Impact of Service Quality and Price Fairness on Consumer Loyalty: The Moderating Role of Information Literacy

Abstract

Purpose: Using data from 200 hotel guests in Multan, Pakistan, this research aims to evaluate the influence of service quality and pricing fairness on consumer loyalty while moderating the role of information literacy. Design/Methodology/Approach/Findings: The findings are estimated using partial least square (PLS). The variables service quality, pricing justice, and information literacy are all positively and substantially connected to customer loyalty, according to PLS estimations. Because the link between service quality and customer loyalty is statistically significant, the results of the moderated regression demonstrate that information literacy positively moderates it. On the other hand, while the link between price fairness and customer loyalty is statistically significant, the variable information literacy acts as a negative moderator. Implications/Originality/Value: Hotel management are advised to invest in and increase the quality of service. Managers must maintain control of all activities related to the concept of quality from the bottom to the top of their business.

Keywords

• Service Quality
• Price Fairness
• Consumer Loyalty
• Information Literacy
• PLS