Customer Based Performance of the Hotel Industry: Analysis of Service Package and Brand Innovations


  • Collins Kankam-Kwarteng Kumasi Technical University
  • Ofosu Amofah Ho Technical University
  • Francis Osei Kumasi Technical University
  • Barbara Osman Takoradi Technical University



Service Package, Brand Innovation, Customer Relational Performance, Hotel


This study aims to examine the influence of service package and brand innovation on customer relational performance and customer profit performance of the hotel industry. Data were collected from 112 hotel operators. PLS-SEM was used to derive the path coefficient (β) and t statistics to determine the path relationship between service packages, brand innovation, customer based relational performance and customer based profit performance. This study shows that both service package and brand innovation have influence on both customer relational performance and customer profit performance. Brand innovation does not moderate the relationship between service package and customer relational performance of the hotel industry. The study findings may not be generalizable to other categories of the restaurant industry because of the relatively small sample size and the respondents selected from limited geographical area. The findings, however, will help hotel operators to implement critical packaging operations of the hotel services and improved brand innovations to elicit higher customers’ based performance. Unlike the previous studies on marketing performance, this study examines the combined effect of service package and brand innovation on customer based relational performance and customer based profit performance of the hotels.


Akoğlan Kozak, M. and Acar Gürel, D. (2015), “Service design in hotels: A conceptual Review”, Turizam: Međunarodni Znanstveno-Stručni Casopis, 63(2), 225-240.

Amoako, G. K., Neequaye, E. K., Kutu-Adu, S. G., Caesar, L. D. and Ofori, K. S. (2019), “Relationship marketing and customer satisfaction in the Ghanaian hospitality industry”, Journal of Hospitality and Tourism Insights, Vol. 2 No. 4, 326-340.

Andersson, P., Rosenqvist, C. and Ashrafi, O. (2007), “Mobile innovations in healthcare: customer involvement and the co-creation of value”, International Journal of Mobile Communications, 5(4), 371-388.

Andersson, T. D., and Getz, D. (2009), “Tourism as a mixed industry: Differences between private, public and not-for-profit festivals”, Tourism management, 30(6), 847-856.

Ashley, C., De Brine, P., Lehr, A., & Wilde, H. (2007), “The role of the tourism sector in expanding economic opportunity”. Cambridge, MA: John F. Kennedy School of Government, Harvard University.

Ballantine, P.W. (2005), "Effects of interactivity and product information on consumer satisfaction in an online retail setting", International Journal of Retail & Distribution Management, Vol. 33 No. 6, pp. 461-471.

Baker, T., Murthy, N. N. and Jayaraman, V. (2002), “Service package switching in hotel revenue management systems”, Decision Sciences, 33(1), 109-132.

Becerra, M., Santaló, J. and Silva, R. (2013), “Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry”, Tourism Management, 34, 71-79.

Berezina, K., Bilgihan, A., Cobanoglu, C. and Okumus, F. (2016), “Understanding satisfied and dissatisfied hotel customers: text mining of online hotel reviews”, Journal of Hospitality Marketing & Management, 25(1), 1-24.

Bowie, D. and Chang, J. C. (2005), “Tourist satisfaction: A view from a mixed international guided package tour”, Journal of Vacation Marketing, 11(4), 303-322.

Brida, J. G., Pereyra, J. S., Punzo, L. F., and Such-Devesa, M. J. (2007), “The economic contribution of tourism sector. In 4th World Conference for Graduate Research in Tourism, Hospitality and Leisure, Antalya, Turkey, 23-27.

Campo, S., Diaz, A. M., and Yagüe, M. J. (2014), “Hotel innovation and performance in times of crisis”, International Journal of Contemporary Hospitality Management, Vol. 26 No. 8, pp. 1292-1311.

Chang, H. H., Wong, K. H., and Fang, P. W. (2014), “The effects of customer relationship management relational information processes on customer-based performance”, Decision support systems, 66, 146-159.

Cheng, B.L., Gan, C.C., Imrie, B.C. and Mansori, S. (2019), "Service recovery, customer satisfaction and customer loyalty: evidence from Malaysia’s hotel industry", International Journal of Quality and Service Sciences, Vol. 11 No. 2, pp. 187-203.

Cheraghalizadeh, R., and Tümer, M. (2017), “The effect of applied resources on competitive advantage in hotels: Mediation and moderation analysis”, Journal of Hospitality and Tourism Management, 31(June), 265–272.

Demiroz, D. M., and Ongan, S. (2005), “The contribution of tourism to the long-run Turkish economic growth”. Ekonomický časopis, 9, 880-894.

Donkor, J., Donkor, G. N. A. and Kwarteng, C. K. (2018), “Strategic planning and performance of SMEs in Ghana: The moderating effect of market dynamism”, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 12 No. 1, 2018 pp. 62-76

Edvardsson, B., Gustafsson, A. and Roos, I. (2005), “Service portraits in service research: a critical review”, International Journal of Service Industry Management, Vol. 16 No. 1, pp. 107-121.

Fischer, D., Stanszus, L., Geiger, S., Grossman, P. and Schrader, U. (2017), “Mindfulness and sustainable consumption: A systematic literature review of research approaches and findings”, Journal of Cleaner Production, 162, 544-558.

Fornell, C. and Larcker, D. F. (1981), "Structural equation models with unobservable variables and measurement error”, Algebra and Statistics, p. 382-388.

Gatignon, H., Tushman, M.L., Smith, W. and Anderson, P. (2002), “A structural approach to assessing innovation: Construct development of innovation locus, type, and characteristics”, Management Science, 48(9), 1103-1122.

Gerrard, M., Gibbons, F. X., Brody, G. H., Murry, V. M., Cleveland, M. J. and Wills, T. A. (2006), “A theory-based dual-focus alcohol intervention for preadolescents: The Strong African American Families program”, Psychology of Addictive Behaviors, 20(2), 185.

George, D. and Mallery, P. (2003), “Reliability analysis. SPSS for Windows, step by step: a simple guide and reference”, 14th edn. Boston: Allyn & Bacon, 222-232.

Hankinson, G. (2012), “The measurement of brand orientation, its performance impact, and the role of leadership in the context of destination branding: An exploratory study”, Journal of Marketing Management, 28(7–8), 974-999.

Hendrayati, H., and Gaffar, V. (2016), “Innovation and marketing performance of womenpreneur in fashion industry in Indonesia”, Procedia-Social and Behavioral Sciences, 219, 299-306.

Kimpakorn, N. and Tocquer, G. (2010), "Service brand equity and employee brand commitment", Journal of Services Marketing, Vol. 24 No. 5, pp. 378-388.

Grigoriou, N., Davcik, N. and Sharma, P. (2016), “Exploring the Influence of Brand Innovation on Marketing Performance Using Signaling Framework and Resource-Based Theory (RBT) Approach”, In Let’s Get Engaged! Crossing the Threshold of Marketing’s Engagement Era (pp. 813-818). Springer, Cham.

Kankam-Kwarteng, C. and Donkor, J. (2016), “Service Quality and Customer Satisfaction in Loan Acquisition: Evidence from Commercial Banks in Ghana”, Journal of Economics, Management and Trade, 1-11.

KanKam-Kwarteng, C., Gatsi, J. G., Acheampong, S. and Donkor, J. (2018), “Technical and Operational Innovations approaches to firm performance of SMEs auto services sector”, Archives of Business Research, 6(9).

Kankam-Kwarteng, C., Osman, B. and Donkor, J. (2019), “Innovative low-cost strategy and firm performance of restaurants”, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 13 No. 3, 2019 pp. 266-281.

Kiani, M. N., Mustafa, S. H., and Ahmad, M. (2019), “Does innovation capabilities affect the new service innovation success among Pakistani cellular companies?, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 13 No. 1, 2-16

Kline, P. (2000), “The handbook of psychological testing”, 2nd ed. New York, NY: Routledge; 2000.

Ladhari, R., Souiden, N. and Ladhari, I. (2011), “Determinants of loyalty and recommendation: The role of perceived service quality, emotional satisfaction and image”, Journal of Financial Services Marketing, 16(2), 111-124.

Martĺnez-Ros, E. and Orfila-Sintes, F. (2009), “Innovation activity in the hotel industry”, Technovation, 29(9), 632-641.

Mattsson, J. and Orfila‐Sintes, F. (2014), “Hotel innovation and its effect on business performance”, Int. J. Tour. Res. 16 (4), 388–398.

McManus, L. (2013), “Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia”, International Journal of Hospitality Management, 33, 140-152.

Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., Lopez-Gamero, M. D. and Pertusa-Ortega, E. M. (2015), “The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry”, Tourism Management, 50, 41-54.

Mohsin, A. and Lockyer, T. (2010), "Customer perceptions of service quality in luxury hotels in New Delhi, India: an exploratory study", International Journal of Contemporary Hospitality Management, Vol. 22 No. 2, pp. 160-173.

Nawi, N. B. C., Al Mamun, A., Nasir, N. A. M., Abdullah, A. and Mustapha, W. N. W. (2019), “Brand image and consumer satisfaction towards Islamic travel packages”, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 13 No. 2, 188-202.

Neslin, S. A., Grewal, D., Leghorn, R., Shankar, V., Teerling, M. L., Thomas, J. S., and Verhoef, P. C. (2006), “Challenges and opportunities in multichannel customer management. Journal of Service Research, 9(2), 95–112.

Nwokah, N. G. (2008). Strategic market orientation and business performance. European Journal of Marketing, 42(3/4), 279.

Odekerken‐Schröder, G., Ouwersloot, H., Lemmink, J. and Semeijn, J. (2003), “Consumers’ trade‐off between relationship, service package and price”, European Journal of Marketing, Vol. 37 No. 1/2, pp. 219-242.

Ottenbacher, M. and Gnoth, J. (2005), “How to develop successful hospitality innovation”, Cornell Hotel and Restaurant Administration Quarterly, 46(2), 205-222.

Orfila-Sintes, F. and Mattsson, J. (2009), “Innovation behavior in the hotel industry”, Omega, 37(2), 380-394.

Paek, J., and Lee, C. W. (2018), “The effect of education and training on service quality, customer satisfaction and loyalty in airline industry”, Management Review: An International Journal, 13(1), 49-64.

Patel, P. C., Azadegan, A., and Ellram, L. M. (2013), “The effects of strategic and structural supply chain orientation on operational and customer‐focused performance”, Decision Sciences, 44(4), 713-753.

Ramani, G. and Kumar, V. (2008), “Interaction orientation and firm performance”, Journal of Marketing, 72(1), 27-45.

Satti, Z. W., Babar, S. F., Parveen, S., Abrar, K., and Shabbir, A. (2020), “Innovations for potential entrepreneurs in service quality and customer loyalty in the hospitality industry”, Asia Pacific Journal of Innovation and Entrepreneurship, Vol. 14 No. 3, pp. 317-328.

Sivula, P., van den Bosch, F. and Elfring, T. (1997), “Competences building by incorporating clients into the development of a business service firm’s knowledge base”, in Sanchez, R. and Heene, A. (Eds), “Strategic Learning and Knowledge Management”, John Wiley & Sons, New York, NY, pp. 121-37.

Shaw, G., Bailey, A. and Williams, A. (2011), “Aspects of service-dominant logic and its implications for tourism management: Examples from the hotel industry”, Tourism Management, 32(2), 207-214.

Theodosiou, M. and Katsikea, E. (2012), "Antecedents and performance of electronic business adoption in the hotel industry", European Journal of Marketing, Vol. 46 No. 1/2, pp. 258-283.

Upadhyaya, M., Hakeem, A., and Chavan, D. S. (2013), “The effect of the servicecape on service trust, customer satisfaction, and customer loyalty in Indian family restaurant”, Management Review: An International Journal, 8(2), 54.

Wikhamn, W., Armbrecht, J. and Wikhamn, B. (2018), "Innovation in Swedish hotels", International Journal of Contemporary Hospitality Management, Vol. 30 No. 6, pp. 2481-2498.

Zomerdijk, L. G., and Voss, C. A. (2010), “Service design for experience-centric services”, Journal of service research, 13(1), 67-82.