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Research Note: Service Quality and Market Structure in the International Tourist Hotel Industry

Author

Listed:
  • Yu-Chen Lin

    (Department of Economics, Soochow University, 56 Kuei-Yang St, Sec 1, Taipei, Taiwan)

  • Chiang-Ming Chen

    (Department of Economics, National Chi Nan University, 1 University Road, Puli, Nantou 54561, Taiwan)

Abstract

This paper empirically examines the relationship between service quality and market structure using metropolitan-level panel data from the Taiwanese hotel industry. The empirical results indicate, first, that the influence of market structure on room service quality is U-shaped – high and low levels of market concentration lead to better service quality; and, second, that market structure is positively associated with food and beverage service quality.

Suggested Citation

  • Yu-Chen Lin & Chiang-Ming Chen, 2014. "Research Note: Service Quality and Market Structure in the International Tourist Hotel Industry," Tourism Economics, , vol. 20(3), pages 647-654, June.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:3:p:647-654
    DOI: 10.5367/te.2013.0284
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    References listed on IDEAS

    as
    1. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    2. Chia-Yu Yeh & Chiang-Ming Chen & Jin-Li Hu, 2012. "Business Diversification in the Hotel Industry: A Comparative Advantage Analysis," Tourism Economics, , vol. 18(5), pages 941-952, October.
    3. McMaster, Robert, 1995. "Competitive Tendering in UK Health and Local Authorities: What Happens to the Quality of Services?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 42(4), pages 409-427, November.
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    Cited by:

    1. Hung‐Hao Chang & D. Daniel Sokol, 2022. "How incumbents respond to competition from innovative disruptors in the sharing economy—The impact of Airbnb on hotel performance," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 425-446, March.

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