Business Performance as Well as Market Orientation Arising from Differentiation and Low-Price Strategy in Tourist Hotels Located in the Metropolitan Areas in Korea

Still, there are limitations that various approaches have not been attempted to conduct studies examining the market orientation in the hotel industry. It would therefore be mandatory to conduct active studies based on a variety of perspectives, methods and environments in association with the market orientation and business performance in the tourist hotels. Thus, this quantitative study was conducted to identify correlations between the market orientation, differentiation strategy and business performance based on published studies in top-class tourist hotels located in the metropolitan areas. A self-reporting questionnaire survey was performed for assistant managers or their higher-level officers who are engaged in tourist hotels located in the metropolitan areas between April 14 and May 13, 2019. The current study postulated that the market orientation might have an effect on the differentiation strategy, the low-price strategy and business performance. Moreover, it also postulated that the differentiation or low-price strategy might have an effect on the business performance. The current results showed that the path coefficient of each variable exceeded the limit of the acceptance range. Thus, all the five hypotheses were accepted. Further studies are warranted to integrate various approaches, which is essential for establishing the current results.