Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Chinese Tourists’ Satisfaction with Taiwan Tourism and
Travel-Related Services
Shih, Yen Ming Sun1 and Sher, Shih- Shue 2
Tourism development between Taiwan and China has entered a new era, in
which the number of Chinese tourists visiting Taiwan has approached a record
high of several million. The objective of this study was to investigate the
variables that influence the satisfaction of Chinese tourists traveling in Taiwan
by analyzing the level of influence among variables such as destination image,
customer expectations, perceived quality, perceived value, and customer
satisfaction. The results indicated that destination image, perceived quality,
and perceived value significantly positively influenced customer satisfaction,
and customer expectation exerted no significant effect on customer
satisfaction. Destination image positively influenced customer expectation,
which positively affected perceived quality but exerted no influence on
perceived value. Perceived quality positively influenced perceived value.
According to the elements of the PZB service quality model, we analyzed the
level of importance by using the importance–performance analysis . The
results revealed that tourism operators must invest additional resources that
would cater to the “care” needs of Chinese tourists.
Field: Customer Service and Customer Relations
1. Introduction
Since 2008 when the Taiwanese government opened access for Chinese tourists to visit
Taiwan, the number of Chinese tourists entering Taiwan drastically rose from approximately
329,000 people in 2008 to more than 2,874,000 people in 2013 according to the Taiwan
Ministry of the Interior. Such impressive number of Chinese tourists has activated Taiwan’s
1
Mr. Shih, Yen Ming-Sun, Ph.D. Candidate at the School of Business Administration, Dongbei University of
Finance and Economics, China. Add: 2F.-1, No.318, Wolong St., Da’an Dist., Taipei City 106, Taiwan
(R.O.C.)
Email: ilovescart@hotmail.com
2
Dr. Sher, Shih-Shue, Associate Professor at the Department of Business Administration, Feng Chia
University,Taiwan. Add: No.10, Chaoma 3rd St., Xitun Dist., Taichung City 407, Taiwan (R.O.C.)
Email: sssher@fcu.edu.tw
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
tourism market, which is extremely crucial to boosting Taiwan’s economy. According to the
Tourism Bureau of Taiwan, 2,874,702 Chinese people visited Taiwan in 2013, exhibiting an
increase of 11% since 2012 among which 2,263,635 people visited for pleasure purposes,
demonstrating an increase of 12%. These results indicate that Chinese tourists have become
the primary customer base for Taiwan’s tourism market.
Opening Taiwan to Chinese citizens is conducive to the development of Taiwan’s tourism
industry. Problems associated with the low tourism-related quality resulting from the growing
number of Chinese tourists visiting Taiwan have begun to surface. The large amount of tours
Taiwanese travel agencies provide has resulted in a shortage of tour guides,
accommodations, and transportations. According to travel agencies in China, Chinese
tourists are most dissatisfied with the poor quality of Taiwanese tour guides. Thus, failure to
address these problems will further deteriorate the quality of services provided to Chinese
tourists, severely affecting tourism development in Taiwan.
Destination image is one of the key factors that prompt tourists to visit a country. However,
are Chinese tourists satisfied with their trip in Taiwan? What are the factors influencing their
satisfaction with Taiwan’s services? In general, previous studies have rarely explored the
association among destination image, perceived quality, perceived value, and satisfaction of
Chinese tourists in Taiwan, which therefore motivated us to investigate this topic.
Service quality is typically measured using instruments such as the SERVQUAL scale
developed by Parasuraman et al., (1988) and the important–performance analysis (IPA)
method proposed by Martilla and James (1977). IPA is often used to assess the importance
and performance of quality factors. Therefore, as the second research motivation of this
study, we employed these two instruments to investigate the service quality factors valued by
Chinese tourists visiting Taiwan and factors with which they are satisfied.
Based on the aforementioned background and motivation of this research, the objectives of
this study are to investigate crucial factors that influence the satisfaction of Chinese tourists
visiting Taiwan and examine the relationship between the level of importance that Chinese
tourists place on service quality and their satisfaction toward service quality by using the IPA.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
2. THEORY AND HYPOTHESES
2.1. Destination Image
Destination image is defined as an individual’s overall perception of a series of impressions
of a place (Hunt, 1975; Fakeye & Crompton, 1991; Mansfeld, 1992. It involves tourists’
cognition and emotions (Moutinho, 1987) and can be regarded as a type of expectation that
tourists have for a destination, a positive impression resulting from pleasant travel
experiences, and a factor that influences tourists’ consideration, cognition, and decision
regarding a destination (Birgit, 2001).
Consumers generally form expectations for subsequent purchases based on past
experiences, word-of-mouth (WOM), and individual needs (Parasuraman et al., 1985). Birgit
(2001) indicated that destination image exerts communicative, promotional, and marketing
effects that are conducive to attracting tourist visits, increasing the number of tourists, and
disseminating positive WOM. Destination image can be viewed as tourists’ expectation for a
destination, influencing their considerations, selections, and decisions regarding the desired
vacation destination. Baker and Crompton (2000) asserted that satisfaction is associated
with the actual experience of an activity; it stems from the psychological perceptions and
emotional states generated after interacting with a destination. Bigne et al., (2001) stated that
destination image positively influences cognitive perceptions, satisfaction, intention to revisit
a place, and intention to recommend the place to others. Therefore, based on the
aforementioned assertions, this study proposed the following hypotheses:
H1: Destination image exerts a significantly positive effect on customer expectation.
H2: Destination image exerts a significantly positive effect on customer satisfaction.
2.2. Service Quality and Customer Satisfaction
Parasuraman et al., (1985) maintained that service quality is a measure of the gap between
customer perceptions of the service delivered by specific operators and customer
expectations of the service. The perception of service quality is formed over a long period of
time. Zeithaml et al., (1988) described service quality as a type of attitude generated from a
comparison between expectations and performance and suggested that although service
quality is correlated with satisfaction, these two factors differ. Gronroos (1984) proposed a
service quality model, asserting that service quality is perceived after a comparison of the
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
expected service level and the perceived service level. Expected service level is influenced
by external factors such as corporate image, traditional marketing activity, and previous
experiences and WOM, and perceived service level is influenced by corporate image. In
addition, Gronroos (1984) suggested that perceived service quality should comprise three
service quality dimensions, namely, corporate image, technique quality, and function quality.
Corporate image is the evaluation that customers have of a company or its image; technique
quality refers to the quality of services actually delivered; and function quality indicates the
method by which service is delivered.
Parasuraman et al.,(1985) introduced the service quality model (commonly known as the
Parasuraman, Zeithaml, and Berry [PZB] model), maintaining that service quality is formed
because of the gap existing between customer expectation and perception of a service;
subsequently, they developed a service quality gap model. Parasuraman et al. (1985)
conducted an exploratory research, proposing 10 service quality dimensions, which were
then reduced to five dimensions (i.e., tangibles, reliability, responsiveness, assurance, and
empathy; Parasuraman et al.,1988), forming a SERVQUAL scale that can be used to
measure service quality.
Based on the above assertions, this study explored the antecedents of customer satisfaction
based on the dimensions of expectation, perception, and value.
(1) Customer Expectations
Customer expectation can be considered to be an indicator of satisfaction (Oliver, 1980).
Parasuraman et al. (1985) stated that consumers typically derive expectations for the next
service based on previous experiences, WOM, and personal needs. Several scholars have
indicated that quality comprises two crucial elements: customization, which refers to whether
products or services satisfy customer needs; and reliability, which is the extent to which
products or services are reliable for fulfilling customer needs. Therefore, Lee and Deng (2007)
referenced the service quality model proposed by Gronroos (1984), using expected
customization, expected reliability, and overall expectation as the measurement indicator of
customer expectation.
(2) Perceived Quality
Perceived quality is the level of the perception that customers have of a service, representing
the service level actually perceived by customers with regards to the technique and function
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
quality of a service (Gronroos,1984; Parasuraman et al., 1988; Lee & Teng, 2007). Lee and
Deng (2007) asserted that measurement indicator (perceived quality) and observed variable
(customer expectation) are approximately identical; therefore, they classified measurement
indicators into overall perceived quality, perceived function quality, and perceived technique
quality based on Gronroos’ (1984) model.
Customer expectation positively influences perceived quality (Fornell et al., 1996; Cassel &
Eklof, 2001) and perceived value (Fornell et al., 1996; Cassel & Eklof, 2001). Oliver (1980)
viewed customer expectation as in indicator for measuring satisfaction level. Parasuraman et
al. (1985; 1993) reported that customer satisfaction is determined by the gap between
expectation and actual perception of a service, which explains the nature and decisive
factors of customer service expectation. Numerous studies have indicated that customer
satisfaction with a service is measured based on not only the performance of a service but
also a comparison with previous expectations (Cronin & Taylor, 1992; Oliver & DeSarbo,
1988). Therefore, based on the aforementioned assertions, this study proposed the following
hypothesis:
H3: Customer expectation exerts a significantly positive influence on perceived quality.
Cronin et al., (2000) indicated that service quality influences value, meaning that differing
service quality results in distinct overall evaluation. Bigne et al.,(2001) considered that the
evaluation of the tourism image can be appropriately interpreted as an effect exerted on
tourists’ perception of the quality of a destination. Zeithaml and Bitner (1996) reported that
customers’ perceived quality influences customer satisfaction. Numerous studies have
verified that perceived quality is causally related with perceived value and satisfaction
(Parasuraman et al., 1985; 1993; Fornell, 1992; Fornell, et al., 1996; Cassel & Eklof, 2001).
(3) Perceived Value
Perceived value refers to the gap between the quality acquired by customers and the cost
expended to acquire such quality (Dodds & Monroe, 1985; Gale, 1994; Engel et al., 2001); it
is the evaluation outcome of customers’ perception on a product or service, a result of a
trade-off between perceived benefits and perceived costs. Petrick and Backman (2002)
introduced a SERV-PERVAL multi-dimensional scale to measure customer perceived value;
this scale consists of five dimensions, including quality, monetary price, non-monetary price,
emotional response, and reputation.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Andreas and Wolfgang (2002) believed perceived value to be a predictor of satisfaction.
Fornell (1992) mentioned that value directly influences customer satisfaction, a finding that
has also been reported in numerous other studies, which demonstrated that perceived value
positively influences customer satisfaction (Howard & Sheth, 1969; Fornell, et al., 1996;
Cassel & Eklof, 2001; Johnson et al., 2001). Accordingly, the following hypotheses were
proposed:
H4: Customer expectation exerts a significantly positive influence on perceived value.
H5: Customer expectation exerts a significantly positive influence on customer satisfaction.
H6: Perceived quality exerts a significantly positive influence on perceived value.
H7: Perceived quality exerts a significantly positive influence on customer satisfaction.
H8: Perceived value exerts a significantly positive influence on customer satisfaction.
(4) Importance–Performance Analysis
Importance–performance analysis (IPA) is a technique used for prioritizing attributes relevant
to specific services or products based on the level of “importance” (that consumers place on)
and “performance” (as perceived by consumers; Sampson & Showalter, 1999). Martilla and
James (1997) proposed a simple IPA framework, compiling the mean scores of importance
and performance into a 2D matrix, in which the axis scale and quadrant position are
arbitrarily defined and the locations of differing points in the matrix are analyzed. In brief, IPA
involves compiling the mean scores of attribute importance and performance into a 2D matrix
(Huang, Wu & Hsu, 2006) and dividing the 2D matrix into four quadrants based on the total
mean value of importance and performance level.
By using the IPA, this study investigated the relationship between the expectation and
perception that Chinese tourists visiting Taiwan have toward a service and the level of
importance and satisfaction that they exhibited toward the elements of service quality.
Regarding the judgment criterion used during hypothesis testing, if the data obtained from
the sampled questionnaire survey yielded a 2D IPA matrix, Hypothesis 9, as presented below,
is then accepted.
H9: A significant difference exists between the expected importance and perceived
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
satisfaction of customer service quality.
3. METHODS
3.1. Sample
The participants of this study comprised Chinese tourists visiting Taiwan; however, the
participants were limited to those who participated in group tours, excluding those who
engaged in self-guided tours and single-point travel. Purposive sampling was used to sample
the research sites of this study. Researchers were dispatched to tourist attraction areas in
Northern, Central, and Southern Taiwan, such as the National Palace Museum, Sun Moon
Lake, Chung Tai Chan Monastery, Fengjia Night Market, and Alishan National Scenic Area.
These areas are all tourist attraction spots that Chinese tourists would definitely visit. The
survey period spanned from February 2013 to May 2013.
3.2. Measurement of Variables
In this study, we measured the items of the variables analyzed in this study by employing a
5-point Likert scale, where 1 represents strongly disagree, 5 represents strongly agree, and 3
represents no opinion.
To measure the level of importance and satisfaction among Chinese tourists regarding the
elements of service quality, this study adopted the dimensions of the SERVQUAL scale
proposed by Parasuraman et al., (1988), namely, tangibles, reliability, responsiveness,
assurance, and empathy. The elements of service quality were divided into Chinese tourists’
expected importance and perceived satisfaction, both of which were rated using a 5-point
Likert scale, where a score of 1–5 represents high to low levels of importance and high to low
levels of satisfaction, respectively.
Data Analysis:
This study employed structural equation modeling (SEM) to verify the overall research
framework; valid questionnaires were encoded, and PASW Statistics 18.0 and Visual PLS
1.04 were used to analyze the collected data.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
4. RESULTS
In this study, we retrieved 400 samples. To understand the structure of the retrieved valid
samples, this study conducted frequency distribution analysis on the demographic
information of the participants. The results showed that among the participants, 64% of the
participants are women, accounting for the highest proportion; 61.8% are aged 31–50; 73.3%
are married; 54% possess a bachelor’s degree; 81.9% visited Taiwan for the first time; and
64.8% visited Taiwan for 8–10 days.
4.1. Hypothesis Testing for Customer Satisfaction
This study adopted SEM to test the research framework of customer satisfaction. According
to the 2-stage procedure proposed by Anderson and Gerbing (1988), we employed
confirmatory factor analysis to test the data of the measurement model; the goal was to
confirm whether latent variables can effectively explain the variations in the observed
variables. Subsequently, path analysis and goodness-of-fit test were performed on the
structural equation model to test the significance of the causal relationships between each
latent variable. Visual PLS 1.04 was used for SEM analysis, and the partial least square
(PLS) method was employed for parameter estimations.
The estimation results for the measurement models of destination image, customer
expectation, perceived quality, perceived value, and customer satisfaction were analyzed. If
the indicators and variables exhibited a factor loading of greater than 0.5 and significance (t
value > 1.96) to their corresponding latent constructs, this means that the indicators and
variables exhibited significant explanatory power when used to measure their corresponding
latent constructs.
This study used PLS as the method of parameter estimation. Because PLS does not support
statistical significance testing and confidence interval of path coefficient estimation, this study
adopted the bootstrapping method proposed by Bollen and Stine (1992) to estimate the
significance of path analysis and test the hypotheses proposed in this study. In addition,
because the hypotheses were unidirectional, we employed a one-tailed t test (t>1.645,
p<0.05) to test the hypotheses (Teo et al., 2003). A t value of greater than 1.645 indicates
significance, implying that the hypothesis is supported. In PLS, R2 is the primary indicator
determining model quality and represents the proportion of explainable variance to the total
variance; thus, a large R2 indicates that the regression model has satisfactory explanatory
power. Generally, R2 greater than 0.18 suggests a satisfactory model fit.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
This study verified the causal relationship among the variables of destination image,
customer expectation, perceived quality, perceived value, and customer satisfaction (i.e.,
H1–H8). Based on the PLS parameter estimates, this study summarized the SEM results into
Table 1 and Figure 1, which present the standardized path coefficient (γ), standard error, t
values, and explained variance (R2).
Regarding the predictability of the model, the SEM results revealed that destination image
can explain 18.2% of the variation in customer satisfaction; customer expectation can explain
23.0% of the variation in perceived quality; customer expectation and perceived quality can
explain 60.7% of the variation in perceived value; and destination image, customer
expectation, perceived quality, and perceived value can explain 73.9% of the variation in
customer satisfaction. Overall, the explanatory power of all the constructs satisfied the
threshold as recommended by previous scholars, indicating that the model of this study
demonstrated a satisfactory model fit. Concerning the significance of path coefficients based
on the t values, this study found that except for the path from customer expectation to
perceived value and customer satisfaction, which did not exhibit significance, the path
between the other variables demonstrated a significant relationship.
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Proceedings of Annual Tokyo Business Research Conference
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Table 1 Path analysis of customer satisfaction structural equation model
Path
Standard
Path
coefficient
t-value
R2
error
(γ)
Destination image →
0.414
0.051
8.078**
0.182
Customer expectation
Customer expectation
→ Perceived quality
Customer expectation
→ Perceived value
0.480
0.039
12.166**
0.046
0.031
1.452n/s
**
0.607
Perceived quality →
Perceived value
0.756
0.034
Destination image →
Customer satisfaction
0.083
0.035
2.372**
0.036
0.030
1.187n/s
Customer expectation
→ Customer
0.230
21.979
satisfaction
0.739
Perceived value →
Customer satisfaction
0.644
0.053
12.208**
Perceived quality →
Customer satisfaction
0.177
0.052
3.377**
Note: one-tailed; t>1.645, p<0.05(*); t>2.326, p<0.01(**); n/s=not significant
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Proceedings of Annual Tokyo Business Research Conference
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Figure 1. SEM results of customer satisfaction
Destination
Image
**
0.414
**
0.083
Customer
Expectation
2
R =0.182
n/s
0.036
0.046
n/s
**
0.480
0.756
Perceived
Quality
2
R =0.230
**
Perceived
Value
2
R =0.607
**
0.644
Customer
Satisfaction
2
R =0.739
**
0.177
Note: * p<0.05; ** p<0.01; n/s=not significant
4.2. Importance –Performance Analysis
This study adopted the SERVQUAL
performance (satisfaction) of service
recommendations for the management
and perceived satisfaction were rated
scale and IPA to explore the importance and
quality factors and to provide comprehensive
of customer satisfaction. The levels of importance
using a score of 1 (low)–5 (high). Based on the
perspectives of Chinese tourists, the importance (x-axis) of the 18 service quality attributes
achieved scores ranging from 4.160 to 4.365, and the satisfaction (y-axis) ranged from 3.762
to 4.055. This study adopted the average values of the overall satisfaction (3.853; y-axis) and
importance level (4.272; x-axis) perceived by the Chinese tourists regarding the service
quality as the baseline for dividing the 2D matrix of the IPA into four quadrants (Figure 2). In
Figure 2, the numbers represent the variables of each service quality attribute. Overall, five,
four, five, and four attributes were identified in Quadrants I, II, III, and IV, respectively. Figure
2 depicts the IPA results of the service quality elements.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Figure 2. IPA results of the service quality elements
II
I
Satisfaction
III
IV
Importance
This study applied the IPA model to elucidate the relationship between the expectation and
perception that Chinese tourists visiting Taiwan have toward a service and the level of
importance and satisfaction that they exhibited toward the elements of service quality. The
analysis results indicated that a 2D matrix was obtained, implying that H 9 was supported.
5. DISCUSSION
5.1. Conclusion
According to the results of this study, landscape sceneries and cuisines are the primary
factors attracting tourists to visit Taiwan and most tourists typically shop and visit night
markets in Taiwan. In addition, we identified that the impression that Chinese tourists have of
Taiwan tourism influenced their satisfaction toward the overall travel experience.
Perceived quality in terms of service reliability and the extent to which a service satisfied their
needs (as perceived by the Chinese tourists after they have travelled in Taiwan) exhibited a
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
significant positive correlation with customer satisfaction. Concurrently, the positive function
quality, emotions, and values perceived in the Chinese tourists as a result of excellent
service quality demonstrated a significant positive correlation with customer satisfaction. This
result is consistent with the findings of previous scholars, who asserted that satisfactory
service quality and perceived value influence customer satisfaction (Parasuraman et al.,
1985; 1993; Fornell, 1992; Fornell et al., 1996; Zeithaml & Bitner, 1996; Cassel & Eklof, 2001;
Johnson et al., 2001). We also determined that customers’ perceived service quality is
directly related with perceived value, which verified previous assertions that excellent service
quality positively affects customers’ perceived value (Parasuraman et al., 1985; 1993; Fornell,
1992; Fornell et al., 1996; Cassel & Eklof, 2001).
Based on the perspectives of Chinese tourists, the attributes related to the quality of services
provided by Taiwanese tourism operators that fell in Quadrant I (Keep up the good work)
included the following: the service personnel was happy to help me (responsiveness), the
service personnel was able to provide a detailed service description (responsiveness), the
service personnel was well-mannered and meticulous in providing services (assurance), the
service personnel made me feel at ease during the interaction process (assurance), and the
service personnel was sufficiently knowledgeable (assurance). Based on the PZB service
quality dimensions, two of the attributes belonged to the dimension of responsiveness and
the remaining attributes were classified as the assurance dimension. This indicates that the
professional knowledge, amiable manners, and trustworthiness of Taiwanese tourism service
personnel are the strengths of service tourism operators; they are perceived as important
and well-performed by Chinese tourists and are the major source of competitive advantage
for tourism operators. Regarding Quadrant IV (concentrate here) that represents high level of
importance but low level of performance, the attributes included the following: the service
personnel was able to rapidly and properly process customer complaints (responsiveness),
the service personnel was able to provide individual care (empathy), the service personnel
was able to understand individual needs (empathy), and the service personnel considered
the interests of customers (empathy). These attributes are considered to be the areas that
require immediate attention from tourism operators in Taiwan. According to the PZB service
quality dimensions, empathy refers to the provision of care to customers by understanding
their needs; this dimension is the area on which Taiwanese tourism operators need to
improve.
5.2. Recommendations
Regardless of the Chinese culture shared among Taiwan and China, distinct customs and
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Proceedings of Annual Tokyo Business Research Conference
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cultures remain in local areas. Therefore, Taiwan’s local attractiveness should be promoted
by using marketing means (e.g., those associated with market positioning, travel itineraries,
advertisements, or promotional plans and public relations), and distinctive and memorable
travel-related topics such as folk, cultural, cuisine, medical, and ecological tourisms should
be used for planning travel promotions.
5.3. Limitations
Despite the efforts to comprehensively investigate the path relationships between the
satisfaction model and variables of Chinese tourists visiting Taiwan, as well as the elements
of service quality that these tourists value, this study still had several limitations. Only five
variables were examined in this study; however, numerous factors influence customer
satisfaction. In addition, because purposive sampling was employed, comprehensive data on
Chinese tourists in Taiwan were lacking.
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