Assessment of Product and Service Attributes in the Vacation Ownership Industry Using the Kano Model and Conjoint Analysis

The pursuit of understanding consumers’ expectations and its effect on product/service selection has long been an area of interest for academics and practitioners alike. Importance of attribute preference cannot be overemphasized in the area of revenue management in the hospitality industry for its impact on consumers’ willingness to pay and ultimately, corporate profitability. Empirical research supports the assumption that higher consumer satisfaction is desirable for the long term success of an organization. At the same time, consumer studies demonstrate that all product attributes are not equal in terms of their effect on overall consumer satisfaction, and different consumer segments vary in their preference for product attributes. Moreover, consumers tend to consider a unique bundle of attributes of a product, but may not necessarily focus on a specific attribute when making a purchase decision. Thus, the current research proposes a model that could be used to classify product and process attributes from the vacation ownership industry based on Kano’s model of attribute evaluation, and then applies conjoint analysis to assess consumer preference for the attributes when bundled within a typical consumer product offering.
The theoretical foundation of the study is based on Kano’s model which has been empirically tested and applied across a variety of industries. In the current study, Kano’s model was modified and adapted to meet the unique characteristics of the vacation ownership lodging product. Several research hypotheses were tested using conjoint analysis and other appropriate statistical techniques. Data was collected from a nationwide survey of owners in the vacation ownership industry with a usable sample of 3,231 completed questionnaires.
The current study identifies specific attribute preferences that have greater influence on consumer satisfaction than others, and demonstrated that changes in consumers’ willingness to pay varies depending on the choice of product and service attributes. In addition, it also establishes a platform for further analysis to identify the differences between terms of ownership, frequency of purchase, product usage characteristics, and identifiable consumer segments within vacation ownership products in the USA and international markets.
This research could be considered unique as it offers a comprehensive view into consumer satisfaction and willingness to pay related to both the purchase and the consumption of a vacation ownership product. An additional contribution of this study is the establishment of conceptual and methodological benchmarks in consumer studies and revenue management in the vacation ownership industry.