Abstract
Keywords
Introduction
Analysis of results
Discussion
References
Abstract
Given that services difer from goods in terms of intangibility, heterogeneity, and inseparability, customers may evaluate green services diferently from how they evaluate green goods. Previous research has investigated customers’ perceptions and purchase decisions regarding green products. However, limited attention has been paid to the impact of green practices on customer evaluations of the service experience as well as important contingencies that bear on this relationship. Drawing on stakeholder theory, our study examines the impact of green practices on customer evaluations and further considers the infuences of environmental- and frm-level contingencies. We test our model with a multi-source dataset in the Chinese hotel industry. The fndings indicate that green practices improve customer evaluations of the service experience. This positive impact is, however, weaker in external environments characterized by high internet penetration and market complexity but is stronger for hotels with innovative services and for business hotels. Our fndings provide novel insights into the environmental ethics and stakeholder management literatures by revealing the role of green practices in promoting positive service evaluations as well as the contingent infuences of external environments and internal frm-level characteristics.
Introduction
Despite their rapid economic growth, emerging markets face growing challenges posed by environmental pollution and degradation, which cause serious health and social problems (Wang et al., 2018). For example, as one of the most heavily polluted countries in the world, after a decade of eforts to enhance environmental protection, in 2021 the average exposure to PM2.5 in major Chinese cities is still fve times higher than the safety limit recommended by the World Health Organization.1 As a result, business entities face increasing pressure from policy regulations and public monitoring to adopt green practices and reduce their negative impact on the natural environment (Yang et al., 2019). Service frms encounter unique challenges when attempting to incorporate green practices into their service design, however, such practices may undercut customer demand and undermine a customer’s sense of indulgence (Mak & Chang, 2019). For example, some hotels cancel their green programs because green practices (e.g., water conservation and reducing the use of disposable goods) lead to customer inconvenience and deprive customers of hedonic pleasure (Giebelhausen et al., 2016; Melissen et al., 2016). Given the intangible nature of services, customers tend to seek observable information (e.g., green practices) to assess the overall service experience (Vo et al., 2019).