Study on visibility promotion for regional high-end hotels based on the value co-creation theory

• Main Author: LUO, Pingan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Regional high-end hotels; Visibility promotion behavior; Value co-creation; Customer value; Customer cultural background; Business Administration, Management, and Operations; Tourism and Travel
• Online Access: https://ink.library.smu.edu.sg/etd_coll/475; https://ink.library.smu.edu.sg/context/etd_coll/article/1473/viewcontent/GPBA_AY2017_CKGSB_SMU_DBA_Luo_Pingan.pdf
• Institution: Singapore Management University

Regional high-end hotels play a great leading role in industry communication, tourism, and consumer culture in the area where they are located. However, regional high-end hotels rely on the area’s industry background and economic development for their survival and operations. Hence, their brand influence seldom spread outside the area. As a result, the limitations of brand awareness have been challenging the rapid development of regional high-end hotels. The existing research has not come to a clear theoretical response to this challenge. To enhance research in this field, this paper grounded on value co-creation theory posed one core question and three subquestions, with an aim to address the visibility plight of regional high-end hotels. The core question: What should regional high-end hotels do to promote their visibility through a reasonable value co-creation strategy? To answer the above questions, this paper first selected Ming Du Lakeside Hotel in Guangxi’s capital city Nanning as the research object, analyzed and ratiocinated its value co-creation, customer value, culture, and hotel marketing theory, conceived a model of visibility promotion for regional high-end hotels, and put forward corresponding hypotheses. Second, a questionnaire survey was applied and a total of 702 valid questionnaires were collected from the hotel guests to verify the visibility promotion model. The findings showed that: (1) Through customer value, value co-creation exerts a positive impact on the visibility promotion of regional high-end hotels. (2) Power distance regulates the positive correlation between value co-creation and customer value. (3) Collectivism and individualism regulate the relationship between value co-creation and the social value to the customer. (4) Masculinity regulate the positive correlation between value co-creation and customer value. (5) Uncertainty avoidance regulates the positive correlation between value co-creation and customer value, showing a negative impact on the relations between value co-creation and the hedonic and social value to the customer and no significant impact on the relationship between value co-creation and the economic value to the customer. (6) Gender regulates the positive correlation between value co-creation and customer value. (7) Customer industry background regulates the positive correlation between value co-creation and customer value. (8) Co-creation channel has a positive regulating effect on the positive correlation between value co-creation and the economic value to the customer and a negative regulating effect on the positive correlation between value co-creation and the hedonic and social value to the customer. (9) Co-creation carrier has a negative regulating effect on the positive correlation between value co-creation and the economic value to the customer and a positive regulating effect on the positive correlation between value co-creation and the social value to the customer. This paper provides practical enlightenment for regional high-end hotels in four aspects: (1) Give value co-creation and customer value their due importance. (2) The research results indicate that regional high-end hotels should adopt three value co-creation strategies to promote their visibility according to customer characteristics. (3)Emphasize co-creation channels in the encounter process. The research results indicate that regional high-end hotels should discover customers’ value preferences before carrying out value co-creation activities.