Breffni Noone

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Papers by Breffni Noone

Exploring the upside of waiting: The positive effects of waiting as a cue to brand popularity

International journal of hospitality management, Apr 1, 2024

Integrating customer relationship management and revenue management: A hotel perspective

Journal of Revenue and Pricing Management, Apr 1, 2003

The implications of integrating CRM and RM strategies in the context of the hotel environment, ho... more The implications of integrating CRM and RM strategies in the context of the hotel environment, however, have received little attention. The key questions that need to be addressed are: who should be targeted with CRM efforts and how will those efforts affect the RM process? This paper examines the relationship between CRM and RM. By means of the life time/profitability approach to customer segmentation proposed by Reinartz and Kumar in 2002, the appropriate customer segments to target with CRM efforts are identified and a supporting RM strategy is outlined for each segment. These include traditional RM, lifetime value-based pricing, availability guarantees and short-term and ad hoc promotions. The impact of these RM strategies on business processes in relation to customer segmentation, demand forecasting, information systems management and human resource management is addressed.

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A Tale of Two Cultures: Consumer Reactance and Willingness to Book Fenced Rates

Journal of Travel Research, Jun 13, 2017

Rate fences are integral to the practice of revenue management. Prior research suggests that cros... more Rate fences are integral to the practice of revenue management. Prior research suggests that cross-cultural differences in consumer reaction to rate fences exist but little is known about why this is so. This research employed two experimental studies with consumers from the United States and South Korea to explore the mechanisms underlying cultural differences in consumer reaction to nonphysical and physical rate fences. In Study 1, we found that feelings of reactance mediate the restriction-based nonphysical rate fence-willingness to book relationship for highly individualistic cultures, but not for highly collectivist cultures. Study 2’s findings suggest that consumers from low-context cultures favor product-based, over service-based, physical rate fences, while consumers from high-context cultures are unlikely to react differently to product-based, and service-based, physical rate fences. Together, the findings of Study 1 and Study 2 provide tourism managers a framework within which geolocation-based pricing strategies, and associated rate fences, can be evaluated.

Consumer Goals and the Service Encounter: Evaluating Goal Importance and the Moderating Effect of Goal Progress on Satisfaction Formation

Journal of Hospitality & Tourism Research, Oct 19, 2009

This study examines the stability of consumer goal importance across consumption episodes within ... more This study examines the stability of consumer goal importance across consumption episodes within the service encounter and the role of goal progress in the attribute— consumer satisfaction relationship in the context of restaurant experiences. Results indicate that consumers pursue multiple goals within the consumption experience, and the importance of those goals differs across consumption episodes within the experience. Using pace as a service attribute, it was found that goal progress moderates the impact of service attributes on consumer satisfaction. Satisfaction was high regardless of pace when goal progress was high. At low levels of goal progress, a moderate pace resulted in higher satisfaction than a slow or a fast pace. Implications for hospitality managers are discussed.

Show Me What You See, Tell Me What You Think: Using Eye Tracking for Hospitality Research

Identifying precisely what consumers are looking at (and by implication what they are thinking) w... more Identifying precisely what consumers are looking at (and by implication what they are thinking) when they consider a web page, an image, or a hospitality environment could provide tremendous insights to the hospitality industry. By using eye tracking technology, one can almost literally see through the eyes of the customer to find out what information is examined at various points during the hotel search process or to assess which property design features attract guests' attention. When eye tracking is immediately followed by interviews that review a graphical representation of the consumer's eye movements, the thought processes behind consumers' visual activity can be uncovered and explored. In this paper we explain how eye tracking works and how it could apply to hospitality research. Today's eye tracking systems are easy for researchers to set up and use and are virtually transparent to the participant during use, making eye tracking a valuable method for examining consumer choice or facility design, or to develop employee training procedures. We argue that eye tracking would provide rich results and deserves to be considered for a wide range of hospitality applications.

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Scarcity-Based Price Promotions: How Effective are they in a Revenue Management Environment?

Journal of Hospitality & Tourism Research, May 19, 2020

Two key characteristics of revenue management (RM) environments-fixed capacity and the applicatio... more Two key characteristics of revenue management (RM) environments-fixed capacity and the application of variable pricing-have the potential to influence consumers' reactions to scarcity-based price promotions. In this study, we explore consumer reaction to two types of restrictions on price promotions-limited-time scarcity (LTS) and demand-driven limited-quantity scarcity (LQS)-in the RM context. We propose a moderated mediation model, wherein perceived consumer competition, perceived price uncertainty, and anticipated regret mediate the price promotion type (restricted vs. unrestricted)-booking intentions relationship, and booking lead-time moderates the relationship of price promotion type with perceived consumer competition and price uncertainty. Our findings suggest that LTS and LQS are effective in driving consumers' perceptions of competition for available inventory and price uncertainty when booking lead-time is long. In turn, heightened perceptions of competition and price uncertainty amplify anticipated regret, leading to a positive effect on booking intentions. Conversely, when booking lead-time is short, restrictions-based price promotions do not differ significantly from nonrestricted promotions in terms of their effect on consumers' booking intentions. This research provides guidance for hospitality marketing managers regarding how, and when, to employ scarcity-based price promotions to influence consumers' booking behavior.

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Overcompensating for severe service failure: perceived fairness and effect on negative word‐of‐mouth intent

Journal of Services Marketing, Jul 27, 2012

PurposeThis study aims to examine the perceived fairness of overcompensation for severe service f... more PurposeThis study aims to examine the perceived fairness of overcompensation for severe service failures. The mediating effect of perceived fairness in the overcompensation‐negative word‐of‐mouth (NWOM) intent relationship is also explored.Design/methodology/approachAn experimental design approach was utilized to test the study's hypotheses. Overcompensation amount was manipulated at three levels (50 percent, 100 percent, 200 percent of purchase price), with two forms of overcompensation (cash or credit) tested.FindingsCash‐based overcompensation yielded higher perceptions of distributive justice than full compensation, with no significant difference in distributive justice perceptions across cash amounts. Credit‐based overcompensation was perceived as no fairer than full compensation. Perceived distributive justice fully mediates the overcompensation‐NWOM intent relationship.Research limitations/implicationsThe study's findings are based on a single service context. Further research across different service environments is needed to confirm the robustness of the results. The results are based on scenarios rather than real events. A longitudinal field study that examines consumer reaction at the point of service recovery and tracks actual subsequent behaviors is merited.Practical implicationsThe study's findings suggest that, when a severe service failure occurs, service firms should consider going beyond full compensation, offering the consumer an additional cash amount. However, more is not necessarily better – a small additional cash amount may induce similar perceptions of fairness to larger amounts.Originality/valueThis study yields insights into the perceptions of distributive justice associated with different amounts and forms of overcompensation for severe service failure, and demonstrates the mediating effect of perceived distributive justice in the overcompensation‐NWOM intent relationship.

An investigation into the application of customer profitability analysis as a strategic decision-making tool in a hospitality environment

The primary objective of this study was to investigate the Applicability of Customer Profitabilit... more The primary objective of this study was to investigate the Applicability of Customer Profitability Analysis as a strategic decision-making technique in a hospitality environment. The study commenced with a review of literature in the fields of Yield Management, Customer Profitability Analysis (CPA) and Activity-Based Costing (ABC), with ABC being identified as an appropriate method of costing to use in CPA. Issues arising from the implementation of an Activity-Based CPA including the purpose of the system, the selection of software and the identification o f activities and drivers are considered both in the context of a literature review and are later considered in the context of the primary research undertaken by the author. The primary research involved the development of an Activity-Based CPA and its implementation in a hotel environment. The test site chosen for the implementation of the system was a three star, medium-sized hotel property located in the centre of Dublin city. The time taken to conduct the study at the site was thirteen months. Findings indicate that the concept of CPA, using ABC, is applicable in the hotel environment. Findings also suggest that is technically feasible to apply an Activity-Based CPA in a hotel organisation with results o f the analysis at the site providing valuable information to management for decision-making. One of the significant findings of the analysis was that 38% of revenue generated at the site is contributing to 137% of total profits. The study has resulted in the availability of cost and revenue data by customer group, data that was previously inaccessible by management at the site. Management anticipate maintaining the system at the site in order to use the customer profitability information generated by the system in long-term customer-related decisions. ABC Activity-Based Costing CIMA -Chartered Institute o f Management Accountants CPA Customer Profitability Analysis IBEC Irish Business and Employers Confederation

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Firm Performance During a Crisis: Effects of Adhocracy Culture, Incremental Product Innovation, and Firm Size

Journal of Hospitality & Tourism Research, Apr 8, 2022

The government-mandated closure of U.S. restaurants for in-restaurant dining during the early sta... more The government-mandated closure of U.S. restaurants for in-restaurant dining during the early stages of the COVID-19 crisis cast a spotlight on operators' ability to effectively innovate, and re-imagine their product offerings. In this context, this research draws on the resource-advantage theory of competitive advantage, proposing that (1) an adhocracy culture is a key internal resource that operators can leverage to drive rapid incremental product innovation under forced change, and (2) firm size is a contextual factor that moderates the degree of incremental product innovationfirm performance relationship. Findings from two empirical studies indicate that adhocracy culture positively and indirectly effects firm performance through degree of incremental product innovation, and that this effect is moderated by firm size. Larger firms yield superior performance effects due to access to a network of interconnected resources for rapid innovation diffusion in a crisis.

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Unhoused and unhireable? Examining employment biases in service contexts related to perceived warmth and competence of people experiencing houselessness

Journal of Community Psychology

Lack of safe and stable housing is a pernicious and growing social concern, and stereotypes about... more Lack of safe and stable housing is a pernicious and growing social concern, and stereotypes about individuals experiencing houselessness are generally quite negative. Little scholarly work has examined housing insecurity and its associated stereotypes in employment contexts. The purpose of the current research was to examine, in the context of the hospitality industry, whether housing status influences hiring managers' perceptions of hireability (Study 1) and customers' evaluations of an organization and its employees (Study 2) using the stereotype content model. Across two experimental studies, we assessed participant attitudes toward individuals experiencing houselessness. In Study 1, we instructed 148 hotel managers to listen to a hypothetical job interview with either an unhoused or housed job applicant, and then complete measures of hireability. In Study 2, we instructed 139 hotel customers to observe a hypothetical interaction with either an unhoused or housed employee...

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Firm Performance During a Crisis: Effects of Adhocracy Culture, Incremental Product Innovation, and Firm Size

Journal of Hospitality & Tourism Research

The government-mandated closure of U.S. restaurants for in-restaurant dining during the early sta... more The government-mandated closure of U.S. restaurants for in-restaurant dining during the early stages of the COVID-19 crisis cast a spotlight on operators’ ability to effectively innovate, and re-imagine their product offerings. In this context, this research draws on the resource-advantage theory of competitive advantage, proposing that (1) an adhocracy culture is a key internal resource that operators can leverage to drive rapid incremental product innovation under forced change, and (2) firm size is a contextual factor that moderates the degree of incremental product innovation-firm performance relationship. Findings from two empirical studies indicate that adhocracy culture positively and indirectly effects firm performance through degree of incremental product innovation, and that this effect is moderated by firm size. Larger firms yield superior performance effects due to access to a network of interconnected resources for rapid innovation diffusion in a crisis.

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Encounter Pace: A Revenue Management Perspective

The ability to manage the time involved in a service process is critical to effective revenue man... more The ability to manage the time involved in a service process is critical to effective revenue management (RM). At the same time, customer satisfaction is also a key element of time management in services. In this study, we explore the time component of RM in services that sell time implicitly by examining a dining experience. Although service managers can use pace to manage the duration of a service encounter and increase capacity during periods of high demand, manipulating the pace may interfere with customer satisfaction. Prior research has shown that the relationship of perceived pace with customer satisfaction follows an inverted U-shape. If the service pace misses the “sweet spot ” that balances pacing with customer satisfaction, the revenue benefits of increasing pace may be short-lived. Using a survey-based approach, we examine the moderating effect of restaurant customers ’ perceived control of pace on the relationship between perceived pace and customer satisfaction. We fou...

Strategic Revenue Management and the Role of Competitive Price Shifting

This paper examines whether stable competitive pricing positions yield better average annual RevP... more This paper examines whether stable competitive pricing positions yield better average annual RevPAR growth than do price shifts either upward or downward, as compared to competitors’ positions. Using property level data on average daily rate (ADR) and average annual RevPAR growth, this study found two contrasting priceshifting strategies. For hotels that were lower priced relative to their competitors in 2007, the most popular strategy was to make price shifts to higher price categories in both 2008 and 2009. In contrast, the most popular strategy for hotels that originally positioned themselves above the competition was to move to lower price categories in both 2008 and 2009. Although RevPAR fell for all hotels during this period, the strategy of shifting to a higher price category was the most successful in terms of average annual RevPAR growth over the three-year period of this study. On the other hand, a shift to lower prices was least successful in delivering RevPAR growth. Ove...

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Show Me What You See, Tell Me What You Think: Using Eye Tracking for Hospitality Research

Identifying precisely what consumers are looking at (and by implication what they are thinking) w... more Identifying precisely what consumers are looking at (and by implication what they are thinking) when they consider a web page, an image, or a hospitality environment could provide tremendous insights to the hospitality industry. By using eye tracking technology, one can almost literally see through the eyes of the customer to find out what information is examined at various points during the hotel search process or to assess which property design features attract guests’ attention. When eye tracking is immediately followed by interviews that review a graphical representation of the consumer’s eye movements, the thought processes behind consumers’ visual activity can be uncovered and explored. In this paper we explain how eye tracking works and how it could apply to hospitality research. Today’s eye tracking systems are easy for researchers to set up and use and are virtually transparent to the participant during use, making eye tracking a valuable method for examining consumer choic...

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コーネル・クォータリー誌から食事の所要時間と顧客満足度

Total Hotel Revenue Management: A Strategic Profit Perspective

Hospitality firms are expanding traditional revenue management (RM) practice to focus on customer... more Hospitality firms are expanding traditional revenue management (RM) practice to focus on customer value and strategic profit management. Participants in series of semi-structured interviews suggested that revenue management is moving away from a sole focus on top-line rooms revenue toward a bottomline orientation focused on the customer. Thus, RM will expand to multiple revenue sources and encompass a multi-channel demand management approach. The interviews with sixteen senior hotel leaders, RM vendors, and solution providers highlighted the importance of profit, rather than just revenue, given rising distribution and variable costs. Despite the attraction of other revenue and profit sources, such as F&B, spas, and function space, the participants noted that expanding RM to those areas involves complexities not found in the rooms division. Ideally, hoteliers seek to assess the value of each customer’s patronage and develop a specific relationship with each customer. With changes env...

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The Uniqueness of Revenue Management Approaches in Nontraditional Settings: The Case of the Golf Industry

Journal of Hospitality & Tourism Research, 2019

This study focuses on two demand and supply characteristics that may affect the transferability o... more This study focuses on two demand and supply characteristics that may affect the transferability of revenue management (RM) practices from traditional (e.g., hotels) to nontraditional (e.g., golf, restaurants, entertainment venues) RM settings. Consumption within many nontraditional RM settings is largely discretionary in nature, with the potential to affect how demand and price should be managed across the booking horizon. Equally, operators are often challenged with a high degree of time-based inventory complexity, which may require that price and inventoried demand are managed at a greater level of granularity than traditional RM applications dictate. Using longitudinal golf reservations data, we found that superior revenue performance was associated with capturing a higher proportion of demand early in the booking horizon, rather than protecting inventory at higher prices for late bookers. Competitive price positioning in which price was higher than the competition during within-...

An investigation into the application of customer profitability analysis as a strategic decision-making tool in a hospitality environment

Noone Breffni M an Investigation into the Application of Customer Profitability Analysis As a Strategic Decision Making Tool in a Hospitality Environment Master of Business Studies Thesis Dublin City University, 1997

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A decision framework for restaurant revenue management

Journal of Revenue and Pricing Management, 2015

An increasingly complex and dynamic operating environment demands that restaurant operators lever... more An increasingly complex and dynamic operating environment demands that restaurant operators leverage the wealth of data available to them to drive decisions that support sustained profitability. The goal of this article is to integrate academic research with developments in the field to provide restaurant operators with a comprehensive decision-making framework for restaurant revenue management (RRM). The framework promotes the systematic application of internally and externally generated data to support RRMrelated decisions. This framework reflects a broad vision of RRM that is concerned with driving long-term demand and sustained profitability in addition to supporting short-term revenue generation.

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Consumer reaction to crowding for extended service encounters

Managing Service Quality: An International Journal, 2009

PurposeMuch of the research on crowding in a service context has focused on customer reaction to ... more PurposeMuch of the research on crowding in a service context has focused on customer reaction to crowding in a retail setting. This paper seeks to examine the effect of consumer goals on consumers' reactions to crowding for extended service encounters.Design/methodology/approachThe authors used a 2 (Crowding: crowded or not crowded) × 2 (Goal: utilitarian or hedonic) × 2 (Service level: bad or good) factorial, between‐subjects design to test hypotheses. Service level and tolerance for crowding were entered as control variables. A service encounter in a casual restaurant was used as the service setting in the study. Subjects were randomly assigned to a written scenario describing an experience in a restaurant. They were then shown a photograph depicting the interior of the restaurant.FindingsConsumption goal moderates the effect of perceived crowding on satisfaction. Significantly lower satisfaction ratings are associated with a crowded service environment when the primary consum...

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