How Does Conventional Travel Agent Services Enhance Brand Loyalty? The Relationship Between Customer Experience, Brand Credibility, and Brand Trust
Downloads
Objective: This study examines the relationship between customer experience and brand loyalty mediated by brand credibility and brand trust.
Design/Methods/Approach: Primary data was collected using a questionnaire with a purposive sampling technique. A total of 363 respondents who had used one of the conventional travel agent services in Bali participated in this study. The Partial Least Square Structural Equation Model (PLS-SEM) was used to analyze the data through outer and inner models using SmartPLS 4.
Findings: This study discovered that customer experience positively has a direct and indirect impact on brand loyalty with the mediating effect of brand credibility and brand trust.
Originality: The existing literature supports the direct influence of customer experience on brand loyalty in various industries. However, no other study has investigated the mediating role of brand credibility and brand trust on the relationship between customer experience and brand loyalty. This comprehensive study filled the gap between customer experience and brand loyalty in travel agent services.
Practical/Policy implication: This study offered managerial implication. By considering customer experience a competitive advantage, managers can actively evolve several experiential marketing strategies to cultivate brand credibility and trust to impact brand loyalty.
Abu Zayyad, H. M., Obeidat, Z. M., Alshurideh, M. T., Abuhashesh, M., Maqableh, M., & Masa'deh, R. (2021). Corporate social responsibility and patronage intentions: The mediating effect of brand credibility. Journal of Marketing Communications, 27(5), 510–533. https://doi.org/10.1080/13527266.2020.1728565
Akoglu, H. E. (2021). The effect of brand experiences on brand loyalty through perceived quality and brand trust : a study on sports consumers. https://doi.org/10.1108/APJML-05-2021-0333
Alnawas, I., & Hemsley-Brown, J. (2019). Examining the key dimensions of customer experience quality in the hotel industry. Journal of Hospitality Marketing and Management, 28(7), 833–861. https://doi.org/10.1080/19368623.2019.1568339
Arici, H. E., Köseoglu, M. A., & Sökmen, A. (2022). The intellectual structure of customer experience research in service scholarship: a bibliometric analysis. Service Industries Journal, 42(7–8), 514–550. https://doi.org/10.1080/02642069.2022.2043286
ASITA Bali. (2023). Full Member DPD ASITA Bali. http://www.asitabali.org/en/keanggotaan/full-member
Batat, W. (2019). Experiential Marketing: Consumer Behaviour, Customer Experience and the 7Es. Routledge. https://books.google.co.id/books?id=3vrZuQEACAAJ
Berger-Grabner, D. (2021). Strategic Retail Management and Brand Management: Trends, Tactics, and Examples. De Gruyter. https://books.google.co.id/books?id=xyFlEAAAQBAJ
Boix, J. C. (2020). Fundamentals of Branding. Profit Editorial.
Bougie, R., & Sekaran, U. (2019). Research Methods For Business: A Skill Building Approach. Wiley. https://books.google.co.id/books?id=ikI6EAAAQBAJ
BPS. (2020). Statistik Wisatawan Nasional 2020. Badan Pusat Statistik.
Brun, I., Rajaobelina, L., Ricard, L., & Amiot, T. (2020). Examining the influence of the social dimension of customer experience on trust towards travel agencies: The role of experiential predisposition in a multichannel context. Tourism Management Perspectives, 34(March), 100668. https://doi.org/10.1016/j.tmp.2020.100668
Budi, S. C., Hidayat, Z., & Mani, L. (2021). The Effects of Experience and Brand Relationship to Brand Satisfaction, Trust and Loyalty Shopping Distribution of Consumer Philips Lighting Product in Indonesia. Journal of Distribution Science, 19(1), 115–124. https://doi.org/10.15722/jds.19.1.202101.115
Bueno, E. V., Weber, T. B. B., Bomfim, E. L., & Kato, H. T. (2019). Measuring customer experience in service: A systematic review. Service Industries Journal, 39(11–12), 779–798. https://doi.org/10.1080/02642069.2018.1561873
Chang, S. (2022). Eliciting Brand Loyalty with Elements of Customer Experience : A Case Study on the Creative Life Industry. Sustainability, 14(18), 11547. https://doi.org/https://doi.org/10.3390/su141811547
Clow, K. E., & Back, D. (2022). Integrated Advertising, Promotion & Marketing Communications.
Czinkota, M. R., & Vrontis, D. (2021). Nursing management: past, present and future. In Nursing mirror (Vol. 149, Issue 9).
Dudek, A., Jaremen, D. E., & Michalska-Dudek, I. (2020). Socio-economic factors determining the ROPO trend in the travel industry. Tourism Economics, 26(6), 873–907. https://doi.org/10.1177/1354816619848200
Dwivedi, A., Nayeem, T., & Murshed, F. (2018). Brand experience and consumers' willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness. Journal of Retailing and Consumer Services, 44(March), 100–107. https://doi.org/10.1016/j.jretconser.2018.06.009
Ebrahim, R. S. (2020). The Role of Trust in Understanding the Impact of Social Media Marketing on Brand Equity and Brand Loyalty. Journal of Relationship Marketing, 19(4), 287–308. https://doi.org/10.1080/15332667.2019.1705742
Erdem, T., & Swait, J. (2004). Brand credibility, brand consideration, and choice. Journal of Consumer Research, 31(1), 191–198. https://doi.org/10.1086/383434
Fernandes, T., & Pinto, T. (2019). Relationship quality determinants and outcomes in retail banking services: The role of customer experience. Journal of Retailing and Consumer Services, 50(May), 30–41. https://doi.org/10.1016/j.jretconser.2019.01.018
George, R. (2021). Marketing Tourism and Hospitality. In Marketing Tourism and Hospitality. https://doi.org/10.1007/978-3-030-64111-5
Godovykh, M., & Tasci, A. D. A. (2020). Customer experience in tourism: A review of definitions, components, and measurements. Tourism Management Perspectives, 35(May), 100694. https://doi.org/10.1016/j.tmp.2020.100694
Guan, J., Wang, W., Guo, Z., Chan, J. H., & Qi, X. (2021). Customer experience and brand loyalty in the full-service hotel sector: the role of brand affect. International Journal of Contemporary Hospitality Management, 33(5), 1620–1645. https://doi.org/10.1108/IJCHM-10-2020-1177
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications. https://books.google.co.id/books?id=AVMzEAAAQBAJ
Hair, J., Ortinau, D., & Harrison, D. (2021). Essentials of marketing research (5th ed.). McGraw-Hill Education.
Haq, M. I. U., Khaliq Alvi, A., Somroo, M. A., Akhtar, N., & Ahmed, A. (2022). Relationship of brand credibility and brand loyalty: the mediating effects of attitude toward brand. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/jeas-08-2021-0142
Hsiu-Ying Kao, G., Wang, S. W., & Farquhar, J. D. (2020). Modeling Airline Crisis Management Capability: Brand attitude, brand credibility and intention. Journal of Air Transport Management, 89(July), 101894. https://doi.org/10.1016/j.jairtraman.2020.101894
Hur, W.-M., Kim, H., & Woo, J. (2014). How CSR Leads to Corporate Brand Equity: Mediating Mechanisms of Corporate Brand Credibility and Reputation. Journal of Business Ethics, 125(1), 75–86. https://doi.org/10.1007/s10551-013-1910-0
Ibrahim, B., Aljarah, A., & Sawaftah, D. (2021). Linking social media marketing activities to revisit intention through brand trust and brand loyalty on the coffee shop facebook pages: Exploring sequential mediation mechanism. Sustainability (Switzerland), 13(4), 1–16. https://doi.org/10.3390/su13042277
Jamshidi, D., & Rousta, A. (2021). Brand Commitment Role in the Relationship between Brand Loyalty and Brand Satisfaction: Phone Industry in Malaysia. Journal of Promotion Management, 27(1), 151–176. https://doi.org/10.1080/10496491.2020.1809596
Jian, Y., Yu, I. Y., Yang, M. X., & Zeng, K. J. (2020). The impacts of fear and uncertainty of covid-19 on environmental concerns, brand trust, and behavioral intentions toward green hotels. Sustainability (Switzerland), 12(20), 1–14. https://doi.org/10.3390/su12208688
Jun, S. H. (2020). The effects of perceived risk, brand credibility and past experience on purchase intention in the Airbnb context. Sustainability (Switzerland), 12(12). https://doi.org/10.3390/su12125212
Kandampully, J., Zhang, T., & Jaakkola, E. (2018). Customer experience management in hospitality: A literature synthesis, new understanding and research agenda. International Journal of Contemporary Hospitality Management, 30(1), 21–56. https://doi.org/10.1108/IJCHM-10-2015-0549
Katsikari, C., Hatzithomas, L., Fotiadis, T., & Folinas, D. (2020). Push and pull travel motivation: Segmentation of the greek market for social media marketing in tourism. Sustainability (Switzerland), 12(11). https://doi.org/10.3390/su12114770
Khan, I., Hollebeek, L. D., Fatma, M., Islam, J. U., & Riivits-Arkonsuo, I. (2020). Customer experience and commitment in retailing: Does customer age matter? Journal of Retailing and Consumer Services, 57(July), 102219. https://doi.org/10.1016/j.jretconser.2020.102219
Kim, E. J., Kim, S. H., & Lee, Y. K. (2019). The effects of brand hearsay on brand trust and brand attitudes. Journal of Hospitality Marketing and Management, 28(7), 765–784. https://doi.org/10.1080/19368623.2019.1567431
Koh, H. K., Burnasheva, R., & Suh, Y. G. (2022). Perceived ESG (Environmental, Social, Governance) and Consumers' Responses: The Mediating Role of Brand Credibility, Brand Image, and Perceived Quality. Sustainability (Switzerland), 14(8). https://doi.org/10.3390/su14084515
Kotler, P., Bowen, J. T., Makens, J. C., & Baloglu, S. (2021). Marketing for Hospitality and Tourism, Global Edition. In Pearson.
Kranzbühler, A. M., Kleijnen, M. H. P., Morgan, R. E., & Teerling, M. (2018). The Multilevel Nature of Customer Experience Research: An Integrative Review and Research Agenda. International Journal of Management Reviews, 20(2), 433–456. https://doi.org/10.1111/ijmr.12140
Kumar, P., Hollebeek, L. D., Kar, A. K., & Kukk, J. (2022). Charting the intellectual structure of customer experience research. Marketing Intelligence and Planning. https://doi.org/10.1108/MIP-05-2022-0185
Kumar, P., & Polonsky, M. J. (2019). In-store experience quality and perceived credibility: A green retailer context. Journal of Retailing and Consumer Services, 49(February), 23–34. https://doi.org/10.1016/j.jretconser.2019.02.022
Kuzmenko, A., Kuznetsova, O., Kuleeva, I., & Plotnikova, I. (2019). The Importance of Inter-Territorial Tourism Cooperation in the World and the Role of This Phenomenon in the Strategic Management of Tourism in the Russian Federation. 47(Iscfec 2018), 2019–2021. https://doi.org/10.2991/iscfec-18.2019.93
Kwon, J. H., Jung, S. H., Choi, H. J., & Kim, J. (2020). Antecedent factors that affect restaurant brand trust and brand loyalty: focusing on US and Korean consumers. Journal of Product and Brand Management, 30(7), 990–1015. https://doi.org/10.1108/JPBM-02-2020-2763
Li, M. W., Teng, H. Y., & Chen, C. Y. (2020). Unlocking the customer engagement-brand loyalty relationship in tourism social media: The roles of brand attachment and customer trust. Journal of Hospitality and Tourism Management, 44(June), 184–192. https://doi.org/10.1016/j.jhtm.2020.06.015
Liu, K.-N., Hu, C., Liu, K.-N., & Hu, C. (2021). Investigating the Impacts of Hotel Brand Experience on Brand Loyalty : The Mediating Role of Brand Positioning Investigating the Impacts of Hotel Brand Experience on Brand Loyalty : The Mediating Role of Brand Positioning. International Journal of Hospitality & Tourism Administration, 00(00), 1–23. https://doi.org/10.1080/15256480.2021.1905585
Liu, K., Tsai, T., Xiao, Q., & Hu, C. (2020). The impact of experience on brand loyalty : Mediating effect of images of Taiwan hotels The impact of experience on brand loyalty : Mediating effect. Journal of China Tourism Research, 00(00), 1–20. https://doi.org/10.1080/19388160.2020.1777238
Lo, A. (2020). Effects of customer experience in engaging in hotels' CSR activities on brand relationship quality and behavioural intention. Journal of Travel and Tourism Marketing, 37(2), 185–199. https://doi.org/10.1080/10548408.2020.1740140
Luo, J. (Gemma), Wong, I. K. A., King, B., Liu, M. T., & Huang, G. Q. (2019). Co-creation and co-destruction of service quality through customer-to-customer interactions: Why prior experience matters. International Journal of Contemporary Hospitality Management, 31(3), 1309–1329. https://doi.org/10.1108/IJCHM-12-2017-0792
Madadi, R., Torres, I. M., & Zúñiga, M. Á. (2021). Hierarchical Relationships among Brand Equity Dimensions: The Mediating Effects of Brand Trust and Brand Love. Services Marketing Quarterly, 42(1–2), 74–92. https://doi.org/10.1080/15332969.2021.1947086
Manyanga, W., Makanyeza, C., & Muranda, Z. (2022). The effect of customer experience, customer satisfaction and word of mouth intention on customer loyalty: The moderating role of consumer demographics. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2082015
Molinillo, S., Ekinci, Y., & Japutra, A. (2019). A consumer-based brand performance model for assessing brand success. International Journal of Market Research, 61(1), 93–110. https://doi.org/10.1177/1470785318762990
Molinillo, S., Japutra, A., & Ekinci, Y. (2022). Building brand credibility: The role of involvement, identification, reputation and attachment. Journal of Retailing and Consumer Services, 64, 102819. https://doi.org/10.1016/j.jretconser.2021.102819
Moreno de la Santa, J. G. S. (2018). The travel industry in 2018 – setting the scene for the future. Worldwide Hospitality and Tourism Themes, 10(6), 712–716. https://doi.org/10.1108/WHATT-08-2018-0052
Morrison, A. M. (2022). Hospitality and Travel Marketing. In Hospitality and Travel Marketing. Routledge. https://doi.org/10.4324/9781003292616
Nayeem, T., Murshed, F., & Dwivedi, A. (2019). Brand experience and brand attitude: examining a credibility-based mechanism. Marketing Intelligence and Planning, 37(7), 821–836. https://doi.org/10.1108/MIP-11-2018-0544
Nguyen, D. T., Le, D. H. A., Truong, L. G., Truong, N. G., & Vu, V. V. (2022). The effect of Generation Z's perceptions of brand activism on brand loyalty: evidence from Vietnam. Asia Pacific Journal of Marketing and Logistics, ahead-of-p(ahead-of-print). https://doi.org/10.1108/APJML-02-2022-0165
Nunan, D., Birks, D. F., & Malhotra, N. K. (2020). Marketing Research: Applied Insight.
Ong, C. H., Lee, H. W., & Ramayah, T. (2018). Impact of brand experience on loyalty. Journal of Hospitality Marketing and Management, 27(7), 755–774. https://doi.org/10.1080/19368623.2018.1445055
Rather, R. A., Hollebeek, L. D., Vo-Thanh, T., Ramkissoon, H., Leppiman, A., & Smith, D. (2022). Shaping customer brand loyalty during the pandemic: The role of brand credibility, value congruence, experience, identification, and engagement. Journal of Consumer Behaviour, 21(5), 1175–1189. https://doi.org/10.1002/cb.2070
Reitsamer, B. F., & Brunner-Sperdin, A. (2021). It's all about the brand: place brand credibility, place attachment, and consumer loyalty. Journal of Brand Management, 28(3), 291–301. https://doi.org/10.1057/s41262-020-00229-z
Revida, E., Gaspersz, S., Uktolseja, L. J., Nasrullah, N., Warella, S. Y., Nurmiati, N., Alwi, M. H., Simarmata, H. M. P., Manurung, T., & Purba, R. A. (2020). Pengantar Pariwisata. Yayasan Kita Menulis. https://books.google.co.id/books?id=EEb8DwAAQBAJ
Ringle, C. M., Wende, S., & Becker, J.-M. (2022). "SmartPLS 4.” Oststeinbek: SmartPLS GmbH, http://www.smartpls.com.
Roy, S. K., Gruner, R. L., & Guo, J. (2022). Exploring customer experience, commitment, and engagement behaviours. Journal of Strategic Marketing, 30(1), 45–68. https://doi.org/10.1080/0965254X.2019.1642937
Rueb, G. (2016). Brand Management: What You Need to Know About Branding Your Business. BookRix.
Saima, & Khan, M. A. (2020). Effect of Social Media Influencer Marketing on Consumers' Purchase Intention and the Mediating Role of Credibility. Journal of Promotion Management, 27(4), 503–523. https://doi.org/10.1080/10496491.2020.1851847
Saini, S., & Singh, J. (2020). A Link Between Attitudinal and Behavioral Loyalty of Service Customers. Business Perspectives and Research, 8(2), 205–215. https://doi.org/10.1177/2278533719887452
Shams, G., Rehman, M. A., Samad, S., & Rather, R. A. (2020). The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry. Journal of Financial Services Marketing, 25(1–2), 25–34. https://doi.org/10.1057/s41264-020-00070-0
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189
Singh, A., Rana, N. P., & Parayitam, S. (2022). Role of social currency in customer experience and co-creation intention in online travel agencies: Moderation of attitude and subjective norms. International Journal of Information Management Data Insights, 2(2), 100114. https://doi.org/10.1016/j.jjimei.2022.100114
Siqueira, J. R., ter Horst, E., Molina, G., Losada, M., & Mateus, M. A. (2020). A Bayesian examination of the relationship of internal and external touchpoints in the customer experience process across various service environments. Journal of Retailing and Consumer Services, 53(November 2019), 102009. https://doi.org/10.1016/j.jretconser.2019.102009
Sohail, M. S., Hasan, M., & Sohail, A. F. (2019). The Impact of Social Media Marketing on Brand Trust and Brand Loyalty. International Journal of Online Marketing, 10(1), 15–31. https://doi.org/10.4018/ijom.2020010102
Song, H. J., Wang, J. H., & Han, H. (2019). Effect of image, satisfaction, trust, love, and respect on loyalty formation for name-brand coffee shops. International Journal of Hospitality Management, 79(June 2018), 50–59. https://doi.org/10.1016/j.ijhm.2018.12.011
Tuten, T. L. (2020). Principles of Marketing for a Digital Age. SAGE Publications.
Villagra, N., Monfort, A., & Sánchez Herrera, J. (2021). The mediating role of brand trust in the relationship between brand personality and brand loyalty. Journal of Consumer Behaviour, 20(5), 1153–1163. https://doi.org/10.1002/cb.1922
Wu, Y. C., Lee, H. M., & Liao, P. R. (2018). What do customers expect of travel agent–customer interactions? Measuring and improving customer experience in interactions with travel agents. Journal of Travel and Tourism Marketing, 35(8), 1000–1012. https://doi.org/10.1080/10548408.2018.1468853
Yuan, D. H. (2007). A review and outlook on the research on brand trust. Psychological Science, Vol. 30 No, 434–437.
Zhang, H., Song, H., Wen, L., & Liu, C. (2021). Forecasting tourism recovery amid COVID-19. Annals of Tourism Research, 87, 103149. https://doi.org/10.1016/j.annals.2021.103149
Copyright (c) 2023 Ni Kadek Reinita Andriyani, Putu Gde Arie Yudhistira
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. The author(s) hold the copyright of the article without restrictions.
2. The author(s) retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY).