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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

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    1. 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.
    2. 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.
    3. 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.
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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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