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The Innovator's Dilemma (Christensen, 1997) has been cited in many studies since Christensen published it in 1997. Some of these studies have advocated that concepts such as "dynamic capability," "ambidexterity," and "market orientation" can be used to overcome the environmental changes caused by the innovator's dilemma. However, these studies are categorized into two general types that are not logical refutations: (a) those which merely suggest the concept without suggesting an opposing example, and (b) those which do not demonstrate that a trajectory disruption has occurred even when suggesting an example. We must demonstrate that a trajectory disruption has occurred and then suggest a case in which the environmental changes were mitigated to suggest an example of overcoming the innovator's dilemma. However, arguments exist that doubt Christensen's concept of trajectory disruption, indicating that the arguments are not facile.

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This study examines the relationships between perceived quality, value, visitor satisfaction, and loyalty in a new context—Shiogama, Japan—a seaside town with a population of 55,000 residents that is famous for its cultural attractions and attracts over 2 million visitors per annum. Drawing on theories from tourism, marketing, and destination management, we hypothesize that perceived quality of destination attributes, as well perceived value of the experience, will have a direct positive effect on tourist satisfaction. Tourist satisfaction is hypothesized to be a direct driver of loyalty to the destination. The research also examines the extent to which the origin of the domestic tourist moderates the relationships between perceived quality, perceived value, and satisfaction. A research questionnaire was used to collect responses from 436 visitors to Shiogama's tourist attractions in 2015. Perceived quality was operationalized to capture the unique attributes of Shiogama. Results of the exploratory factor analysis and multiple regression analysis found that the perceived quality of Shiogama's attributes, including the city's local restaurants, atmosphere, and souvenirs, have a significant positive effect on visitor satisfaction. Perceived value of the destination, measured through visitors' perceptions of costs and benefit of the travel experience, was also significantly and positively related to satisfaction. Visitor satisfaction was significantly and positively related to destination loyalty, validating previous research on the predictors of destination loyalty. We found that visitors to Shiogama from different regions of Japan engaged in different activities and attractions, highlighting the heterogeneity of Shiogama's inbound domestic market segments. The study presents new insights on the operationalization of perceived quality and the predictors of tourist satisfaction and loyalty toward a destination. The findings are also relevant to industry practitioners and destination managers as they seek to understand the heterogeneous needs and behaviors of their inbound market segments.