Modeling consumer-based brand equity for multinational hotel brands: When hosts become guests

Zhuowei Huang, Purdue University

Abstract

This dissertation addresses several global expansion challenges faced by multinational hotel companies due to the dramatic increase of international travel. Grounded in theories pertaining to brand equity, this study develops the consumer-based brand equity (CBBE) model for multinational hotel brands. The model examines the effects of brand knowledge, operationalized as brand awareness and brand image, on consumer response to the brand. The conceptual model is empirically tested using a sample of the Chinese middle-class consumers in their home country - China and when they travel to the foreign country or host country - the United States. Three U.S.-based multinational hotel brands are selected: Hilton, Holiday Inn, and Super 8. Three dimensions of hotel brand image are identified based on website content analysis of these hotel brands and related literature. The three dimensions are Tangibles, Intangibles & Prestige, and General Evaluation. Consumer response is represented by Brand Resonance in the China model and Behavioral Intention in the U.S. model. In addition, to extend the understanding of CBBE model in the hospitality and tourism realm, this dissertation investigates the role of travel motivation in CBBE model. Three factors of Chinese consumers' motivation for traveling from China to the United States have been identified and examined for each of the three sub-samples corresponding to three hotel brands. The major findings from this study include: 1) Differential relationship patterns between brand knowledge and consumer response are demonstrated in CBBE models among three brands. 2) Distinctive relationship patterns between brand knowledge and consumer response across two countries are exhibited for Hilton and Holiday Inn brands, but not for Super 8 brand. 3) For China CBBE models across three brands, the relationship between Intangibles & Prestige and Brand Resonance is significantly positive, while no relationship exists between Tangibles and Brand Resonance. 4) For Hilton and Holiday Inn brands, Image dimension of Intangibles & Prestige pertaining symbolic values in consumption is important for Chinese consumers when they are in their home country of China but not in the host country of the United States. Tangibles or General Evaluations reflecting functional values are perceived more important in U.S. models than in China models. 5) Chinese consumers' motivation for traveling from China to the United States has moderating effects on the relationship between brand image and behavioral intention in the United States. Varied travel motivation factors have different influences on how brand image affects behavioral intention, across three hotel brands. This study extends the body of knowledge on consumer-based brand equity to hospitality and tourism realm in the context of globalization. The home-host framework presented in this study sheds new light on the way to understand and address global branding challenges faced by hospitality and tourism industry. The findings inform the multinational hotel companies of Chinese middle-class consumers' understanding of and response toward the multinational hotel brands in the home country of China and host country of the United States, which can be attributed to their unique cultural roots and values. The findings caution multinational hotel companies to be discreet about their global branding strategies given today's booming international travel. As more Chinese leisure travelers are coming to the United States, how these multinational hotel companies understand and host these guests in their home country requests more inquiries in academic research and practice.

Degree

Ph.D.

Advisors

Cai, Purdue University.

Subject Area

Management

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