Integrating Muslim Customer Perceived Value, Satisfaction, Loyalty and Retention in the Tourism Industry

This study examines the effects of Muslim Customer Perceived Value (MCPV) on customer satisfaction, loyalty, and retention in the tourism industry. The study identifies the dimensions of MCPV and tests a conceptual model of the consequences of MCPV. The availability of Islamic attributes value, along with conventional value dimensions, could satisfy Muslim tourists when they buy a tourism package.

Integrating Muslim Customer Perceived Value, Satisfaction, Loyalty and
Retention in the Tourism Industry: An empirical study
RIYAD EID*
Faculty of Commerce, Tanta University, Tanta, Egypt and College of Business & Economics, United Arab Emirates Univers
ABSTRACT
In recent years, customer value has been the favorable theme for numerous tourism studies and reports. However, alth
up one of the largest tourist markets in the world,perceived value of tourism offering oriented toward this market has not been
defined. Furthermore, there is a lack of systematic empirical evidence regarding the effects of Muslim Customer Percei
on consumer satisfaction, customer loyalty and customer retention. Therefore, the purpose of this paper is to identify t
to examine the interrelationships between MCPV, customer satisfaction, customer loyalty and Muslim customer retentio
and test a conceptual model of the consequences of MCPV in the tourism industry. Moreover, 13 hypotheses were deve
using a sample of 221 Muslim tourists. Exploratory and confirmatory factor analysis were used to test the validity of the
the structural equation modeling has been used in hypotheses testing. The strength of the relationship between the co
features of the suggested MCPV model are crucial to achieving Muslim customer retention in the tourism industry. Find
that the availability of the suggested Islamic attributes value, along with conventional value dimensions, could satisfy M
they buy a tourism package. Copyright © 2013 John Wiley & Sons, Ltd.
Received 18 February 2013; Revised 28 October 2013; Accepted 5 November 2013
key words customer value; Muslim; tourism and hospitality; customer loyalty; customer retention; customer satisfact
INTRODUCTION
Despite a long-term interest in the understanding of consumer
value,its relationship with customersatisfaction,customer
loyalty and eventually customer retention to a service firm is
still unclear. Customer value is central to management think-
ing, especially for high-performing organizations, which strive
to satisfy customers at all times. According to Eid (2007), cus-
tomer value is becoming a priority because of very powerful
economic, technological and social forces that have effectively
made the traditional business models irrelevant in the contem-
porary business and technological environment. According to
Choi and Chu (2001), to be successful in the hospitality and
tourism industry,companies must provide superior customer
value, and this must be carried out in a continuous and efficient
way.Furthermore,tourism companiesshould improve the
quality of their services offerings and ensure thatthe needs
and expectations of their customers are being met.
Meanwhile,there are new trends and developments such
as the investmentand adoption of business practices based
on the Islamic principles ofShari’ah ‘Islamic law’(Essoo
& Dibb, 2004; Meng, Tepanon, & Uysal, 2008; Weidenfeld
& Ron, 2008; Stephenson, Russell, & Edgar, 2010;Zamani-
Farahani& Henderson,2010;Fakharyan,Jalilvand,Elyasi,
& Mohammadi,2012;Zamani-Farahani& Musa, 2012).
For example,Essoo and Dibb (2004)found thatreligion
influencestourism behavioramong Hindus,Muslimsand
Catholics. Weidenfeld and Ron (2008) also found that religion
influences the destination choice, tourist product favorite
selection of religious opportunities and facilities offered.
et al. (2008)found thattourists selectdestinations thatare
supposed to bestfulfill theirinternaldesiresor preferred
destination attributes.Finally,Zamani-Farahaniand Musa
(2012) explored the influence of Islamic religiosity (meas
on dimensions of ‘Islamic Belief’, ‘Islamic Practice’ and ‘Is
Piety’)on the perceived socio-culturalimpacts oftourism
among residents in two tourist areas in Iran.
However,although Muslims make up one of the largest
tourist markets in the world as Muslim population constit
an internationalmarketof 2.1 billion possible customers
(Muslim populationworldwide,2013) and marketing
scholars have long studied ‘perceived value’ and propose
variousconceptualizationsof the term (Holbrook,1994;
Petrick,2002; Benkenstein,Yavas,& Forberger,2003; Oh,
2003;Kwun, 2004;Gallarza& Saura, 2006;Sanchez,
Callarisa,Rodriguez,& Moliner, 2006; Nasution&
Mavondo,2008;Roig et al., 2009),perceived value of
tourism offering oriented toward this market and the con
quencesof creating Muslim CustomerPerceived Value
(MCPV) have not been clearly defined (Stephenson etal.,
2010; Zamani-Farahani& Henderson,2010; Laderlah,
Ab Rahman,Awang,& Man, 2011;Zamani-Farahani&
Musa, 2012;Fakharyan etal., 2012).Hence,full-scale
research conducted in amorerobustmannermustbe
undertaken.
Undoubtedly,although previous studies provide empirica
evidence of the existence of the cognitive and affective d
sions of perceived value (see, for example, Petrick, 2002
2003;Kwun, 2004;Gallarza & Saura,2006;Nasution &
Mavondo,2008;Sanchez,Roig etal., 2009),none of them
studies the overallperceived value ofa purchase from an
*Correspondence to:Dr. Riyad Eid,Associate Professorof Marketing,
Faculty ofCommerce,Tanta University,Tanta,Egyptand College of
Business & Economics, United Arab Emirates University, Al-Ain, UAE.
E-mail: [e-mail]
Copyright © 2013 John Wiley & Sons, Ltd.
International Journal of Tourism Research, Int. J. Tourism Res., 17: 249–260 (2015)
Published online 10 December 2013 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/jtr.1982

Islamic perspective. Evaluation of the value of tourism products
in the case of Islamic tourism participation entails a completely
differentprocess because of the requirements of the Islamic
Shari’ah. Participation of Muslims in tourism activities requires
acceptable goods,services and environments.Therefore,any
attempt to design a scale of measurement of the overall MCPV
of a purchase, or to identify its dimensions, must not only reflect
a structure thatidentifies functionaland affective dimensions
but also the Shari’ah-Compliant attributes.
Therefore,the purposes ofthis research are to identify
MCPV dimensions and develop items ofmeasuring these
dimensions,to develop and clarify aconceptualmodel
integrating MCPV,customersatisfaction,customerloyalty
and their consequences on customer retention and to specify
and test hypothesized relationships derived from the concep-
tual framework. In the following sections, first, the develop-
mentof the conceptualmodeland the hypotheses ofthe
study are presented.Next,the methodology of the study is
discussed followed by the analysis and results. More specif-
ically,the conceptualmodelis tested using path analysis,
with the AMOS 19 structuralequation modeling package,
and data collected by mailsurvey of 221 Muslim tourists.
Finally, the conclusions and their implications are discussed.
LITERATURE REVIEW, CONCEPTUAL MODEL AND
HYPOTHESIZED RELATIONSHIPS
The conceptualmodelof this study isdrawn from two
streams ofresearch:tourism and hospitality literature,and
currentmarketing theory.Figure 1 showsthe conceptual
model with the hypothesized linkages between the constructs.
These linkages deal with two sets of hypotheses:
(1) The effectof the MCPV on customer satisfaction and
customer loyalty.
(2) The effect of customer satisfaction and customer loyalty
on customer retention.
Islamic tourism
Islamic tourism is deeply rooted with the Islamic Shari’ah
where every Muslim is demanded to visitthe holy city of
Makah (in the Kingdom of SaudiArabia) to conductHajj
(the fifth pillar of Islam) if he/she can afford to do that fina
cially and physically. Accordingly, any Muslim that does no
actually live in thatholy city needsto conducttourism
activitiesto fulfill his/herShari’ah requirements.Further-
more,millions of Muslims travel to the holy city of Makah
every year to perform Umrah.As a result,according to the
latest information provided by the National Statistical Offic
of Saudi Arabia, during 2010, 14.757 million tourists visite
the Kingdom of Saudi Arabia (National Statistical Office of
SaudiArabia,2011).Almostall these millions visited the
Kingdom of Saudi Arabia for conducting Islamic tourism.
However, Islamic Shari’ah has a great impact on travelin
and encouraging tourism.When looking atShari’ah and
Islamic religiousprinciplesgeneratedfrom the Qur’an
(Islam’s holy book)and Sunnah (teachings,guidance and
practices of ProphetMohammad),it is found thattravelers
are considered to be closer to God and their Doaa (asking
God for something) and prayers are more responded to wh
traveling.Furthermore,the religiousresponsibilitiesand
duties fortravelers are less as a travelercan pray shorter
prayers,can postponeprayersand can postponehis/her
fasting during the holy month of Ramadan.
However, Muslims practice two different types of tourism
activities.First, pilgrimage-tourism activitiesor whatis
called Hajj.Hajj in Islam is performed in the Kingdome of
Saudi Arabia within a specificgeographicalterritory
(Almasha’erAlmoukadasa)includethe holy mosquein
Makkah,Arafat,Muzdalifah and Mina.It is performed in
specific period,from the 8th to the 13th of the 12th month
(Dhul-Hijja) according to the Hegira calendar. Allah (SWT)
Saysin the holy Quran,(SuratAlbakara),verse number
197: ‘Al-Hajj Ashoron Maalomat’ which means that Hajj is
performed only at a particular time of the year (Eid,2102).
Muslims who are taking place in this great event should ac
Figure 1. Proposed generic model for Muslim Customer Perceived Value.
250 R. Eid
Copyright © 2013 John Wiley & Sons, Ltd. Int. J. Tourism Res., 17: 249–260 (2015)
DOI: 10.1002/jtr

in a good manner.Allah says in the holy Quran,chapter 2
(Surat Albakara),verse number 197: ‘If any one undertakes
that duty therein, Let there be no obscenity, nor wickedness,
nor wrangling in the Hajj’. It means that whoever decides to
go for Hajj should have good manners, so, there shouldn’t be
any immortality, sensuality or arguments in Hajj.
The second type of tourism activities that could be prac-
ticed by Muslims is called Islamic tourism,and this is the
core theme ofthis article.According to Jafariand Scott
(2013), Islamic tourism is essentially a new ‘touristic’ inter-
pretation ofpilgrimage thatmergesreligiousand leisure
tourism. Thus, it is ‘unlike mass tourism which for Muslims
is “characterized by hedonism,permissiveness,lavishness”’
(Sonmez,2001,p. 127).Islamic travelinstead is proposed
as an alternative to this hedonic conceptualization of tourism.
Muslims are encouraged to practice such type oftourism
activities for historical, social and cultural encounters, to gain
knowledge,to associate with others,to spread God’s word
and to enjoy and appreciate God’s creations (Timothy &
Olsen,2006).Undoubtedly,religious beliefs influence and
directMuslim adherentsto travelto particularsitesand
influencetheir attitudesand behavior,perceptionsand
perhaps emotions at those sites (Jafari & Scott, 2013). There-
fore, trends in forms of religious tourism may vary between
adherents of different faiths.
Customer perceived value
In recent years, customer perceived value has been the object
of interestby many researchers in hospitality and tourism
industry. Some studies treated perceived value as two crucial
dimensions of consumer behavior: the functional (value is for
instance linked to perceived prices through what is known as
transaction value)(see,for example,Grewal,Monroe,&
Krishnan, 1998; Cronin, Brady, & Hult, 2000;Oh, 2003).
Undoubtedly,hospitality and tourism activities need to
resortto fantasies,feelingsand emotionsto explain the
touristpurchasing decision.Many products have symbolic
meanings,beyond tangible attributes,perceived quality or
price (Havlena & Holbrook, 1986). Furthermore, as perceived
value is a subjective and dynamic construct that varies among
different customers and cultures at different times, it is neces-
sary to include subjective oremotionalreactionsthatare
generated in the consumer mind (Havlena & Holbrook, 1986;
Bolton & Drew,1991;Sweeney & Soutar,2001).Havlena
and Holbrook havedemonstrated theimportanceof the
affective componentin the experiences of buying and con-
suming in leisure,esthetic,creative and religious activities
(Havlena & Holbrook, 1986).
Therefore, many studies adopt a wider view that treats the
conceptof customer perceived value as a multidimensional
construct (See, for example, De Ruyter, Wetzels, Lemmink,
& Mattson,1997;De Ruyter,Wetzels,& Bloemer,1998;
Sweeney,Soutar,& Johnson, 1999;Rust, Zeithaml,&
Lemmon,2000; Sweeney & Soutar,2001).For example,
Sweeney et al. (1999) identifies five dimensions: social value
(acceptability), emotional value, functional value (price/value
for money),functionalvalue(performance/quality) and func-
tional value (versatility); Kwun (2004) considers brand, price
and risk as the precursors of the formation ofvalue in the
restaurantindustry;Benkenstein etal. (2003) conclude that
satisfaction with leisure services is a function ofcognitive
and emotional (psychological) factors; and Petrick (2002)
consists of five components: behavioral price, monetary
emotional response, quality and reputation.
However,although these studies provide empiricalevi-
dence of the existence of the cognitive and affective dim
sions ofperceived value,none ofthem studies the overall
perceived value of a purchase from an Islamic perspectiv
Evaluation ofthe value oftourism products in the case of
Islamic tourism participation entails a completely differen
process because of the requirements of the Islamic Shari
Participation of Muslims in tourism activities requires acc
able goods, services and environments. Therefore, any a
to design a scale of measurement of the overall MCPV of
purchase,or to identify its dimensions,must not only reflect
a structure that identifies functional and affective dimensions
but also the Shari’ah-Compliant attributes.
Islamic attributes value
Undoubtedly, religious identity appears to play an import
role in shaping consumption experiences including hospi
tality and tourism choices among Muslim customers.It is a
religious compulsion for allMuslims to consume products
that are permitted by Allah (God) and falls under the juris
tion of Shari’ah.In Islam, Shari’ah-Complianttourism
products generally refer to all such products that are in a
dance with the instructions ofAlmighty Allah (God)and
ProphetMohammad (may peace be upon him).Shari’ah
designates the term ‘Halal’ specifically to the products th
are permissible, lawful and are unobjectionable to consum
Shari’ah-Complianttourism productsmay thereforeadd
value to Muslim consumers’ shopping experiences throug
Islamic benefits that contribute to the value of the shopp
experience.
Shari’ah principles are requirements forevery Muslim,
and sensitivity toward application oftheseprinciplesis
important because religious deeds are not acceptable if t
are not conductedappropriately.A typical Muslim is
expected to do regular prayers in clean environments an
in Ramadan. In Islamic teachings, Muslims are also expec
to abstainfrom profligateconsumptionand indulgence
(Hashim,Murphy,& Hashim,2007).In addition,Shari’ah
principles prohibitadultery,gambling,consumption of pork
and other haram (forbidden) foods, selling or drinking liq
and dressing inappropriately (Zamani-Farahani & Hender
2010). Therefore, Shari’ah compliance should be a prereq
for high value tourism experiences for Muslims.
Based on the aforementioned discussions,two conclu-
sions can be introduced to help in building an effective sc
to measure MCPV. Firstly, the view of perceived value as
cognitive variable is notenough,because itis necessary to
incorporatethe affectivecomponent.Secondly,Muslim
touristevaluates notonly the traditionalaspects ofvalue
(cognitive and affective components) butalso the religious
identity related aspects that contribute to the value crea
This overall vision underlies the multidimensional approa
to MCPV.
Muslim Customer Perceived Value251
Copyright © 2013 John Wiley & Sons, Ltd. Int. J. Tourism Res., 17: 249–260 (2015)
DOI: 10.1002/jtr

Customer satisfaction
According to Rodriguez del Bosque and San Martin (2008),
consumersatisfaction is notonly cognitive butalso emo-
tional. Although the literature contains significant differences
in the definition ofsatisfaction,thereare at leasttwo
common formulationsof satisfaction (Ekinci,Dawes,&
Massey,2008;Nam, Ekinci, & Whyatt, 2011):one is
transient(transaction-specific),whereas the other is overall
(or cumulative)satisfaction.Transientsatisfaction results
from the evaluation of activities and behaviors that take place
during a single,discrete interaction ata service encounter
(Oliver, 1997). A key implication of this definition suggests
thattransientsatisfaction should be captured immediately
after each service interaction with the service provider (e.g.
satisfaction with a specific employee) (Nam et al., 2011).
On the otherhand,overallsatisfaction is viewed as an
evaluative judgment of the last purchase occasion and based
on all encounters with service provider (Ekinci et al., 2008;
Nam et al.,2011).Transaction-specific satisfaction is likely
to vary from experienceto experience,whereasoverall
satisfaction is a moving average that is relatively stable and
mostsimilarto an overallattitude towardspurchasing a
brand.Therefore,this study follow Oliver (1997) and view
consumersatisfaction asa consumer’soverallemotional
response to the entire service experience for a single transac-
tion at the post purchasing point.
Customer loyalty
Loyalty is the most powerful outcome of consumer satisfac-
tion. It is a multidimensional construct that has been concep-
tualized and operationalized in many differentways in the
marketing literature(Oliver,1999).For example,Oliver
(1997) proposes three components of satisfaction: cognitive,
affective and conative.The latter includes the use of repeat
usage.Also, intention to return ishighly correlated with
otheroutcomes ofsatisfaction.However,despite the large
number of studies on customer loyalty, it has been seen from
two perspectives:behavioralloyalty and attitudinalloyalty
(e.g.Dick & Basu,1994;Nam etal., 2011).Behavioral
loyalty refers to the frequency of repeat purchase. Attitudinal
loyalty refers to the psychologicalcommitmentthata con-
sumer makes in the purchase act,such as intentions to pur-
chaseand intentionsto recommend withoutnecessarily
taking theactualrepeatpurchasebehaviorinto account
(Jacoby, 1971; Jarvis & Wilcox, 1976).
Customer retention
There is only one valid definition ofbusiness purpose:to
create and retain a customer.It is the customer who deter-
mines what the business is (Drucker, 1954). Generally speaking,
there is no clear definition of a successful tourism organization.
A successfultourism organization isone thatsucceedsin
meeting thebusinessobjectives.Theseobjectivescan be
customer acquisition, customer retention, customer satisfaction,
customer loyalty, better customer service or any other objectives
that are set by the organization. MCPV includes the delivery of
sustained or increasing levels of satisfaction, and the retention of
customers by the maintenance and promotion of the relationship
(Palmer, Lindgreen, & Vanhamme, 2005).
Hypotheses
Homburg and Bruhn distinguish between the constructs of
customerretention,customerloyalty and customersatis-
faction,which they see as linked by a two-stage causal
chain (Homburg & Bruhn,1998).Therefore,they suggest
distinguishing between the constructs of customer retenti
customer loyalty and customer satisfaction, which they se
linked by a two-stage causalchain.Accordingly,customer
satisfaction is a direct determining of customer loyalty, wh
in turn, is a centraldeterminantof customerretention.
Customersatisfaction and customerloyalty constructsare
affected by the different elements of MCPV.
However,the differentconstructs ofMCPV, the theo-
retical differentiation of customer retention, customer loya
and customer satisfaction that can be derived from the lite
ture,and the two-staged causallinks between these con-
structs willnextbe considered with regard to their specific
relevance for the tourism industry.
Effects ofMuslim Customer Perceived Value on customer
satisfaction
Previouswork showsthatvariousmeasuresof customer
value are positivelycorrelatedwith satisfaction(Lam,
Shankar, Erramilli, & Murthy, 2004; Spiteri & Dion, 2004).
Yet none ofthese measures includes items similarto the
notion ofMuslim attributesvalue.For example,studies
conducted by Battour,Ismail,and Battor (2011) identified
Islamic attributes ofdestinations thatmay attractMuslim
tourists such as the inclusion of prayer facilities, Halal food
Islamic entertainment,Islamic dress codes,generalIslamic
morality and the Islamic callto prayer.This study recom-
mended thatIslamicattributesof destination should be
developed forthe purpose ofempiricalresearch.Ozdemir
and Met (2012)also argued thatas Muslimstypically
observe a dress code and avoid free mixing,some hotels in
Turkey offer separateswimmingpool and recreational
facilities.Thus,a key question here iswhetherMuslim
customers’perception ofsuch Islamic attributesleadsto
satisfaction outright.
Derived from previous works on the multidimensional na
ture of consumption value, we can assume that positive an
negative value dimensions could have positive and negati
effects on the Muslim customer perceived value construct
Thus,the six dimensions ofSanchez etal. (2006)study
could be considered:among them,we choose functional
value (quality and price),emotional value and social value.
But,considering the specialnature of Muslim tourists,we
shall add another positive input of perceived value (Islami
attributes value).The research hypotheses supporting this
proposal are then as follows:
H1: The perceptions of benefits referred to quality will
have a positive impact on Muslim customer satisfaction
H2: The perceptions of price will have a positive impact
on Muslim customer satisfaction
H3: The perceptionsof benefitsreferred to emotional
value willhave a positive impacton Muslim customer
satisfaction
252 R. Eid
Copyright © 2013 John Wiley & Sons, Ltd. Int. J. Tourism Res., 17: 249–260 (2015)
DOI: 10.1002/jtr

H4: The perceptions of benefits referred to social value will
have a positive impact on Muslim customer satisfaction
H5: The perceptionsof benefitsreferredto Islamic
attributes value willhave a positive impacton Muslim
customer satisfaction
Effects ofMuslim Customer Perceived Value on
customer loyalty
Based on the literature review, loyalty is measured as a direct
result to customer satisfaction (Heskett, Sasser, & Schlesinger,
1997).However,many researcherssuggestthatsatisfying
customers may notbe sufficientto create loyalcustomers.
For example, conditions like a quality, cost, effort perceptions,
pleasure perceptions or personal characteristics may contribute
directly to loyalty behavior or shape the influence of satisfac-
tion (Lam et al., 2004). Most of these factors are studied under
the concept of customer value (e.g. risk in Day & Crask, 2000).
Therefore, a critical question is whether MCPV might serve as
a type of relationship switching barrier thatoperates in part
independently from satisfaction and directly influences cus-
tomer loyalty. We propose the following hypothesis to inves-
tigate this question:
H6: The perceptions of benefits referred to quality will
have a positive impact on Muslim customer loyalty
H7: The perceptions of price will have a positive impact
on Muslim customer loyalty
H8: The perceptionsof benefitsreferred to emotional
value willhave a positive impacton Muslim customer
loyalty
H9: The perceptions of benefits referred to socialvalue
will have a positive impact on Muslim customer loyalty
H10: The perceptionsof benefitsreferred to Islamic
attributes value willhave a positive impacton Muslim
customer loyalty
Effects of Muslim customer satisfaction on loyalty
Customer satisfaction is expected to be positively related to
customerloyalty (Zeithaml,Parasuraman,& Malhotra,
2000). Reichfeld and Schefter (2000) argue that loyalty is a
more importantcustomer consideration than even price.In
fact, these authors present evidence that there is a high cost
associated with low levels of loyalty.Loyalty is a sophisti-
cated construct.Generally speaking,satisfaction implies
loyalty,but not vice versa.Consequently,there is an asym-
metric relationship between loyalty and satisfaction.Many
other studies have shown that loyalty is measured as a direct
consequence to customer satisfaction (Heskett et al.,1997).
Therefore, the following hypotheses can be developed:
H11: Muslim customer satisfaction willhave a positive
impact on Muslim customer loyalty
Effects of satisfaction and loyalty on Muslim customer retention
Customersatisfaction and loyalty are positively related to
customer retention (Anderson,Fornell,& Lehmann,1994;
Reichheld,1993).Therefore,it is safe to assume thatif
customersatisfactionis positivelyrelatedto customer
loyalty, then customer satisfaction would eventually cont
ute to customerretention.Recentresearch hasexplored
relationships between customer value perceptions and b
satisfaction and loyalty (Lam etal., 2004).Here,we are
interested in examining ifthe advantage ofunderstanding
Muslim customers’ currentdesired value perceptions stops
here or if in fact anticipating Muslim customer value mak
any difference to customers. Further, the cumulative insi
of the services literature support the general notion that
value and satisfaction contribute to loyalty as a positive f
of behavioralintention consistentwith enhanced profits
through lucrative customerretention (Cronin etal., 2000;
Parasuraman & Grewal,2000).Thereforethe following
hypotheses are offered:
H12: Muslim customer satisfaction willhave a positive
impact on Muslim customer retention
H13: Muslim customer loyalty will have a positive impa
on Muslim customer retention
RESEARCH METHODOLOGY
Data collection
The generalizability of the study relied on the representa
ness of the respondents. Therefore, a representative sele
of Muslim tourists was made from a database ofMuslim
tourists.Several international tourism organizations that a
located in UK, Egypt and United Arab Emirateswere
contacted to give us access to their tourist database, of w
three prominentones accepted to give us such access.The
three organizations have been reassured thatonly members
of the research team willhave access to the data they give
and the completed questionnaire will not be made availa
to anyoneotherthan theresearch team.A databaseof
Muslim tourists has been made for data collection purpos
The criteria forselecting customers to participate were
simple. First, customer should be Muslim. Second, custom
should have boughta tourism package during the lasttwo
years.Finally,customers should come from differentcoun-
tries. This techniques resulted in a database of 6454 Mus
customers. A systematic random sampling method has b
used to draw asampleof 1000 customers.Systematic
random sampling usesthe samestatisticalprinciplesas
simple random sampling,thatis, p-values and confidence
intervals are calculated the same way.However,systematic
random sampling does not involve separate random sele
of each unit. For this reason, systematic random samplin
often used to select large samples from a long list of unit
research packet,which contained a covering letterand an
anonymous [self-administering] questionnaire, was e-ma
to the customers and a web link of the online survey has
been given in the e-mail. A total of 242 respondents retu
questionnaires,but21 were omitted from analysis due to
missing data,leaving a totalof 221 usefulresponses ora
24.71.96% overall response rate.
Muslim Customer Perceived Value253
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DOI: 10.1002/jtr

The sample was dominated by male respondents (66.1%),
and this is normalbecause there are some restrictions in
Islam that prevents a woman from traveling on her own.In
termsof age,mostwere youngerthan 45 years[76.9%],
and a few respondent [approximately 8.6%] were older than
55 years.Approximately 62.4% ofthe respondents had at
leastsome college education,with 37.6% having earned a
postgraduate degree.With respectto the income level,
21.3% of the respondentsreported ahousehold income
between $1000 and $1999 permonth,23.1% reported a
household income between $2000 and $3999 permonth,
17.2% reported a household income between $4000 and
$5999 per month and 17.2% reported a household income
more than $6000 per month.Finally,we have respondents
from 28 different countries, which include Bangladesh, Egypt,
France,India,Indonesia,Iraq, Ireland,Jordan,Kingdom
of Saudi Arabia, Kuwait, Lebanon,Libya, Malaysia,
Morocco,Oman,Pakistan,Palestine,Qatar,Singapore,
Spain, Sudan, Syria, Tunisia, Turkey, United Arab Emirates,
UK, USA and Yemen.
Research instrument development – measures
We measured the five constructs (functional value (quality),
functionalvalue (price),emotionalvalue,socialvalue and
Islamic attributes value by multiple-item scales adapted from
previousstudies.All itemswere operationalized using a
five-pointLikert-type scale.
Firstly, in conceptualizing the cognitive value (functional
value),the originalSweeney and Soutar(2001)scale of
cognitive value is used in this study. According to Sweeney
and Soutar (2001),cognitive value is a dimension that con-
sists of two constructs – quality and price.Four five-point
Likert-type questions have been used to measure each one
of them.Secondly,in conceptualizing the affective value
(Emotional),we follow Sanchez et al.(2006) defining it as
a dimension that consists of two constructs – emotional value
and socialvalue – measured by four5-pointLikert-type
questions. We borrowed or adapted these items from Gallarza
and Saura (2006);Sanchez etal. (2006) and Sweeney and
Soutar (2001).
Secondly,in conceptualizingthe Islamic value,the
developmentof the research instrumentwas based mainly
on new scales, because we could not identify any past studies
directly addressing thisconstruct.However,threemain
sources have been used forthis purpose;Qur’an (Islam’s
holy book) and Sunnah (teachings,guidance and practices
of ProphetMohammad)and a thorough review ofthe
literature in which the variable is used theoretically or empir-
ically (Hashim et al., 2007; Stephenson et al., 2010; Zamani-
Farahani & Henderson, 2010; Battour et al., 2011; Laderlah,
Ab Rahman, Awang, & Man, 2011; Fakharyan et al., 2012;
Zamani-Farahani& Musa, 2012).For example,Studies
conductedby Battouret al. (2011)identifiedIslamic
attributes ofdestinations thatmay attractMuslim tourists
such as the inclusion of prayer facilities, Halal food, Islamic
entertainment, Islamic dress codes,general Islamic morality
and the Islamic callto prayer.Similarly,Ozdemir& Met
(2012) argued that as Muslims typically observe a dress code
and avoid free mixing. However, the three sources lead us to
measure the Islamic attributes value by four 5-point Likert
type questions.
Finally, in conceptualizing theMCPV consequences,
customer satisfaction,customer loyalty and customer reten-
tion are used in this study – measured by four items each
each category.We borrowed oradapted these items from
Cronin et al.(2000); Murphy,Pritchard,and Smith (2000);
Petrick (2002) and Eid (2007).
ANALYSIS AND RESULTS
First,the psychometric propertiesof the constructswere
assessed by calculating theCronbach’salphareliability
coefficientand the items-to-totalcorrelation (Nunnally &
Bernstein,1994).As can be seen form Table 1,all scales
have reliability coefficientsranging from 0.812 to 0.946,
which exceed the cut-off level of 0.60 set for basic researc
(Nunnally, 1978).
To meetthe requirements forsatisfactory discriminant
validity,Table 2 shows that the variances extracted by con-
structs(AVE) were greaterthan any squared correlation
among constructs (the factor scores as single-item indicat
have been used to calculate the between-constructs corre
tions); this implied that constructs were empirically distinc
Fornelland Larcker(1981).This indicates thateach con-
struct should share more variance with its items than it sh
with other constructs.In summary,the measurement model
test, including convergent and discriminant validity measu
was satisfactory.
Next, confirmatory factor analysis has been used to ass
the measurement models.Before building a model that will
considerall the dimensionsof value together,it is also
important to highlight, from a methodological point of view
that individualized analysis of each of those dimensions w
be made (the measurementmodel),in order to carry outa
priorrefinementof the items used in theirmeasurement.
Having established the five dimensionsof the scale,we
conducted a confirmatory factor analysis.For this research,
we chose to use both the structuralmodel(includes allthe
constructsin one model)and the measurementmodel
(separate model for each construct).
First, as suggested by many researchers (See, for exam
Fornell& Larcker,1981;Bollen,1989;Liang & Wang,
2004;Hair et al., 2006;Hooper,Coughlan,& Mullen,
2008; Čater & Čater, 2010), a null model, in which no facto
were considered to underlie the observed variables,correla-
tions between observed indicators were zero and the varia
of the observed variables were not restricted, was tested a
a series of models, namely, a one factor model (suggestin
the observed variables represent a single value dimension
three factor model (in which price and quality are suggest
to representa single functionaldimension ratherthan two
dimensions,emotionaland socialvaluesare suggested to
represent a single emotional dimension rather than two di
sions and Islamic attributes are suggested to represent a s
Islamic dimension rather than two dimensions),and a five-
factormodel(in which the dimensions are as proposed in
the earlier discussion).
254 R. Eid
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DOI: 10.1002/jtr

The results, shown in Table 2, support the proposed fiv
factorsolution,comprising the quality,price,emotional,
social and Islamic attributes value dimensions. Not only d
this model have the lowest χ2 and highestadjusted
goodness-of-fit index (GFI), but also the highest compara
fit index (CFI)and the lowestrootmean square residual.
Several fit statistics were utilized to evaluate the accepta
of each of the factor model. As recommended by Bentler
Bonnet (1980), the GFI was utilized and deemed accepta
if above the recommended value of 0.90.Additionally,the
CFI also was used and acceptable model fit is demonstra
with CFIs above 0.90,as well.Furthermore,adjusted GFI
and root mean square residual also were provided. Stand
cutoffsfor the aforementioned indices,as proposed by
experts (Bentler,1990;Hu & Bentler,1995;Joreskog &
Sorbom, 1982), are provided in Table 2.
Finally,given that the purpose of the study is to test the
hypothesized causalrelationships among the constructs of
the model, we used the structural equation-modeling pac
of AMOS 19. We used the factor scores as single-item ind
cators and performed a path analysis, applying the maxi
likelihood estimates (MLE) method, following the guidelin
suggested by Joreskog and Sorbom (1982).
The application ofthe MLE method forestimating the
model demands that the constructs should satisfy the cri
of multivariate normality (Bagozzi& Yi, 1988).Therefore,
for all the constructs,tests of normality,namely skewness,
kurtosis and mahalanobis distance statistics (Bagozzi& Yi,
1988),were conducted.These indicated no departure from
normality. Thus, as normality was confirmed for all the co
structs,we proceeded in using the MLE method to estimate
the model. Figure 2 illustrates the path diagram for the c
model. It also presents the estimated standardized param
for the causal paths, their levels of significance and the s
multiple correlations for each construct.
A more detailed analysis of the results and measures f
model fit are reported in Table 3. Because there is no defi
tive standard of fit,a variety of indices are provided along
with suggested guidelines.The chi-square statistic ofthe
model was very small (χ2= 10.962)and insignificant
(p = 0.082),indicating a very good fit.Additionally,the
results of the rest measures, together with the squared m
ple correlations,indicate that the overall fit of the model to
the data is quite strong.
Table 1.Coefficient alpha and item-total correlation
Construct/items
Item-total
correlation
Coefficient
alpha
Quality 0.904
The tourism package purchased
was well organized.
0.785
The quality of the tourism was
maintained throughout.
0.791
The tourism package had an
acceptable level of quality.
0.801
The tourism package purchased
was well made.
0.757
Price 0.875
The tourism package was a good
purchase for the price.
0.739
The tourism package purchased
was reasonably priced.
0.779
The price was the main criterion
for my decision.
0.680
The tourism package purchased
was economical.
0.730
Emotional 0.946
I am comfortable with the
tourism package purchased.
0.858
I felt relaxed about the tourism
package purchased.
0.877
The tourism package purchased
gave me a positive feeling.
0.875
The tourism package purchased
gave me pleasure.
0.865
Social 0.910
The tourism package has helped
me to feel acceptable.
0.808
The tourism package improved
the way people perceive me.
0.834
The tourism package purchased
gave me social approval.
0.823
Many people that I know purchased
the tourism package.
0.722
Islamic attributes 0.812
Availability of prayer facilities. 0.699
Availability of Halal food. 0.758
Availability of segregated services
(e.g. beaches, swimming pools and
gymnasium for men and women).
0.737
Availability of Shari’ah compatible
entertainment tools (e.g. cinemas,
theaters, play areas, arcades, etc.).
0.605
Table 2.Discriminant validity results
Correlations
Quality Price Emotional Social Islamic attribute
Quality 0.900
Price 0.514** 0.84
Emotional 0.553** 0.564** 0.837
Social 0.539** 0.422** 0.485** 0.832
Islamic physical attributes 0.700** 0.601** 0.709** 0.492** 0.871
*Correlation is significant at the 0.05 level,
**Correlation is significant at the 0.01 level (two-tailed).
The diagonals represent the average variance extracted and the lower cells represent the squared correlation among constructs.
Muslim Customer Perceived Value255
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DOI: 10.1002/jtr

Because the causal effects of the suggested factors may be
either director indirect,thatis. mediated via the effects of
other variables,or both,the totalcausaleffects were com-
puted. More specifically, the indirect effects are the multipli-
cative sum ofthe standardized path coefficients.The total
effects are the sum of the directeffectand allthe indirect
effects.Table 4 shows the direct,indirectand totaleffects
of the suggested factors.
However,our findings generally supportour conceptual
model. The results place support to most of the hypotheses.
Table 5 shows the estimated standardized parameters for
the causal paths. Apart from the social value (H7) (standard-
ized estimate = 0.039,p > 0.05),the suggested factors are
positively affecting the customer satisfaction, namely quality
value (H1)(standardized estimate = 0.253,p < 0.01),price
value (H3) (standardized estimate = 0.146, p < 0.05), emotional
value(H5) (standardizedestimate = 0.200,p < 0.05),and
Islamic attributes value (H9)(standardized estimate = 0.327,
p < 0.01).
Similarly,Apart from the price (H4) (standardized
estimate =0.057, p > 0.05), the suggested factors are posi-
tively affecting the customer loyalty,namely quality value
(H2) (standardized estimate = 0.223,p < 0.05),price value
(H6) (standardized estimate = 0.033,p < 0.10),emotional
value (H8) (standardizedestimate = 0.005,p < 0.05),
Islamic attributesvalue (H10) (standardizedestimate =
0.201, p < 0.01) and customer satisfaction (H11) (standar
estimate = 0.562, p < 0.05).
With respect to the customer retention,it was found that
the two suggested variables,namely customersatisfaction
(standardized estimate = 0.441, p < 0.01) and customer l
(standardized estimate = 0.373, p < 0.01), have significan
positiveeffectsupon customerretention,supportingthe
hypothesesH12 and H13.The aforementioned significant
relationships provide empirical support to the theoretical v
that state that customer satisfaction and customer loyalty
facilitators ofcustomerorientation (Anderson etal., 1994;
Reichheld, 1993).
DISCUSSION
The purpose of this article is (1) to offer some usefuland
practical guidelines for tourism organizations and other ty
of businesses wishing to successfully understand MCPV an
(2) to enhance our understanding of its impact on custome
satisfaction, customer loyalty and customer retention.
Figure 2. Results of path analysis.
Table 3.Comparative confirmatory factor analysis of models of various dimensionalities
Model χ2 DF GFI AGFI CFI RMSEA
Null 2661.78 170 0.619 0.529 0.714 0.165
Three factors 2209.84 167 0.654 0.565 0.766 0.151
Five factors 803.96 160 0.901 0.836 0.926 0.087
Statistic Suggested
GFI ≥0.90
AGFI ≥0.80
CFI ≥0.90
RMSEA ≤0.10
GFI, goodness-of-fit index; AGFI, adjusted goodness-of- fit index; CFI, comparative fit index; RMSEA, root mean square residual; DF, degre
256 R. Eid
Copyright © 2013 John Wiley & Sons, Ltd. Int. J. Tourism Res., 17: 249–260 (2015)
DOI: 10.1002/jtr

Muslim Customer Perceived Value
This study provides new theoretical grounds for studying the
MCPV. It also supplies tourism organizations with a number
of operative dimensions that may be essential if they are to
remain competitive in the dynamic marketplace.Not only
doesthis study providean empiricalassessmentof the
essentialelements ofcustomervalue,butit also assesses
the criticalfactorsfor targeting and creating valuefor
Muslim customers. These CSFs include five basic categories:
(1) quality value;(2) price value;(3) emotionalvalue;(4)
social value; and (5) Islamic attributes value.
There has been little empiricalresearch thatexamines
customervalue from the perspectives ofthe Muslim cus-
tomers.In service industries,like tourism,the consumption
experience is intangible,dynamic and subjective (Havlena
& Holbrook,1986;Bolton & Drew,1991;Sweeney &
Soutar,2001),and therefore itis notacceptable to assume
that the dimensions of value are applicable to different c
tomers and cultures. The reliabilities, factor structure and
lidity tests indicate that the 20-item MCPV scale and its fi
dimensions have sound and stable psychometric propert
The scale demonstratesthat Muslim consumersasses
products,not just in functional terms of expected quality o
the tourism product,price of the tourism product,the
enjoymentdelivered from the tourism product(emotional
value) and what the tourism product communicates to ot
(socialvalue);butalso in terms of providing tangible attri-
butesthatresulton the delivery ofShari’ah-Compliant
tourism products such as Halalfood and the availability of
Shari’ah compatible art, fun and entertainment tools.
This means that Muslim tourist’s decision should not b
seen from a purely rationalpointof view.The experiential
view provides new keys to the valuation made by Muslim
tourists and therefore to the mostimportantattributes that
Table 4.Direct, indirect and total effect of the MCPV Constructs
Criterion variable Predictor variables Direct effect Indirect effect Total effect
Customer satisfaction Quality value 0.253 0.000 0.253
Price value 0.146 0.000 0.046
Emotional value 0.199 0.000 0.199
Social value 0.039 0.000 0.039
Islamic attributes value 0.327 0.000 0.327
Customer loyalty Quality value 0.223 0.142 0.365
Price value 0.057 0.082 0.025
Emotional value 0.033 0.112 0.145
Social value 0.005 0.022 0.027
Islamic attributes value 0.201 0.183 0.384
Customer satisfaction 0.562 0.000 0.562
Customer retention Customer satisfaction 0.441 0.210 0.651
Customer loyalty 0.373 0.000 0.373
Table 5.Standardized regression weights
Predictor variables Criterion variables Hypothesized relationship Standardized coefficient R2a
Quality value Customer satisfaction H1 0.253** 0.58
Price value Customer satisfaction H3 0.146 *
Emotional value Customer satisfaction H5 0.200*
Social value Customer satisfaction H7 0.039 ns
Islamic attributes value Customer satisfaction H9 0.327***
Quality value Customer loyalty H2 0.223** 0.79
Price value Customer loyalty H4 0.057 ns
Emotional value Customer loyalty H6 0.033*
Social value Customer loyalty H8 0.005**
Islamic attributes value Customer loyalty H10 0.201***
Customer satisfaction Customer loyalty H11 0.562**
Customer satisfaction Customer retention H12 0.441*** 0.61
Customer loyalty Customer retention H13 0.373***
Statistic Suggested Obtained
Chi-square significance ≥0.05 0.034
Goodness-of-fit index ≥0.90 0.987
Adjusted goodness-of-fit index ≥0.80 0.905
Comparative fit index ≥0.90 0.995
Root mean square residual ≤0.10 0.080
*p < 0.10,
**p < 0.05,
***p < 0.01, ns is not significant.
Muslim Customer Perceived Value257
Copyright © 2013 John Wiley & Sons, Ltd. Int. J. Tourism Res., 17: 249–260 (2015)
DOI: 10.1002/jtr

will lateraffecttheirsatisfaction,loyalty and retention.
Cognitive elements (quality and price) and affective elements
(emotions and socialrecognition)play a fundamentalrole
butit would notbe possible to understand the behavior of
Muslim tourists without incorporating the Islamic attributes
into the study. We were surprised, however, to find that price
valuehas shown only anegligiblenegativeimpacton
customer loyalty. However, upon closer examination of our
study, this should not have been unexpected. This negligible
negative direct effect (0.057) is offset by the indirect posi-
tive effect (0.082) of the price value on customer loyalty.
The findings of this research support previous theoretical
views of differentresearchers.For example Salazar (2005)
argued thatunderstanding Islamic values mustbe seen in
localcontexts as a type of‘Glocalization’and callfor a
dramatic change thatmoves the conceptof value-in-use to
a more descriptive‘value-in-context’concept(Vargo,
2009). The results also support Lusch and Vargo’s view that
‘value isalwaysuniquely and phenomenologically deter-
mined by the beneficiary’ and is also idiosyncratic, experien-
tial, contextual and meaning laden. Certainly, this embraces a
multiple perspective (Lusch & Vargo, 2011).
Muslim Customer Perceived Value consequences
The findingsshow thatcustomersatisfaction isdirectly
affecting customer loyalty, which, in turn, is a central determi-
nant of customer retention. Customer satisfaction and customer
loyalty are affected by the MCPV dimensions.It means that
acquiring a better understanding of Muslim customers allows
tourism companies to interact, respond and communicate more
effectively to significantly improve retention rates. The results
clearly demonstrated that customer satisfaction and customer
loyalty have catalytic influence on Muslim customer retention.
Overall,customersatisfaction and customerloyalty explain
61% of Muslim customer retention. The results further support
previous research that a two-stage causal mechanism should be
assumed in which customersatisfaction drivescustomer
loyalty,which in turn has impacts on customerretention
(Gerpott,Rams,& Schindler,2001).
With regard to the business implications, recognition of the
importance of the different dimensions of MCPV should enable
tourism and hospitality companies to develop more sophisti-
cated positioning strategies.Our results show the importance
of Islamic attributes value on Muslim consumer’s willingness
to buy a tourism product normally considered as functionally
and affectively oriented.This has substantial implications for
marketing strategy. For example, tourism and hospitality com-
panies should develop a hospitality and tourism marketthat
represents Shari’ah compliant tourism products. Such initiatives
illustrate the potential tourism companies have in establishing
and developing forms of hospitality and tourism grounded in
principles and behavioral codes that represent national society
and culture. Tourism and hospitality institutions can improve
the chance of their selection by identifying and marketing their
ability to meet the Muslim tourist needs.
An additionalimplication related to the urgentneed for
tourism organizations to readdress its hospitality and tourism
products in association with culturally oriented particularities
and distinctions.Such innovation requiresinvestmentin
productdevelopment,research and marketing,integralto a
broader trend that ought to consider Islam as a cultural ph
losophy.Merging elements of the conservative Islamic life-
style with the modern tourism industry could presentnew
tourism options and spheres (Al-Hamarneh & Steiner, 200
CONCLUSION AND RESEARCH IMPLICATIONS
The key contribution of this study is that it provides a mor
comprehensive modelof the consequences of MCPV with
tourism services.This claim is based on the grounds that
we found strong support for 11 of the 13 hypotheses in ou
model.Overall,the study findings indicate that(1) MCPV
has five dimensions-quality,price,emotional,socialand
Islamicattributesvalue;(2) MCPV is an antecedentof
Muslim customersatisfaction;(3) MCPV is an antecedent
of Muslim customer loyalty; and (4) both Muslim customer
satisfaction and Muslim customerloyalty havepositive
effects on intention to return.
As with any study, there are certain limitations that sho
be recognized. First, one of the limitations of this research
thatit is specific to one culture (Islamic)and one service
sector (tourism industry). Second, we assessed MCPV usin
only five constructs;quality,price,emotional,socialand
Islamic attributes value; while there is evidence that MCPV
is a much broaderconstructthatmightinclude reputation
(Nasution & Mavondo,2008) esthetics (Gallarza & Saura,
2006)and religiosity (Zamani-Farahani& Musa, 2012).
Finally, the data are cross-sectional in nature and hence it
not possible to determine causal relationships. Thus, to pr
vide an even more convincing case for causal interpretatio
of variable correlations,additionallongitudinalresearch is
needed in which exogenous factors are captured before da
on endogenous criteria are collected.
The direction for future research, which emerged from o
findings,is to improve our understanding of the MCPV in
other types of business. For example, each MCPV discusse
in this study warrants more in-depth study in other service
industries such as banking and insurance.Given the impor-
tance associated with the MCPV,a potentially fruitfularea
would be to develop the quantification ofMCPV into an
‘index of practice’ so thattourism companies could deter-
mine the levelof performance on a time-based approach.
The results from an audit,with regard to the index,could
pinpoint areas that need attention and improvement.
Future research may choose to focus on one or more of
Islamic attributes to generate an in-depth knowledge to in
both theoreticaland practicalapplications.Researchers could
use these factors to assess the success of tourism compan
attracting Muslim tourism. On the other hand, the MCPV m
surement must be subjected to review, critique and discus
for an extended period before getting general acceptance
tional items might be tried in each category. Finally, differ
constructs could be tried to measure the MCPV effect. To t
end,a very promising research approach is to study the on
sequences of MCPV for the tourist’s post-purchase behavio
More specifically, we suggest analyzing the causal relation
between perceived value and satisfaction and loyalty.
258 R. Eid
Copyright © 2013 John Wiley & Sons, Ltd. Int. J. Tourism Res., 17: 249–260 (2015)
DOI: 10.1002/jtr

ACKNOWLEDGMENT
The author sincerely thanks the editor and the anonymous
International Journal of Tourism Research reviewers for their
constructive and valuable comments and suggestions.
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DOI: 10.1002/jtr