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Brand Equity 5 PDF
Brand Equity 5 PDF
A R T I C LE I N FO A B S T R A C T
Keywords: In a highly competitive market, marketing staff are always looking for solutions to strengthen what can be called
Destination brand equity their destination values (unique place, services, and human resources, etc.). They do this by concentrating on
Travel intention vital factors which can enhance their brand equity. Nevertheless, there is a shortage of studies about how
Destination familiarity destination brand evaluations are related to visitor appraisals. Using the opinions of 531 foreign tourists visiting
Destination awareness
a destination in Vietnam and a partial least squares (PLS) approach, this study examines four elements of des-
Perceived quality
Destination image
tination brand equity (perceived quality, loyalty, awareness, image) regarding travel intentions and the mod-
erating effect of destination familiarity. Results revealed that brand equity is positively related to travel in-
tentions. Additionally, destination familiarity has positive moderating effects on destination awareness and
perceived quality of travel intentions. This study offers some managerial insights into the effective building of
destination brand equity.
https://doi.org/10.1016/j.jretconser.2018.12.012
Received 3 October 2018; Received in revised form 25 November 2018; Accepted 24 December 2018
Available online 26 February 2019
0969-6989/ © 2018 Elsevier Ltd. All rights reserved.
H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
and re-branding strategies. However, most empirical and conceptual 1991). Keller (1993) was among the first researchers to identify brand
tourism studies have concentrated only upon destination image (Kim equity as “the different effect of brand knowledge on consumer re-
and Perdue, 2011; Elliot et al., 2011; Blain et al., 2005; Konecnik, 2004; sponse to the marketing of the brand.” However, Keller did not use
Gnoth, 2002; Cai, 2002). Konecnik and Gartner (2007) and Gartner and brand loyalty as an element in her study. Yoo et al. (2000) further ar-
Ruzzier (2011) suggested that while destination images play an essen- gued that distribution intensity, store image, price, and advertising
tial role in brand measurement, other dimensions were needed to ac- should also be treated as antecedents of brand equity. Mishra and Datta
curately evaluate the dynamics of destination brand equity. The (2011) and many other researchers have considered brand equity as an
aforementioned researches supported Cai’s (2002) study that images independent element associated with the value of the brand and have
were important to brand equity and brand evaluation, however other explored other brand-related dimensions, such as perceived quality,
elements were needed to accurately evaluate destination brand equity. brand awareness, brand personality, brand associations, brand com-
Furthermore, diversified quantitative methods are necessary to effec- munication, or brand name as significant components of brand loyalty.
tively recognize constituent elements of brand equity dynamics (Chan The literature has been widely split (Gartner and Ruzzier, 2011)
and Marafa, 2013). Hence, this study to extend a perceived academic between conceptions of 'brand equity' and 'brand loyalty' that have been
gap that can be said to be due to measuring destination brands from the defined with a widespread background within marketing (Aaker and
perspective of tourists. Joachimsthaler, 2000; Aaker, 1996; Keller, 1993) although later studies
show relatively minimal attention related to destination brand equity in
2. Literature review the tourism field (Pike, 2007; Konecnik, 2006; Harish, 2010; Dooley
and Bowie, 2005). The research has essentially incorporated findings
2.1. Destination branding based on product brand equity into the field of destination brand equity
(e.g., Yoo et al., 2000; Yoo and Donthu, 2001 and 2002; Keller, 1993;
Destinations are seen as products, and the concept of tourist desti- Aaker, 1991). Kim and Kim (2005) defined destination brand equity as
nation branding is a created or manufactured one (Prichard and perceptual equity (perceived quality, image, awareness). Consequently,
Morgan, 1998). However, there are certain obstacles when determining Kim and Kim (2005) treated destination loyalty (behavioral equity) as
destination branding. Differentiated from service products, the desti- one of the derivatives of perceptual equity. Travelers' viewpoints relied
nation of travel involves many factors, such as accommodation, at- upon their knowledge of the destination brand and its particular ele-
tractions, tourism policy, tourism industry (Cai, 2002). The name of a ments, enabling them to discuss brands as well as destination brand
destination is almost predefined by the current name of the place (Kim equity.
et al., 2009) and therefore, the definition of destination brand is quite Destination marketers have realized the growing importance of
small and dispersed in theory. One of the most cited definitions of brand equity in promoting their destinations. As noted in some mar-
destination brands is the definition introduced by Ritchie and Ritchie keting materials, the elements of a product brand are not applied di-
(1998). Accordingly, the destination brand is a name, logo, or graphic rectly to the services (Aaker, 1991; Keller, 2003). Therefore, the in-
used to identify and distinguish the differences between places. As well dividual components of a brand will change, depending on the
as conveying a promise about potential experiences in that place for composition of products or services. Boo et al. (2019) stated that the
tourists, the destination brand must contribute to enhancing and con- development and measurement of brand equity are challenging due to
solidating positive memories associated with a place (Ritchie & Ritchie, the complexity of a destination. Theoretically, a destination brand
1998). Researchers have emphasized the importance of branding as a consists of both intangible and tangible elements. Visitors sense these
component of marketing to create the image, logo, and perception of components by the combination of the functions (measurable and
visitors. Blain et al. (2005) argue that branding simultaneously re- physical) and psychology of the dimensions of a destination brand.
inforces the uniqueness, supports the formation, development and dis- Therefore, the value and interest of a destination brand can change in
plays positive image of the destination to the target market (Baker & light of how tourist perceive the service or products. There are nu-
Cameron, 2008). merous methods used for measuring elements of a destination brand.
In most countries, creating destination brand awareness and value The method recommended by Kim et al. (2009) employed six factors:
has become a significant strategy due to increased competition between perception, interest, price, popularity, uniqueness, value; those by
destinations (García et al., 2012). A literature survey shows that the Konecnik and Gartner (2007) employed four dimensions: quality, loy-
terms “branding” and “brand” are frequently discussed in tourism stu- alty, awareness, and image; and Boo et al. (2009) applied three di-
dies. (Kaplanidou and Vogt, 2003) reported that a combination of all mensions: quality, image, and awareness.
dimensions related to the travel site creates branding, demonstrating
the personality and identity of a destination, which differentiates itself
from its competing brands. Destination branding is important as it plays 2.2.1. Destination brand awareness (DBA)
a major role in facilitating tourists' pre-trip planning from its compe- Brand awareness is related to the possibility that consumers recall
titors (Murphy et al., 2007) Additionally, destination branding might and are aware of a brand. Therefore, awareness is a necessary and
support visitors in enhancing their awareness of a destination after their special aspect of brand equity (Tasci, 2018; Lu et al., 2015; Lee and
tourism experiences (Qu et al., 2011). García et al. (2012) proposed Back, 2008; Pike et al., 2010; Boo et al., 2009). It is the first step in
that the success of destination branding can be shown in the format of a forming and developing brand value. In other words, consumers can
pyramid consisting of four constructs as follow: awareness, image, distinguish a brand that has been seen or heard before. In tourism,
perceived quality, and loyalty. awareness has a key role in tourists’ travel intentions (Yuan and Jang,
2008). Therefore, an important issue is how to create travelers’
2.2. Brand equity and destination brand equity awareness of a destination through specific emotions and connections
to the destination (Murphy et al., 2007). Destination marketing pur-
The emergence of brand equity has provided a focus for researchers poses are to increase the destination awareness of tourists by adver-
and managers and increased the important role of marketing strategy tising and creating a distinctive brand (Jago et al., 2003). Destination
(Keller, 2003). The definition and meaning of brand equity have been choice is made from the choice set, based on the evaluation criteria of
debated from many different perspectives for different purposes, and no travelers. More specifically, destination marketers must raise awareness
common viewpoint has emerged. of visual images associated with the destination as a means to embed-
Brand equity was defined as four primary elements: perceived ding awareness about the destination brand. For a place to have po-
quality, brand association, brand awareness, and brand loyalty (Aaker, tential as a destination, it must be known widely by possible visitors.
2
H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
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H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
recommendations (Flavian et al., 2001). Yoon and Uysal (2005) stated that perceived quality will have a significantly greater influence on
that brand loyalty creates benefits to tourist destinations because visi- travel intention for travelers with greater destination familiarity than
tors can revisit or suggest the location to other potential visitors. Visi- that for travelers with less destination familiarity.
tors might be loyalty to a destination or a specific brand and might
show their intentions to revisit a destination in various ways. Ferns and
Walls (2012) studied tourism and showed that loyalty and travel in- 3. Methodology
tentions have a positive correlation.
The aforementioned evidence shows a positive relationship between 3.1. Study settings
brand equity and travel intentions. Therefore, the features of brand
equity could serve as suggestions for potential tourists in determining Since the end of the Vietnam-America War in 1975, Vietnam has
their destination choices. Brand equity perception positively impacts on been recovering from damage consequent upon the war. Vietnam is the
the overall tourism purposes of foreign tourists. As the literature has latest country in Asian to state the significance of tourism to its national
been reviewed, this study proposes hypotheses as follow: development (VNAT, 2005). As tourism enlarges and develops rapidly
in Indochina, Vietnam has been attempting to determine its own posi-
H1. Perceived quality will have a direct and positive influence on travel tion so as to take advantage of an emerging industry (Agrusa and
intentions. Prideaux, 2002). With the combination of natural resources, history and
H2. Destination brand image will have a direct and positive influence cultural patrimony, Vietnam has been recognized as an attractive po-
on travel intentions. tential destination for tourism (Cooper, 1997). In 2017, the number of
tourists who came to Vietnam was estimated to be 12,922,151 arrivals,
H3. Brand loyalty will have a direct and positive influence on travel representing a 29.1% growth as compared to the previous year. There is
intentions. potential to attract 20 million international tourists, with the growth of
H4. Brand awareness will have a direct and positive influence on travel tourists coming to Vietnam in 2020 if the government continues to
intentions. maintain investment in development of the tourism industry (Galaviz,
2007; VNAT, 2015).
2.5.2. Moderating role of destination familiarity 3.2. Data collection and sample
Previous studies proposed that increased destination familiarity has
a positive affect the decision-making process and destination’s image This research performed the first phase of a larger project evaluating
(Lee et al., 2008; Prentice and Andersen, 2000; Baloglu, 2001). Lin et al. the varied features of destination branding. Pre-testing was needed for
(2014) contended that destination familiarity has moderating effects on the questionnaires to ensure clarity of the questionnaires, to guarantee
the relationships amongst retail destination image and awareness and the questions are understandable, and check if changes were necessary
franchise purchase intentions. The majority of tourists tend to gain before the survey was to be fully deployed. A group of fifty respondents,
particular knowledge about a destination that they will be more fa- who had the reasonably similar characteristics with the survey popu-
miliar with it. This knowledge can bring them a sense of comfort and lation, were sufficient for the pre-testing. After that, the questionnaire
security, leading to an increase in their confidence in choosing a des- was reviewed and confirmed through the pretest results. The pre-test
tination (Lee et al., 2008). Similarly, Lee and Lockshin (2011) suggested was undertaken with visitors who had previously traveled to Vietnam.
that the more destination familiarity increases, the less destination The aims of the pretest were to determine the reactions of international
images visitors are likely to depend on to create product beliefs. In the tourists to the questionnaire, validate the translation of key technical
meantime, Horng et al. (2012) stated that greater destination famil- terms used, estimate the time needed to complete the interview, as-
iarity has a positive moderating effect on the relationship between certain whether the sequence of the questions solicited the desired in-
perceived quality and loyalty in travel intention within culinary formation, and to determine whether respondents could understand any
tourism. Henthorne et al. (2013) concluded that repeat tourist visitors of the technical terms. All Cronbach’s alpha values were higher than
present higher levels of comfort with their surround environments than 0.7. After the pretest procedure, the research used quantitative data
do first-time tourists, which leads to a constraint of purchase behavior. from a mailed survey questionnaire to classify factors and examine their
Hence, it is proposed that destination decisions might rely on the degree significance in influencing or determining the impacts of destination
of tourists’ destination familiarity. This study acknowledges the fol- brand equity and familiarity regarding travel intentions.
lowing matters: In the second phase, a sampling plan was developed to ensure that
certain types of respondents would be included. The study adopted
H5. Destination familiarity has a positive moderating effect on the
convenience sampling method. The main data were collected from a
relationship between brand awareness and travel intentions, indicating
survey conducted between February and May 2018. The questionnaire
brand awareness will have a significantly greater influence on travel
was executed individually to respondents in three big cities in northern,
intentions for travelers with greater destination familiarity than that for
central and southern Vietnam, being Hanoi, Danang, Ho Chi Minh City,
travelers with less destination familiarity.
respectively. Survey respondents were interviewed in shopping malls,
H6. Destination familiarity has a positive moderating effect on the tourism sites and main streets in each city. Respondents were identified
relationship between destination brand image and travel intentions, as foreign visitors and asked about their intentions in visiting Vietnam
indicating that destination brand image will have a significantly greater and if they would agree to participate in the survey, they were informed
influence on travel intentions for travelers with greater destination that all responses would remain anonymous. Additionally, the survey
familiarity than that for travelers with less destination familiarity. was conducted face-to-face on site so that any potential confusion could
be clarified right away. A total of 750 survey questionnaires were de-
H7. Destination familiarity has a positive moderating effect on the
livered, but the total valid sample was 531. This sample can be re-
relationship between brand loyalty and travel intentions, indicating
presentative if comparing to the general profile of international tourists
that brand loyalty will have a significantly greater influence on travel
to Vietnam, because foreign tourists come to Vietnam mainly from
intentions for travelers with greater destination familiarity than that for
Europe and Asia. As shown in Table 1, the characteristics of interna-
travelers with less destination familiarity.
tional visitors involved age, education, gender, marital status, occupa-
H8. Destination familiarity has a positive moderating effect on the tion, income, main travel purpose, nationality, travel days and travel
relationship between perceived quality and travel intentions, indicating times. In particular, the percentage of participants varied among female
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H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
Table 1 complex research models with many intermediate, latent and ob-
Demographic profiles (N = 531). servable variables, especially structural models; (3) is suitable for stu-
Variables % Variables % dies that are predisposed toward prediction (Henseler et al., 2009).
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H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
Table 2
Assessment of the measurement model: reliability, convergent and discriminant validity.
Items Standardized loadings t-Statistic CR AVE R2
*** Significant at the 0.01 level; CR=Composite reliability AVE=average variance extracted; N/A=Not available.
Table 3
Mean, standard deviation, inter-construct correlations, HTMT values.
Mean SD Destination Awareness Destination Image Perceived Quality Destination Loyalty Travel Intention Destination Familiarity
Notes: Below the diagonal elements are the correlations between the construct values.
Above the diagonal elements are the HTMT values.
*** p < 0.001.
travel intentions (β = -0.19, t = 3.96, p < 0.01). That is, the high destination, as well as helping to evaluate a destination’s attractiveness.
destination brand image and destination familiarity has a significant The more that destination familiarity increases, the more attractive that
and negative effect on travel intentions. Previous studies have found the destination is; nonetheless, after a certain point, the destination
that the more that familiarity increases, the more positive that a des- familiarity becomes less attractive, causing a decrease in brand loyalty
tination image is (Kerstetter and Cho, 2004; Beerli and Martin, 2004; (Um and Crompton, 1990). Thus an important finding of this research is
Sharifpour et al., 2014). The increased familiarity of people regarding that it identifies another area in which both further empirical in-
actual visitation and information about the destination adds a more vestigation is needed to attempt to identify the tipping point at which
positive destination image. In contrast, some research has indicated familiarity shifts towards decreasing loyalty, and to evaluate measures
that negative images of a destination can be created by certain in- that could be taken to counteract this decrease. For example, based
formation (Sönmez and Sirakaya, 2002; McCartney et al., 2008). Ad- upon these results, marketers should undertake greater efforts to pro-
ditionally, travelers have personally shaped destination images based vide opportunities for tourists to experience themselves in Vietnam in
upon their travel experiences. However, the tourist destination’s reality different ways that supplement familiarity so as to maintain tourists as
might not match the perceived image (Andreu et al., 2000). repeaters.
In addition, the results show that destination familiarity has a ne- The last hypothesis was H8, which hypothesized that destination
gative moderating effect on the relationship between brand loyalty and familiarity has a positive moderating effect on the relationship between
travel intentions (β = -0.08, t = 2.23, p < 0.01). Therefore, destina- perceived quality and travel intentions (β = 0.13, t = 3.02, p < 0.01).
tion familiarity will be the moderating variable which affects the re- Research suggests that, increased familiarity helps tourists in deciding
lationship between destination loyalty and travel intention. Destination on their vacation spots. Gursoy (2001) stated that a tourist whose
familiarity enables visitors to have positive or negative loyalty to a perceived quality based on their existing knowledge will make travel
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H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
Table 4
Results for the hypothesized model using PLS.
Hypotheses Path coefficient t-value Result VIF
*p < 0.10.
**p < 0.05.
*** p < 0.01.
Table 5
Moderation tests using PLS.
Hypotheses Path coefficient t-Value Result VIF
H5. Destination Familiarity moderates — Destination Awareness on Travel Intention 0.12 2.74*** Supported 2.319
H6. Destination Familiarity moderates — Destination Image on Travel Intention − 0.19 3.96*** Significant but not supported 2.043
H7. Destination Familiarity moderates — Destination Loyalty on Travel Intention − 0.08 2.23** Significant but not supported 1.528
H8. Destination Familiarity moderates — Perceived Quality on Travel Intention 0.13 3.02*** Supported 1.798
*p < 0.10.
** p < 0.05.
*** p < 0.01.
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H.-K. Chi, et al. Journal of Retailing and Consumer Services 52 (2020) 101728
Hence, the travel intentions of tourists will be influenced by brand visitors, but over a longer time a different dynamic will need to be
equity. The moderator, destination familiarity, has an impact on this considered. It is important that the memory of past experiences fore-
bias; thus, when visitors have greater familiarity with a destination, the casts future commitment with brand equity. Therefore, a question be-
visitors’ travel intentions change their evaluations of brand equity vis-à- comes: how to create good remembrances about a visiting destination
vis awareness, and the perceived quality increases, up to a point. and a promise of more unanticipated positive experiences. A con-
Second, the findings demonstrated that brand equity can be seen as an centration on increasing good remembrances associated with elements
important indicator and a key determinant of travel intentions. of destination brand equity can be a vital issue for future research.
Therefore, to gain a better understanding of what encourages visitors to Finally, further research can compare prospective, first-time, and repeat
visit particular destinations and why brand equity significantly affects visitors from the viewpoint of destination branding.
travelers’ decision is critical. The research was conducted within the
framework of consumer behavior to better understand the significance Appendix A. Supplementary material
of brand equity, especially for international destinations. The implica-
tions of familiarity, and the tendency for this to reach a tipping point, Supplementary data associated with this article can be found in the
after which new strategies for marketing may be required, is identified online version at doi:10.1016/j.jretconser.2018.12.012.
as an area for subsequent research.
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