Research Article | | Peer-Reviewed

Service Quality and Customer Responses in Hotels: A Stimulus–Organism–Response Perspective

Received: 8 March 2026     Accepted: 18 March 2026     Published: 7 April 2026
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Abstract

This study aims to explore hotel service quality and its emotional and behavioral impacts within the context of the hotel industry in Nepal. Specifically, it examines the relationships between service quality, perceived value, positive emotions, memorable experiences, customer satisfaction, and customer loyalty by employing the stimulus-organism-response (SOR) framework. A quantitative approach was utilized for the study. Data were collected from hotel customers in Nepal. The hypothesized relationships were tested with structural equation modeling using SPSS and AMOS. The study found that service quality significantly influences the internal psychological and emotional states of customers. Specifically, service quality positively affects perceived value, positive emotions, and memorable experiences, suggesting that high-quality hotel services enhance customer’s cognitive evaluation and emotional reactions during their stay. Consistent with the organism component of the SOR theory, perceived value and positive emotions play important mediating roles in translating service quality into memorable experiences. Similarly, memorable experiences serve as a key organism state that links internal reactions to behavioral outcomes. Memorable experiences mediate the relationships between service quality and both customer satisfaction and customer loyalty, which represent response stage in the SOR framework. Overall, the findings strongly support the applicability of the SOR theory in explaining customer behavior in the hotel industry. Service quality acts as environmental stimulus that shapes customer’s cognitive and emotional states, which in turn drive favorable behavioral responses such as satisfaction and loyalty. By highlighting the sequential process through which service quality influences internal psychological mechanisms and subsequent behavioral outcomes, this study provides a deeper theoretical understanding of customer experience formation in hospitality settings. Moreover, findings of this study offer valuable insights for enhancing service strategies and improving customer experiences.

Published in International Journal of Hospitality & Tourism Management (Volume 10, Issue 1)
DOI 10.11648/j.ijhtm.20261001.23
Page(s) 139-156
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Service Quality, Perceived Value, Positive Emotion, Memorable Experience, Customer Satisfaction, Customer Loyalty

1. Introduction
The hotel industry has experienced steady growth in both establishments and bed capacity over the past decade . As a service-driven sector, its success hinges on delivering exceptional service that meet rising customer expectations . Service quality is vital to customer satisfaction and loyalty . Maintaining high standards of services not only fosters repeat business but also ensures a competitive edge .
Memorable experience reflects a customer’s perception of a product's excellence, closely tied to their expectations and satisfaction . When such experiences align with customer needs, they enhance satisfaction and support long-term profitability. Industries that understand and anticipate customer expectations are better positioned to deliver these impacts, fostering loyalty and positive word-of-mouth . In hotels, memorable experiences such as unique amenities and tailored services significantly shape guest perceptions and loyalty . Moreover, perceived value, or the balance between service quality and cost, further enhances these experiences .
The Stimulus-Organism-Response (SOR) model is crucial for understanding how hotel service quality impacts customer satisfaction and loyalty by mediating the effects of positive emotions and perceived value through memorable experiences . In the context of hotels, service quality serves as the primary stimulus that influences guests' internal states, such as emotions and cognitive evaluations. These internal states, in turn, shape the perceived value of the stay and the overall memorable experience. These memorable experiences and positive emotions are integral to achieving higher customer satisfaction and fostering loyalty. Consequently, the SOR model has potential to provide a comprehensive framework for evaluating how internal psychological processes mediate the relationship between service quality and long-term organizational outcomes, offering valuable guidance for improving hotel management strategies and enhancing guest experiences.
The hotel and tourism industries are vital drivers of Nepal's service sector, contributing approximately 25% of the country's total foreign exchange earnings. Since the introduction of the Nepal Tourism Master Plan in 1972 and subsequent marketing strategies, the government has prioritized the development and promotion of hotels . With the growing influx of international visitors, there is a rising demand for quality accommodation and memorable guest experiences. However, existing literature offers limited insights into how Nepalese hotels create such experiences. Few studies have specifically examined tourists’ perceptions of hotels’ services in Nepal.
This study aims to fill above gap by exploring the relationship between service quality, positive emotion, perceived value, memorable experience, and organizational outcomes from the visitors’ perspective. It also investigates the mediating role of positive emotions and perceived value in enhancing customer loyalty. Applying the Stimulus-Organism-Response (SOR) model, the research will examine how service quality and memorable experiences influence satisfaction and loyalty in the hotel industry. By assessing key service quality dimensions and their impact on tourist experiences, the study seeks to offer both theoretical contributions and practical insights. The findings are expected to help hotel managers in Nepal, and potentially beyond, design more effective, value-driven services that foster lasting customer loyalty and enhance overall business performance.
2. Literature Review
2.1. Service Quality
Service quality is shaped by the unique characteristics of services such as intangibility, heterogeneity, inseparability, and perishability . Perceived service quality, as defined by Zeithaml et al. , is a customer’s judgment about a service’s overall excellence or superiority. From the consumer's perspective, it is closely tied to customer satisfaction, emphasizing subjective perceptions over technical standards , which can be described as a global attitude reflecting the perceived degree of excellence in service delivery. Service quality is a key driver of competitive advantage, directly contributing to a firm's profitability and productivity . It is widely recognized as a precursor to customer satisfaction, which in turn fosters loyalty . High service quality encourages favorable behavioral intentions such as repurchase, positive word-of-mouth, brand endorsement, and reduced price sensitivity. Conversely, poor service quality can lead to customer dissatisfaction and switching behavior . Studies have also linked high service quality to increased profitability, cost efficiency, and market share.
2.2. Positive Emotion and Perceived Value
As stated by Bagozzi et al. , emotions represent a cognitive assessment of events or thoughts, coupled with physiological reactions, often manifested through facial expressions, gestures, and postures. Emotions stem from biological responses and serve as a primary motivator for human actions. He further delineates emotions into three dimensions: subjective experiences, expressive behaviors, and physiological alterations triggered by external stimuli. Oliveira et al. contend that consumers' emotional reactions to perceived quality during consumption encounters can vary between positive and negative. Meanwhile, Oh and Kim conducted a study examining the impact of emotions on online reviews of fine-dining restaurants. Drawing on Herzberg's two-factor theory, certain aspects of consumer experiences were found to elicit exclusively positive emotions. Existing research in the domains of tourism, hospitality, and restaurant consumer behavior has predominantly emphasized positive emotional responses.
Customer perceived value serves as a crucial determinant of various behavioral outcomes in the hotel industry, encompassing patronage, intention to revisit, satisfaction, and loyalty . In defining perceived value, Sweeney and Soutar emphasize its comprehensive nature, incorporating both qualitative and quantitative aspects, subjective and objective factors, which collectively contribute to the overall consumption experience. This definition underscores the multifaceted and subjective character of perceived value beyond mere considerations of price and quality. It encompasses affective dimensions such as self-gratification, aesthetic pleasure, prestige, transactional aspects, and hedonism, reflecting the diverse elements that contribute to customers' holistic evaluation of their experiences. Understanding the multidimensional nature of perceived value provides a more nuanced understanding of the entire hospitality experience, thereby serving as a robust predictor of behavioral outcomes such as satisfaction and loyalty among guests during their hotel stays .
Prior research underscores that a guest's assessment of the value obtained from their hotel experience profoundly influences their allegiance to a specific brand or property . Perceived value encompasses not only tangible elements like pricing and amenities but also intangible facets, including the quality of service and the overall experiential aspect. When customers perceive that the benefits and caliber of services provided by a hotel surpass the associated costs, they are more inclined to cultivate a sense of loyalty. This fidelity is then reflected in recurrent visits and positive recommendations through word-of-mouth .
2.3. Memorable Experience
A memorable experience is characterized by its ability to create a lasting impact on an individual's memory and emotions, often distinguished by uniqueness, emotional resonance, and the generation of positive and meaningful moments . Within the hotel industry, memorable experiences encompass outstanding customer service, personalized attention, or distinctive features setting them apart from normal encounters. These memorable experiences have the potential to evoke positive emotions, heighten customer satisfaction, and foster long-term brand loyalty . Experiential marketing theory, as proposed by Schmitt , suggests that memorable experiences have more profound effects on customer attitudes and behaviors. Additionally, a memorable experience, as outlined by Vada et al. , is one that customers recall after the event, necessitating novelty and the ability to elicit affective feelings through cognitive processing. Service quality, evaluated subjectively by customers through cognitive processes, particularly in encounters with emotional content and extraordinary events, is crucial for memorability and subsequently influences attitudes and purchasing behaviors .
2.4. Organizational Outcomes
In the context of the hotel industry, customer satisfaction and loyalty are significant components of organizational outcomes . The assessment of customer satisfaction and loyalty provides valuable insights into the overall success and effectiveness of an organization, helping stakeholders make informed decisions and adjustments to enhance performance and achieve long-term viability . In the hotel industry, customer loyalty serves as key indicator of success and sustainability. A delicate balance between pricing strategies, operational efficiency, and adapting to external market influences plays a crucial role determining financial success. Moreover, customer satisfaction, another pivotal organizational outcome, is intrinsically linked to guest experiences and service quality . Satisfied customers not only contribute to repeat business but also contribute to positive word-of-mouth, fostering brand loyalty .
2.5. Hypothesis Development
Service quality encompasses consumers' perceptions of product or service performance in meeting their needs and expectations . Hotels rely on maintaining high service quality to stay competitive . Beyond tangible attributes like infrastructure or accessibility, perceived quality includes intangible elements such as hotel atmosphere, social endorsement, and consumer orientation . According to Pine and Gilmore , organizations are encouraged to create memorable events intentionally to engage customers, fostering satisfaction and loyalty. Similarly, Ha and Jang noted that attributes of the servicescape play a crucial role in creating unique atmospheres for gastronomic experiences, enhancing consumer satisfaction and loyalty. This atmosphere can create and enhance customers’ sensory stimulus. Sensory stimuli are essential marketing tools, generating memorable consumption experiences by engaging the five human senses and eliciting emotions, thoughts, learning, and memories. Through the senses, the human being captures the stimuli from the environment, generating emotions, thoughts, comprehension, learning and memories of their experiences .
H1: Service quality has significant positive impact on memorable experience.
Bastiaansen et al. suggest that emotions are biologically rooted responses, serving as a primary driver of human behavior. According to Jang and Namkung , consumers' emotional reactions to perceived quality during consumption can vary between positive and negative. In this regard, Oh and Kim explored the role of emotions in online restaurant reviews, finding that certain aspects of consumer experiences evoke exclusively positive emotions. Han and Back and Souki et al. also investigated consumer emotions in dining experiences, measuring positive feelings using various indicators related to service quality. Additionally, Ribeiro and Prayag , and Marinkovic et al. assert that perceived quality in restaurant experiences significantly influences customer emotions.
H2: Service quality has significant positive impact on positive emotions.
Service quality directly influences customers' assessments of the benefits relative to the costs . When customers perceive high service quality, they are more likely to believe that they are receiving value commensurate with what they are paying for or investing in . Prompt and attentive service, consistent delivery of promised benefits, and personalized interactions can enhance customers' perceptions of value . Conversely, poor service quality may lead to perceptions of low value, regardless of the actual price or features of the service.
H3: Service quality has significant positive impact on perceived value.
When consumers encounter experiences that align with their expectations, they tend to express positive emotions . Bastiaansen et al. argue that emotions play a central role in shaping experiences, as they contribute to the creation of memorable moments . Consequently, positive emotion is regarded as a significant experiential factor to assess. Investigating emotions and their connection to human senses is crucial for crafting unforgettable experiences. Horng and Hsu and Liu et al. contend that emotions influence consumers' recollection of memorable dining experiences.
H4: Positive emotion has significant positive impact on memorable experience.
When customers perceive a high level of value in a particular experience, they are more likely to remember it positively and cherish it as a memorable event . If a customer feels that they received exceptional service or gained significant benefits from a product that exceeded their expectations, they are likely to associate that experience with feelings of delight and satisfaction . Experiences that fail to deliver perceived value may be forgettable or even negatively remembered. By providing better value in the experience, industries can enhance the likelihood of creating lasting, memorable impressions that contribute positively to customer loyalty and advocacy.
H5: Perceived value has significant positive impact on memorable experience.
When customers encounter experiences that leave a lasting impression, whether through exceptional service, unique features, or personalized interactions, they are more likely to feel satisfied with their overall interaction with a product or service provider . Memorable experiences evoke positive emotions and foster a sense of connection and loyalty between customers and brands . Moreover, memorable experiences contribute to building strong relationships between customers and brands, as they create a sense of trust and affinity that extends beyond the transactional aspect of the interaction.
H6: Memorable experience has significant positive impact on customer satisfaction.
Souki et al. noted that loyalty is manifested in consumers' behavioral intention to maintain relationships with specific companies or brands, persistently choosing their offerings. Likewise, Brochado et al. assert that consumers rely on both internal, for instance memory, and external, such as media and influence groups, sources of information during the buying decision process, with memory being the initial source typically utilized. Sipe and Testa highlighted the critical role of memory in consumers' revisit decisions and word-of-mouth communications. They further emphasized the value creation potential of unique and memorable experiences, which significantly influence consumers' decision-making processes, behavioral intentions, and word-of-mouth communications.
H7: Memorable experience has significant positive impact on customer loyalty.
Figure 1. Research model.
3. Methodology
3.1. Research Design
Given that the study aimed to explore and measure the relationships between different variables, this study employed a quantitative methodology, which is typically used to confirm a specific pattern or theory by examining the relationship between variables , and involves gathering numerical data and analyzing it with statistical methods. A conceptual model (Figure 1) was designed to examine the relationship between service quality, positive emotion, perceived value, memorable experience, and customer satisfaction and customer loyalty. The questionnaire survey was conducted among the consumers of hotels in Nepal, via both online and off line surveys. Collected data were analyzed using statistical software such as SPSS and AMOS.
3.2. Theoretical Framework
This study employed Mehrabian and Russell’s Stimulus-Organism-Response (S-O-R) model, an early framework for exploring the impact of atmosphere on customer behavior. As studies on customer engagement have shown its positive effects, identifying the stimulus (S) variables affecting the organism (O) and subsequently influencing responses (R) in service settings becomes imperative. A stimulus denotes any environmental factor evoking internal reactions from individuals. Within service environments like hotels, elements of service quality serve as stimuli for customer responses . Regarding the organism, the original model delineated three emotional states experienced by customers: pleasure, arousal, and dominance. However, this study delves into positive emotion, perceived value, and memorable experience. There exists evidence indicating that the organism can impact behavioral outcomes—the response . Specifically, this study focuses on customer satisfaction and loyalty as the behavioral outcomes.
S-O-R theory is effective to demonstrate sequential causal relationships between the constructs of the hypothetical model. The service quality factor (stimulus) was explored from the Factor Analysis of relevant items in service quality derived from literature. Also, this study tests whether these service quality factors impact consumers’ positive emotions, perceived value and memorable experiences (organism). The model also verifies if customers’ memorable experiences are an antecedent of their satisfaction and loyalty (response).
3.3. Questionnaire Design
A questionnaire was designed for the survey aiming to check the hypothesized relationships. The questionnaire consisted of two sections. In first section, respondents were allowed to evaluate their hotel stay on 5 point like scale, where 1=completely dissatisfied and 5=completely satisfied. This section included six variables namely service quality, perceived value, positive emotion, memorable experience, customer satisfaction and customer loyalty. The hotel service quality was measured using five dimensions of SERV-QUAL scale namely tangibility, reliability, responsiveness, assurance and empathy . These dimensions included a total of 26 items. Similarly, the perceived value and positive emotion were measured with six items each adopted from Jones et al. and Prayag et al. respectively. Likewise, 28 items used to measure memorable experience were adopted from Oh et al. , Kim et al. and Prentice et al. . Finally, customer satisfaction and customer loyalty items were adopted from Al-Khattab and Aldehayyat and Lai et al. respectively. The wordings in items were adjusted to match them to the research context. The second section of the questionnaire included demographic information of the respondents. A filter question was posed at the beginning of the questionnaire to ensure the respondent has consumed hotel services.
3.4. Data Collection
Table 1. Variables measurement items.

Variable

Measurement items

Codes

Source

Service Quality (SQ)

Tangibility

Ho et al. (2013) and Parasuraman et al. (1985 & 1988).

The furniture and room in the hotel are modern and comfortable.

TG1

The interior and exterior decoration in this hotel is appealing.

TG2

The employees have a neat appearance and are well-groomed.

TG3

The hotel facilities are up to date.

TG4

The hotel has a great view.

TG5

The hotel room is clean.

TG6

Reliability

The hotel staff can provide the correct information of service.

REL1

Hotel staffs offer services following the customers’ requests in advance.

REL2

The reservation systems are very comfortable to use and informative.

REL3

Checking-in and checking-out are not too long.

REL4

Hotel staffs comply with health safety procedures.

REL5

Responsiveness

The staffs are courteous.

RES1

The hotel staffs are determined and ready to provide the service.

RES2

The hotel staffs adapted service and flexibility.

RES3

The hotel staffs are willing to perform their duty.

RES4

The hotel staffs provide the service and can solve problems promptly.

RES5

Assurance

The hotel staffs are professional and knowledgeable in answering the customer question.

ASU1

The hotel staffs can communicate well.

ASU2

The hotel staffs are sufficient to support the hotel to perform their job.

ASU3

The hotel staffs have the skills and abilities to provide the service.

ASU4

The hotel has a security system to ensure customer safety

ASU5

The hotel is cleaned and disinfected regularly for health safety.

ASU6

Empathy

Hotel staffs pay great attention to the customers during the whole period of stay.

EMP1

Hotel staffs treat every customer equally.

EMP2

Hotel staffs can assist customers without any request.

EMP3

Hotel staffs can exceed customer expectations.

EMP4

The hotel staffs listen to customers' complaints and sincerely correct their service.

EMP5

Perceived value (PV)

I have a huge saving from staying at this hotel.

PV1

Jones, Mak et al. (2007)

I really appreciate the free breakfast included in this hotel stay.

PV2

This hotel has the best value for great services.

PV3

I got the best room rate than any of the other hotels in the area.

PV4

This is a first-class hotel at the best rate possible.

PV5

I value the discount rate/room upgrades at this hotel.

PV6

Positive Emotion (PE)

I get a sense of amazement in the hotel services.

PE1

Hosany et al. (2017)

I get a sense of caring in hotel services.

PE2

I get a sense of inspiration in hotel services.

PE3

I get a sense of joy in hotel services.

PE4

I get a sense of love in hotel services.

PE5

I get a sense of pleasure in hotel services.

PE6

Memorable Experience (ME)

The hotel service is outstanding.

ME1

Prentice, Ferreira et al. (2022), Oh et al., (2007) and Kim (2014)

I feel very stimulated during my stay.

ME2

I feel very pleased during my stay.

ME3

I have wonderful memories of my visit to this hotel.

ME4

I won’t forget my experience visiting this hotel.

ME5

I will remember many positive things about this hotel.

ME6

This hotel stay provided me a variety of opportunities to experience local way of life

ME7

From this hotel stay, I learned a lot about the local history and culture.

ME8

I participated on a lot of recreational activities during the hotel stay.

ME9

Service staffs were friendly and willing to help me.

ME10

Service staffs provided me information about hotel and the destination.

ME11

The hotel had uniquely designed infrastructure.

ME12

The hotel had a high quality of infrastructure.

ME13

The hotel had good signage and directions.

ME14

The hotel had a good availability of tourism information.

ME15

The hotel was unclean.

ME16

The hotel had a bad smell.

ME17

The hotel was unsafe.

ME18

It was inconvenient to reach to the hotel.

ME19

It took me long hours to get to the hotel.

ME20

It was difficult to travel around the hotel.

ME21

The service staffs provided highly customized services.

ME22

The service staffs provided impressive services.

ME23

The hotel was located at beautiful geographical location.

ME24

There was a beautiful landscape around the hotel.

ME25

The hotel had a unique architecture.

ME26

The hotel provided special cuisines.

ME27

The hotel had interesting buildings.

M28

Customer Satisfaction (CS)

Overall, I am satisfied with the hotel service.

CS1

Khattab and Aldehayyat (2011)

I am satisfied with my decision to visit this hotel.

CS2

My choice of this hotel was a wise idea.

CS3

I will say positive things about this hotel.

CS4

Customer Loyalty (CL)

I would like to revisit the hotel.

CL1

Lai (2019)

I would like to stay at this hotel.

CL2

I would like to prefer this hotel as the first choice when I revisit the place.

CL3

I will stay again at this hotel because of the service quality.

CL4

A pilot study was conducted to check the questionnaire. A Google form link of preliminary questionnaire was sent to 30 selected participants via Facebook-messenger aiming to check the clarity and readability of the questionnaire and also to ascertain the completion time of 5-10 minutes. The participants for pilot study were selected from the researchers’ alumni network, family and friends. Based on the feedbacks from participants of pilot study, some minor changes in wordings were performed to enhance clarity of the questionnaire. Then, the final questionnaire was prepared for the main survey.
Survey participants were recruited using a snowball and a purposive sampling strategy. The seed respondents were selected using the researchers’ friends, family and alumni network and requested them to send the questionnaire to other eligible respondents. Following this process, the questionnaire was sent to 500 individuals; however, only 318 responded and filled the questionnaire. Each questionnaire samples were checked upon return to ensure they are properly filled. After removing invalid samples, a total of 311 samples were eligible to proceed for the analysis. The data collection period was one month starting from August, 2024.
3.5. Data Analysis
SPSS-Amos was employed to process and analyze the data. A Structural Equation Modeling (SEM) was performed to model and estimate the causal relationships between the variables. According to Westland , SEM is used when dealing with complex structural models that involve multiple constructs, indicators, and relationships. SEM includes a measurement model that defines the relationships between variables and their indicators, as well as a structural model that predicts causal connections based on theoretical principles.
4. Results
4.1. Profile of Respondents
A total of 311 questionnaire samples were subjected to the analysis. As shown in Table 2, majority of the respondents were males (61.7%) and females accounted for 38.3%. The largest proportion aged between 20 and 29 years (59.2%). The detailed information about the profile of respondents is presented in Table 2.
Table 2. Demographic profile of respondents.

N

%

Gender

Male

192

61.7%

Female

119

38.3%

Age

Below 20 years

12

3.9%

20-29 years

184

59.2%

30-39 years

85

27.3%

40-49 years

14

4.5%

Above 50 years

16

6.1%

Education Level

Primary

8

2.6%

Secondary or senior secondary

33

10.6%

Bachelor's Degree

146

46.9%

Master Degree and above

124

39.9%

Occupation

Student

102

32.8%

Employed

170

54.7%

Unemployed

29

9.3%

Retired

10

3.2%

Monthly Income

Below Rs.20000

91

29.3%

Rs.20000-30000

33

10.6%

Rs.30000-40000

42

13.5%

Rs.40000-50000

32

10.3%

Rs.50000-100000

81

26.0%

Above 1000000

32

10.3%

4.2. SEM Result
Based on the hypothesized relationship of the variables, a factor analysis was performed to test the measurement model using SPSS-Amos software. Table 3 presents the result of factor analysis.
Table 3. Result of Factor analysis.

Service quality

Perceived value

Positive emotion

Memorable experience

Customer satisfaction

Customer loyalty

TG1

0.632

TG2

0.642

TG3

0.671

TG4

0.656

TG5

0.624

TG6

0.674

REL1

0.629

REL2

0.655

REL3

0.682

RES1

0.580

RES2

0.605

RES3

0.713

RES4

0.602

RES5

0.589

ASU1

0.733

ASU2

0.662

ASU3

0.551

ASU5

0.702

ASU6

0.745

EMP1

0.748

EMP2

0.676

EMP3

0.749

EMP4

0.760

EMP5

0.729

PV1

0.606

PV2

0.706

PV3

0.820

PV4

0.770

PV5

0.752

PV6

0.811

PE1

0.789

PE2

0.808

PE3

0.820

PE4

0.739

PE5

0.838

PE6

0.686

ME1

0.807

ME2

0.707

ME3

0.778

ME4

0.812

ME5

0.747

ME6

0.808

ME7

0.669

ME8

0.684

ME9

0.787

ME10

0.744

ME11

0.745

ME12

0.747

ME13

0.657

ME14

0.660

ME15

0.672

ME16

0.801

ME17

0.807

ME18

0.789

ME19

0.794

ME20

0.775

ME21

0.727

ME23

0.700

ME24

0.510

ME25

0.544

ME26

0.665

ME27

0.622

ME28

0.655

CS1

0.686

CS2

0.741

CS3

0.764

CS4

0.762

CL1

0.798

CL2

0.768

CL3

0.795

CL4

0.802

Chronbach α

0.969

0.904

0.937

0.931

0.912

0.956

CR

0.997

0.969

0.983

0.979

0.942

0.964

Measurement model
The measurement model was evaluated based on several measurement criteria, such as conversant validity, discriminant validity, and composite reliability. To establish convergent validity of the measurement model, the factor analysis was run repeatedly and four items namely REL4 (Checking-in and checking-out are not too long), REL5 (Hotel staffs comply with health safety procedures), ASU4 (The hotel staffs have the skills and abilities to provide the service) and ME22 (The service staffs provided highly customized services) were removed because of their factor loadings below cut-off value of 0.5 . As shown in Table 3, all the factor loadings exceeded 0.5 indicating the adequate conversant validity of the measurement model. Similarly, discriminant validity was assessed to determine whether the indicators of a construct are highly correlated with those of other constructs. Fornell and Larcker criteria was used to confirm the discriminant validity of each variables. As illustrated in Table 4, the square roots of the AVE values exceeded the inter-construct correlations for all variables, confirming the discriminant validity of the measurement model.
Table 4. The square root of AVE and inter-construct correlations.

Variables

Service quality

Perceived value

Positive emotion

Memorable experience

Customer satisfaction

Customer loyalty

Service quality

0.991

Perceived value

0.798

0.892

Positive emotion

0.789

0.811

0.773

Memorable experience

0.678

0.816

0.768

0.755

Customer satisfaction

0.695

0.746

0.719

0.692

0.860

Customer loyalty

0.712

0.820

0.751

0.744

0.846

0.707

Note: bold figures in the diagonal represents square roots of AVE
Composite reliability was assessed with two kinds of measurement namely composite reliability and Cronbach's alpha. Both composite reliability and Cronbach’s alpha values were greater than recommended cut-off value of 0.7 . The composite reliability and Cronbach’s alpha are presented in Table 3.
Structural model
The R square values of all dependent variables were assessed to check the structural model. The R Square quantifies the proportion of variance in the endogenous variable that can be accounted for by the exogenous variables. According to Ozili the R square value above 0.1 is acceptable in the case of all relationships are significant. Table 5 shows that all R square values are in acceptable range.
Table 5. R Square values.

Variables

R Square

Perceived value

0.637

Positive emotion

0.623

Memorable experience

0.460

Customer satisfaction

0.483

Customer loyalty

0.508

4.3. Hypothesis Testing
Direct effect
Direct effects analysis was performed to test direct effect between independent variables and dependent variables. The standardized regression weight with positive estimates indicated positive impact and P-Value less than 0.05 indicated significances. As shown in Table 6, p-values of all hypothesized relationships were less than 0.05 indicating the acceptance of all seven hypotheses.
Table 6. Direct effects analysis.

Estimates

P-Values

Results

H1 Service quality

Memorable experience

0.790

0.000

Significant

H2 Service quality

Positive emotion

0.806

0.000

Significant

H3 Service quality

Perceived value

0.795

0.000

Significant

H4 Positive emotion

Memorable experience

0.838

0.000

Significant

H5 Perceived value

Memorable experience

0.857

0.000

Significant

H6 Memorable experience

Customer satisfaction

0.718

0.007

Significant

H7 Memorable experience

Customer loyalty

0.737

0.009

Significant

Indirect effect
The analysis of indirect effects was conducted to explore how independent variables influence the dependent variable through an intervening variable. A P-value less than 0.05 suggests that the intervening variable plays a significant role. Table 7 shows that the perceived value and positive emotion mediate the relationship between service quality and memorable experience. Similarly, memorable experience mediates the relationship between service quality and customer satisfaction as well as the relationship between service quality and customer loyalty.
Table 7. Indirect Effects Analysis.

Estimates

P-Values

Results

Service quality

Perceived value

Memorable experience

0.532

0.000

Significant

Service quality

Positive emotion

Memorable experience

0.434

0.000

Significant

Service quality

Memorable experience

Customer satisfaction

0.333

0.000

Significant

Service quality

Memorable experience

Customer loyalty

0.472

0.000

Significant

5. Discussion and Implications
5.1. Theoretical Implications
This study investigated how hotel service quality affects customer satisfaction and loyalty, with a focus on the roles of perceived value, positive emotions, and memorable experiences. Data from hotel customers in Nepal revealed a useful framework for evaluating service quality and its impacts. The results align with previous research in hospitality services and offer new insights into how service quality shapes customer experiences and organizational outcomes. The study conceptualizes hotel service quality as an external stimulus, customer’s cognitive and affective evaluations as orgasmic states, and satisfaction and loyalty as behavioral responses. Consistent with the SOR framework, the findings demonstrate that hotel service quality acts as a powerful environmental stimulus that shapes customer’s internal evaluations and subsequent behavioral outcomes.
The results confirm that 23 out of the 26 SERV-QUAL items are valid indicators of hotel service quality, supporting the applicability of the scale in the hotel context. High service quality was found to significantly enhance perceived value, evoke positive emotions, and facilitate the formation of memorable experiences. From the SOR perspective, hotel service cues stimulate favorable cognitive appraisals such as perceived value, and affective reactions such as positive emotions. Even when prices are high, customers perceive greater value when service performance exceeds expectations, reinforcing their sense of fairness and justification of expenditure. Such findings echo prior research emphasizing the role of service encounters in shaping emotional and evaluative responses .
Different aspects of hotel service quality contribute to the organismic responses. Tangibility, reflected in physical facilities, ambience, and cleanliness, serves as a salient stimulus that influences customer’s value judgments and emotional comfort ; reliability fosters trust and predictability, reducing cognitive uncertainty and enhancing perceived value ; responsiveness signals attentiveness of service staffs and care, making guests feel prioritized and emotionally valued ; assurance, expressed through staff competence and professionalism, instills confidence and psychological safety ; empathy, related to personalized and caring service, deepens emotional bonds between customers and the hotel . Collectively, these stimuli generate a positive internal state characterized by heightened perceived value and positive emotions, reinforcing the organism component.
The findings further reveal that perceived value and positive emotions significantly contribute to the creation of memorable experiences, highlighting their mediating role between service quality and experiential outcomes. In line with SOR theory, cognitive and affective organismic states translate service stimuli into experiential memories. When guests perceive that the benefits of their stay outweigh its costs and experience emotions such as joy, relaxation, and comfort, these internal responses increases memorable experiences of the stay. Such memorable experiences extend beyond functional satisfaction, becoming emotionally encoded and easily recalled, shared and sought again in future travel decisions.
Moreover, this study demonstrates that memorable experiences significantly influence organizational outcome delineated through customer satisfaction and customer loyalty, representing the response stage of the SOR framework. A memorable hotel stay elevates satisfaction by surpassing expectations and generating a sense of fulfillment. The memorable moments in hotel stay strengthen emotional attachment to the hotel, increasing revisit intentions and positive word-of –mouth . Thus, memorable experiences function as a critical mechanism through which internal states are translated into favorable behavioral responses. While service quality directly enhances satisfaction, memorable experiences increase and sustain this effect by embedding emotional resonance into the service encounter. From an SOR perspective, memorable experiences act as a key transformational link that converts service stimuli into long-term organizational outcomes. By fostering emotionally rich and distinctive experiences, hotels can transform high quality service into long-term customer satisfaction and loyalty, thereby strengthening competitive advantage and long-term performance.
This study contributes to the SOR theory by empirically applying the model to hotel service quality, demonstrating its relevance in the hospitality context. The findings confirm that service-related stimuli shape guests’ cognitive and affective states, including perceived value, positive emotions, and memorable experiences. These internal responses, in turn, drive key organizational outcomes, namely customer satisfaction and loyalty. By adopting the SOR framework, this study offers deeper insight into the psychological mechanisms underlying service quality evaluations and provides a robust theoretical basis for designing services that foster positive guest experiences and long-term customer relationships.
5.2. Practical Implications
This study has important managerial implications. It provides insights into how service quality as a stimulus creates customer satisfaction and loyalty as response via perceived value, positive emotion and memorable experience as organism. By understanding the critical role that service quality plays in shaping guests' experiences, hotel managers can strategically focus on improving tangible elements like cleanliness, ambiance, and amenities, as well as intangible aspects such as staff responsiveness, empathy, and reliability. Investing in service training, upgrading facilities, and consistently delivering on guest expectations can create memorable experiences that not only satisfy customers but also foster long-term loyalty. Overall, a focus on service quality provides hotel managers with a competitive edge, helping them differentiate their brand in a highly competitive market and ensuring sustainable success.
This study of hotel service quality is particularly significant for managerial implications in Nepal, given the country’s growing tourism sector and diverse hospitality landscape. Understanding and improving service quality allows hotel managers in Nepal to better meet the expectations of both international and domestic travelers, who often seek unique and memorable experiences. As Nepal continues to develop as a prominent travel destination, the ability to deliver exceptional service can differentiate hotels in a competitive market, enhance guest satisfaction, and foster positive reviews and repeat business. Additionally, insights gained from this study can guide managers globally in tailoring their offerings to meet specific needs, aiming to enhance customer experience, satisfaction and loyalty behaviors. By focusing on high service standards, hotels can improve their overall reputation, attract a wider range of guests, and contribute to the sustainable growth of the hotel industry.
6. Conclusion, Limitation and Future Research
This study aimed to establish a foundation for comprehending hotel service quality and its emotional and behavioral impacts. It explores the relationships between service quality, perceived value, positive emotions, memorable experiences, customer satisfaction, and customer loyalty. The study presents that hotel service quality is fundamental to create memorable experience during the stay in hotel. This memorable experience is gained through the perceived value and positive emotions. The study further revealed that better service quality results into better customer satisfaction and loyalty through the memorable experience.
This study has some limitations. Firstly, this study has employed solely quantitative approach. The pre-existing scales may not fully capture the variables used in the study. Incorporating a mixed-methods approach that combines both quantitative and qualitative data can provide a more comprehensive understanding of service quality and its impacts. Secondly, the study was conducted among the customers of hotels in Nepal, and all the respondents are Nepali nationals. Expanding the study to include a more diverse respondents, including international tourists and hotel customers from different demographic backgrounds, would enhance the generalizability of the findings. One significant challenge is the diversity in service standards across the country's wide range of hotels, from luxury establishments in major tourist areas to smaller, budget accommodations in remote locations. This variability can complicate the assessment of service quality and its impacts, and results may not be uniformly applicable across different types of hotels. Addressing geographic and cultural diversity by including a broader range of locations could improve data reliability and consistency.
Abbreviations

SOR

Stimulus-Organism-Response

SPSS

Statistical Package for Social Sciences

AMOS

Analysis of Moment Structure

SEM

Structural Equation Modeling

CR

Composite Reliability

AVE

Average Variance Extracted

Author Contributions
Kiranraj Pande: Conceptualization, Formal Analysis, Methodology, Writing – original draft, Writing – review & editing
Kripal Raj Subedi: Data curation, Methodology, Writing – original draft
Md Jamirul Haque: Conceptualization, Writing – review & editing
Conflicts of Interest
The authors declare no conflicts of interest.
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Cite This Article
  • APA Style

    Pande, K., Subedi, K. R., Haque, M. J. (2026). Service Quality and Customer Responses in Hotels: A Stimulus–Organism–Response Perspective. International Journal of Hospitality & Tourism Management, 10(1), 139-156. https://doi.org/10.11648/j.ijhtm.20261001.23

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    Pande, K.; Subedi, K. R.; Haque, M. J. Service Quality and Customer Responses in Hotels: A Stimulus–Organism–Response Perspective. Int. J. Hosp. Tour. Manag. 2026, 10(1), 139-156. doi: 10.11648/j.ijhtm.20261001.23

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    AMA Style

    Pande K, Subedi KR, Haque MJ. Service Quality and Customer Responses in Hotels: A Stimulus–Organism–Response Perspective. Int J Hosp Tour Manag. 2026;10(1):139-156. doi: 10.11648/j.ijhtm.20261001.23

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  • @article{10.11648/j.ijhtm.20261001.23,
      author = {Kiranraj Pande and Kripal Raj Subedi and Md Jamirul Haque},
      title = {Service Quality and Customer Responses in Hotels: 
    A Stimulus–Organism–Response Perspective},
      journal = {International Journal of Hospitality & Tourism Management},
      volume = {10},
      number = {1},
      pages = {139-156},
      doi = {10.11648/j.ijhtm.20261001.23},
      url = {https://doi.org/10.11648/j.ijhtm.20261001.23},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijhtm.20261001.23},
      abstract = {This study aims to explore hotel service quality and its emotional and behavioral impacts within the context of the hotel industry in Nepal. Specifically, it examines the relationships between service quality, perceived value, positive emotions, memorable experiences, customer satisfaction, and customer loyalty by employing the stimulus-organism-response (SOR) framework. A quantitative approach was utilized for the study. Data were collected from hotel customers in Nepal. The hypothesized relationships were tested with structural equation modeling using SPSS and AMOS. The study found that service quality significantly influences the internal psychological and emotional states of customers. Specifically, service quality positively affects perceived value, positive emotions, and memorable experiences, suggesting that high-quality hotel services enhance customer’s cognitive evaluation and emotional reactions during their stay. Consistent with the organism component of the SOR theory, perceived value and positive emotions play important mediating roles in translating service quality into memorable experiences. Similarly, memorable experiences serve as a key organism state that links internal reactions to behavioral outcomes. Memorable experiences mediate the relationships between service quality and both customer satisfaction and customer loyalty, which represent response stage in the SOR framework. Overall, the findings strongly support the applicability of the SOR theory in explaining customer behavior in the hotel industry. Service quality acts as environmental stimulus that shapes customer’s cognitive and emotional states, which in turn drive favorable behavioral responses such as satisfaction and loyalty. By highlighting the sequential process through which service quality influences internal psychological mechanisms and subsequent behavioral outcomes, this study provides a deeper theoretical understanding of customer experience formation in hospitality settings. Moreover, findings of this study offer valuable insights for enhancing service strategies and improving customer experiences.},
     year = {2026}
    }
    

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  • TY  - JOUR
    T1  - Service Quality and Customer Responses in Hotels: 
    A Stimulus–Organism–Response Perspective
    AU  - Kiranraj Pande
    AU  - Kripal Raj Subedi
    AU  - Md Jamirul Haque
    Y1  - 2026/04/07
    PY  - 2026
    N1  - https://doi.org/10.11648/j.ijhtm.20261001.23
    DO  - 10.11648/j.ijhtm.20261001.23
    T2  - International Journal of Hospitality & Tourism Management
    JF  - International Journal of Hospitality & Tourism Management
    JO  - International Journal of Hospitality & Tourism Management
    SP  - 139
    EP  - 156
    PB  - Science Publishing Group
    SN  - 2640-1800
    UR  - https://doi.org/10.11648/j.ijhtm.20261001.23
    AB  - This study aims to explore hotel service quality and its emotional and behavioral impacts within the context of the hotel industry in Nepal. Specifically, it examines the relationships between service quality, perceived value, positive emotions, memorable experiences, customer satisfaction, and customer loyalty by employing the stimulus-organism-response (SOR) framework. A quantitative approach was utilized for the study. Data were collected from hotel customers in Nepal. The hypothesized relationships were tested with structural equation modeling using SPSS and AMOS. The study found that service quality significantly influences the internal psychological and emotional states of customers. Specifically, service quality positively affects perceived value, positive emotions, and memorable experiences, suggesting that high-quality hotel services enhance customer’s cognitive evaluation and emotional reactions during their stay. Consistent with the organism component of the SOR theory, perceived value and positive emotions play important mediating roles in translating service quality into memorable experiences. Similarly, memorable experiences serve as a key organism state that links internal reactions to behavioral outcomes. Memorable experiences mediate the relationships between service quality and both customer satisfaction and customer loyalty, which represent response stage in the SOR framework. Overall, the findings strongly support the applicability of the SOR theory in explaining customer behavior in the hotel industry. Service quality acts as environmental stimulus that shapes customer’s cognitive and emotional states, which in turn drive favorable behavioral responses such as satisfaction and loyalty. By highlighting the sequential process through which service quality influences internal psychological mechanisms and subsequent behavioral outcomes, this study provides a deeper theoretical understanding of customer experience formation in hospitality settings. Moreover, findings of this study offer valuable insights for enhancing service strategies and improving customer experiences.
    VL  - 10
    IS  - 1
    ER  - 

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Author Information
  • School of Business Administration, Dongbei University of Finance and Economics, Dalian, China

    Biography: Kiranraj Pande holds a PhD from Dongbei University of Finance and Economics, China. His research interests include customer experience, hospitality services, and sustainable tourism.

  • School of Business Administration, Dongbei University of Finance and Economics, Dalian, China

    Biography: Kripal Raj Subedi is a master graduate from School of Business Administration, Donbei University of Finance and Economics. His research interests include hospitality services, restaurant experiences, and culinary tourism.

  • Num International College, National University of Management, Phnom Penh, Cambodia

    Biography: Md Jamirul Haque is a dedicated researcher and passionate educator with over 15 years of academic experience. He holds a PhD from Dongbei University of Finance and Economics, China, and an MBA from International American University, USA. Currently affiliated with NUM International College, National University of Management, Cambodia, he teaches business and Management, supervise graduate research, and actively conducts studies on hospitality management and green campus initiatives.

  • Abstract
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    1. 1. Introduction
    2. 2. Literature Review
    3. 3. Methodology
    4. 4. Results
    5. 5. Discussion and Implications
    6. 6. Conclusion, Limitation and Future Research
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  • Abbreviations
  • Author Contributions
  • Conflicts of Interest
  • References
  • Cite This Article
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