Hotel’s customer empowerment, environmental corporate social responsibility, and online customer value co-creation to attain sustainable development goals (SDGs)

Abstract

Purpose

The hotel customers are conscious of the deteriorating environmental conditions and demand for online immersions. Hotels lack an exciting shift in customer behavior for augmented customer re-patronage intention (CRPI) especially in developing countries. This study aims to apply customer-dominant service logic (CDSL) to comprehend customers’ life-sphere contributing to some of the vital United Nations sustainable development goals (UN SDGs). In this essence, CDSL grasps the impact of customer empowerment (CE) and environmental corporate social responsibility (Env CSR) on customer re-patronage intention (C-RPI) with the mediating and moderating effects in Pakistan’s four- and five-star hotels.

Design/methodology/approach

A deductive approach is followed in which an online survey of 400 hotel customers was conducted using purposive and snowball sampling techniques to understand the practice of C-RPI and UN SDGs.

Findings

This study reveals that executing the UN SDGs in the hotel industry eventually boosts CE and Env CSR, further enhancing online customer value cocreation (O-CVCC) resulting in C-RPI. Both CE and Env CSR gain a complimentary/partial mediation by O-CVCC on C-RPI is also reported. Moreover, sensation seeking moderates the relationship between CE and O-CVCC. Yet, customer commitment does not moderate the relationship between O-CVCC and C-RPI.

Originality/value

This study highlights that C-RPI (i.e. SDG 11) enhances when Env CSR is taken care of (i.e. SDG 13), customers are empowered (i.e. SDG 5 and SDG 17) and cocreated online (i.e. SDG 9). To the best of the authors’ knowledge, this study is one of the first studies to empirically test the approaches in the hotel industry contributing to SDG 5, 9, 11, 13 and 17.

Objetivo

Los clientes de hoteles son conscientes de las condiciones ambientales deteriorantes y demandan inmersión en línea. Los hoteles carecen de un cambio emocionante en el comportamiento del cliente para la intención de repatronaje aumentada (CRPI) especialmente en países en desarrollo. Este estudio aplica la lógica de servicio dominante del cliente (CDSL) para comprender la esfera de vida de los clientes que contribuyen a algunos de los vitales Objetivos de Desarrollo Sostenible (ODS) de las Naciones Unidas (ODS de la ONU). En esencia, CDSL comprende el impacto del empoderamiento del cliente (CE) y la RSE ambiental (Env CSR) en C-RPI con efectos de mediación y moderación en hoteles de cuatro y cinco estrellas de Pakistán.

Metodología

Se utilizó un enfoque deductivo en el que se llevó a cabo una encuesta en línea a 400 clientes de hoteles utilizando técnicas de muestreo intencional y de bola de nieve para comprender la práctica de RPI y los ODS de la ONU.

Resultados

Este estudio revela que la ejecución de los ODS de la ONU en la industria hotelera finalmente impulsa CE y Env CSR, y mejora aún más O-CVCC resultando en C-RPI. También se informa que tanto CE como Env CSR obtienen una mediación complementaria/parcial por la co-creación de valor del cliente en línea (O-CVCC) en C-RPI. Además, la búsqueda de sensaciones (SS) modera entre CE y O-CVCC. Sin embargo, el compromiso del cliente (CC) no modera entre O-CVCC y C-RPI.

Originalidad

Este estudio destaca que C-RPI (es decir, ODS 11) mejora cuando se cuida Env CSR (es decir, ODS 13), los clientes están empoderados (es decir, ODS 5 y ODS 17) y co-creados en línea (es decir, ODS 9). Este estudio es uno de los primeros estudios en probar empíricamente los enfoques en la industria hotelera que contribuyen a los ODS 5, 9, 11, 13 y 17.

目的

酒店客户对环境恶化的意识日益增强, 并呼吁进行在线沉浸体验。在发展中国家, 尤其需要酒店采取激动人心的客户行为转变措施,以增强客户再次光顾意向（CRPI）。本研究旨在运用客户主导服务逻辑（CDSL）理解客户的生活领域, 同时为联合国关键的可持续发展目标（UN SDGs）做出贡献。在这一框架下, 研究将探讨客户赋权（CE）和环境 CSR（Env CSR）对巴基斯坦四星级和五星级酒店中 CRP I的调节和中介作用。

方法

本研究采用演绎方法, 结合目的性和雪球抽样技术, 对400名酒店客户进行了在线调查, 以深入了解 RPI 以及UN SDGs 的实践情况。

发现

该研究表明, 在酒店业执行 UN SDGs 最终促进了CE 和 Env CSR, 并进一步增强了O-CVCC, 从而导致了C-RPI的提升。同时, CE和Env CSR在 C-RPI 上通过在线客户价值共创（O-CVCC）获得了互补/部分中介。此外, 感知寻求（SS）在CE和O-CVCC之间起到了调节作用。然而, 客户承诺（CC）在O-CVCC和C-RPI之间没有调节作用。

发现

该研究表明, 在酒店业执行 UN SDGs 最终促进了CE 和 Env CSR, 进而进一步增强了O-CVCC, 从而导致 C-RPI的提升。同时, CE 和Env-CSR 在客户再次光顾意向上通过在线客户价值共创 (O-CVCC) 获得了互补或部分中介作用。此外, 感知寻求 (SS) 在CE和 O-CVCC 之间起到了调节作用。然而, 客户承诺(CC)在O-CVCC和C-RPI之间没有发现调节作用。

创新性

该研究强调了在 EnvCSR 受到关注时（即SDG 13）, 客户被赋权时（即 SDG 5和SDG 17）, 以及在线共同创造时（即 SDG 9）会增强客户再次光顾意向（即 SDG 11）。这项研究是第一批在实践中测试了酒店业对 SDG 5、9、11、13 和17做出贡献的方法之一。

Citation

Badar (Imran), S., Waheed, A., Tanveer, A. and Fayyaz, H. (2024), "Hotel’s customer empowerment, environmental corporate social responsibility, and online customer value co-creation to attain sustainable development goals (SDGs)", Spanish Journal of Marketing - ESIC, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SJME-10-2023-0289

1. Introduction

Hotels around the world are considered for enjoying, relaxing or even work-related matters. A hotel is a place that needs to have a great feeling for the customers. Today, the hotel and tourism industry in developed cities is getting revolutionized and automated as they aim to become smart and connect strongly with the GDP and United Nations sustainable development goals (UN SDGs) (El, 2019; Casais and Ferreira, 2023). 2015 is considered the year to highlight achieving the 17 sustainable development goals (SDGs) by 2030, approved by the governments globally to reduce poverty, handle inequality, protect the environment and provide prosperity for all. The year 2017 is well-known as the international year of sustainable tourism and hospitality development, which allows the hotel and tourism industry to start working rigorously to achieve SDGs as the hotel industry is a great source to the economy by provision jobs linking to antipoverty, building of customers and global linkages along with enhancement in the infrastructure, economy and the GDP (Ali et al., 2020). Hitherto, it is important to understand that customers can also play a vital role in the hotel industry as they vary in their behavioral response due to the environmental aspects. This increases the need to analyze the customers’ knowledge and feedback to understand the apprehensions related to C-RPI, which is crucial for hotel customers (Park et al., 2020) and understanding customers from their life sphere that influence C-RPI remains unclear.

There is a spectacular rise in online prospects. Online sources allow hotel customers to know more about different aspects, which are highly sensitive to environmental issues and the danger caused by the industries (Higueras-castillo et al., 2019). Developing countries like Bangladesh, India, Pakistan, etc., harm their GDP due to devastating conditions of the environment (Nahar et al., 2021). However, customers are willing to give their best if an opportunity is available to them to purchase environmentally sustainable services (Moslehpour et al., 2023). Organizations are still liable to involve and inform customers regarding the activities that enhance value cocreation (Abid et al., 2022) like customer empowerment (CE) (Koc, 2019), environmental concerns (Schwab and Zahidi, 2021) and tourist personality traits (Hajiabadi et al., 2022). Furthermore, in this digital era, there is a need to analyze whether online customer value cocreation (O-CVCC) is strongly linked with CE, environmental CSR (Env CSR) and C-RPI for sustainable goals (Badar and Waheed, 2023). Therefore, the present study aims to provide deep insights into developing CE and Env CSR activities to gain O-CVCC and C-RPI in hotel customers that deploy contributions to some vital UN SDGs and enhance the GDP. This study attempts to answer the research question:

RQ1.

To what extent do customer empowerment, environmental CSR and online customer value cocreation contribute to add enhancement in customer repatronage intention and UN SDGs?

C-RPI is a topic that still needs probing as vital factors need to be investigated for progress (Baker and Lamb, 2020). Whereas, customer objections and unsolved concerns are growing in the hotels even though many factors such as poor service, environmental impacts and unfulfilled promises (Tosun et al., 2022). This shows that factors such as CE and Env CSR, along with the ever-mounting digital aspects of O-CVCC, are found to be analyzed in this study for all intents and purposes highlighted above. Such factors may enrich C-RPI in the hotels by understanding the customers (Heinonen and Strandvik, 2020), and providing the managers with true spirit and understanding of what the customers wish, which is high time to implement in the hotels (Badar and Waheed, 2023) resulting in the SDGs.

This study aims to develop an extensive framework where the findings foretell the growth in the domain of C-RPI in the hotel industry. However, it is only possible when the customer’s life sphere and requirements are clear along with the online aspects (Carvalho and Alves, 2022). Therefore, this study is the first to introduce customer C-RPI through O-CVCC understanding customers’ changing needs and achieving the ultimate global progress.

Theoretically, this study extends its contribution and the discussion on the following essential points that fulfill UN SDGs in a developing country like Pakistan. First, this study investigates the role of CE and Env CSR as the main factors of Online CVCC, which not only proves the importance of strong customer involvement in O-CVCC but further intends to channel in retaining customers and stabilize the economy, which is one of the most essential needs of the country. Second, this investigation studies the mediation effects of O-CVCC between CE, E-CSR and C-RPI, highlighting the importance of upgrading the technology and its related infrastructure. Third, the present study provides novel practical insights for the experts to enable O-CVCC in response of CE and E-CSR which proves to be a unique factor in augmenting customer repatronage intention and UN SDGs.

2. Theoretical background and concept development

Customer-dominant service logic (CDSL) in the perspective of marketing management emphasizes on customer’s ecosystem as a main role through the changing technology and dynamic markets. There is a focus on customer formation, i.e. customer’s experiential and social reality understanding, engagement and transformative service research, i.e. societal well-being, digital transformation and market dynamics (Heinonen and Strandvik, 2020), resulting in meeting some essential UN SDGs. This theory allows companies to transform and think beyond the existing aspects and make it possible to make sense of customer’s life spheres and ultimately attain the goals before, during and postservice.

2.1 Customer repatronage intention

Oliver (1980) highlights the important linkages between commitment, satisfaction, value and its connection to C-RPI. The literature defines C-RPI as a customer’s future behavior to remain active and dedicated to the firm even if any problem is encountered (Ranaweera and Prabhu, 2003).

The concept of C-RPI declines when complaints of customers and their life-sphere (Heinonen and Strandvik, 2020), along with experience preferences (Abid et al., 2022) are not understood and applied. Therefore, the current study explains the importance of focusing on the factors that are crucial for the growth of industries and global GDP.

In this essence, Saoula et al. (2023) focused on e-customers and e-retention. Likewise, health-care branding factors positively impact C-RPI in patients (Odoom et al., 2021). Lately, Badar and Waheed (2023) proposed other novel factors that create C-RPI in the hotel industry.

2.2 Customer empowerment

CE is defined as the sharing of novel ideas, offerings and bounding with the customers where a spiritual position is attained by applauding and even highlighting faults (Ramani and Kumar, 2008). In the extant literature, employee empowerment is found extensively in the hotel and tourism industry (i.e. approx. 11%) (Koc, 2019). Service industries like health, food, banking, textile, furniture and cycle manufacturers implement a key idea of empowerment resulting in positive behavioral intentions (such as Amoako et al., 2019; Beatty et al., 1996; Fuchs and Schreier, 2011; Qureshi et al., 2009; Susskind, 2000).

Only 4% of customers express their disappointments to firms if any, and the rest 96% leave it unnoticed (TARP, 2007). Under such statuses how customers can intend to repatron? In the hotel and tourism industry, predictors like satisfaction, commitment (Amoako et al., 2019) and quality elements (Sulaiman et al., 2020) result in C-RPI. Koc (2019) suggests further analyzing and highlighting aspects overlooked in the past as an essential antecedent to C-RPI. Therefore, the current study under the theory of CDSL (Heinonen and Strandvik, 2020) also believes that customers present in their social life where the service industry empowers customers then, a long-term future (i.e. C-RPI) is possibly accomplished with a competitive edge. Hence, it is hypothesized that:

H1.

Customer empowerment has a positive and significant impact on customer re-patronage intention.

Studies in the past assessed customer psychological empowerment (i.e. mental and perception state) and their involvement in cocreation along with scale development (Prentice et al., 2016; Hu and Li, 2021). Furthermore, CE is tested through idea creation and design selection in new product development (Fuchs and Schreier, 2011). In the hotel industry, CE is scantly tested along with O-CVCC (Badar and Waheed, 2023) as the demand for the increase in digitalization. Thus, in this study, the theory of CDSL by Heinonen and Strandvik (2020) also elaborates that customers have their inner life that companies need to understand and give such an environment where customers feel empowered as digitalization and transformative services enhance customers to interact with the industries and participate in O-CVCC. Hence, it is hypothesized:

H2.

Customer empowerment has a positive and significant impact on online customer value cocreation.

2.3 Environmental corporate social responsibility

Env CSR is defined with the help of two essential aspects, including a company having climate responsibility and sustainable usage of natural resources (Khojastehpour and Johns, 2014). According to Farrington et al. (2017) in the hotel industry, economic, social, environmental and philanthropic aspects are considered as the main CSR dimensions. Lately, CSR has paved behavioral intentions like response (Omidi and Shafiee, 2018; Shafiee, 2019), customer citizenship behavior (Shafiee and Tabaeeian, 2022), cocreation (Iglesias et al., 2020), customer loyalty (Raza et al., 2020), Env CSR and C-RPI (Soomro et al., 2024).

Ahn and Kwon (2020) also stress that Env CSR needs more attention than before as it has a direct impact on the hotel industry. Customers these days are more focused on the issues related to Env CSR and its initiatives (Opoku et al., 2023) along with innovative technology (Fosu et al., 2024). The main purpose of studying Env CSR in this study is that:

• in developing countries, customers are not informed and involved in the related aspects (Soria and Parra, 2021); and

• by 2023 the hotel industry is going to be directly blamed for nearly 25% of the environmental issues (Jasmim et al., 2020).

There is a need to understand factors from the customer’s perspective and their expectations which then results in better performance and C-RPI (Baker and Lamb, 2020). Furthermore, the theory of CDSL by Heinonen and Strandvik (2020) also focuses on the provider’s need to bring the aspects that are close to customers’ real life and their engagement in such aspects as environmental concerns. Such concerns further allow customers to stay connected with a strong bond. Hence, in this study, it is hypothesized as:

H3.

Environmental CSR has a positive and significant impact on customer repatronage intention.

Top management of the highest-ranked firms is responsible for incorporating CSR initiatives (KPMG, 2020). According to Tuan et al. (2019), customers are rarely involved in the CSR initiatives of firms and their relationship development in value cocreation. Whereas, Ahmad et al. (2021) stress that customers attached to firms with strong Env CSR are eventually taking the initiative to be a part of cocreation. Therefore, in this study, Env CSR is tested on O-CVCC as it has a direct and alarming effect on the stakeholder’s availability and cocreation (Carvalho and Alves, 2022; Badar and Waheed, 2023). Similarly, Heinonen and Strandvik (2020), in the theory of CDSL, also elaborates that when the customer finds that the provider is taking care of aspects like environment, then they develop a positive drive to be a part of value cocreation. As, in this era, digital transformation is highly demanded so the customer feels delighted to be a part of O-CVCC. Therefore, it is hypothesized as:

H4.

Environmental CSR has a positive and significant impact on online customer value co-creation.

2.4 Online customer value cocreation

Customer value cocreation in an online context is defined as the value formed by the customer’s online experience gained, which depends on the present, past and future changing ideas and family-related concerns (Heinonen and Strandvik, 2020). In the current study, it is known as the extended form of interaction between the firm and its customers. It is about understanding the customer’s reality, inner life doings, capabilities and feelings through online interaction and working on value cocreation together. Lately, Hansen (2020) stressed that technology plays an exceptional role in creating enhanced relations between firms and customers as the customers now gain an active role experience with ethical contemplations.

Online studies held on gaming areas reveal that they provide customers with enthusiasm and value cocreation (Bilińska-Reformat et al., 2020). Similarly, Mostafa (2020) also adds that mobile banking via technology boosts customers to take part in value cocreation.

Limited studies validate that CVCC leads to C-RPI. However, in the past, the behavior of customer value cocreation (CVCCB) resulted in trust, loyalty, C-RPI and commitment in educational institutes (Bazzi, 2022) and fitness clubs (Behnam et al., 2021). Yet, there is a need to probe the impact of O-CVCC initially only then may the behavior develop to repatron. The hotel industry services are found highly essential while understanding the concept of value cocreation due to the high level of involvement with the customers, and the service is judged before the customers leave the arena. Therefore, this study focuses on studying the impact of O-CVCC on C-RPI which is focused for the first time under the theory of CDSL (Heinonen and Strandvik, 2020). CDSL perspective states that customers’ value-in-experience is formed and allowed to build their life contexts based on experiences. Hence, it is hypothesized as:

H5.

Online customer value cocreation positively leads to customer repatronage intention.

The core purpose of a service industry is to understand customers from their life experiences. This is possible when the customers are empowered and have a platform to participate conveniently in the cocreation initiatives. O-CVCC is an aspect of an emerging market as technology facilitates the customers to contribute actively (Zhang et al., 2020). Thus, customers support the hotels even during tough times and the dispersal of positive word of mouth (Tregua et al., 2020).

Customer value cocreation acts as a mediator in online retailing (Algharabat, 2018), the mobile industry (Frooghi and Rashidi, 2019) and fitness clubs (Behnam et al., 2021). In this connection, the theory of CDSL (Heinonen and Strandvik, 2020) also states that when customers are empowered they eventually start sharing their experiences online and cocreate, which develops a strong intention to repatron. Therefore, this study accepts the challenge to analyze the hotel industry, which is rarely found in the literature with the hypothesis:

H6.

Online customer value cocreation positively mediates the relationship between customer empowerment and customer repatronage intention.

Nearly 90% of the recognized firms around the world are very active in CSR activities (KPMG, 2020). Although, this allows the customers to understand the value, quality, culture and ideas toward improvement with the essence of involvement in O-CVCC with technology (Mubushar et al., 2021).

Furthermore, companies are working to pay attention to value cocreation and gaining future goals such as C-RPI (Zhang et al., 2011). When a variety of players understand the perspectives of communication, it gives basis to extensive idea generation via value cocreation and even adds customer value propositions in the hotel industry (Sarmah and Rahman, 2018). To conclude, there is a call to study the perspective of Env CSR and C-RPI through O-CVCC in the hotel industry (Badar and Waheed, 2023). Further, the theory of CDSL by Heinonen and Strandvik (2020) also upholds that customers have their own experiences and are well aware of the facts, such as O-CVCC. Therefore, this study analyzes the mediating impact of O-CVCC among Env CSR and C-RPI in the hotel industry and is hypothesized as:

H7.

Online customer value cocreation positively mediates the relationship between environmental CSR and customer repatronage intention.

2.5 Sensation seeking

Sensation seeking (SS) is known as a personality trait in which one needs adventure, excitement and novel experiences that make one feel to accomplish a thrilling and challenging state in life. The concept of SS is tested as a complex variable where individuals have extreme likings and cravings for adventurous activities; otherwise feel boredom (Ravert and Donnellan, 2020).

SS is scarcely tested as a moderator in the related studies to drug usage (Veliz et al., 2021), tourism based on nature (Kiatkawsin et al., 2021) and working holidays (Meng and Han, 2018). Furthermore, it is essential to highlight that millennials (25–40 years) are eager to stay involved in exciting and adventurous activities (Soeg, 2021). Therefore, in this study, SS is tested as a moderator between novel constructs of CE and O-CVCC which are rarely found in the literature among the customers (millennials) in the hotel industry. Subsequently, CDSL (Heinonen and Strandvik, 2020) also highlights that customers are in need to be understood from their life experiences. Alongside, SS in customers may even strengthen the link between CE and O-CVCC, as technology plays a very essential role. Hence, it is hypothesized that:

H8.

Sensation seeking positively moderates the relationship between customer empowerment and online customer value cocreation.

2.6 Customer commitment

Customer commitment (CC) means the purchaser’s long-lasting behavior due to their strong emotional and social bonding with the service provider (Hess and Story, 2005), especially in the service industry for a stronger bond creation. Furthermore, it makes sure that this behavior in the customers allows them to pay, stay connected and advocate for the service providers. Hence, the higher the CC the higher the bond with the service provider.

Existing studies on the hotel industry reveal that a focus on organizational commitment (Abdelhamied and Elbaz, 2018), and employee continuance commitment (Bhatti et al., 2019) are tested as moderators. CC is rarely tested as a moderator in the hotel industry toward C-RPI (Bhatti et al., 2019). Moreover, there is a call to test CC as a moderator between O-CVCC and C-RPI due to technological adaptation (Badar and Waheed, 2023). Similarly, CDSL (Heinonen and Strandvik, 2020) also states that customers are technology-oriented and are willing to participate in value cocreation when the service providers understand them from their life-sphere. Hence, it is hypothesized that:

H9.

Customer commitment positively moderates the relationship between online customer value co-creation and customer repatronage intention.

Figure 1 displays the proposed literature framework based on the identified literature mentioned above.

3. Methodology

3.1 Participants and procedures

The target sample of the current study was customers aged 18 years and above who stayed in Pakistan’s four and five-star hotels in the past four years, as obtaining information from respondents who are knowledgeable and experienced about what is being asked assisted to gain the study objectives. The reason for selecting private four and five-star hotels was that these hotels thrive to stay connected and work for better infrastructures, contributing directly to the economy (Yousaf et al., 2021). Most customers prefer staying at the selected hotels where numerous tasks can easily be done and are located in the main cities such as Rawalpindi, Islamabad, Lahore, Karachi and Peshawar (Frahan, 2023). The sample size of this study was 490 respondents and they were approached through a quantitative research strategy using nonprobability techniques to handle the research strategies through purposive, and snowball sampling (Badar and Waheed, 2023). The hotel managers did not share the customer’s contact details (confidentiality concern). Based on the researcher’s judgment, respondents present in the social circle present in Pakistan were contacted via WhatsApp text and then were requested to fill out the survey as the researcher observed that mostly had a busy schedule and were technology friendly so the best method was to share the google form having the survey (purposive sampling). Then, the respondents from the researcher’s social circle were further invited to share the name and contact details of the ones they knew who stayed at any of the four and five-star hotels in Pakistan lately, and this chain kept growing (snowball sampling). After a week a reminder text/a voice note inclusive of the current study’s aim was clearly expressed to make sure the respondents were well-informed.

An online platform (Google form) via what’s-app was used in this study, keeping the respondent’s feasibility and cost factors. The questionnaire consisted of a screening question (see Table 2). The data were collected in almost five months (July 5, 2023–November 25, 2023) by distributing approximately 490 surveys, out of which 423 surveys were received (81.6% useable response rate). After initial screening 400 responses were selected for analysis, as 11 contained insincere answers and 12 failed to answer the screening question. Furthermore, “Supplementary Figure 1” illustrates the parameters of the methodology held in this study.

3.2 Measures

The current study measured the constructs and their relations by using cross-sectional data and opted for a quantitative technique. The questionnaire for data collection was adopted after checking the existing reliability and was in the official language of Pakistan (English) as four and five-star hotel customers are educated enough. The constructs were measured with the help of a five-point Likert scale where 1 is considered as strongly disagree and 5 as strongly agree.

To elaborate, CE consisting of three items was adapted (Ramani and Kumar, 2008). Additionally, a five-item scale for Env CSR (Liu et al., 2014) was adapted. Simultaneously, three items for O-CVCC were used (Dong et al., 2008; Ho and Ganesan, 2013). Concurrently, a four-item scale for SS suggested by Zuckerman (1994), and a five-item scale for CC proposed by Crosby et al. (1990) and Morgan and Hunt (1994) were adapted. Finally, a three-item scale for C-RPI was used (Odoom et al., 2021). Pilot testing was held via Cronbach’s alpha coefficient to avoid participants being subjected to poorly established tools and further investigating the responses to identify the gaps held in the data by analyzing the scale reliability and its validity using SPSS version 21. Forty-eight customers from the four and five-star hotels were approached. The result reveals that the values were higher than the threshold of 0.65 (Nunnally and Bernstein, 1994). Hence, the questions in this study to measure the constructs achieved interitem consistency reliability, which clearly means that the respondents understood the words and phrases used, they followed the questionnaire directions without any confusion and also found the responses choice as appropriate. Similarly, the demographic questions are related to gender, occupation, age, education, salary, an average of hotel visits per year and hotel mostly visited.

3.3 Statistical findings

3.3.1 Demographic findings.

The demographic results (see Table 1 below) report that 63% of responsibility is males as most of the time females are not allowed to travel alone and are along family members if required to travel. Furthermore, approximately 60% are working in private sector. Moreover, approximately 39% respondents belong to the age group of 32–41. Mostly, the respondents are graduates or held a master’s degree (i.e. 93% approx.). The salary of 61% of respondents is 101,000 and above. Also, 59% customers visit and stay 1–5 times per year at four and five-star hotels due to tours with family and friends, business and to attend family events, etc. Finally, most of the customers prefer to stay at Pearl Continental Hotel as it has chains in different cities of Pakistan. The demographic results comprehend the importance of technology in the hotel industry so that true insights from both males at most can be attained because mostly who visit the hotels are well-educated, earn as well as travel in a good percentage and prefer to stay at one of the largest chain of Pakistan. This shows that the data can help the hotel industry to gain sustainable outcomes if they are in close contact with the customers and gain true feelings and experiences from them.

3.4 Assessment of the model and its findings

To proceed with data analysis, this study opted for structural equation modeling (SEM) with Smart PLS-3 software as it is well-known for analyzing complex models (Hair et al., 2021). In the current study, SEM used the partial least square structural equation modeling (PLS-SEM) method that has recently seen a lot of applications and is used for assessing vital linkages (Hair et al., 2019). The results were evaluated in two steps, which are an assessment of the measurement model and the structural model using the PLS algorithm and bootstrapping, respectively.

3.4.1 Assessment of measurement model.

Assessment of measurement model (Figure 2) includes essential steps such as:

• interconsistency reliability;

• convergent validity; and

• discriminant validity.

Following are the details of the above-mentioned steps:

3.4.2 Interconsistency reliability.

To assess interconsistency reliability, three matrices were used: indicator reliability, Cronbach’s alpha and composite reliability. Indicator loading was assessed using outer factor loading that is greater than or equal to 0.708 as recommended “See Table 2.” Greater reliability is indicated by higher Cronbach’s alpha (i.e. α > 0.8) and composite reliability scores (i.e. CR > 0.7) (Hair et al., 2021) (see Table 2).

3.4.3 Convergent validity.

To ensure convergent validity, Table 2 ensures that the average variance extracted (AVE) is greater than 0.50 for each construct (Hair et al., 2021). Thus, confirming convergent validity.

3.4.4 Discriminant validity.

To assess the discriminant validity, two tests are used that include:

1. Fornell and Larcker criterion; and

2. the heterotrait-monotrait ratio (HTMT) suggested by Henseler et al. (2015).

Furthermore, the recommended threshold of HTMT (see Table 4) is achieved as the values are less than 1 to ensure discriminant validity (Henseler et al., 2015). Fornell and Larcker compare the square root value of AVE with correlation among constructs and it suggests that the AVE square root should be greater than intercorrelation among constructs. Concerning Table 3 found below, the AVE square root is presented in bold and it is greater than the intercorrelation between constructs confirming discriminant validity.

3.5 Assessment of structural model

Assessment of the structural model (Figure 3) includes hypotheses testing, coefficient of determination (R²); predictive relevance (Q²), effect size (f²) and PLS-predict. Yet, before starting the steps in assessing the structural model it is essential to evaluate if common method bias (CMB) exists or not.

A variance inflation factor (VIF) rating greater than 5 suggests the possibility of collinearity problems (Hair et al., 2019). In the current study, Smart PLS-3’s PLS algorithm is used to evaluate VIF. Table 4 placed below shows that all the VIF values are less than 5. Therefore, the possibility of collinearity among constructs is ruled out and no CMBs is reported. The next step is to test the hypotheses as multicollinearity is ruled out. Each of the hypotheses in the current study reflects a causal relationship between variables that investigated using a systematic structural model evaluation based on PLS-SEM. The direct impacts are evaluated first, followed by the mediation effects and finally, the moderation effects with bootstrapping 5,000 subsamples (see Table 4).

The H1 of the current study speculates that CE has a positive and significant impact on C-RPI (β = 0.373, t = 7.904, p = 0.000) thus supporting H1. The H2 hypothesis postulates that CE positively and significantly impacts O-CVCC (β = 0.382, t = 8.495, p = 0.000) hence results support H2. The H3 posits that Env CSR has a positive and significant impact on C-RPI (β = 0.278, t = 5.385, p = 0.000). The results support H3. According to H4, Env CSR has a positive and significant impact on O-CVCC (β = 0.422, t = 9.117, p = 0.000) and the results support H4. The H5 posits that O-CVCC positively leads to C-RPI (β = 0.290, t = 4.457, p = 0.000). Thus, supports H5.

Furthermore, the mediation analysis is performed to determine the function of O-CVCC among other constructs in this study and is reported below in Table 4. The H6 speculates that O-CVCC positively and partially mediates the relationship between CE and C-RPI. Hence, the result (β = 0.111, t = 3.753, p = 0.000) confirms the partial mediation as it has a significant relation between the mediator (O-CVCC) and the dependent variable (C-RPI). Alongside, also has a significant direct relationship between independent variable (CE) and dependent variable (C-RPI). To add, H7 also posits that O-CVCC positively and partially mediates the relationship between Env CSR and C-RPI (β = 0.123, t = 3.622, p = 0.000). Thus, supports H7 as partial mediation as it not only has a significant relation between the mediator (O-CVCC) and the dependent variable (C-RPI) but also has a significant and direct relationship between independent variable (Env CSR) and dependent variable (C-RPI).

Consequently, the moderation effect of SS and CC are analyzed between the constructs and are reported below in Table 4 and graph (Figure 4). H8 suggests that SS positively moderates the relationship between CE and O-CVCC (β = 0.105, t = 2.830, p = 0.005). The graph (see Figure 4) represents a strengthening relationship between CE and O-CVCC when SS moderates. Hence, the results support the moderation (H9) as both, the coefficient value (β) and the p-value is significant. Moreover, H9 speculates that CC positively moderates the relationship between O-CVCC and C-RPI (β = −0.046, t = 1.37, p = 0.171). Thus, not supporting H9 as the beta value is negative, and the p-value is insignificant with a dampening effect of CC between the positive relationship of CE and O-CVCC (see Supplementary Figure 2).

The explanatory power of the model is evaluated using the coefficient of determination (R²). The PLS algorithm is used to compute R² in the Smart PLS-3 software, and all results were above the recommended threshold of 0.10 (Falk and Miller, 1992). Table 5, placed below, represents the R² of C-RPI is 0.731 and O-CVCC is 0.715, which are well above the suggested threshold. Simultaneously, Q² is also greater than 0 which is estimated through blindfolding confirming predictive relevance (Hair et al., 2021) (see below: Table 5). This study expands the analysis by integrating a predictive relevance analysis with PLS-Predict. Therefore, the PLS error is less than the LM error, thus suggesting strong predictive power. So, the model fitness has been achieved in this study (see Table 5).

4. Discussion and conclusion

4.1 Summary of the results

The hotel industry is constantly expanding in Pakistan, which catalyzes economic growth. However, the hotel operations have hazardous environmental impacts (i.e. CO₂ emissions, water consumption and waste production). Hotels are the largest and most popular form of lodging among the tourists. The tourism industry significantly impacts the hotel industry, and both are interconnected. A nation’s hotel industry is a reflection of its warm treatment of foreigners and how it adapts to new settings that support UN SDGs.

Consequently, it is essential to comprehend how CE, and Env CSR influence C-RPI to add value to the service quality. The findings of this study depict that CE positively impacts the C-RPI and O-CVCC as suggested by Badar and Waheed (2023) to analyze the impact in this digital era where customers are always a click away to participate. Hence, validating the findings from this study’s relationships shows robustness in customers being empowered and gaining C-RPI and UN-SDG’s 5 and 17 through online value cocreation. Lately, Shin and Perdue (2022) also support the prevailing research findings and reveal that CE paves to competitive advantage. Furthermore, empowered customers view themselves as valued assets and inspire a can-do mentality. Customers perform optimally when they are offered to voice their opinions on issues that affect them. Hotel managers can empower customers through online feedback, and social media that honor their preferences. In addition, it reduces customer churn and increases customer dedication.

Similarly, Env CSR is positively associated with C-RPI and O-CVCC. Therefore, outcomes validate the linkages developed through the findings in this study and gaining UN-SDG 13. Results indicate that Env CSR practices have a substantial positive impact on O-CVCC as suggested to get analyzed by Carvalho and Alves, Badar and Waheed (2022, 2023), which further creates robustness in C-RPI (Baker and Lamb, 2020). Customers are conscious of their social responsibilities and have a sense of accountability that the hotel industry affects the environment in a variety of ways. The current findings are helpful for practitioners as they shed light on the extent to which stakeholders perceive Env CSR and efforts to communicate, demonstrating a greater commitment to environmental sustainability globally.

Furthermore, O-CVCC directly links C-RPI and it positively mediates the link between CE and C-RPI. Hence, the findings prove that customers want to select hotels that demonstrate a genuine interest in their opinions and preferences to improve their experience. Furthermore, Carvalho and Alves (2022) also found evidence of the significance of online customer feedback for enhancing quality and gaining UN SDG 5 (gender equality), and SDG 17 (partnership for the goal) as empowerment of customers allows females to provide their insights through online platforms and results in a win-win situation. Moreover, results also revealed that O-CVCC positively mediates the Env CSR and C-RPI, accepting the findings from this study. Valuable customers care enough about the environment’s current state, which is paramount to obtain the customer’s online valuable insights and make it teamwork to achieve environmental stability (Badar and Waheed, 2023) and achieve UN-SDG’s SDG 13 (Climate Action), SDG 9 (Industry, Innovation, and Infrastructure) and SDG 11 (Sustainable Cities and Communities). Study investigation also found that SS positively moderates the relationship between CE and O-CVCC. Thus, results support the moderation impact of SS showing that when the customers have a trait of SS, they are more interested in the quality received, which enhances the value of the hotels (Soeg, 2021). Hence, the current linkage allows us to understand that SS strengthens empowerment in customers and O-CVCC. Whereas, CC does not directly moderate the relationship between O-CVCC and C-RPI. Hence, the hypothesis is rejected as in Pakistan commitment in customers may vary due to the country’s economic instability. The outcomes of this study support all proposed hypotheses except one (H9) and are followed by essential theoretical and practical implications.

4.2 Theoretical implications

Hitherto, the theory of planned behavior and theory of reasoned action were reported to predict a wide range of intentions that motivate behavior, but over time, these theories report flaws like, behavior results from a sequential choice process without engagement in customer behavior specifically. Due to the limited scope of previous theories, this study caters to CDSL theory to predict C-RPI. CDSL is a novel theoretical representation and management strategy based on a comprehension of customers’ logic, with a reasoning process of customers’ decisions and actions. This concept integrates the patterns of customers’ overt, interactions and priorities that might be flagged up previously. Industries are confronted with obstacles arising from technology, and eco-efficiency concerns to achieve growth and UN SDGs. Amid these challenges, it is vital to understand the behavior and choices of the customers, which is made possible when thoroughly working on the UN SDGs (Agenda, 2023). The theory of CDSL draws the attention of practitioners that the customer is the strength of businesses. This investigation uncovers that CE enhances the customer’s innate capability concerning hotels, and their willingness to provide constant feedback to help the hotels improve. This study assists in solving sustainability concerns such as CE showing how customers when empowered can solve hotel issues, and fulfill SDG 5 – Gender Equalities and SDG 17 – Partnership for the goal. Following the insightful findings, CE has a constructive effect on O-CVCC and C-RPI. The theory effectively integrates factors such as SS to accomplish C-RPI in the hotel industry. Also given SDG 13 which highlights that Climate Action needs to be taken care of has a strong relation with the current study revealing that Env CSR has a strongly positive role in building O-CVCC (i.e. SDG 9 – Industry, Innovation and Infrastructure) and C-RPI (SDG 11 – sustainable cities and communities). This signifies that hotels in Pakistan can achieve C-RPI only with hotel customers and the provision of quality services to augment customer expectations and attain sustainable development goals (i.e. SDGs – 5 and 17, 13, 9 and 11).

4.3 Practical implications

This study proves that CE is essential for service-based organizations, especially those with frequent customer contact, as customers can enlighten facts that might not be amenable from an organizations point of view. In addition, CE achieves UN SDG 5 and 17 by empowering all gender customers to gain their input and building synergies to achieve the hotel industry goals and UN SDGs. As environmental concerns are also addressed in the current study, this results in customers’ willingness to avail the hotel services for being conscious about natural resources and environment that is at stake (Morea et al., 2023) and attain UN SDG 13 addressing the climatic apprehensions. The current study also proves how O-CVCC enhances the technology and its related infrastructure of the hotels which makes customers more active and loyal by staying easily connected with the management. This shall result in achieving the goal of building industry, innovation and infrastructure development (SDG 9). In this vein, the present study is paramount because it allows the managers to bring a boost in revenues and production efficiency via technological aspects such as online CVCC, as it shall be a prompt and low-cost method to stay connected with the customers. This includes the capability to achieve service quality in the four and five-star hotels by taking serious notice on what the customers are bringing onboard, i.e. active feedback provision (win-win situation for both the customers and the industry). Consequently, it is speculated that if the hotel managers provide their clients with functional authority and respect for their choices this shall bring novel facts and figures that were hidden till date, as customers shall be able to give true insights when involved in O-CVCC. Hotel managers need to prioritize a service culture that fosters commitment, autonomy and its implications by providing an environment that results in CE. This can provide reports where the United Nations’ essential SDGs are being achieved when the hotel management works dedicatedly on the framework of the current study. In this vein, Table 6. presented below, summarizes the current study’s conclusions and implications.

4.4 Conclusion of the findings

In the present review, the CDSL theory has not been flagged up in this structure previously to determine the customer intentions based on customer’s lifestyles. The findings that CE and Env CSR add value to the framework unveil unique prospects. As, CE and O-CVCC are positively moderated by SS and O-CVCC positively mediates Env CSR and CE to stimulate C-RPI. As a result, it is emphasized that the C-RPI of empowered customers can be conquered by O-CVCC of the hotel industry. This study gives hotel managers a path to provide customers more strength through technology and understanding the life spheres, the hotel as a whole will perform better and expand faster. To generate O-CVCC, hotel managers are advised to implement practices that encourage CE and incorporate Env CSR for global ties as augmented reality and positive impression will allow to create a completive advantage in this digital era. It is concluded that increased customer agency results in better service quality and environmental practices, gratifying the UN SDGs (Agenda, 2023) and global growth.

4.5 Limitations and future research

Despite the interesting findings, this research has some limitations. One of the shortcomings is that it mainly focuses on four and five-star customers in the hotel industry, thereby excluding other small hotels on a provincial level. Furthermore, this research is carried out in Pakistan, a South Asian state. Hence, conducting research in developed countries must give exciting and significant insights when compared with the same model. A novel indicator of environmental product/service innovation, customer citizenship behavior and social and ethical responsibility can be incorporated as a mediator between Env CSR and repatronage intentions to produce in-depth results in the future.

Figures

Figure 1.

Conceptual framework

Figure 2.

Measurement model

Figure 3.

Structural model

Figure 4.

Moderation graph of sensation seeking (SS)

Table 1.

Demographics analysis (n = 400)

Demographics	Cases (%)
Gender
Male	252 (63.0)
Female	148 (37.0)
Occupation
Private sector	242 (60.5)
Public sector	53 (13.3)
Business holder	70 (17.5)
None	35 (08.8)
Age
20–30	135 (33.8)
31–41	155 (38.8)
42 and above	110 (27.5)
Education
School or college	12 (03.0)
Graduate or masters	370 (92.5)
Doctorate and above	18 (04.5)
Salary
41,000–71,000	49 (12.3)
72,000–100,000	108 (27.0)
101,000 and above	243 (60.8)
Hotel visits (average per year)
1–5	236 (59.0)
6–15	101 (25.3)
16 and more	63 (15.8)
Hotel mostly stayed
Marriott	39 (09.8)
Pearl Continental	192 (48.0)
Serena	49 (12.3)
Nishat	11 (02.8)
Avari	13 (03.3)
Moven Pick	28 (07.0)
Others	68 (17.0)

Table 2.

Cronbach’s alpha, composite reliability (CR), average variance extracted (AVE) and factor loadings

Constructs, items	Loadings
Customer repatronage intention (C-RPI): adopted from Odoom et al. (2021) α = 0.936; CR = 0.959 and AVE = 0.887
C-RPI.1: I will always visit this hotel for all my events/trips in the future	0.844
C-RPI.2: I will visit this hotel for different purposes	0.836
C-RPI.3: I will recommend this hotel to friends and relatives	0.845
Customer commitment (CC): adopted from Crosby et al. (1990)
α = 0.872; CR = 0.906; and AVE = 0.659
CC.1: I’m committed to my relationship with this hotel	0.747
CC.2: I’m patient with the hotel and if its staff makes a mistake	0.801
CC.3: The relationship is important for me to maintain with the hotel	0.775
CC.4: I am not looking for another hotel to replace the present one	0.833
CC.5: I wish to retain my relationship with this hotel	0.894
Customer empowerment (CE): adopted from Ramani and Kumar (2008)
α = 0.888; CR = 0.931; and AVE = 0.817
CE 0.1: This hotel encourages customers to share opinions of its products or services with them	0.835
CE 0.2: This hotel encourages customers to share opinions of its products or services with other customers	0.888
CE 0.3: This hotel encourages customers to participate interactively in designing products and services	0.889
Environmental CSR (Env CSR): adopted from Liu et al. (2014)
α = 0.894; CR = 0.922; and AVE = 0.703
Env CSR.1: This hotel promotes environmental protection and green consumption concepts to customers and participates in related activities	0.867
Env CSR.2: This hotel has an environmentally friendly design to protect natural landscapes and places of cultural and historical interest	0.828
Env CSR.3: The hotel implements special programs to reduce consumption, e.g. decrease the usage of disposable goods	0.819
Env CSR.4: This hotel implements special programs and uses relevant facilities to improve public security, fire control and food safety	0.828
Env CSR.5: This hotel implements special programs and uses relevant facilities to save and use energy efficiently, and uses renewable energy, such as solar and wind energy	0.849
Online customer value cocreation (O-CVCC): adopted from Dong et al., Ho and Ganesan (2008, 2013) α = 0.855; CR = 0.912 and AVE = 0.777
O-CVCC.1: I would like to give my opinion online to contribute to the improvement of the hotel service	0.839
O-CVCC.2: I would like to participate online in the development of new products/services	0.801
O-CVCC.3: I would like to suggest ideas online for the hotel	0.900
Sensation seeking (SS): adopted from Crosby et al. (1990, 1994) α = 0.884; CR = 0.920 and AVE = 0.741
SS.1: Taking risky chances is something I find quite enjoyable to do	0.839
SS.2: New, fascinating experiences, even if a little fearful and unique, are welcomed by me	0.852
SS.3: Exciting new experiences are on my wish list	0.887
SS.4: As a result, I would rather take pleasure in the sensations than be terrified	0.864

Table 3.

Discriminant validity

Constructs	C-RPI	CC	CE	Env CSR	O-CVCC	SS
(Heterotrait-monotrait ratio)
C-RPI	0.842
CC	0.290	0.812
CE	0.799	0.379	0.820
Env CSR	0.771	0.424	0.775	0.838
O-CVCC	0.783	0.403	0.781	0.786	0.882
SS	0.300	0.161	0.344	0.320	0.397	0.761
Constructs	C-RPI	CC	CE	Env CSR		O-CVCC
(Fornell–Larcker criterion)
C-RPI
CC	0.882
CE	0.874	0.881
Env CSR	0.841	0.474	0.891
O-CVCC	0.868	0.460	0.889	0.895
SS	0.325	0.176	0.382	0.354		0.650

Notes:

C-RPI = customer re-patronage intention; CC = customer commitment; CE = customer empowerment; Env CSR = environmental CSR; O-CVCC = online customer value cocreation; SS = sensation seeking

Table 4.

Hypotheses testing

Hypotheses	Relationship	B	SD	T statistics	p-values	VIF
Direct hypotheses testing
H1	CE → C-RPI	0.373	0.047	7.904	0.000	3.207
H2	CE → O-CVCC	0.382	0.045	8.495	0.000	2.606
H3	Env CSR → C-RPI	0.278	0.052	5.385	0.000	3.273
H4	Env CSR → O-CVCC	0.422	0.046	9.117	0.000	2.542
H5	O-CVCC → C-RPI	0.290	0.065	4.457	0.000	3.443
Mediation hypotheses testing
Hypotheses	Relationship	Indirect effect		SD	T statistics	p-values
H6	CE → O-CVCC → C-RPI	0.111		0.034	3.753	0.000
H7	Env CSR → O-CVCC → C-RPI	0.123		0.03	3.544	0.000
Moderation hypotheses testing
Hypotheses	Relationship	B	SD	T statistics	p-values	VIF
H8	Moderating effect SS → O-CVCC	0.105	0.037	2.873	0.005	1.137
H9	Moderating effect CC → C-RPI	−0.046	0.033	1.370	0.171	1.594

Notes:

p < 0.001; T > 1.96; n = 400; C-RPI = customer re-patronage intention; CE = customer empowerment; Env CSR = environmental CSR; O-CVCC = online customer value cocreation; SS = sensation seeking; CC = customer commitment

Table 5.

Model fit and PLS-predict

Items	Q²	R2	PLS-RMSE	LM-RMSE	PLS-LM RMSE	Q²_predict
C-RPI	0.641	0.731
C-RPI.1			0.664	0.697	−0.033	0.631
C-RPI.2			0.687	0.733	−0.046	0.563
C-RPI.3			0.668	0.711	−0.043	0.661
O-CVCC	0.547	0.715
O-CVCC.3			0.772	0.833	−0.061	0.546
O-CVCC.2			1.009	1.044	−0.035	0.396
O-CVCC.1			0.727	0.769	−0.042	0.694

Notes:

C-RPI = customer re-patronage intention; O-CVCC = online customer value cocreation; Where, R² > 0.10 and Q₂ > 0

Table 6.

Conclusions, theoretical and managerial implications

Conclusions	Managerial and theoretical contributions
Customer-dominant service logic fosters a true understanding of the customer world	Theories such as the theory of planned behavior and reasoned action have a limited scope in understanding customers’ inner life feelings, which is bridged by CDSL in the current study
Customer empowerment (CE) and environmental CSR (Env CSR) builds a strong and positive impact on C-RPI in the hotel industry	The hotels strive to achieve sustainable and competitive edge. The managers must develop a culture where CE are unavoidable and Env CSR initiatives are enhanced resulting in C-RPI
Combining the effect of online CVCC generates C-RPI when the hotels enhance CE and Env CSR	Managers must empower their customers and update them with Env CSR then, the O-CVCC boosts. Further, Avais the goal toward C-RPI in this competitive era
Results revealed that sensation seeking (SS) played a moderating role between CE and O-CVCC	Managers must enhance the hotel activities that triggers SS. This keeps the customers to stay intact with hotels that work in true sense on customer’s experiences

Supplementary material

The supplementary materials for this article can be found online.