Exploring the nexus of luxury consumption .pptx

Exploring the nexus of luxury consumption and satisfaction

1. Exploring the Nexus of Luxury Consumption and Satisfaction as Means for Sustainable Businesses: A Generational Analysis in the Hotel Sector in Kenya Authors Eliza Ogucha , Yussuf Motari Okari , Eunice Mukolwe

2. Background 2 Five star hotels have increased the use of enhanced servicescapes , automation, and personalization , there use consumes a significant portion of the hotel budget. These approaches are meant to attract guests, enhance satisfaction maong other outcomes. However, the three guests generations(Baby Boomers (b.1943－1960), Generation Xers (b.1961－1981), and Millennials (b.1982－2000) that patronize the hotels perceive the benefits of this luxuries differently. Therefore, the study sought to explore the Nexus of Luxury Consumption and Satisfaction in the context of generations visiting five star hotels in Kenya

3. Methods 3 The study was cross-sectional in nature as data was collected in the months of February- March 2021. Furthermore, a correlation research design was used to establish the hypothesized antecedents. A sample of 243 delegates of corporate organizations patronizing luxury hotel services was used. A descriptive and simple linear regression was used to analyze data grouped according to the age categories and analyzed separately.

4. Findings 4     F % Gender Male 181 74.4   Female 62 25.6   Total 243 100.0 Age 19-38yrs 136 55.9   39-58yrs 79 32.5   59-78yrs 28 11.6   Total 243 100 The Male guests outweigh their female counterparts as generation Y were frequent guests compared to Baby boomers and Generation X

5. 5     Value df Asymptotic Significance (2-sided) Gen Y Pearson Chi-Square 28.355 a 9 .001   Likelihood Ratio 28.649 9 .001   Linear-by-Linear Association 2.431 1 .119   N of Valid Cases 135     Gen X Pearson Chi-Square 26.788 a 8 .001   Likelihood Ratio 32.603 8 .000   Linear-by-Linear Association .408 1 .523   N of Valid Cases 79     Baby boomers Pearson Chi-Square 6.996 a 7 .429   Likelihood Ratio 8.351 7 .303   Linear-by-Linear Association .031 1 .861   N of Valid Cases 37    

6. 6 Therefore, gender and age drives satisfaction except for baby boomers.

7. 7     R R Square Adjusted R Square Std. Error of the Estimate Model 1 Y .398 a .159 .152 .55721   X .520 a .270 .261 .56349   BB .292 a .085 .059 .41010 Hypothesis Testing Model Summary The model explained 15.9%, 27% and 8.5% of the change in satisfaction for generation Y, X and baby boomers respectively

8.     Sum of Squares Df Mean Square F Sig Y Regression 7.789 1 7.789 25.087 0.001   Residual 41.294 133 .310       Total 49.083 134       X Regression 9.058 1 9.058 28.528 0.001   Residual 24.449 77 .318       Total 33.508 78       BB Regression .548 1 .548 3.259 0.008   Residual 5.887 35 .168       Total 6.435 36       T he model was fit to predict the satisfaction of guests with Gen Y: F= 25.087, P<0.05), Gen X. F= 28.528, P<0.05, BB: F= 3.259, P<0.05 Anova Table

9.     Unstandardized Coefficients Standardized Coefficients t Sig.     B Std. Error Beta Y (Constant) 1.554 .405   3.837 .000   luxuries embedded in services .528 .105 .398 5.009 .000 X (Constant) 1.822 .350   5.199 .000   luxuries embedded in services .521 .098 .520 5.341 .000 BB (Constant) 1.852 .871   2.127 .041   luxuries embedded in services .425 .235 .292 1.805 .080 Coefficients Table

10. Results for baby boomers were markedly different as β =.425, t=1.805; p>0.05) indicated that luxury embedded services did not have a significant relationship with satisfaction. The results for their younger generations however indicated a significant relationship between luxury embedded services and satisfaction as gene Y had β =.528, t=5.009; p<0.05 while Gen X had β =.521, t=5.341; p<0.05 .

11. Therefore, baby boomers were not motivated by luxuries within the hotels compared to their younger counterparts (i.e., generations Y & X). The study concludes that luxury consumption will remain relevant as younger generations continue to value its usage, but a longitudinal study shall unearth specific trends among the generations. On this basis, stakeholders can develop policies, procedures, and practices to encourage expanded and personalized use of luxuries in the sector. This way, the hotels would become successful, sustainable, and meaningful to the economy. Conclusions and Recommendations