Standardization and Individualization Strategies of Hotel Brands: Matching Strategy to Quality Management Instruments and Marketing in Germany

ABSTRACT In the literature and in management practice it is taken for granted that service quality is the most relevant factor for success of hotels. Quality-management instruments and practices measure and improve service quality as perceived by guests. Service quality is understood to enhance personal recommendations and customer loyalty–both of which create positive word-of-mouth communication. However, previous studies have neglected to research the link between the overall strategy of hotels and quality-management practices. This relationship is of importance because various competitive strategies might have different implications for quality management. The empirical results of the present study indicate that consistency between strategies and quality-management instruments can support perceived service quality. Therefore integrated quality management enhances positive word-of-mouth recommendation.