Understanding brand recommendation and loyalty strategy across local and international chain hotels

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Research on branded hotels, both local and international, is essential to comprehend consumer behavior, refine brand strategies, and enhance competitive positioning. Such research sheds light on consumer-brand interactions, internal branding practices, and the nuances of local versus global brand associations, ultimately guiding the development of effective entrepreneurship and marketing strategies in the hospitality industry. Building on previous research, this study aims to identify whether marketing innovation (MI) and hotel environment (HE) affect brand recommendation (BR) and brand loyalty (BL) using a brand prototype (BP) approach (Yi et al., 2022). A survey was distributed in 2023 to 220 customers who stayed at local or international chain hotels in Indonesia using a five-point Likert scale. Partial least squares structural equation modeling (PLS-SEM) analysis was conducted to assess the variable relationships. The results indicated that the HE significantly influenced BR and BL for local brand hotels. Conversely, MI was crucial for international chain hotels. These findings highlight the necessity of tailored marketing and operational strategies for different hotel brands. Understanding how the antecedents and outcomes of local and international BPs interact can guide targeted marketing efforts, enhance customer engagement, and support sustainable growth in hospitality entrepreneurship.

Keywords: Comparative Analysis, Competitive Advantage, Family Entrepreneurship, Hotel Management, Market Differentiation

Authors’ individual contribution: Conceptualization — L.M.K. and D.C.A.; Methodology — L.M.K.; Formal Analysis — L.M.K.; Investigation — L.M.K. and D.C.A.; Resources — L.M.K. and D.C.A.; Writing — Review & Editing — L.M.K. and D.C.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F23, L26, M31

Received: 05.05.2024
Revised: 22.08.2024; 19.03.2025
Accepted: 03.04.2025
Published online: 07.04.2025

How to cite this paper: Kaban, L. M., & Augustinus, D. C. (2025). Understanding brand recommendation and loyalty strategy across local and international chain hotels. Corporate & Business Strategy Review, 6(2), 52–61. https://doi.org/10.22495/cbsrv6i2art5