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Management Theory and Studies for Rural Business and Infrastructure

Development. 2014. Vol. 36. No. 2. Scientific Journal. ISSN 1822-6760 (print) / ISSN 2345-0355 (online)

INTERACTION BETWEEN SATISFACTION AND LOYALTY OF

LITHUANIAN TOURISTS: A MODERATING

EFFECT OF NATURAL FEATURES

Viktorija Grigaliūnaitė1, Lina Pilelienė

2

1 Master student. Vytautas Magnus University. S. Daukanto str. 28.

Kaunas, 44246, Lithuania. Tel. 370 37 327 856. E-mail v.grigaliunaite@gmail.com 2 Asoc. prof. Vytautas Magnus University. E-mail l.pileliene@evf.vdu.lt

Received 14 05 2014; accepted 30 05 2014

The moderating effect of natural features on the effect of Lithuanian tourist satisfaction to

loyalty is being analyzed in the article. Experience of foreign countries and scientific researches jus-

tify the positive effect of tourist satisfaction to loyalty. Nevertheless, this effect is considered as

complex due to the possibility of the endogenous or exogenous latent variables’ moderating effect.

Natural features of the country may be regarded as such variable. Taking into account that there is a

lack of scientific researches about the moderating effect of natural features in the case of Lithuania,

it is worth analyzing the interaction effect between tourist satisfaction and loyalty. The aim of the

article is to determine the interaction effect between Lithuanian tourist satisfaction and loyalty re-

garding natural features as a moderator variable. While achieving the aim of the article, the analysis

of scientific literature is provided. Furthermore, quantitative research and the analysis of the re-

search results using structural equation modelling are applied. As a research results, the interaction

effect of Lithuanian tourist satisfaction to loyalty is determined and the moderating effect of natural

features is assessed.

Keywords: Lithuanian tourism, Natural features, Tourist satisfaction, Tourist loyalty.

JEL codes: M31, M39, Q26, Q51.

1. Introduction

Relevance of the research. The satisfaction-loyalty relation is widely analyzed

in managerial, as well as in marketing literature. According to H. M. Gonçalves and

P. Sampaio (2012), it is extremely important to understand the antecedents of cus-

tomer loyalty. There is strong empirical evidence to suggest that customer satisfac-

tion is an antecedent of customer loyalty, and that there is a positive link between

these two constructs. However, some previous researches (Tuu, 2010) highlighted,

that latter relationship in some cases might be expressed in nonlinear functional

forms. Considering the complexity of the interaction between satisfaction and loyalty,

several studies have attempted to take a deeper look at this relationship by consider-

ing the extent to which other variables might have a moderating effect on this rela-

tionship (Gonçalves, 2012).

It is well established in tourism literature that both: tourist satisfaction and

tourist’s intention to return are partially determined by his / her assessment of the

destination’s different attributes (Alegre, 2010). Natural features are being distin-

© Aleksandras Stulginskis University, © Lithuanian Institute of Agrarian Economics, © Authors

289

guished as the attribute of destination’s assessment and the results of the researches

revealed that latter variable has the highest effect on tourists’ loyalty as well as on the

evaluation of destination’s attractiveness (Krešic, 2011; Artuğer, 2013). It suggests

that in considering the complexity of the relationship between tourist satisfaction and

loyalty, not only the tourist satisfaction may directly affect tourists’ loyalty, but also

natural features.

The problem solved in the article is: what is the interaction between Lithuani-

an tourist satisfaction and loyalty? and what is the moderating effect of natural fea-

tures to this interaction?

The object of the research is the interaction effect between tourist satisfaction

and loyalty regarding natural features as a moderator variable.

The aim of the research is to determine the interaction effect between Lithuanian

tourist satisfaction and loyalty regarding natural features as a moderator variable.

Research methods. Achieving to determine the relations between satisfaction,

loyalty, and natural features in tourism industry regarding Lithuanian tourists, the as-

sumptions were made that both satisfaction and natural features affect loyalty, addi-

tionally natural features moderates the effect of satisfaction on loyalty. Questionnaire

research was provided to obtain tourists’ valuations of latter variables. Structural

equation modelling (SEM) using partial least squares (PLS) path modelling method-

ology was applied for statistical analysis.

2. Scientific substantiation

The tourism industry is important in terms of gross domestic product (GDP)

and provides numerous employment opportunities in many nations (Deng, 2013). On

the other hand, in addition to the changes and innovations in the demographic, socio-

economic, and technological fields in tourism the competition among tourist destina-

tions has increased significantly during recent years (Artuğer, 2013). Consequently,

measuring and managing customer satisfaction has become crucial for the survival,

development and success of service industries like tourism (Song, 2012). A good un-

derstanding of tourist satisfaction levels, as well as the dynamic changes in these lev-

els, benefits not only the service industries that focus on inbound tourism, but also the

government regulators and private investors that have a vested interest in the devel-

opment of a high-quality tourism infrastructure. Improving tourist satisfaction levels

is likely to contribute to an enhanced reputation for both: service providers and the

destination as a whole. In addition, consumer studies indicate that an improvement in

these satisfaction levels may contribute to increased consumer loyalty, reduced price

elasticity, a lower cost of future transactions and improved productivity (Song, 2011).

M. Kozak (2001) argued that there are existing differences in the behavior,

values, and satisfaction levels of tourists representing different nationalities. Further-

more, considering dissimilarities among people, their values, habits, beliefs, cultural

heritage and way of life in the different countries, various authors from all over the

world have revealed different determinants and indexes of Tourist Satisfaction (Quin-

290

tal, 2010). Accordingly, tourists with the same nationality might perceive destinations

similarly; despite this, tourists with the other nationalities might perceive the same

destination highly different. Therefore, there are different Tourist Satisfaction Index-

es with the diverse determinants, as well as relations among them created in different

countries, but not for the different destinations.

In the largest part of customer satisfaction research methodologies, e.g. Ameri-

can Customer Satisfaction index, European Customer Satisfaction index, Norwegian

Customer Satisfaction barometer, Swedish Customer Satisfaction barometer, etc.

(Johnson, 2001), as well as in the tourists satisfaction researches (Som, 2011; Salleh,

2013), the main consequence of satisfaction is considered to be loyalty to the destina-

tion. This substantiates the importance of tourists’ loyalty to the destinations and con-

firms the significance of the tourists’ satisfaction measures. Therefore, suggestion

was made that the reason of trying to better satisfy tourists is the attempt to enhance

tourists’ loyalty. Consequently, most of tourist satisfaction models contain two essen-

tial variables: satisfaction and loyalty.

It is well established in tourism literature that both: overall tourist satisfaction

and a tourist’s intention to return are partially determined by his / her assessment of

the destination’s different attributes (Alegre, 2010). Many authors (Krešic, 2011;

Song, 2012; Artuğer, 2013 et al.) distinguish variable ‘natural features’ (natural at-

tractions) as the attribute of destination’s assessment and the results of the researches

(Krešic, 2011; Artuğer, 2013) revealed that latter variable has the highest effect on

tourists’ loyalty as well as on the evaluation of destination’s attractiveness. It sug-

gests that in many cases not only the tourist satisfaction may directly affect tourists’

loyalty, but also natural features. Furthermore, there is existing possibility of varia-

ble’s ‘natural features’ moderating impact on the effect of satisfaction on loyalty.

This indicates that the relation between satisfaction, loyalty, and natural features in

tourism industry needs to be studied more.

3. Research methodology

Endeavouring to make deep analysis of the relations between satisfaction, loy-

alty, and natural features in tourism industry regarding Lithuanian tourists, the as-

sumptions were made that both satisfaction and natural features affect loyalty; addi-

tionally natural features moderate the effect of satisfaction on loyalty. Consequently,

the structural model, linking tourist satisfaction and loyalty with natural features

moderating this relationship, could be written in the standardized form (1):

Loyalty = β1 Satisfaction + β2 Natural Features + β3 Satisfaction * Natural Features (1)

The determinants of the satisfaction are excluded from the analysis regarding

the aim of the research.

Consequently, by partially differentiating latter equation with respect to satis-

faction, the impact of satisfaction on loyalty could be attained (2):

291

∂ Loyalty / ∂ Satisfaction = β1 + β3 Natural features (2)

The manifest variables of the corresponding latent variables formed a ques-

tionnaire for respondents’ evaluations (the questionnaire is available from the authors

upon request). 10-point evaluation scale was applied for the questionnaire. Authors

(Coelho, 2006) underlined that the precision of the satisfaction researches results is

greater when the 10-point scale is used for the research.

Total sample size (based on the recommendations for customer satisfaction re-

searches) was 251. The survey was conducted on the summer of 2013. Achieving to

increase the variety of respondents, the survey was handled both, in person and via

the Internet. 27 percent of male and 73 percent of female participated in the survey.

Structural equation modelling (SEM) using partial least squares (PLS) path

modelling methodology is applied for statistical analysis.

4. Analysis of the research results

The sufficient degree of convergent validity of reflective constructs indicated

by AVE values is high above 0.5. Values of Composite Reliability and Cronbach’s

Alpha are obtained higher than 0.7 and this displays the internal consistency reliabil-

ity of reflective constructs. Values of communality are greater than 0.5; hence the

quality of the measurement model for each block is sufficient. R square values of en-

dogenous latent variables in the structural model are substantial (Table 1).

Table 1. Values of AVE, Composite Reliability, R Square, Cronbach’s

Alpha, Communality

Variables AVE Composite

Reliability

R

Square

Cronbach’s

Alpha Communality

Loyalty 0.911 0.9534 0.673 0.9024 0.911

Natural features 0 0 0 0 0.5714

Satisfaction 0.787 0.917 0.693 0.8631 0.787

Satisfaction * Natural features 0.6227 0.935 0 0.9188 0.6227

Three path coefficients, shown in Table 2, are statistically significant. Natural fea-

tures directly positively affect loyalty. Satisfaction directly positively affects loyalty

as well, and this effect is substantial. The moderating effect on the impact of satisfac-

tion on loyalty is statistically significant, direct and negative. This substantiates the

assumption that natural features moderate the effect of satisfaction on loyalty. The

value of β3 is negative (-0.126) and significant (p < 0.01), implying that with higher

levels of natural features the impact of satisfaction on loyalty is lower.

292

Table 2. Paths Coefficients and their significances

Paths (Total effects) Original

Sample

Sample

Mean

Standard

Deviation

Standard

Error T Statistics

Natural features -> Loyalty 0.156 (0.335) 0.1561 0.0591 0.0591 2.6396

(5.207)

Satisfaction -> Loyalty 0.6239 0.6239 0.0583 0.0583 10.6994

Satisfaction * Natural features ->

Loyalty -0.126 -0.1292 0.0469 0.0469 2.6882

Evaluating cross-validated redundancy measure for the endogenous latent variable

loyalty, the chosen omission distance d was 7 (251 / 7 ≠ integer). Cross-validated redun-

dancy values (Q2) for endogenous latent variable is above zero (see Ta-

ble 3).Consequently, structural model is assessed as displaying predictive relevance.

Table 3.Stone-Geisser’s Q2

Total SSO SSE 1-SSE/SSO

Loyalty 502 194.2796 0.613

Exogenous latent variables ‘natural features’ and ‘Satisfaction * Natural fea-

tures’ have a moderate effect sizes on endogenous latent variable ‘loyalty’ (Table 4),

indicating the importance of the effects of these variables on tourists’ loyalty.

Table 4. Effect sizes f2

Variable Effect size

Natural features 0.09

Satisfaction * Natural features 0.05

Analyzing the dissemination of the respondents, it is observed that 92.4 percent of

them substantiate the revealed results: for the great part of respondents positive evalua-

tions of loyalty, natural features and satisfaction are accompanied with the negative in-

teraction effect among satisfaction and natural features, while 7.6 percent of respondents

with extremely low evaluations of loyalty, natural features and satisfaction are accompa-

nied with the positive interaction effect among satisfaction and natural features (the

standardized values of clusters’ centroids are provided in Table 5).

Table 5. Clusters’ centroids

Cluster Loyalty Natural fea-

tures Satisfaction

Satisfaction * Natural fea-

tures

1 (232 Observations) 0.330 0.255 0.302 -0.226

2 (19 Observations) -1.907 -1.477 -1.746 1.305

As it can be seen in Figure 1 below, negative interaction effect among satisfac-

tion and natural features is associated with higher level of loyalty. Considering that

both variables satisfaction and natural features directly positively affect loyalty, it

293

could be stated that with high levels of natural features and / or high levels of satis-

faction, the loyalty of tourists grows; only the impacts of these variables on loyalty

disperse. On the other hand, with very low levels of satisfaction and / or natural fea-

tures, even with the positive interaction effect among satisfaction and natural fea-

tures, the loyalty of Lithuanian tourists could be hardly attained.

Fig. 1. Relationship between loyalty and moderating impact on the effect

of satisfaction on loyalty

The elaborated model with the moderating effect of natural features is provided

in Figure 2. The determinants of tourists’ satisfaction positively affect it. Latter vari-

able positively affects tourists’ loyalty. Natural features positively affect tourists’

loyalty and have a negative effect on the impact of tourists’ satisfaction on loyalty.

Fig. 2. The moderating effect of natural features

294

The research results imply that for the Lithuanian tourist high level of destina-

tion’s natural features makes the level of satisfaction less important, meaning that

natural features may compensate the perceived disadvantages in the factors that affect

tourist satisfaction. On the other hand, if natural features in the destination are not

striking, then the factors that affect tourist satisfaction must be managed in order to

make Lithuanian tourists loyal to the destination.

5. Conclusions

1. The government regulators, private investors that have a vested interest in

the development of a high-quality tourism infrastructure, service companies that fo-

cus on inbound tourism need to develop a good understanding of tourist satisfaction

levels, as well as the dynamic changes in these levels. Improving tourist satisfaction

levels is likely to contribute to an enhanced reputation for both: service providers and

the destination as a whole. The main consequence of satisfaction is considered to be

loyalty to the destination. The reason of trying to better satisfy tourists is the attempt

to enhance tourists’ loyalty. Consequently, most of tourist satisfaction models contain

two essential variables: satisfaction and loyalty.

2. Natural features of a destination were found to have the highest effect on

tourists’ loyalty as well as on the evaluation of destination’s attractiveness. In many

cases, not only the tourist satisfaction may directly affect tourists’ loyalty, but also

natural features. This indicates that the relation between satisfaction, loyalty, and nat-

ural features in tourism industry needs to be studied more.

3. Research results proved that natural features directly positively affect tourist

loyalty. Satisfaction was found to directly positively affect loyalty as well, and this

effect was substantial. The moderating effect on the impact of satisfaction on loyalty

was statistically significant, direct and negative. Therefore, the assumption that natu-

ral features moderate the effect of satisfaction on loyalty was substantiated. For posi-

tive evaluations of loyalty, natural features and satisfaction are mostly accompanied

with the negative interaction effect among satisfaction and natural features; as oppo-

site, low evaluations of loyalty, natural features and satisfaction are accompanied

with the positive interaction effect among satisfaction and natural features.

4. For the Lithuanian tourist, high level of destination’s natural features dimin-

ishes the importance of the level of satisfaction; natural features of a destination may

countervail the perceived disadvantages in the factors that affect tourist satisfaction.

If natural features in the destination are not striking, then the factors that affect tourist

satisfaction must be managed in order to enhance Lithuanian tourists’ loyalty to the

destination.

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SĄVEIKA TARP LIETUVOS TURISTŲ PASITENKINIMO IR LOJALUMO: GAMTINĖS

APLINKOS ĮTAKA

Viktorija Grigaliūnaitė, Lina Pilelienė

Vytauto Didžiojo universitetas

Įteikta 2014 05 14; priimta 2014 05 30

Santrauka

Straipsnyje analizuojama gamtinės aplinkos įtaka Lietuvos turistų pasitenkinimo ir lojalumo

sąveikai. Užsienio šalių patirtis ir atliekami tyrimai pagrindžia turistų pasitenkinimo teigiamą po-

veikį turistų lojalumui. Nepaisant to, ši sąveika vis dar laikoma sudėtingu reiškiniu, vertinant gali-

mas papildomų egzogeninių arba endogeninių kintamųjų įtakas turistų pasitenkinimo ir lojalumo

ryšiui. Gamtinė aplinka svarstoma kaip vienas tokių kintamųjų, dėl to naudinga nustatyti sąveiką

tarp gamtinės aplinkos, turistų pasitenkinimo bei lojalumo. Lietuvos turistų atžvilgiu nėra mokslinių

tyrimų, orientuotų būtent į šios sąveikos analizę. Straipsnio tikslas – nustatyti gamtinės aplinkos

įtaką Lietuvos turistų pasitenkinimo ir lojalumo sąveikai. Siekiant straipsnio tikslo, analizuojama

mokslinė literatūra, atliktas kiekybinis tyrimas ir tyrimo rezultatų analizė pasitelkiant struktūrinį

lygčių modeliavimą. Tyrimo rezultate nustatoma sąsaja tarp Lietuvos turistų pasitenkinimo bei loja-

lumo ir gamtinės aplinkos įtaka šiai sąsajai.

Reikšminiai žodžiai: gamtinė aplinka, Lietuvos turizmas, turistų lojalumas, turistų pasitenkinimas.

JEL codes: M31, M39, Q26, Q51.

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