Article2021

Signaling effects of branded amenities on customer-based brand equity

Eun Joo Kim · Şeyhmus Baloğlu · Tony L. Henthorne

32 citations0/0 files storedJournal of Hospitality Marketing & Management

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Consumer Behavior in Brand Consumption and Identification Marketing and Advertising Strategies Customer Service Quality and Loyalty

Abstract

Hotels often use branded amenities to upgrade products. However, given the importance, branded amenities are scarcely studied as a tool to manage hotel brands. Signaling theory explains how branded amenities fit into an ingredient branding strategy for hotels. A series of ANOVA were conducted to analyze the effects of branded amenities on hotels’ customer-based brand equity (quality, image, and loyalty) using an experimental design. The results confirm that an ingredient branding strategy is beneficial for enhancing hotel brands. The effects of the ingredient branding on the CBBE vary by economy, midscale, or luxury hotel segments. Midscale hotel brands yield the most potent advantages, while luxury hotel brands offer partial benefits from the strategy. The study provides essential implications for ingredient branding practices in the hotel industry. To achieve maximum benefits of ingredient branding, hotels need enough capacity to grow and minimum levels of CBBE.

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References

1973Job Market Signaling 1993Conceptualizing, Measuring, and Managing Customer-Based Brand Equity 2010Signaling Theory: A Review and Assessment 2000Multivariate Data Analysis 2001Developing and validating a multidimensional consumer-based brand equity scale 1998Brand Equity as a Signaling Phenomenon 1998Is a Company Known by the Company it Keeps? Assessing the Spillover Effects of Brand Alliances on Consumer Brand Attitudes 1999Signaling Unobservable Product Quality through a Brand Ally

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