3. Results
Table 2 gives the results of estimating Eq. (1–3) using ordinary
least squares (OLS). Columns 1 and 2 report the estimated results
of room satisfaction, while the estimated results of F&B satisfaction
is shown in Column 3. In Column 1, our main findings indicate that
room price has a quadratic effect on room satisfaction, as illustrated
by the coefficients on PRICE RM (which is positive and significant)
and PRICE RM2 (which is negative and significant). In other words,
as the price paid by the guest increases, the guest is more likely
to uses price as an indicator of product quality. However, at some
price level, the negative price effect from sacrifice will start to outweigh
the positive price effect from product quality. Thus, guest
satisfaction becomes negatively associated with room price. Column
3 reports the similar pattern regarding the F&B price effect on
F&B satisfaction. On the other hand, Column 2 suggests a U shaped
relationship between room price level and guest satisfaction while
the moderating influence of occupancy is taken into account, as
illustrated by the coefficients of PRICE RM *OC(which is negative
and significant) and PRICE RM2 *OC (which is positive and signifi-
cant). The results seem to imply that room price in the high room
occupancy rate (a peak season) is treated as an indicator of sacrifice
as the room price increases initially. As the maximum price threshold
acceptable to the guests increases, the guest in a peak season
increases uses room price as an indicator of product quality.