Tag Archives: hospitality marketing

Delivering service quality to increase brand loyalty

IMG-5907(C) M.A. Camilleri

This is an excerpt from my latest academic article.

How to Cite: Rather, R. A. & Camilleri, M.A. (2019). The effects of service quality and consumer-brand value congruity on hospitality brand loyalty, Anatolia: An International Journal of Tourism and Hospitality Research. https://doi.org/10.1080/13032917.2019.1650289

This study has proved that the combined effects of value congruity and service quality can have an impact on consumer-brand identification and engagement. The results from this study indicated that the consumer-brand identification as well as consumer-brand engagement were predicting the consumers’ loyalty toward the brand. The findings also reported that consumer-brand identification, perceived service quality as well as value congruity were significant antecedents of consumer-brand engagement. In addition, the service quality and value congruity had moderate, direct effects on consumer brand identification. Furthermore, the empirical results revealed that consumer brand identification has mediated the relationships between value congruity and brand loyalty, and between service quality and brand loyalty.

In a similar vein, a critical analysis of the relevant literature revealed that consumer-brand relationships are dependent on the customers’ identification with their favorite brands (Çifci et al., 2016; Rather & Camilleri, 2019; Rather, 2018; Tuskej & Podnar, 2018; So et al., 2013; 2014). Specifically, the consumer-brand identification is related with the consumer-brand value congruity (Rather, 2018). As a matter of fact, past research also reported that consumer-brand identification has a positive effect on customer behaviors and attitudes (in terms of loyalty and commitment) (Rather & Camilleri, 2019). However, in this case, the findings of this study suggest that both the consumer-brand value congruity and perceived service quality are the significant antecedents of consumer-brand identification and engagement.

The consumer-brand identification will inevitably trigger supporting behaviors like increased purchase / repurchase intentions (e.g., Kuenzel & Halliday, 2008) or positive word-of-mouth recommendations (Tuskej et al., 2013), among other positive outcomes. Therefore, hospitality practitioners ought to nurture physical and virtual relationships with their stakeholders via a multitude of approaches, if they want them to remain loyal to their business (Dedeoğlu & Demirer, 2015). Public activities such as sponsorship, charity events, social campaigns and so on can be used to enhance the brands’ image among interested parties, including customers (Bhattacharya & Sen, 2003). For this reason, several hospitality brands are increasingly engaging in interactive communications either individually or in groups, via digital technologies, including social media, blogs, v-blogs, video clips, review sites, etc. (Camilleri, 2018a; So et al., 2017; Su, Mariadoss, & Reynolds, 2015). Very often, individuals are intrigued to share their travel experiences, including their hotel accommodation (Camilleri, 2018b).

In a nutshell, this contribution posited that the hotel guests will probably engage and remain loyal to particular hospitality brands if they feel and perceive that their values reflect their own values. This study reported that the consumer-brand value congruity had a very significant effect on the consumers’ identification and engagement with the upscale hospitality brands. It indicated that the hotel guests who have experienced excellent service quality are more likely to share their experience with other individuals. Hence, hospitality managers need to ensure that their brand consistently delivers high levels of tangible and intangible service quality (at all times) to their valued guests in order to create long-lasting relationships with them.

The hotels’ provision of the service quality and brand experience ought to meet and exceed their guests’ expectations to satisfy their self-enhancement needs and their sense of well-being.

 

Advertisements

Leave a comment

Filed under branding, Business, Hospitality, Marketing

The political environment of marketing

 

This is excerpt from: Camilleri, M.A. (2018). Travel Marketing, Tourism Economics and the Airline Product, Springer, Milan, Italy. ISBN 978-3-319-49849-2


To be successful, companies must adapt to ongoing trends and developments in their macro and micro environments. Therefore, it is in the interest of organisations to scan their marketing environment to deal with any possible threats from the market and to capitalise on any available opportunities. This chapter explains the external environmental factors, including; political, economic, social and technological influences. It also considers the internal environmental factors, including; capital structures, resources, capabilities and marketing intermediaries; as it identifies competitive forces from differentiated or low-cost service providers.

A sound knowledge of the customer requirements is an essential ingredient for a successful business. For this reason, companies should consistently monitor their marketing environment. The marketing environment is continuously changing, as it consists of a number of unpredictable forces which surround the company.

The regulatory and competitive conditions as well as other market forces, including; political, economic, social and technological forces, could affect the organisational performance of the tourism businesses. Hence, this chapter will look into some of these issues. The tourism industry is highly influenced by economic factors, including; strong exchange rate fluctuations, the price of oil and other commodities, among other matters. Moreover, social factors including global concerns about safety and security could influence tourist behaviours. Notwithstanding, the regulatory environments will also have an impact on tourism and airline businesses. For instance, the airline industry’s deregulation and liberalisation has created numerous opportunities for many airlines, including low-cost carriers. At the same time, it has threatened inefficient airlines who have been protected by regulation.

Competition is a vitally important element in the marketing environment and it should not be under-estimated. The businesses competitors comprise suppliers of substitute products. They may be new entrants in the marketplace. Alternatively, they may include customers and suppliers who were stakeholders of the business. In this light, tourism marketers should be knowledgeable of different business models as competition can take different forms, like for example, differentiated, full-service companies or low-cost service providers. For these reasons, organisations should have effective mechanisms to monitor the latest developments in the marketing environment.

Environmental Scanning

Environmental scanning entails the collection of information relating to the various forces within the marketing environment. This involves the observation and examination of primary and secondary sources of information, including online content from business, trade, media and the government, among others. The environmental analysis is the process of assessing and interpreting the information gathered. An ongoing analysis of the gathered data may be carried out by marketing managers or by researchers who have been commissioned to conduct market research (as explained in the previous chapter). Through analysis, marketing managers can attempt to identify extant environmental patterns and could even predict future trends. By evaluating trends and tendencies, the marketing managers should be able to determine possible threats and opportunities that are associated with environmental fluctuations. When discussing the ‘marketing environment’ we must consider both the external environment (i.e. the macro-environment) as well as the internal environment (i.e. the micro-environment) (Kotler, Armstrong, Frank & Bunn, 1990).

The Macro Environment

The tourism businesses must constantly assess the marketing environment. It is crucial for their survival and achievement of their long-term economic goals. Therefore, marketing managers must engage in environmental scanning and analysis. Most firms are comfortable assessing the political climates in their home countries. However, the evaluation of political climates in foreign territories is far more problematic for them. Experienced international businesses engage in political risk assessment, as they need to carry out ongoing systematic analyses of the political risks they face in foreign countries. Political risks are any changes in the political environment that may adversely affect the value of any firm’s business activities. Most political risks may result from governmental actions, such as; the passage of laws that expropriate private property, an increase in operating costs, the devaluation of the currency or constraints in the repatriation of funds, among others. Political risks may also arise from non-governmental actions when there is criminality (for example: kidnappings, extortion and acts of terrorism, et cetera). Political risks may equally affect all firms or may have an impact on particular sectors, as featured hereunder. Non-governmental political risks should also be considered. For example, Disneyland Paris and McDonalds have been the target of numerous symbolic protests  who view them as a convenient target for venting their unhappiness with US international agricultural policies. In some instances, protests could turn violent, and may even force firms to shut down their operations, in particular contexts.

Typical Examples of Political Risks

Type                                                   Impact on Firms
Expropriation Loss of future profits.
Confiscation Loss of assets, loss of profits.
Campaigns against businesses Loss of sales; increased costs of public relation; efforts to improve public image.
Mandatory labour benefits legislation Increased operating costs.
Kidnappings, terrorist threats and other forms of violence Increased security costs; increased managerial costs; lower productivity.
Civil wars Destruction of property; lost sales; increased security costs.
Inflation Higher operating costs.
Repatriation Inability to transfer funds freely.
Currency devaluations Reduced value of repatriated earnings.
Increased taxation Lower after-tax profits.

 

References:

Camilleri, M. A. (2018). The Marketing Environment. In Travel Marketing, Tourism Economics and the Airline Product (pp. 51-68). Springer, Cham, Switzerland.

Kotler, P., Armstrong, G., Franke, G., & Bunn, M.D. (1990). Marketing: An Introduction, Vol. 1. New Jersey: Prentice Hall.

 

Leave a comment

Filed under Business, Hospitality, Marketing, Small Business, tourism, Travel