Customers Income: Exploring Customers’ Willingness to Pay Toward Green-rated Hotels
Abstract
At present, environmental issues attract the attention of academics, business communities, and governments in Indonesia. It is considered to be one of the requirements for sustainable development. The research studied the impact of customers’ belief, their reasonable objective, income, and the hotel’s obligation on the customers’ willingness to pay for the green-rated hotels. The selected green hotels in Surabaya, Indonesia, were J.W. Marriott, Sheraton, and Mercure. To test the proposed model empirically, personal surveys of hotel customers were conducted in Surabaya, Indonesia, using a structured questionnaire. A structural equations model was developed to test the research hypothesis. The findings show that customers’ belief and hotels’ obligation have a positive direct effect on the willingness to pay. But income and reasonable objective turn out to have a negative relationship to willingness to pay. At the same time, they reveal that customers’ income become a moderating variable of belief and hotels’ obligation to willingness to pay.
Keywords: green-rated hotels, willingness to pay, customers’ income, customers’ belief, hotels’ obligation
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