Abstract
This research investigates the society or guests’ perception of the value creation and brand trust, and aims to examine the effect of value creation on brand trust in 3-, 4-, and 5-star hotels in Indonesia during the COVID-19 pandemic. This research adopted the quantitative method and used probability sampling to determine the sample size. The data were collected using questionnaires via Google Forms and also distributed to respondents who had stayed in 3-, 4-, and 5 star hotels in Indonesia during the COVID-19 pandemic with a total respondents of 99 people. Hypotheses were tested and the findings suggest that value creation has a significant impact on brand trust. The results suggested that hotel brands in Indonesia need to create values that are appreciated by the society as a whole and hotel guests. However, hotel brands in Indonesia still need to improve their creations of value to further boost brand trust for hotel brands in Indonesia in order to improve the hotel performance. The development of a business-oriented analytical framework that aids practitioners in assessing and approaching the opportunities posed by value creation on brand trust is further discussed in the study.The paper introduces an analytical and fresh perspective on value creation and brand trust particularly in a hotel industrial marketing context.
Highlights
The world has been tremendously shaken up by the novel coronavirus causing COVID-19, subsequently named SARS-CoV-2, which was first reported by officials in Wuhan City, China, in December 2019
The primary purpose of this study is to examine the effect of value creation on brand trust in 3, 4- and 5-star hotels in Indonesia during the COVID-19 pandemic
Most of the respondents are women with 61%; mostly are older than 50 years old with 32% or in between the age of 21-30 years old with 27%; bachelor or higher degree graduate with 62%; working as private officials with 42%; staying for 2 or 3 days with 29% each or more than 3 days with 23%, and most of the respondents chose to stay between Jakarta or West Java for their hotel stay during the COVID-19 pandemic with 26.26% and 36.36% respectively
Summary
The world has been tremendously shaken up by the novel coronavirus causing COVID-19, subsequently named SARS-CoV-2, which was first reported by officials in Wuhan City, China, in December 2019. There were 96.2 million cases with 2.06 million casualties recorded as of January 22, 2021; causing countries to halt activities and businesses. Indonesia is not excluded from the impact of the COVID-19 pandemic, having an amount of 952 thousand cases with 27 thousand casualties. This had caused the President of Indonesia, Joko Widodo, to create a government regulation to apply Large Scale Social Restrictions (LSSR) on March 31, 2020(Purwanto et al, 2020).The Minister of Finance of Indonesia referred that LSSR amid the COVID-19 pandemic has deeply affected the country's economy (CNN, 2020). The Indonesian Hotels and Restaurants Association (PHRI) reported, a total of Rp 85.7 trillion loss was recorded with Rp 30 trillion from the hospitality industry (Wahyudi, 2020). From the hotel's low occupancy to 95% of the tourism industry employees furloughed without pay (Azhar, 2020), it could be seen how the hotel's performance in Indonesia is greatly affected during the pandemic
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