Mediating role of perceived authenticity in the relationship between luxury service experience and life satisfaction

Abstract

In the service industry, customers achieve life goals through experiences. In this study, we examine the effects of customers’ luxury service experiences on their life satisfaction. Using partial least squares-structural equation modeling (PLS-SEM), multi-dimensional perceived values (i.e. hedonic, utilitarian, self-expressive) are examined as drivers of luxury hotel customers’ life satisfaction via enhanced perceived authenticity. This study found that perceived hedonic and self-expressive values influence the perceived authenticity of a luxury hotel brand among customers, which in turn drives life satisfaction. However, the direct effect of perceived utilitarian value on life satisfaction is only significant through brand authenticity. These results show that luxury service providers need to design services to maximize perceived authenticity to promote both brand performance and customer life satisfaction. As few studies have investigated the relationship between service experience and customers’ lives, in this paper we show how luxury service experiences can enhance customers’ quality of life.