A major boost to the website performance of up-scale hotels in Vietnam

The study aims to enhance the customer experience on hotel websites in the context of venue's booking channels to others. The online filed survey is conducted with 321 internet bookers. The exploratory factor analysis is adopted to analyze the data. The progression of customer satisfaction proceeds in a linear fashion on luxury (ranking from 4-star to 5-star hotels) websites. Moreover, the study reveals how hotel website performance would affect the levels of customer attitude and its sustainable development in the context of perceived e-service quality. The exploratory results show that customer satisfaction in online environment has identical processes in the context of up-scale hotel industry. The female group compared to male group, has more sensitive to perceive the impact of functionality of lodging website in developing customer satisfaction. Caution is advised in generalizing findings of this study due to stratified sampling even though the study confirms results of previously conducted studies. This study provides practical tips for website sustainable progress especially for hotel management to pay more attention to the e-service formation process. Therefore, the appropriate marketing strategy can be established to fill gender specific expectations towards individual degree of customer satisfaction.Internal Grant Agency of Faculty of Management and Economics, Tomas Bata University in Zlin [IGA/FaME/2018/009

Creating a superior customer experience in online luxury stores

To date, the luxury industry has been very cautious to fully take advantage of the cyber-space and shows low commitment to embracing the digital tools present online. In controversy, luxury customers are more and more interested in shopping in the online environment and are looking for an outstanding experience whilst visiting the luxury webstores. Thus, one intriguing question is whether luxury brands should sell their products online and whether the features that make these goods and the overall customer experience superior in the offline store can be replicated online. Despite the doubts, e-retailing of luxury goods does not affect consumers’ perceptions of the uniqueness of the products and thus does not decrease the brand desirability. The creation of the superior customer experience is possible in the digital environment through the use of several techniques and tactics. This literature review discusses all the qualities needed in this creation process one at a time, going through every component of a conceptual model of customer experience introduced by Verhoef et al. (2009), which is used as a framework in the study

Luxurious or economical ? ::an identification of tourists’ preferred hotel attributes using best–worst scaling (BWS)

This article explores consumer tendencies to opt for luxury or economy hotels by identifying their most and least important selection attributes. The researchers investigate how sociodemographic and behavioral characteristics influence traveler assessments of hotel attributes. In explaining consumer hotel selection preferences, the researchers used an unconditional method—best–worst scaling (BWS). Based on an analysis of responses from 397 luxury hotel customers and 351 economy hotel customers in the United States, it was found that the two groups perceive hotel attributes differently. Differentials were also identified on the basis of gender, income, and frequency of purchase. While acknowledging that the task is complex, there is an urgent need to identify the factors influencing hotel selection, because hoteliers need to attract new markets and also balance this by retaining existing patrons. The findings extend existing literature by applying BWS to the identification of hotel selection attributes

Selling luxury products online : the effect of a quality label on risk perception, purchase intention and attitude toward the brand

Many luxury brands and online retailers are struggling with how to sell luxury products online. Purchasing such premium priced brands online implies a high level of risk for consumers since their evaluation of the products cannot be based on direct, tangible experiences with the product. This study suggests that retailers can diminish the perceived risk by adding a quality label to a luxury product. However, the effectiveness of such quality label depends on the cultural orientation of the consumer. As such, we expect a quality label only to be effective for high uncertainty avoidance consumers. An analysis of secondary data from A.T. Kearney reveals a negative relation between a country's level of uncertainty avoidance (UA) and how favorable its consumer base is for transacting online, which might be an indication that even general online consumer behaviors (not luxury products per se) are perceived as highly risky in high uncertainty avoidance cultures. In addition, an experimental study using a 2 (Quality label vs. no label) by 2 (luxury vs. non-luxury purchase) between-subjects design reveals that for a luxury brand, a quality label reduces the risk perception and in turn leads to higher purchase intention and attitude toward the brand for high UA individuals

Mass Exclusivity Assessing whether it brings value to luxury brands

Mass Exclusivity is a strategy that most luxury brands are putting into place to increase popularity and revenues. The brand usually creates brand extensions targeting middle-class consumer, such as Millennials. The purpose of this dissertation is to evaluate if this strategy is boosting the value of luxury brands in Portugal. To answer this question, we performed an exploratory qualitative study. Following a quantitive study about Louis Vuitton, which was a questionnaire to confirm our hypotheses. This last study included an adaptation of the Multidimensional Brand Equity (MBE) and Overall Brand Equity (OBE) scales from Yoo and Donthu (2001), and the Masstige Index Measure scale from Paul (2019). The mass exclusivity strategy is not damaging this particular brand. Moreover, it is increasing value because it is generating more awareness (through influencer marketing) and attainability among potential Millennial clients. However, luxury brands still have lower brand loyalty between Millennials. Therefore it is necessary to increase this feature among possible consumers. We have also found that although the socio-economic status is important, it is not a determining factor when this generation chooses to purchase a luxury brand product. This dissertation emphasises the relevance of the connection between brand and buyer, and how middle-class people are an excellent target for luxury brands to explore.Exclusividade para as massas é uma estratégia que a maioria das marcas de luxo está a adotar para aumentar a sua popularidade e as suas receitas. Geralmente são criadas extensões de marca voltadas para consumidores de classe média, como a geração Millennial. O objetivo desta dissertação é avaliar se esta estratégia está a aumentar o valor das marcas de luxo em Portugal. Para responder à nossa questão de dissertação, realizámos um estudo exploratório qualitativo e um estudo quantitativo sobre a marca Louis Vuitton, que consistiu num questionário para confirmar as nossas hipóteses. Este último estudo incluiu uma adaptação das escalas de Marca Multi-dimensionais de Equidade de marca (MBE) e Equidade Global de Marca (OBE) de Yoo e Donthu (2001) e a escala Índice de Masstige de Paul (2019). Concluímos que esta estratégia não está a danificar a marca, pelo contrário, aumenta o seu valor, pois cria uma maior percepção (através do marketing de influência) e mais acessibilidade aos potenciais clientes da geração Millennial. No entanto, as marcas de luxo ainda têm uma percentagem baixa de lealdade por parte dos Millennials, sendo assim, é necessário aumentar a lealdade com os seus possíveis consumidores. Também constatámos que, apesar de o estatuto sócio-económico da marca ser importante, não é um factor determinante quando esta geração escolhe comprar um produto de uma marca de luxo. Esta dissertação enfatiza a relevância da conexão entre marca e comprador e como os indivíduos da classe média são um excelente alvo para as marcas de luxo explorarem

Managing the Paradox of Growth in Brand Communities Through Social Media

The commercial benefits of online brand communities are an important focus for marketers seeking deeper engagement with increasingly elusive consumers. Managing participation in these socially bound brand conversations challenges practitioners to balance authenticity towards the community against corporate goals. This is important as social media proliferation affords communities the capacity to reach a scale well beyond their offline equivalents and to operate independently of brands. While research has identified the important elements of engagement in brand communities, less is known about how strategies required to maximise relationships in these circumstances must change with growth. Using a case study approach, we examine how a rapidly growing firm and its community have managed the challenges of a maturing relationship. We find that, in time, the community becomes self-sustaining, and a new set of marketing management strategies is required to move engagement to the next level

‘The Pinocchio Effect’ – when managing the brand creation process, across cultures

In global marketing and international management, the fields of Branding and Culture are well discussed as separate disciplines; within both academia and industry. However, there appears to be limited supporting literature, examining brands and culture as a collective discipline. In addition, environmental factors such as ethnicity, nationality and religion are also seen to play a significant role. This in itself adds to the challenges encountered, by those looking to critically apply learning and frameworks, to any information gathered. In the first instance, this paper tries to bring aspects together from Branding and Culture and in doing so, aims to find linkages between the two. The main purpose of this paper is to distil current brand thinking and explore what impact cross-cultural, cross-national, and ethnic interactions have on a brand’s creation. The position of the authors is that without further understanding in this field, a brand will experience what has been termed by them as the ‘Pinocchio Effect’. Pinocchio was a puppet who longed to become a real human being; but sadly encountered difficulties. The conclusion presented is that the critical long-term success of a brand lies in three areas: how it is created; the subsequent associated perceptions; and more specifically in the reality of the relationships that it enjoys. Collectively these processes necessitate an appraisal of connecting strategic management procedures and thinking. Finally, this paper looks into proposing future methods for brand evaluation and strategic management. The aim is to stimulate further thinking in a field; which transcends national, ethnic and cultural boundaries - in the interests of developing new insight, and to provide a platform for marketers to develop more effective communications