How Brand Trust is Influenced by Perceived Value and Service Quality: Mediated by Hotel Customer Satisfaction

Abstract

This paper examines the effect of perceived value and service quality on brand trust directly and indirectly through customer satisfaction. Brand trust can be defined as the relationship between consumers and the corporate that is based on trust and reliability of its performance. Questionnaires were given to guests of three-star hotels in Malang, Indonesia, with 158 surveys returned and 114 valid responses were analyzed. Reliability and validity were examined first, and partial least squares (PLS-SEM) analysis was performed to evaluate the determinant coefficient (R 2 ), predictive relevance (Q 2 ), and effect size (f 2 ). Results showed customer satisfaction partially mediates perceived value on brand trust, and fully mediates the relationship between service quality and brand trust. Future research in other developing countries, against different hotel class, with international guests, is recommended. Managerial implications were discussed.

A Structural Model of Service Quality, Perceived Value, Satisfaction, and Customer Loyalty in the Hotel Industry: A Case Study of Tarakan City, Indonesia

“…In this case, the higher the value of a hotel perceived by the customer, the higher the level of customer satisfaction with the hotel. The findings of this study support the results of research conducted on previous hotel customers, such as Milfelner et al (2011), Suhartanto (2011), Gumussoy and Koseoglu (2016), Prameka et al (2016). Thus, it can be concluded that perceived value is an antecedent of satisfaction for hotel customers.…”

“…Based on these findings, it can be concluded that the higher the customer's perception of the service quality of a hotel, the higher the value customers feel towards the hotel offer. The results of this study are in line with the findings of Milfelner et al (2011), Suhartanto (2011), and Sudarso (2015), but are contradictory to the empirical model developed by Prameka et al (2016), namely that service quality and perceived value have no relationship.…”

“…In addition to being specified as an antecedent of the intention component and affective component, service quality is also specified as an antecedent of the concepts included in cognitive components, namely perceived value. The study results of Milfelner et al (2011), Suhartanto (2011), Sudarso (2015) revealed that service quality has a positive and significant direct effect on perceived value, but based on the results of the study by Prameka et al (2016) revealed that the direct effect of service quality on perceived value was not significant.…”

“…In line with the loyalty model developed by Cronin et al (2000), service quality also specifies as antecedent satisfaction. Research findings by Suhartanto (2011), Tefera and Govender (2016), Saleem and Raja (2014), Batista et al (2014), Sukaisih (2015), and Prameka et al (2016) revealed that service quality has a positive and significant direct effect on satisfaction. But it cannot be concluded, based on the research of Milfelner et al (2011), that the direct effect of service quality on satisfaction is not significant.…”

Actualization of the Confidence Phenomenon in the Hospitality Industry as a Tool to Increase the Economic Efficiency of the Enterprise

“…In foreign, unlike Russian sources, the issue of trust in the hospitality industry is represented quite widely. A number of authors study the problem of the impact of service quality on brand trust [21,22]. In connection with the active use of Internet technologies in hospitality, issues of establishing trusting relationships between the consumer and the hotel product manufacturer in the online environment are being developed, indicators of customer confidence in the process of online hotel booking are being investigated [23,24,25,26].…”