Creating a model of customer equity for chain restaurant brand formation

The purpose of this research was to create and test a model of customer equity for chain restaurant brand formation. It has long been acknowledged that managing and enhancing customer equity influences a company's shareholder value, which is a reflection of long-term financial performance. A review of the current literature revealed three key determinants of customer equity: (1) value equity, (2) brand equity, and (3) relationship equity. Six hypotheses were derived and, based on data analysis, all six were supported. Value, brand, and relationship management were all confirmed to be important factors in enhancing customer equity in the chain restaurant industry. Further, brand equity has the strongest impact on the development of customer equity in this particular industry. Relationships among value equity, brand equity, and relationship equity were also identified. Managerial implications are discussed.     

Consumer-based chain restaurant brand equity,brand reputation,and brand trust

This study develops and tests a consumer-based chain restaurant brand equity(CBCRBE) model and investigates the mediating effects of brand reputation on the relationship between CBCRBE and brand trust. Using a structural equation modeling (SEM) analysis, the four dimensions of CBCRBE- food & service quality, brand affect, brand awareness, and brand association- are found to have positive effects on brand reputation. Moreover, it is demonstrated that brand reputation has a positive effect on brand trust. The results of study confirm that brand reputation partially mediates the effects of food & service quality, brand affect, and brand awareness on brand trust. In addition, the effect of brand association on brand trust is fully mediated via brand reputation. The study of CBCRBE offers insights into the efficient strategies that can be used to enhance brand reputation and secure brand trust in the restaurant industry. Finally, based on the result of the relationship between CBCRBE, brand reputation, and brand trust, the study compares the differences among the groups according to the consumer visit purposes in relation to the CBCRBE dimensions. The results of the study contribute to improve understanding of the complex psychological processes involved in consumer selection criteria for a chain restaurant or relevant service industry.     

Authenticity perceptions,brand equity and brand choice intention: The case of ethnic restaurants

This study examines the relationships between consumers’ authenticity perception and four brand equity dimensions (brand awareness, brand association, perceived quality, brand loyalty), as well as how these four dimensions are interrelated with one another. This study also examines the impact of brand equity on consumers’ brand choice intention for ethnic restaurants. Findings clearly indicate that consumers’ authenticity perception is a critical determinant of brand equity and brand equity has a significant impact on consumers’ brand choice intention. Findings of the present study would provide managers with a better understanding of the important role authenticity plays in ethnic restaurants’ brand equity. Managerial implications for better brand equity management are provided.     

Understanding the impact of culinary brand equity and destination familiarity on travel intentions

This paper explores determinants of brand equity and the role of destination familiarity for travel intentions in culinary tourism from the perspective of foreign tourists. This analysis advocates four elements for brand equity (brand loyalty, brand image, perceived quality and brand awareness) for culinary travel intentions in Taiwan. Building on extensive literature, this study developed and empirically tested a model of the relationship using survey data collected from 407 foreign tourists from ten regions. The results indicate that there is a direct positive relationship between brand equity and travel intentions in culinary tourism. Moreover, the study recognizes the moderating role of destination familiarity, which positively moderates the effect of brand loyalty and perceived quality on travel intentions.     

The financial impact of online customer reviews in the restaurant industry: A moderating effect of brand equity

The salient impact of electronic Word-of-Mouth (eWOM) on firm performance has been widely noticed by scholars and practitioners. While eWOM serves as an important source of information that helps reduce perceived uncertainty risks in service purchases, it is highly likely that other sources of information are simultaneously used with eWOM in the purchase decisions. Thus, this study empirically examined the financial effects of restaurant eWOM (review volume and review rating) and their changes in the presence of brand equity. Three-stage least squares analysis was employed in the empirical investigation. Our findings revealed that review volume and review rating contributed to restaurant profitability. Brand equity was found to moderate the effects of the review attributes on restaurants profitability, which implies that eWOM has a greater influence on the financial performance of weak-branded restaurants than strong-branded ones. Implications for researchers and practitioners are discussed.     

Tourism strategy development and facilitation of integrative processes among brand equity,marketing and motivation

With the absence of heavy industry and pollution from intense commercial development, Kinmen is a significant source of additional value for tourism in Taiwan. This calls for in-depth studies on tourism marketing, brand equity and travel motivation in Kinmen. This study attempts to identify the important attributes of Kinmen tourism and extend the related literature on marketing strategy, brand equity and travel motivation by employing a combination of the fuzzy Delphi method (FDM), decision-making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) approaches to demonstrate the interactions and relations among critical criteria. The FDM identified the critical attributes, which were used in DEMATEL analysis to demonstrate that brand equity has direct and indirect influences on marketing strategy and travel motivation. The use of the ANP with global weighting further reveals that travel intention is the most critical element of Kinmen tourism.     

The interaction between individual cultural values and the cognitive and social processes of global restaurant brand equity

The aim of this study is to increase understanding of the relationship between brand equity and individual cultural values in the marketing strategies of global restaurant brands. The study developed three research models and investigated global brand equity from the perspective that global brand equity has an impact on individual cultural values. The three models were tested using structural equation modeling (SEM) analysis. The findings indicate that both cognitive process and the social process of brand equity have an effect on cultural values. In particular, social process elements such as brand prestige and brand identification can reduce the risk of consumer uncertainty. This study contributes to the understanding of the relationship between global restaurant brand equity and individual cultural values, and the hierarchy of individual cultural values that has not, to the best of our knowledge, been explored in previous research.     

The effect of Cultural Intelligence on consumer-based destination brand equity

Achieving destination appeal and competitiveness is a major priority of tourist destination managers. They must implement new strategies that are distinct from those of their competitors and that influence tourists’ perceptions, attitudes and behaviors and reinforce the brand equity of the destination. The present work focuses on Cultural Intelligence (CQ). CQ increasingly features in business strategy due to the effect of cultural differences and diversity on tourist behavior. The aim is to propose and validate a model that captures the effect of tourists’ CQ on their evaluation of the destination. Using a sample of 503 tourists visiting Spain, the study demonstrates that a tourist’s CQ influences their assessment of destination brand equity and that this relationship is moderated by tourism type. The paper presents a series of implications of interest both to scholars and professionals in the tourism sector.     

Validating a multidimensional perspective of brand equity on motivation,expectation, and behavioural intention: a practical examination of culinary tourism

This study presents a brand equity theory of culinary tourism by integrating behavioural theory with the mediation-moderation model. The culinary tourism brand-equity model underscores the value of tourists’ expectations as a means to enhance the effects of travel motivation on behavioural intention. This study empirically tests this theory using a sample of 513 foreign tourists and provides evidence that travel motivation mediates the relationship between the four critical attributes of brand equity and behavioural intention. Furthermore, the results confirm the interrelationships within brand equity and reveal that tourist expectations positively moderate the relationship between travel motivation and behavioural intention. Implications for theory, research, and practice are discussed.     

Components of art exhibition brand equity for internal and external visitors

This paper aims to explore determinants of brand equity for cultural activities from the perspective of internal as well as external visitors. Our analysis advocates four elements for brand equity in artistic and cultural activities (loyalty, brand image, perceived quality and brand values) and assesses them for the case of an itinerant art exhibition staged over the past twenty years in a region of Spain. Building on extensive literature, a model of the relationship is developed and empirically tested using survey data collected from 406 visitors. Data are analysed through Partial Least Squares. Findings suggest that external visitors attach greater importance to brand image as a determinant of value than do internal visitors, whereas for the latter brand values are the main source of value.     

The missing link in building customer brand identification: The role of brand attractiveness

The brand management literature has long acknowledged the strategic importance of managing brand identity. However, prior empirical research has largely ignored brand attractiveness in building such identity in the eyes of consumers. Focusing on the airline industry, this study investigates the role of brand attractiveness in fostering customer brand identification. The empirical testing of the conceptual model suggests that brand prestige, brand distinctiveness, and memorable brand experiences have a significant indirect effect on customer brand identification through brand attractiveness, while brand social benefits contributes directly to such identification. The results also challenge prior empirical findings by providing strong support for the need to include brand attractiveness in cultivating identification. When brand attractiveness is incorporated in the model, the effects of brand prestige, brand distinctiveness, and memorable brand experiences became non-significant in predicting customer brand identification. The findings highlight the importance of projecting a brand identity that is attractive to target consumers in order to achieve customer brand identification.     

Understanding responses to posted restaurant food safety scores: An information processing and regulatory focus perspective

Ensuring the safety of food served in restaurants continues to be an essential issue in the hospitality industry. An important part of the efforts to stem the outbreak of foodborne illnesses are the mandatory inspections of any entity that serves food to the public. Unfortunately, while posting food safety scores is intended to help consumers make better dining choices, interpreting these scores can often be difficult and confusing. The purpose of this study is to use information processing theory as a framework to investigate how consumers evaluate food safety inspection scores. To achieve this goal, this research provides an account of the effect of food safety concern on consumers’ attitudes toward restaurants under conditions of both positive and negative health inspection results. The results identify a moderating effect of health score in the formation of consumers’ attitudes toward restaurants. The downstream effects on expected satisfaction and behaviors are also established.     

Influencing factors on restaurant customers’ revisit intention: The roles of emotions and switching barriers

This study was designed to examine the relationships among consumption emotions, customer satisfaction, switching barriers, and revisit intention. Four positive and negative categories of switching barriers (preference, switching costs, relational investment, and lack of alternatives) were identified through a qualitative approach. Using structural equation analysis, the proposed relationships were tested in a full-service restaurant setting. The results showed that multiple components of consumption emotions significantly affected customer satisfaction, and satisfaction mediated the effect of emotion factors on revisit intention. The findings from the tests for metric invariances also indicated that the strength of the relationship between satisfaction and revisit intention was different across high- and low-switching barrier groups. In particular, the satisfaction-revisit intention relationship was stronger in each low-switching barrier group than in each high-switching barrier group.     

Turnaround strategy: A study of restaurant firms

This paper uses a case study approach to analyze the turnaround actions of two restaurant firms and compares them to the model of Robbins and Pearce [1992. Strategic Management Journal 9, 287–309]. The objective of this study is to scrutinize why these firms were unsuccessful in turning around and identify gaps between the firms’ actions and the empirical model of turnaround proposed by Robbins and Pearce. Two key turnaround measures, i.e., retrenchment and recovery are explored in detail and discussed in the context of the firms. The need for studying turnaround strategies is warranted as the number of hospitality firms that perish because of unsuccessful turnaround strategies is on the increase. Since turnaround strategies have not been pursued vigorously as a stream of research within the hospitality industry context, this approach would provide a framework for hospitality researchers to initiate similar future research efforts, which in turn would help the industry cope with turnaround.     

The relationship between involvement with travelling to Islamic destinations and Islamic brand equity: a case of Muslim tourists in Malaysia

The growing number of Muslim tourists in the world has urged many destinations to embrace the concept of Islamic tourism. Malaysia as an Islamic country has been serious on establishing a halal hub for tourism products, however, activities such as drinking alcohol, wearing scanty clothing, sun bathing naked, and serving pork in restaurants are found in this country. Therefore, it is vital to explore on how Muslims who are involved with travelling to Islamic destinations evaluate the country’s Islamic brand equity. A number of 384 Middle Eastern tourists were surveyed in Malaysia. Using structural equation modelling, the relationships between Muslims’ involvement with travelling to Islamic destinations and dimensions of brand equity (awareness, image, quality, value, and loyalty) were explored. Results showed that involvement positively influences all five dimensions of brand equity. The strongest relationship was found between involvement and awareness followed by involvement-quality, involvement-image, involvement-value, and involvement-loyalty.     

It affects,it affects not: A quasi-experiment on the transfer effect of co-branding on consumer-based brand equity of hospitality products

Although co-branding is postulated to be beneficial for hospitality brands, empirical test of either transfer effect or spillover effect of co-branding on consumer-based brand equity (CBBE) of hospitality brands is yet to receive attention from researchers. A quasi-experiment design was applied to test the transfer effect of co-branding on the CBBE of the composite brand, controlling for the familiarity, compatibility (fitness) and complementary of the partner brands. A within-subject (repeated measures) design with four steps measuring the CBBE of internationally known and compatible hotel and restaurant brands and their co-brand, as well as respondents’ own most familiar hotel and restaurant brand and their co-brand was applied in four steps to a class of 46 students enrolled for a tourism and hospitality class at a Tourism and Hotel Management School based in Asia. The t-test of differences revealed that the co-brand of the internationally known and compatible hotel and restaurant brands lead to synergy with both brands being winners and none losers, while the co-brand of respondents’ own most familiar brands lead to losses mostly, despite their high ratings individually. Implications and future research suggestions are provided.     

A blended model of restaurant deliveries,dine-in demand and capacity constraints

The fast-growing food-delivery services are expected to continue to expand following Covid19. While considered a favorable strategic initiative, delivery might not be profitable for all restaurants. Accordingly, this study provides an analytical model to assess the impact of adding delivery service to a traditional dine-in restaurant. The theoretical contribution is a mathematical model depicting the strategic allocation of the restaurant’s production capacity, revealing a surprisingly complex balance between production (capacity constraints), marketing (customer utility), cannibalism and markets interdependency, leading to a range of business outcomes. A large-scale empirical investigation uses over a million unique transactions to test some of the model’s insights. The results show the introduction of delivery may increase transactions and revenue. However, the theoretical model suggests capacity constraints can limit growth potential over time. Correlations between dine-in and delivery demand reveal weekday patterns between both channels as an important indicator for how delivery may impact restaurant operations.     

Embracing or fighting the urge: A multilevel investigation on casino service,branding and impulsive gambling

Academics and practitioners are increasingly interested in how branding and service may affect consumer behaviors. In view of intensifying competition in the casino industry, understanding these relationships would help casino operators achieve competitive advantage. The current study draws on the relevant marketing literature, and examines the antecedents, moderators and consequences of consumer buying behaviors, with a focus on impulsive buying in the casino settings. The proposed antecedents are casino service environment and employee service. Customer brand attachment and loyalty behaviors are modeled as consequences, and casino brand equity as a cross-level moderator. A quantitative method was employed for the purpose of this study. The survey was undertaken at 22 major casinos in Macau through a multilevel design. Results show that the casino service environment indeed induces impulsive gambling. Whilst employee service has little influence on impulsive gambling, the effect is enhanced by casino brand equity. Employee service is particularly salient for casinos with low brand equity. Impulsive gambling does have significant influence on loyalty outcomes through the mediating effect of brand attachment. Brand equity also demonstrates cross-level linear and nonlinear effects on the chain relationship, with the linear effect significantly larger. Implications for practitioners and the literature are provided to conclude the paper.     

Pictures vs. reality: Roles of disconfirmation magnitude,disconfirmation sensitivity,and branding

This study aims to increase our understanding of the effects of food pictures in formulating customers’ expectations and performance evaluation, which, in turn, affect customer satisfaction, trust, and behavioral intentions in the restaurant context. Extending the expectancy disconfirmation theory, we have conducted three experimental designed studies involving a total of 1105 customers. Specifically, study 1 explores three disconfirmation magnitudes (low, moderate, high) and their impact on customer evaluations and behaviors. Study 2 demonstrates the interactive effects of disconfirmation magnitude and branding on customer trust, suggesting that branding mitigates the negative effect of disconfirmation magnitude on trust. Study 3 includes individual differences of disconfirmation sensitivity to explain the variation of the expectancy disconfirmation model, revealing that customers with higher disconfirmation sensitivity are less likely to be satisfied and trust a restaurant as the disconfirmation magnitude increases. Theoretical and managerial implications are provided.     

Impact of brand recognition and brand reputation on firm performance: U.S.-based multinational restaurant companies’ perspective

Given the importance of a firm's performance, which is of significant interest to many groups of people including management, shareholders and governments, this study aims to examine the impact of brand recognition and brand reputation on firm performance within the U.S. multinational restaurant company context. The study findings suggest that brand reputation, in general, has a positive influence on a firm's value performance but no significant relationship with accounting performance. Brand recognition shows no significant relationship with both value and accounting performance measures controlling for the degree of internationalization of a multinational restaurant company.