Good Example Of Literature Review On Brand Image

Type of paper: Literature Review

Topic: Hotels, Customers, Brand, Satisfaction, Allegiance, Loyalty, Study, Education

Pages: 3

Words: 825

Published: 2020/09/10

[Institution Title]

Chain hotel and boutique hotel

The concept of hotel chains originated from the dawn of globalization and the introduction of commercialism. In fact, while hotels have previously been set-up as individual and independent from other subsidiaries, the need for expansion initiated the growth of hotels and creation of franchisees, subsidiaries and chains of ownership. In the paper presented to the EF International Language School of Brisbane, authors Vincent Das and Patrick De Groote opened with an elaborate definition of what a hotel and a hotel chain is all about. In the article, the authors defined a hotel as “a traditional, commercially run form of accommodation in which one, as a tourist (interpreted in the widest sense) can find shelter, even if food and drink are not available on the premises”(Das & De Groote, 2010, p.2). The World Travel Dictionary define hotel as “an establishment providing accommodation and meals and would be expected to provide a greater and/or superior range of facilities than establishments such as guest houses” (English, 1999, p.256). Drawing from the definitions provided by Das and De Groote, a hotel chain can be defined “as group of hotels owned by the same person(s) or organisation(s)”(Das & De Groote, 2010, p.2). A boutique hotel on the other hand, may be defined “as a type of establishment used for the purpose of living accommodation with at least 10 to 100 rooms, which often contain luxury facilities” .
Chain hotels and boutique hotels are demarcated by their respective clientele, their clientele’s preferences and not so frequently, by the kind of technology they implore. All these factors contribute to the formation and the type of brand image that is typically associated with the type of establishment. While the brand image might not be created consciously by the establishment, it is often associated with how the clients view the marketing strategies and the techniques that are groomed by the hotel’s managers, owners and sometimes, publicists. The hotel industry relies heavily on the market appeal specifically made and suited to the type of clientele that the hotel caters. Emotions through the intention is viewed to affect brand image (Applebaum, 2001). In addition, technology through accessibility and marketing presentation also plays a significant role to the brand image of hotels. This was the main contention in the experiment initiated by Haemoon Oh in the study entitled The Effect of Brand Class, Brand Awareness and Price on Customer Value and Behavioural Intention. In an analysis made from that study, the significant advantage that chain hotels have over their competitors is having an online platform that makes information dissemination, marketing as well as inquiry more convenient. If reviewed, boutique hotels who has the same technology as this which is similar to the technology that chain hotels have, the significant difference in brand image is very minimal as compared to boutique hotels who does not showcase or sport an online platform. It only implies that technology also plays an integral role to the equation of brand image and customer satisfaction (Shankar, Smith, & Rangaswamy, 2003; Bodet, 2008). Nevertheless, the only advantage of this technology is in reference to convenience and wider market audience, which plays a large part in marketing strategy.
Considering the diversity in the clientele of the hotel franchise and the hotel boutiques, the criteria used in the study entitled The Effect of Brand Class, Brand Awareness and Price on Customer Value and Behavioural Intention, the author noted that the consumers of these two types of lodging establishments varies . According to Oh, Chain hotels are looking for quality, the intention of the franchise and brand class. However, customers of boutique hotels like Motel 6 and Roadside Motel are after price fairness. Considering these findings it can be said that customer satisfaction is not so much dependent on brand name as far as lodging establishments are concerned. While it has an impact to identification, it has no significant correlation to either customer loyalty or customer satisfaction. .
In Hong Kong, the factors that affect the brand image of hotel chains in comparison to boutique hotels run parallel to the results identified in Kandampully and Suhartanto’s study. Authors Tat Choi and Raymond Chu revealed that the most important factors considered by hotel guests in Hong Kong varies depending on which hotel they visit. For customers of hotel chains who expect luxurious and top-quality service, the most significant factors to consider were enumerated as On the other hand, boutique hotels were looking for a different thing. Boutique hotel guests are looking for (a) staff service quality, (b) room qualities and (c) value (Choi & Chu, 2002). This result was established after testing which among the seven factors—(a) staff service quality, (b) room qualities, (c) general amenities, (d) business services, (e) value, security and (f) IDD facilities, the customers find most relevant to ensuring their satisfaction of the hotel service.
In a study conducted by professors Jay Kandampully and Dwi Suhartanto entitled Customer loyalty in the hotel industry: the role of customer satisfaction and image, it revealed that customer satisfaction is significantly (positive) correlated with the hotel’s performance as far as housekeeping, reception, and food and beverage are concerned (Kandampully & Suhartanto, Customer loyalty in the hotel industry: the role of customer satisfaction and image, 2000). In addition, the study also indicates that the price has a significant role in establishing customer satisfaction. Initially, Kandampully and Suhartanto intends to identify the factors that play a pivotal role in ensuring a positive brand image particularly in the hotel industry. The authors explored an investigative study and conducted a survey participated by Netherland’s hotel chain customers.
Similarly, in a follow-up study conducted by the same authors in 2003 they again explored the role of customer satisfaction and brand image in assuring customer loyalty. In this attempt, while the authors found that the same factors identified in their 2000 study were again identified to be positively correlated with customer loyalty, the most important factor this time is the performance of the hotel chains in housekeeping which ensures customer loyalty (Kandampully & Suhartanto, The Role of Customer Satisfaction and Image in Gaining Customer Loyalty in the Hotel Industry, 2003).
In Turkey, on the other hand, authors Rüçhan Kayaman and Huseyin Arasli explored the significance of the four brand equity components in the hotel industry. These brand equity components were identified as (a) brand awareness, (b) brand loyalty, (c) perceived quality and (d) brand image (Kayaman & Arasli, 2007). The results revealed that among the four components brand awareness was the only factor that significant to the tested model. Kayaman and Arasli suggests that hotel managers and executives of hotel chains in Turkey should influence perceived quality, brand loyalty and brand image of the hotels by designing a service delivery process that focuses on the components that were identified as positively correlated to customer satisfaction.
Earlier in 2002, authors Jonathan Barsky and Leonard Nash conducted a study that aims to establish the influence of emotion in evoking customer satisfaction and brand loyalty (Barsky & Nash, 2002). Their study revealed that emotions and consideration of the customer’s emotions is received positively by hotel followers.
In a study conducted in 2009 entitled, The Effect of Brand Class, Brand Awareness and Price on Customer Value and Behavioural Intention, author Haemoon Oh of the Iowa State University explored the relevance of the value model in hotels and similar establishments. However, instead of capitalizing simply on the model itself, the author tried to correlate the relevance of brand class and awareness into the system also taking into consideration the reasonability of price into the equation of establishing what customers’ value. Initially, the author was particularly interested in understanding the factors that warrant customer value and customer satisfaction. Oh referenced the studies made by Frederick Reichheld (1993), Robert Woodruff (1997) and Stanley Slater (1997) in applying the customer value model to establish the role of branding in determining the assuring relevance in the object of consumer’s value model. These factors were utilized to determine the driving force that guides consumers to purchase and establish brand loyalty (Oh, 2009). Oh, later on mentioned that as new brands begin to enter the industry and the sector, it becomes diluted, and competition becomes fierce. In fact, it was revealed in the study initiated by Oh that a survey in 1997 reported that 10% of business travellers express willingness to shift brands in their regular lodging brands, which in return was further aggravated by 45% of the leisure travellers (Worcester, 1999). To test the merits of the variables expressed in the study, Oh conducted an experimental study that aims to explore the role of brand awareness and price fairness through experimental manipulation controlling to a high degree of specificity how the variables could influence brand loyalty and customer satisfaction. In the study, four lodging establishments were considered for the study. These include (a) The Marriot Hotel, (b) The Central Park Hotel, (c) Motel 6 and (d) Roadside Motel. The researcher utilized five-item measures using a 7-point rating scales. The five-item measure included (a) brand class, (b) price, (c) quality, (d) value and (e) intention. The result of the study can be summarized into five important points. First, brand class and brand awareness are two entirely different things. Brand class is associated with the perceived quality of the service while brand awareness is associated with price fairness. In addition, while price might be an indication of quality it cannot be used to gauge customer satisfaction or brand loyalty. Finally, Oh concluded that customer satisfaction is significantly affected by price and quality perception. Although the price can affect customer satisfaction, it cannot specifically identify how price might be used to measure customer satisfaction.
Evidently, this study implies that the factors that play a significant role in gauging customer satisfaction in chain hotels cannot be utilized for boutique hotels. Considering the diversity in the clientele of the hotel franchise and the hotel boutiques, the criteria used by the consumers of these two types of lodging establishments varies. The clienteles of chain hotels are looking for quality, the intention of the franchise and brand class. This is generally considering the fact that most of the clientele of chain hotels belong to the upper class whose general purpose of accommodation in similar establishments often revolves around elaborate business meetings, luxurious vacations and personal effects like engagements, weddings and honeymoons, just to name a few. However, customers of boutique hotels like Motel 6 and Roadside Motel are after price fairness. According to the article published online, boutique hotels are usually furnished with very little technological gadgetry . However, there are instances where the room will be furnished with an air-conditioning unit, a telephone and a cable TV. Considering these findings it can be said that customer satisfaction is not so much dependent on brand name as far as lodging establishments are concerned. While it has an impact to identification, it has no significant correlation to either customer loyalty or customer satisfaction. .

Synthesis

Brand image and customer satisfaction are the contents of one package. The literature review above has indicated that, the perceived product quality and perceived price fairness affect the clients’ purchase decisions in any industry. Nevertheless, the same variables are not absolute criteria that can be held as indicator of customer satisfaction in the hotel industry. While brand image holds an impact in customer recall and identification, its impact to consumers varies depending to the consumer's capacity to afford as well as the intention that they have for lodging. The diversity in clientele for both chain hotels and boutique hotels plays a very crucial role in determining brand loyalty. Customer satisfaction, however, varies according to the type of customers. For chain hotel customers, service quality, service intention and the brand class are considered important variables to determine customer satisfaction. High ratings for these three variables would ensure customer loyalty as reflected in their high customer satisfaction rating. Whereas, for boutique hotels customers are ensured satisfied based on the high ratings on the variable price fairness.

References

Anhar, L. (2001, December 13). The Definition of Boutique Hotels. Retrieved from Hospitality Network: http://www.hospitalitynet.org/news/4010409.html
Applebaum, A. (2001, June 17). The Constant Customer. Retrieved from The Market Pedia: The Marketing Encyclopedia: http://thoughtleaderpedia.com/Marketing-Library/Thoughts_Trends/TheConstantCustomer_holdingOnToHim.pdf
Barsky, J., & Nash, L. (2002). Evoking emotion: affective keys to hotel loyalty. The Cornell Hotel and Restaurant Administration Quarterly, 39–46.
Bodet, G. (2008). Customer satisfaction and loyalty in service: Two concepts, four constructs, several relationships. Journal of Retailing and Consumer Services, 156–162.
Choi, T., & Chu, R. (2002). Determinants of hotel guests’ satisfaction and repeat patronage in the Hong Kong Hotel industry. International Journal of Hospitality Management, 277–297.
Das, V., & De Groote, P. (2010). Globalisation in hotel chains. Case study: profile of the Belgian business traveller. Belgium: Universiteit Hasselt, Belgium.
English, R. (1999). World Travel Dictionary. London: Columbus Publishing. Ltd.
Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel industry: the role of customer satisfaction and image. International Journal of Contemporary Hospitality Management, 346 - 351.
Kandampully, J., & Suhartanto, D. (2003). The Role of Customer Satisfaction and Image in Gaining Customer Loyalty in the Hotel Industry. Journal of Hospitality & Leisure Marketing, 3-25.
Kayaman, R., & Arasli, H. (2007). Customer based brand equity: evidence from the hotel industry. Managing Service Quality, 92-109.
Oh, H. (2009). The Effect of Brand Class, Brand Awareness and Price on Customer Value and Behavioural Intention. Journal of Hospitality & Tourism Research, 136-162.
Reichheld, F. (1993). Loyalty-based management. Harvard Business, 64-73.
Shankar, V., Smith, A., & Rangaswamy, A. (2003). Customer satisfaction and loyalty in online and offline environments. International Journal of Research in Marketing, 153–175.
Slater, S. (1997). Developing a customer value-based theory of the firm. Journal of the Academy of Marketing Science, 162-167.
Woodruff, R. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, 139-153.
Worcester, B. (1999). Brand loyalty loses luster. Hotel & Motel Management, 1-78.

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