Effects of Sustainable Brand Equity and Marketing Innovation on Market Performance in Hospitality Industry: Mediating Effects of Sustainable Competitive Advantage

Ijaz Hussain,Muhammad Mohiuddin,Shrafat Ali Sair,Shaohong Mu,Rizwan Qaiser Danish

doi:10.3390/su12072939

Abstract

This study examines the effects of sustainable marketing assets, such as brand equity and marketing innovation, on market performance in the presence of sustainable competitive advantage as a mediator in the hospitality industry. Data were collected from hotel/restaurant customers (N = 360) on a Likert scale from 1= strongly disagree to 5 = strongly agree and analysis was conducted using the structural equation modeling (SEM) technique. The objective of this study is to understand the relationship among brand equity, marketing innovation, sustainable competitive advantage, and market performance in the hotel/restaurant industry. The results show that sustainable marketing assets have positive and significant effects on market performance. This study also demonstrates that sustainable competitive advantage fully mediates the relationship between brand equity and market performance while partially mediating the relationship between marketing innovation and market performance. The findings of this research can contribute to formulating effective marketing strategies for attracting customers, emphasizing sustainable issues in the hospitality sector, such as hotels/restaurants. This research adds practical value to the literature on brand equity, marketing innovation, sustainable competitive advantage, and market performance in the service industry.

Highlights

Globalization, economic growth, and technological development have transformed the hospitality industry in many markets
The present research built up a theoretical model, to achieve the study objectives that merged the predictable factors: brand equity and marketing innovation are intangible marketing assets that were chosen on the basis of a resource-based view (RBV)
All the study constructs, which are selected from the previous work of researchers who have recognized that these factors are prominent to finding out about market performance through sustainable competitive advantage, are discussed

Summary

Introduction

Globalization, economic growth, and technological development have transformed the hospitality industry in many markets. Increasing awareness of sustainability in every sphere of life has important implications on consumer behavior within hospitality services. Sustainability and its triple bottom line become an important issue in all spheres of businesses in both developing and developed markets. As the literature on sustainability increases, the issue of generalizability remains, as the findings cannot be replicated across markets and geographies. With ancient and diverse culture and history, Pakistani markets for the hospitality industry present increasing business opportunities. Little is known on how sustainable marketing assets attract consumers in this vast market. The purpose of this study is to fill this gap in literature by testing sustainable marketing approaches in the Pakistani hospitality market. We mean brand equity and marketing innovations that can ensure continuous business success, creating a sustainable business opportunity

Objectives

Results

Conclusion