Factors Influencing Value Creation on Brand Trust in Hotel Business: Case Study of 3-, 4- and 5-Star Hotels in Indonesia During the COVID-19 Pandemic

Authors

  • Agus Riyadi Hotel Department, Trisakti Institute of Tourism, Jakarta, Indonesia
  • Eunike Yoanita Kristanti Trisakti Institute of Tourism, Jakarta, Indonesia

DOI:

https://doi.org/10.32890/jeth2021.1.9

Keywords:

Public Value Creation, Brand Trust, Hospitality Industry, COVID-19

Abstract

This research investigates the society or guests’ perception of the value creation and brand trust, and aims to examine the effect of value creation on brand trust in 3-, 4-, and 5-star hotels in Indonesia during the COVID-19 pandemic. This research adopted the quantitative method and used probability sampling to determine the sample size. The data were collected using questionnaires via Google Forms and also distributed to respondents who had stayed in 3-, 4-, and 5 star hotels in Indonesia during the COVID-19 pandemic with a total respondents of 99 people. Hypotheses were tested and the findings suggest that value creation has a significant impact on brand trust. The results suggested that hotel brands in Indonesia need to create values that are appreciated by the society as a whole and hotel guests. However, hotel brands in Indonesia still need to improve their creations of value to further boost brand trust for hotel brands in Indonesia in order to improve the hotel performance. The development of a business-oriented analytical framework that aids practitioners in assessing and approaching the opportunities posed by value creation on brand trust is further discussed in the study.The paper introduces an analytical and fresh perspective on value creation and brand trust particularly in a hotel industrial marketing context.

Downloads

Download data is not yet available.

References

Andri, Y. D. (2021). Ribuan hotel dan restoran tutup permanen akibat pandemi Covid-19. Bisnis.Com. https://ekonomi.bisnis.com/read/20210205/12/1352941/ribuan-hotel-dan-restoran-tutup-permanen-akibat-pandemi-covid-19

Azhar, R. (2020). The Wild card for the hospitality industry in Indonesia. NOW! Jakarta. https://nowjakarta.co.id/business/industries/the-wild-card-for-the-hospitality-industry-in-indonesia

Barnes, J. G. (2003). Secrets of Customer Relationship Management (Rahasia Manajemen Hubungan Pelanggan). Yogyakarta: Andi.

Bracci, E., Deidda, E., Bigoni, G. M., Jeffrey, B., Troman, G., Cuganesan, S., Jacobs, K., & Lacey, D. (2012). Public value management, measurement and reporting performance management systems and public value strategy: A case study. Journal of Organizational Ethnography, 1(3), 195–212.

Breier, M., Kallmuenzer, A., Clauss, T., Gast, J., Kraus, S., & Tiberius, V. (2021). The role of business model innovation in the hospitality industry during the COVID-19 crisis. International Journal of Hospitality Management, 92, 102723. https://doi.org/10.1016/j.ijhm.2020.102723

Carnevale, M., Loureiro, Y. K., & Kabadayi, S. (2018). Customer Value creation for risky products: The role of brand trust and trusting beliefs. Journal of Creating Value, 4(1), 1–21. https://doi.org/10.1177/2394964317752731

Chan, O.-P. (2020). Digital Transformation in the era of big data and cloud computing.International Journal of Intelligent Information Systems, 9(3), 16. https://doi.org/10.11648/j.ijiis.20200903.11

Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81–93. https://doi.org/10.1509/jmkg.65.2.81.18255

Chebli, A., & Ben Said, F. (2020). The impact of Covid-19 on Tourist consumption behaviour : A perspective article. Journal of Tourism Management Research, 7(2), 196–207. https://doi.org/10.18488/journal.31.2020.72.196.

Chesbrough, H. (2020). To recover faster from Covid-19, open up: Managerial implications from an open innovation perspective. Industrial Marketing Management, 88(April), 410–413. https://doi.org/10.1016/j.indmarman.2020.04.010

Chesbrough, H., Lettl, C., & Ritter, T. (2018). Value creation and value capture in hotel industry.Journal of Product Innovation Management, 35(6), 930–938. https://doi.org/10.1111/jpim.12471

Chin, W. W. (1998). Issues and opinion on structural equation modeling. MIS Quarterly: Management Information Systems, 22(1). https://www.jstor.org/stable/249674

CNN. (2020). Sri Mulyani Sebut Kebijakan PSBB “Pukul” Ekonomi RI. CNN Indonesia. https://www.cnnindonesia.com/ekonomi/20200511132615-532-502066/sri-mulyani-sebut-kebijakan-psbb-pukul-ekonomi-ri

Dagger, T. S., Danaher, P. J., & Gibbs, B. J. (2009). How often versus how long.Journal of Service Research, 11(4), 371–388. https://doi.org/10.1177/1094670508331251

Delgado-Ballester, E., & Luis Munuera-Alemaan, J. (2001). Brand trust in the context of consumer loyalty. European Journal of Marketing, 35(11/12), 1238–1258. https://doi.org/10.3969/j.issn.1001-0548.2009.05.013

Delgado-Ballester, E., & Munuera-Alemán, J. L. (2005). Does brand trust matter to brand equity? Journal of Product and Brand Management, 14(3), 187–196. https://doi.org/10.1108/10610420510601058

Duchessi, P. (2002). Crafting customer value: The art and science. Purdue University Press.

Eggert, A., Ulaga, W., Frow, P., & Payne, A. (2018). Conceptualizing and communicating value in business markets: From value in exchange to value in use. Industrial Marketing Management, 69, 80–90. https://doi.org/10.1016/j.indmarman.2018.01.018

Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far have we come, and where should we go?Journal of Management, 43(1), 200–227. https://doi.org/10.1177/0149206316675927

Fraenkel, J. R., & Wallen, N. E. (1993). How to design and evaluate research in education. McGraw-Hill.

Gallo, A. (2014). The value of keeping the right customers, Harvard Business Review, October 29.

Ghani, N. (2020). Industri Perhotelan berkreasi di tengah pandemi Covid-19. Media Indonesia. https://mediaindonesia.com/ekonomi/301282/industri-perhotelan-berkreasi-di-tengah-pandemi-covid-19

Ghozali, I. (2018). Aplikasi analisis multivariate dengan Program IBM SPSS 25 (9th ed.). Universitas Diponegoro.

Grohs, R., Wieser, V. E., & Pristach, M. (2020). Value cocreation at sport events. European Sport Management Quarterly, 20(1), 69–87. https://doi.org/10.1080/16184742.2019.1702708

Hao, F., Xiao, Q., & Chon, K. (2020). COVID-19 and China’s hotel Industry: Impacts, a Disaster management framework, and post-pandemic agenda. International Journal of Hospitality Management, 90(July), 102636. https://doi.org/10.1016/j.ijhm.2020.102636

Hepburn, C., O’Callaghan, B., Stern, N., Stiglitz, J., & Zenghelis, D. (2020). Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change? Oxford Review of Economic Policy, 36, S359–S381. https://doi.org/10.1093/oxrep/graa015

Hess, J., & Story, J. (2005). Trust-based commitment: Multidimensional consumer-brand relationships. Journal of Consumer Marketing, 22(6), 313–322. https://doi.org/10.1108/07363760510623902

Holbrook, M. B. (1999). Consumer value: A framework for analysis and research. In (Routledge interpretive market research series. Routledge. https://doi.org/10.4324/9780203010679

Holbrook, M. B. (2006). Consumption experience, customer value, and subjective personal introspection: An illustrative photographic essay. Journal of Business Research, 59(6), 714–725. https://doi.org/10.1016/j.jbusres.2006.01.008

Hong, I. B., & Cho, H. (2011). The impact of consumer trust on attitudinal loyalty and purchase intentions in B2C e-marketplaces: Intermediary trust vs. seller trust. International Journal of Information Management, 31(5), 469–479. https://doi.org/10.1016/j.ijinfomgt.2011.02.001

Hulland, J. (1999). Use of Partial Least Squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20, 195–204. https://doi.org/10.1038/aps.2012.31

Iglesias, O., Markovic, S., Bagherzadeh, M., & Singh, J. J. (2018). Co-creation: A Key link between corporate social responsibility, customer trust, and customer loyalty.Journal of Business Ethics, 163(1), 151–166. https://doi.org/10.1007/s10551-018-4015-y

Iglesias, O., Singh, J. J., & Batista-Foguet, J. M. (2011). The role of brand experience and affective commitment in determining brand loyalty. Journal of Brand Management, 18(8), 570–582. https://doi.org/10.1057/bm.2010.58

Jensen, Ø., & Prebensen, N. (2015). Innovation and Value creation in experience-based tourism. Scandinavian Journal of Hospitality and Tourism, 15, 1–8. https://doi.org/10.1080/15022250.2015.1066093

Jian, Y., Yu, I. Y., Yang, M. X., & Zeng, K. J. (2020). The impacts of fear and uncertainty of covid-19 on environmental concerns, brand trust, and behavioral intentions toward green hotels. Sustainability (Switzerland), 12(20), 1–14. https://doi.org/10.3390/su12208688

Kaushal, V., & Srivastava, S. (2020). Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company ’ s public news and information. January.

Khodadad Hosseini, S. H., & Behboudi, L. (2017). Brand trust and image: effects on customer satisfaction. International Journal of Health Care Quality Assurance, 30(7), 580–590. https://doi.org/10.1108/IJHCQA-04-2016-0054

Kim, D. (2020). Women ’ s health during the COVID-19 pandemic. 26(2), 106–108.

Kohli, S., Fabius, V., & Veranen, S. M. (2020). How COVID-19 is changing consumer behavior – now and forever. In McKinsey & Company.

Kusumadewi, R. (2019). Pengaruh Kreasi nilai: function/instrumental value, experiental/hedonic value, symbolic/expressive value dan cost/sacrefice value terhadap loyalitas pelanggan.Journal of Chemical Information and Modeling, 53(9), 1689–1699.

Lantieri, T., & Chiagouris, L. (2009). Brand trust in an age without trust: Expert opinions. Journal of Consumer Marketing, 26(2), 78–86. https://doi.org/10.1108/07363760910940447

Laroche, M., Habibi, M. R., Richard, M. O., & Sankaranarayanan, R. (2012). The effects of social media based brand communities on brand community markers, value creation practices, brand trust and brand loyalty. Computers in Human Behavior, 28(5), 1755–1767. https://doi.org/10.1016/j.chb.2012.04.016

Lassoued, R., & Hobbs, J. E. (2015). Consumer confidence in credence attributes: The role of brand trust. Food Policy, 52, 99–107. https://doi.org/10.1016/j.foodpol.2014.12.003

Li, F., Xu, L., Li, T., & Zhou, N. (2015). Brand trust in a cross-cultural context: Test for robustness of an alternative measurement model. Journal of Product and Brand Management, 24(5), 462–471. https://doi.org/10.1108/JPBM-10-2014-0735

Lindgreen, A., Koenig-Lewis, N., Kitchener, M., Brewer, J. D., Moore, M. H., & Meynhardt, T. (2019). Public Value. In A. Lindgreen, N. Koenig-Lewis, M. Kitchener, J. D. Brewer, M. H. Moore, & T. Meynhardt (Eds.), Public Value: Deepening, Enriching, and Broadening the Theory and Practice. Routledge. https://doi.org/10.4324/9781315163437

Malhotra, Y. (1996). Organizational Learning and Learning Organizations: An Overview. http://www.brint.com/papers/orglrng.htm

Mansor, F., & KaderAli, N. N. (2017). Crisis Management, Crisis Communication, and Consumer Purchase Intention Post-crisis. Global Business & Management Research, 9(4), 60–79. http://ezproxy.javeriana.edu.co:2048/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bth&AN=127011673&lang=es&site=ehost-live

McKnight, D. H., Choudhury, V., & Kacmar, C. (2002). The impact of initial consumer trust on intentions to transact with a web site: A trust building model. Journal of Strategic Information Systems, 11(3–4), 297–323. https://doi.org/10.1016/S0963-8687(02)00020-3

Mende, M., & Bolton, R. N. (2011). Why attachment security matters: How customers’ attachment styles influence their relationships with service firms and service employees. Journal of Service Research, 14(3), 285–301. https://doi.org/10.1177/1094670511411173

Meynhardt, T. (2009). Public value inside: What is public value creation? International Journal of Public Administration, 32(3–4), 192–219. https://doi.org/10.1080/01900690902732632

Morgan-Thomas, A., & Veloutsou, C. (2013). Beyond technology acceptance: Brand relationships and online brand experience. Journal of Business Research, 66(1), 21–27. https://doi.org/10.1016/j.jbusres.2011.07.019

Morgan, R. M., & Hunt, S. D. (1994). The Commitment-trust theory of relationship marketing.Journal of Marketing, 58(3), 20–38. https://doi.org/10.1016/0022-0531(82)90041-

Mosavi, S. A., & Kenarehfard, M. (2013). The Impact of value creation practices on brand trust and loyalty in a samsung galaxy online brand community in Iran. International Journal of Mobile Marketing, 8(2), 75–84.

Munuera-Aleman, J. L., Delgado-Ballester, E., & Yague-Guillen, M. J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45(1), 1–18. https://doi.org/10.1177/147078530304500103

Nepomuceno, M. V., Laroche, M., & Richard, M. O. (2014). How to reduce perceived risk when buying online: The interactions between intangibility, product knowledge, brand familiarity, privacy and security concerns. Journal of Retailing and Consumer Services, 21(4), 619–629. https://doi.org/10.1016/j.jretconser.2013.11.006

Neuman, W., L. (2014). Social Research Methods : Qualitative and Quantitative Approaches (Seventh). Pearson Education Limited. https://doi.org/10.2307/3211488

Ozdemir, S., Gupta, S., Foroudi, P., Wright, L. T., & Eng, T. Y. (2020). Corporate branding and value creation for initiating and managing relationships in B2B markets. Qualitative Market Research, 23(4), 627–661. https://doi.org/10.1108/QMR-12-2017-0168

Pasaribu, M. (2014). Suatu tinjauan atas konsep penciptaan nilai publik (public value creation) sebagai paradigma baru dalam pelayanan publik.Direktorat Pembinaan Pengelolaan Keuangan BLU, Direktorat Jenderal Perbendaharaan. http://blu.djpbn.kemenkeu.go.id/index.php?r=publication/article/view&id=2

Pavlou, P. A., & Gefen, D. (2004). Building effective online marketplaces with institution-based trust. Information Systems Research, 15(1). https://doi.org/10.1287/isre.1040.0015

Portal, S., Abratt, R., & Bendixen, M. (2019). The role of brand authenticity in developing brand trust. Journal of Strategic Marketing, 27(8), 714–729. https://doi.org/10.1080/0965254X.2018.1466828

Prahalad, C.., & Ramaswamy, V. (2004). The future of competition: Co-creating unique value with customers. In Soundview Executive Book Summaries (Vols. 26, No.3, Issue March). https://doi.org/10.1172/JCI105162

Purwanto, A., Fahlevi, M., Zuniawan, A., Dimas, R., Kusuma, P., Supriatna, H., & Maryani, E. (2020). Journal of critical reviews the covid-19 pandemic impact on industries performance: An explorative study of indonesian companies. Journal of Critical Reviews, 7(15), 6724–6748.

Rahmani, Z., Ranjbar, M., Nadi Gara, A. A., & Heidari gorji, M. A. (2017). The study of the relationship between value creation and customer loyalty with the role of trust moderation and customer satisfaction in Sari hospitals. Electronic Physician, 9(6), 4474–4478. https://doi.org/10.19082/4474

Sanz-Blas, S., Bigné, E., & Buzova, D. (2019). Facebook brand community bonding: The direct and moderating effect of value creation behaviour. Electronic Commerce Research and Applications, 35(April). https://doi.org/10.1016/j.elerap.2019.100850

Shrivastava, P. (2016). Effect of co-creation on customer experience, trust and brand loyalty. International Journal of Sales & Marketing Management, 6(6), 1–14.

Singh, J. J., Iglesias, O., & Batista-Foguet, J. M. (2012). Does having an ethical brand matter? The influence of consumer perceived ethicality on trust, affect and loyalty. Journal of Business Ethics, 111(4), 541–549. https://doi.org/10.1007/s10551-012-1216-7

Smith, J. B., & Colgate, M. (2007). Customer value creation: A practical framework. Journal of Marketing Theory and Practice, 15(1), 7–23. https://doi.org/10.2753/MTP1069-6679150101

Traveloka. (2020). Transisi Normal Baru, Traveloka Hadirkan Solusi Inovatif untuk Bantu Mitra dalam Proses Pemulihan Covid-19. https://www.industry.co.id/read/68729/traveloka-hadirkan-solusi-inovatif-untuk-bantu-mitra-dalam-proses-pemulihan-covid-19

Vargo, S. L., & Lusch, R. F. (2011). It’s all B2B...and beyond: Toward a systems perspective of the market. Industrial Marketing Management, 40(2), 181–187. https://doi.org/10.1016/j.indmarman.2010.06.026

Verhagen, T., Meents, S., & Tan, Y. H. (2006). Perceived risk and trust associated with purchasing at electronic marketplaces. European Journal of Information Systems, 15(6), 542–555. https://doi.org/10.1057/palgrave.ejis.3000644

Von Hippel, E. (2006). Democratizing innovation. the MIT Press.

Von Hippel, E. (2016). Free innovation. The MIT Press.

Wahyudi, E. (2020). PHRI: Sektor Pariwisata Rugi Rp 85,7 Triliun Akibat Pandemi. Tempo. https://bisnis.tempo.co/read/1365055/phri-sektor-pariwisata-rugi-rp-857-triliun-akibat-pandemi

Wenger, E., Trayner, B., & de Laat, M. (2011). Promoting and assessing value creation in communities and networks: a conceptual framework (april). Ruud de Moor Centrum, 18(August),1–60. http://www.open.ou.nl/rslmlt/Wenger_Trayner_DeLaat_Value_creation.pdf

WHO - World Health Organization. (2020). “WHO COVID-19 situation report 30” (PDF). World Health Organization (WHO). https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200219-sitrep-30-covid-19.pdf?sfvrsn=6e50645_2

Wuryandani, D. (2020). THE COVID-2019’s impact on Indonesia economic growth 2020. Research Center, Expertise Agency of DPR RI, XII(15/I/Puslit/August), 19–24. http://berkas.dpr.go.id/puslit/files/info_singkat/Info Singkat-XII-15-I-P3DI-Agustus-2020-206-EN.pdf

Yeung, R., Yee, W., & Morris, J. (2010). The effects of risk-reducing strategies on consumer perceived risk and on purchase likelihood: A modelling approach. British Food Journal, 112(3), 306–322. https://doi.org/10.1108/00070701011029174

Zainuddin, N., Dent, K., & Tam, L. (2017a). Seek or destroy? Examining value creation and destruction in behaviour maintenance in social marketing. Journal of Marketing Management, 33(5–6), 348–374. https://doi.org/10.1080/0267257X.2017.1301532

Zainuddin, N., Dent, K., & Tam, L. (2017b). Seek or destroy? Examining value creation and destruction in behaviour maintenance in social marketing. Journal of Marketing Management, 33(5–6), 348–374. https://doi.org/10.1080/0267257X.2017.1301532

Downloads

Published

15-07-2021

Issue

Section

Articles

How to Cite

Riyadi , A., & Kristanti , E. Y. (2021). Factors Influencing Value Creation on Brand Trust in Hotel Business: Case Study of 3-, 4- and 5-Star Hotels in Indonesia During the COVID-19 Pandemic. Journal of Event, Tourism and Hospitality Studies, 1, 184-209. https://doi.org/10.32890/jeth2021.1.9

Research impact

Harvested 2026-09-14
0 citations recorded so far

Counts differ between services because each indexes a different body of literature. None of them is the whole picture.

Identifiers DOI 10.32890/jeth2021.1.9 OpenAlex W3177363171