19.40 0.04 0.80 18.27

0.64 0.63

3.51 3.37

0.04 0.79 18.05 0.04 0.73 15.91

0.53 0.53

3.45

0.04 0.78 17.61

0.61

3.96

0.03 0.85 19.87

0.71

4.07

0.03 0.94 23.60

0.88

4.07

0.03 0.93 23.32

0.87

3.92

0.03 0.74 16.20

0.54

CR

AVE

0.90 0.69

0.90 0.64

0.70 0.66 0.83 0.86 0.86 0.84

0.77 0.75

0.91 0.91 (Continued)

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Table 1. Continued. SFL

tvalue

Constructs/items

Mean

SD

SMC

I will recommend this tour guide to my families and friends. I will want to join group package tour again led by this tour guide. Willingness to tip I am willing to pay more tips to this tour guide. I am willing to pay more than regular tips to this tour guide. Shopping orientation I enjoy shopping. I enjoy travelling to stores or shopping centres. I enjoy shopping even though I may not make purchases. Shopping is one of my favourite leisure time activities. Shopping is a waste of time.* Shopping puts me in a good mood.

3.96

0.03 0.98 25.20

0.95

3.98

0.03 0.94 23.51

0.88

3.24 3.10

0.04 0.98 24.60 0.04 0.93 22.70

0.95 0.86

3.44 3.49 3.46

0.04 0.90 22.01 0.04 0.94 23.88 0.04 0.89 21.60

0.81 0.89 0.79

3.36

0.04 0.90 21.90

0.80

3.25 3.51

0.04 0.85 28.55 0.04 0.75 16.57

0.83 0.56

CR

AVE

0.95 0.90

0.96 0.78

Note: 1. * is negatively worded. 2. SD is standard error, SFL is standard factor loading, SMC is square of multi-correlation, CR is composite reliability, and AVE is average variance extracted.

for CO to willingness to tip. The four path coefficients are significant at the level of p < .05, indicating that the tour guides’ CO strategy had significant and direct positive effects on service outcomes. Therefore, the H1, H3, H5, and H7 of this study are supported. The path coefficients, −0.12 and −0.22, are significant at the level of p < .05 for SO to customer satisfaction and SO to customer loyalty, respectively. That is, tour guides’ SO strategy had significant direct and negative effects on customer satisfaction and customer loyalty. Therefore, the H4 and H6 of this study are supported. The above results show that the effect of CO on service outcomes is significantly stronger than SO on service outcomes. This indicates that tour guides’ CO strategy was an important predictor to gain good service outcomes, and tour guides using SO would impair their customer satisfaction as well as loyalty.

Moderating effects of shopping orientation SO’s effects in high/low shopping orientation group This study used the K-means cluster analysis to group means in the comparison analysis. Using tour members’ shopping orientation scores, tour members were categorized into either a high shopping orientation group (n = 176) or a low shopping orientation group (n = 194). This study then further tested the impact of SO on service outcomes. In the low shopping-oriented group, the path coefficients are −0.15 for SO to rapport, −0.24 for SO to customer satisfaction, −0.38 for SO to customer loyalty, and −0.15 for SO to willingness to tip. The four path coefficients are significant at the level of p < .05; that is, for low shopping-oriented members, tour guides’ SO strategy had significant and direct negative effects on service outcomes. In the high shopping-oriented group, two path coefficients, 0.10 for SO to rapport and 0.22 for SO to willingness to tip, are significant at the level of p < .05. The other two path coefficients of SO to satisfaction and SO to loyalty are not


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Table 2. Correlation coefficients.


Customer Selling Customer Customer Willingness Shopping orientation orientation Rapport satisfaction loyalty to tip orientation Customer orientation Selling orientation Rapport

0.81 1 0.16* 0.83*

0.80 1 0.17*

Customer satisfaction Customer loyalty Willingness to tip Shopping orientation

0.77*

0.07*

0.81 1 0.81*

0.71*

−0.04

0.76*

0.88 1 0.88*

0.55*

0.20*

0.68*

0.61*

0.95 1 0.61*

0.28*

0.31*

0.37*

0.35*

0.34*

0.95 1 0.49*

0.80 1

*p < .05.

statistically significant. That is, for high shopping-oriented members, tour guides’ SO strategy had significant and direct positive effects on rapport and willingness to tip. Therefore, these results show that shopping orientation has a torsion effect on the relationship between the SO strategy and service outcomes.

Measurement invariance To test hypothesis of moderating variable, this study used a multiple-group invariance analysis based on Steenkamp and Baumgartner (1998) recommendation to ensure measurement invariance to test the model consistency of two groups. For this purpose, the researchers did a series of CFA test. A χ2 difference test was conducted to evaluate the measurement invariance which exists when the measurement model displays insignificant χ2 difference (Yoo, 2002). The results of measurement invariance show that, the chi-square differences are not significant between the configured invariance model and the factor loadings invariance model (Dx2(24) = 35.5, p > .05), and between the factor loading invariance model and the intercept invariance model (Dx2(24) = 34.8 , p > .05). However, the RMSEA is less than 0.10 and the difference of RFI, NNFI, and CFI is 0. Hence, this questionnaire has factor invariance, such as structural invariance, factor loadings invariance, and intercepts invariance, on different shopping-oriented members. As for the comparison of intercepts invariance model and error variance invariance model, even though the χ2 difference is significant (Dx2(4) = 22.9, p < .05) and the RMSEA is greater than 0.10, the difference of RFI, NNFI, and CFI is 0. Therefore, the factor variance invariance and covariance invariance of this model also exist. The above results indicate that the research framework has measurement invariance.

Structural invariance Next, structural invariance was tested. In the inter-group comparison of structural invariance, the baseline mode assumes no invariance in the inter-group, that is, the models of


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Figure 2. Structural model with estimated path coefficients. Note: 1. Solid lines indicate significant correlation and dotted lines indicate no significant correlation. 2. *p < .05, values in () are t-value.

high and low shopping orientation groups are independent with no correlation and have the same structure. The restricted mode assumes that the path coefficients of the high or low shopping orientation groups are equal. Testing the χ2 difference between baseline mode and restricted mode is to ensure the quality of the path coefficients (Yoo, 2002). Δχ2 in Table 3 shows that the estimate path of each service outcome between high and low shopping orientation groups is not equal. The results point out that there was at least one unequal path coefficient between the two groups. As well, researchers compared the path coefficients of the high and low shopping orientation groups. It is clear that shopping orientation had moderating effects on the paths of SO to rapport, SO to customer satisfaction, SO to customer loyalty, and SO to willingness to tip. However, the level of moderating effects was not the same, the most significant being SO to rapport. The above results support H9, “Shopping orientation moderates the relationships between SO and service outcomes.”

Conclusions and implications Theoretical implications This study investigated how tourists’ perception of tour guides’ SOCO impacts on service outcomes: rapport, customer satisfaction, customer loyalty, and willingness to tip as service outcomes. Most importantly, this study contributes to the SOCO literature by introducing shopping orientation as a moderating variable into the relationship between SO and service outcomes. Past studies have been conducted on SOCO at an individual level (Wachner et al., 2009); however, few studies have focused on how SOCO impacts service outcomes on the relationship between the tour guide and members, though SOCO has been applied to the organizational level of travel agencies (Hennig-Thurau, 2004; Macintosh, 2007).



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This study used an appropriate tour guides’ SOCO scale to examine its impacts on various service outcomes. The findings confirm that tour guides’ CO can lead to these service outcomes. This is in line with the previous CO research (Goff et al., 1997; Hennig-Thurau, 2004; Kim & Ok, 2010; Macintosh, 2007; Singh & Koshy, 2011). Additionally, SO is found to be harmful to rapport, customer loyalty, customer satisfaction, and willingness to tip among those who have low shopping orientation; this result is partially consistent with the study of Goff et al. (1997) and Huang (2008), which indicated that SO negatively influences customer satisfaction and retention. Interestingly, the presence of tour members’ shopping orientation results in torsion effect between SO and the service outcomes. In other words, it is possible for tour guides’ SO to establish rapport and willingness to tip among those who have high shopping orientation. This study responds to the appeal for potential moderators to fill the SOCO research gap (Jaramillo et al., 2007) by identifying a moderator, customer shopping orientation, to explain the relationship between SO and its outcomes in the context of the tour. Although, past research has discovered the positive impacts of CO on service outcome (Goff et al., 1997; Hennig-Thurau, 2004; Kim & Ok, 2010; Macintosh, 2007; Singh & Koshy, 2011), caution is still needed before any conclusion is drawn (Wachner et al., 2009). Wachner et al. (2009) found that selling skill is a more powerful predictor on sales performance than SOCO, and that it also moderates the impact that SOCO has on sales performance. These researchers go on to propose that without prerequisite selling skills, salespeople are better off adopting SO instead of CO. In a similar vein, this research argues that, though, negative outcomes of SO have been found (Goff et al., 1997; Huang, 2008), an alternative perspective should be taken before avoiding SO. This study suggests that salespeople employ SO when customers have a high propensity to purchase though purchase needs do not materialize. This finding supplements the finding of Singh and Koshy (2011) that in a B2B context, SO does link to relationship development in the short term.

Managerial implications No talent is to be wasted. Educational training of tour guides focuses on understanding customers’ needs and providing constant assistance. Nevertheless, travel operators still lack a practical tool to assess tour guides’ true service behaviours. The tour operators could assess the shopping orientation of potential customers and recommend compatible tours with suitable tour guides. Tour guides with SO can conduct shopping-oriented tours for those Table 3. Invariance tests of the moderated paths. Fit of the model with the path Paths SO → Rapport SO → Customer satisfaction SO → Customer loyalty SO → Willingness to tip *p < .05.

Baseline mode (Freely estimated)

Nested mode (Constrained to be equal)

Invariance tests Chi-square difference test

x2(630) = 2133.21 x2(630) = 2133.21

x2(640) = 2172.80 x2(633) = 2145.67

Dx2(10) = 39.59* Dx2(3) = 12.46*

x2(630) = 2133.21

x2(631) = 2142.08

Dx2(1) = 8.87*

x2(630) = 2133.21

x2(631) = 2152.65

Dx2(1) = 19.44*


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members who have a high level of shopping orientation. Tour guides good at CO can be assigned to inclusive tours which do not require tour guides to promote shopping and optional tours thus enabling them to focus on serving tour members. By doing so, a fit can be reached between the tour guides and tour members, and ultimately bring longterm business. See the wind and set the helm. Pragmatically, because many tour guides rely on tips and commissions for their personal earnings they must make every tour profitable. If they have mastered requisite selling skills completely, they are better off adopting SO for sales performance or conducting shopping-oriented tours for shopping lovers where the SO strategy may be a good choice. By doing so, positive service outcomes might be expected. On the other hand, if tour guides face tour members with low levels of shopping orientation, they could use CO to promote service outcomes. In summary, maybe it is wiser to use SOCO flexibly to provide more thoughtful service to all tour members. Win–win situation for tour guides and customers. One interesting finding of this research is the impact of tourists’ shopping orientation on relationships between SO and service outcomes. Tour guides should take tourists’ shopping orientation into account. They risk losing money when conducting these tours but can improve their selling skills. On the other hand, they can use the CO strategy when conducting regular tours. Tour guides organize leisure activities such as shopping and entertainment on tour. Studies have proved that some consumers regard shopping activities as a recreational opportunity (Gehrt et al., 2007). Thus, tour guides can arrange shopping as leisure activities on long drives. Tour members with low shopping orientation will have less pressure to shop, while those members who love shopping can enjoy it. Shopping and optional tours can be arranged at appropriate times, so that the tour members are satisfied and guides fulfil their economic needs. Hence, the tour guides create a win–win situation with tour members.

Limitation and suggestions Although the results show good reliability and validity, some limitations still exist. The questionnaires were collected by tour guides; however, the items were used to assess their performance. Social desirability may exist on SOCO and service outcomes (Jaramillo et al., 2007). In addition, Veiel (1987) believes that cross-sectional data easily lead to a pseudo-interaction effect. Therefore, further research could consider adopting a longitudinal study design to investigate variables at different times, so the mutual influence of these variables over time could be tested. This study also suggests an assessment of SOCO service strategies from the tour guides’ perspective to further broaden the theoretical context of this survey. Building a hierarchical linear model (Raudenbush & Bryk, 2002) would be advantageous to integrate different assessment viewpoints for objectiveness. Finally, future research could include tour types as a moderator to see the effects of SOCO on service outcomes.

Disclosure Statement No potential conflict of interest was reported by the authors.

ORCID Jui-Shiang Liu

http://orcid.org/0000-0001-6970-7088


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