The Impact of Technological Competence and Service Innovation Implementation on Brand Equity: A Case Study of Hotel Industry in Vietnam

  • Tran Trung Vinh
  • Ngo Ngoc Thuy Tien
  • Tran Thi Kim Phuong

Abstract

This paper aims to propose and investigate two new antecedent factors (Technological competence and service innovation implementation) that affect hotel brand equity development in the context of the hotel. Questionnaire data were collected from 215 domestic tourists who have traveled to at least one experience using service to stay at 4-5 star hotels. The results of empirical tests using a structural equation model support the research hypotheses. The findings support direct positive links between technological competence, service innovation implementation, and the dimensions of brand equity, as well as the positive relationship between overall brand equity and its dimensions, except for the effect of destination brand awareness. Finally, relevant implications are provided for destination marketers to improve hotel brand equity in the tourism industry.      

References

Aaker, D. A. (1991). Managing brand equity. New York: Free Press.
Aaker, D. A. (1996). Measuring Brand Equity Across Products and Markets. California Management Review, 38(3), 102-120.
Agarwal, S., Krishna Erramilli, M., & Dev, C. S. (2003). Market orientation and performance in service firms: Role of innovation. Journal of Services Marketing, 17(1), 68–82.
Alnsour, M., & Tayeh, Z. A. (2019). Impact of social media use on brand awareness: an applied study on Jordanian banks that uses Facebook. International Journal of Electronic Banking, 1(4), 341-357.
Andreassen, T. (2000). Antecedents to satisfaction with service recovery. European Journal of Marketing, 34(1/2), 156–175.
Bendixen, M., Bukasa, K. A., & Abratt, R. (2004). Brand equity in the business-to-business market. Industrial Marketing Management, 33(5), 371–380.
Chen, W. J. (2011). Innovation in hotel services: Culture and personality. International Journal of Hospitality Management, 30(1), 64-72.
Chen, C.-H. (2001). Using free association to examine the relationship between the characteristics of brand associations and brand equity. Journal of Product & Brand Management, 10(7), 439–451.
Chow, H. wen, Ling, G. J., Yen, I. yin, & Hwang, K. P. (2017). Building brand equity through industrial tourism. Asia Pacific Management Review, 22(2), 70–79.
Cretu, A. E., & Brodie, R. J. (2007). The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective. Industrial Marketing Management, 36(2), 230-240.
Einwiller, S. (2001). The significance of reputation and brand for creating trust in the different stages of a relationship between an online vendor and its customers. In Proceedings of the 8th Research Symposium on Emerging Electronic Markets (RSEEM2001), September (Vol. 16, p. 18).
Farquhar, P. H. (1989). Managing brand equity. Marketing research, 1(3), 24-33.
Gustafson, T., & Chabot, B. (2007). Brand awareness. Cornell Maple Bulletin, 105(1), 1-5.
Ham, S., Kim, W. G., & Jeong, S. (2005). Effect of information technology on performance in upscale hotels. International journal of Hospitality Management, 24(2), 281-294.
Hertog, P., Broersma, L., & Van Ark, B. (2003). On the soft side of innovation: services innovation and its policy implications. De Economist, 151(4), 433-452.
Ho-Mai, N. T., Tran, V. T., Nguyen, V. K., Do, U. T. T., Truong, T. B., & Tran, P. T. K. (2024). The pathways of increasing online celebrity brand equity and followers' hotel booking intention: a serial multiple mediation model. Journal of Research in Interactive Marketing. Available at: https://doi.org/10.1108/JRIM-08-2023-0265
Horng, J. S., Liu, C. H., Chiu, H. Y., & Tsai, C. Y. (2012). The role of international tourist perceptions of brand equity and travel intention in culinary tourism. Service Industries Journal, 32(16), 2607–2621.
Horng, J. S., Liu, C. H. S., Chou, S. F., Tsai, C. Y., & Hu, D. C. (2018). Developing a sustainable service innovation framework for the hospitality industry. International Journal of Contemporary Hospitality Management, 30(1), 455–474.
Hsu, C. H. C., Oh, H., & Assaf, A. G. (2012). A customer-based brand equity model for upscale hotels. Journal of Travel Research, 51(1), 81–93.
Hsu, T. H., Hung, L. C., & Tang, J. W. (2012). An analytical model for building brand equity in hospitality firms. Annals of Operations Research, 195(1), 355–378.
Johansson, M. (2010). Social media and brand awareness: A case study in the fast moving consumer goods sector.
Karmarkar, U. (2004). Will you survive the services revolution?. Harvard Business Review, 82(6), 100-107.
Kaushik, A. K., Agrawal, A. K., & Rahman, Z. (2015). Tourist behaviour towards self-service hotel technology adoption: Trust and subjective norm as key antecedents. Tourism Management Perspectives, 16, 278–289.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.
Keller, K. L. (2003). Understanding brands, branding and brand equity. Interactive Marketing, 5(1), 7–20. .
Kim & Kim, C. W. (2007). A Study on the Scale Development of Hotel Brand Equity Using ZMET. International Journal of Tourism Sciences, 7(1), 1–28. .
Kim, H. B., & Kim, W. G. (2005). The relationship between brand equity and firms' performance in luxury hotels and chain restaurants. Tourism Management, 26(4), 549-560.
Kim, W. G., Jin-Sun, B., & Kim, H. J. (2008). Multidimensional Customer-Based Brand Equity and Its Consequences in Midpriced Hotels. Journal of Hospitality and Tourism Research, 32(2), 235–254.
Law, R., & Jogaratnam, G. (2005). A study of hotel information technology applications. International Journal of Contemporary Hospitality Management, 17(2), 170–180.
Lee, J.-S., & Back, K.-J. (2008). Attendee-based brand equity. Tourism Management, 29(2), 331-344.
Lee, J.-W., & Kim, H.-B. (2009). Impacts of Perception to Alliance Companies on Hotel's Brand Equity According to the Types of Vertical Integration. International Journal of Tourism Sciences, 9(2), 1–21.
Lee, S. C., Barker, S., & Kandampully, J. (2003). Technology, service quality, and customer loyalty in hotels: Australian managerial perspectives. Managing Service Quality: An International Journal, 13(5), 423–432.
Li, L., & Law, R. (2012). Technology-mediated management learning in hospitality organisations. International Journal of Hospitality Management, 31(2), 451-457.
Li, X., & Petrick, J. (2008). Reexamining the dimensionality of brand loyalty: A case of the cruise industry. Journal of Travel and Tourism Marketing, 25(1), 68–85.
Mccoll-Kennedy, J. R., & Sparks, B. A. (2003). Application of Fairness Theory to Service Failures and Service Recovery. Journal of Service Research, 5(3), 251–266.
Mizik, N. (2014). Assessing the total financial performance impact of brand equity with limited time-series data. Journal of Marketing Research, 51(6), 691–706.
Möller, K., Rajala, R., & Westerlund, M. (2008). Service innovation myopia? A new recipe for client-provider value creation. California Management Review, 50(3), 31–48.
Morgan, N., Anderson, E., marketing, V. M.-J. of, & 2005, undefined. (2005). Understanding firms' customer satisfaction information usage. Journals.Sagepub.Com, 69(3), 131–151.
Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research, 38(3), 1009-1030.
Nel, J., North, E., Myburg, T., & Hern, L. (2009). A comparitive study of customer-based brand equity across selected South African hotels. International Retail and Marketing Review, 15–24.
Nguyen, H. K. T., Tran, P. T. K., & Tran, V. T. (2023). The relationships among social media communication, brand equity and satisfaction in a tourism destination: the case of Danang city, Vietnam. Journal of Hospitality and Tourism Insights. Available at: https://doi.org/10.1108/JHTI-11-2022-0567
O'Cass, A., & Sok, P. (2013). Exploring innovation driven value creation in B2B service firms: The roles of the manager, employees, and customers in value creation. Journal of Business Research, 66(8), 1074-1084.
Ottenbacher, M., & Gnoth, J. (2005). How to develop successful hospitality innovation. Cornell Hotel and Restaurant Administration Quarterly, 46(2), 205–222.
Paswan, A., D'Souza, D., & Zolfagharian, M. A. (2009). Toward a contextually anchored service innovation typology. Decision Sciences, 40(3), 513–540.
Pine, B. J., & Gilmore, J. H. (2014). A leader's guide to innovation in the experience economy. Strategy and Leadership, 42(1), 24–29.
Prasad, K., & Dev, C. S. (2000). Managing Hotel Brand Equity. Cornell Hotel and Restaurant Administration Quarterly, 41(3), 22–31.
Reid, M. (2002). Building Strong Brands Through the Management of Integrated Marketing Communications. International Journal of Wine Marketing, 14(3), 37–52.
Ritter, T., & Gemünden, H. G. (2004). The impact of a company's business strategy on its technological competence, network competence and innovation success. Journal of Business Research, 57(5), 548–556.
Roehm, M. L., & Brady, M. K. (2007). Consumer responses to performance failures by high-equity brands. Journal of Consumer Research, 34(4), 537-545.
Ruan, W. Q., Zhang, S. N., Liu, C. H., & Li, Y. Q. (2020). A new path for building hotel brand equity: the impacts of technological competence and service innovation implementation through perceived value and trust. Journal of Hospitality Marketing and Management, 29(8), 911–933.
Saydan, R. (2013). Relationship between country of origin image and brand equity: An empirical evidence in England market. International Journal of Business and Social Science, 4(3), 78-88.
Šerić, M., & Saura, I. G. (2012). Integrated marketing communications in high-quality hotels of central and southern Dalmatia-A study from the perspective of managers and guests. Tržište/Market, 24(1), 67-83.
Šerić, M., Gil-Saura, I., & Ruiz-Molina, M. E. (2014). How can integrated marketing communications and advanced technology influence the creation of customer-based brand equity? Evidence from the hospitality industry. International Journal of Hospitality Management, 39, 144–156.
Shabbir, Muhammad, Q., Khan., Ansar Ali., K., & Rasheed., S. (2017). Brand Loyalty Brand image And Brand equity: The Mediating Role Of Brand Awareness. International Journal of Innovation and Applied Studies. International Journal of Innovation and Applied Studies, 19, 416–423.
Sharma, V., & Bhat, D. A. R. (2019). Empirical assessment of the role of human capital innovation in service innovation implementation in the hospitality industry. Researcher: A Multidisciplinary Journal, 15(1), 65-77.
Shin, H., Perdue, R. R., & Kang, J. (2019). Front desk technology innovation in hotels: A managerial perspective. Tourism Management, 74, 310-318.
Sigala, M. (2003). The information and communication technologies productivity impact on the UK hotel sector. International Journal of Operations and Production Management, 23(10), 1224–1245.
Siguaw, J. A., Enz, C. A., & Namasivayam, K. (2000). Adoption of information technology in US hotels: Strategically driven objectives. Journal of Travel Research, 39(2), 192–201.
Sparks, B. A., & McColl-Kennedy, J. R. (2001). Justice strategy options for increased customer satisfaction in a services recovery setting. Journal of Business Research, 54(3), 209-218.
Staake, T., Thiesse, F., & Fleisch, E. (2009). The emergence of counterfeit trade: A literature review. European Journal of Marketing, 43(3–4), 320–349.
Tran, T. V., & Tran, T. K. P. (2017). Examining the interrelationships among destination brand image, destination perceived quality, tourist satisfaction and tourist loyalty: evidence from Danang City, Vietnam. International Journal of Tourism Policy, 7(4), 352-374.
Tran, P. K. T., Nguyen, H. K. T., Nguyen, L. T., Nguyen, H. T., Truong, T. B., & Tran, V. T. (2023). Destination social responsibility drives destination brand loyalty: a case study of domestic tourists in Danang city, Vietnam. International Journal of Tourism Cities, 9(1), 302-322.
Tran, P. K. T., Nguyen, P. D., Le, A. H. N., & Tran, V. T. (2022). Linking self-congruity, perceived quality and satisfaction to brand loyalty in a tourism destination: the moderating role of visit frequency. Tourism Review, 77(1), 287-301.
Tran, V. T., Nguyen, N. P., Tran, P. T. K., Tran, T. N., & Huynh, T. T. P. (2019). Brand equity in a tourism destination: a case study of domestic tourists in Hoi An city, Vietnam. Tourism Review, 74(3), 704–720.
Tran, P. K. T., Nguyen, V. K., & Tran, V. T. (2021). Brand equity and customer satisfaction: a comparative analysis of international and domestic tourists in Vietnam. Journal of Product & Brand Management, 30(1), 180-194.
Úbeda-García, M., Claver-Cortés, E., Marco-Lajara, B., García-Lillo, F., & Zaragoza-Sáez, P. C. (2018). Continuous innovation in the hotel industry: The development of organizational ambidexterity through human capital and organizational culture in Spanish hotels. International Journal of Contemporary Hospitality Management, 30(12), 3609–3631.
Underwood, R. L. (2003). The Communicative Power of Product Packaging: Creating Brand Identity via Lived and Mediated Experience. Journal of Marketing Theory and Practice, 11(1), 62–76.
Verma, R., Anderson, C., Dixon, M., Enz, C., Thompson, G., & Victorino, L. (2008). Key Elements in Service Innovation:Insights for the Hospitality Industry. Cornell Hospitality Roundtable Proceedings, 1(1), 1–11.
Victorino, L., Verma, R., Plaschka, G., & Dev, C. (2005). Service innovation and customer choices in the hospitality industry. Managing Service Quality, 15(6), 555–576.
Vinh, T. T., Phuong, T. T. K., Nga, V. T. Q., & Nguyen, N. P. (2019). The effect of social media communication on brand equity through Facebook: Evidence from CGV Cinemas, Vietnam. International Journal of Electronic Customer Relationship Management, 12(2), 143–166.
Wang, T. L., Tran, P. T. K., & Tran, V. T. (2017). Destination perceived quality, tourist satisfaction and word-of-mouth. Tourism Review, 72(4), 392-410.
Wu, H. C., & Cheng, C. C. (2018). Relationships between technology attachment, experiential relationship quality, experiential risk and experiential sharing intentions in a smart hotel. Journal of Hospitality and Tourism Management, 37, 42-58.
Published
2024-04-30
How to Cite
TRUNG VINH, Tran; NGOC THUY TIEN, Ngo; THI KIM PHUONG, Tran. The Impact of Technological Competence and Service Innovation Implementation on Brand Equity: A Case Study of Hotel Industry in Vietnam. International Journal of Business and Technology Management, [S.l.], v. 6, n. 1, p. 640-656, apr. 2024. ISSN 2682-7646. Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/26410>. Date accessed: 11 sep. 2024.
Section
English Section