Can advanced technology affect customer-based brand equity in service firms? An empirical study in upscale hotels

Purpose – The purpose of this paper is to empirically test the impact of perceived information and communication technology (ICT) on creation of brand equity within service firms, more specifically upscale hotels. The relationships between ICT and three brand equity dimensions, i.e. brand image, perceived quality, and brand loyalty are examined. Design/methodology/approach – The empirical research was conducted in 20 upscale hotels in Rome-Italy, collecting data from 335 guests. Findings – Advanced ICT directly influences perceived quality and image, while the impact of ICT on loyalty is mediated by perceived quality. Additionally, positive and significant relationships are found between the three brand equity dimensions. Research limitations/implications – The lack of significance of ICT impact on loyalty needs further attention. Future studies could center on this specific relationship, examining whether hotel companies that implement technology efficiently are able to deal with loyalty. Practical implications – Managers are encouraged to invest in advanced technologies as their adoption and subsequent perception among guests can shape brand image and perceived service quality, thus influencing brand equity from the consumer perspective. Originality/value – The contributions of this paper are fourfold. First, the ICT and customer-based brand equity concepts are studied together in the hotel context. Second, the inter-relationship among the three brand equity dimensions is analyzed. Third, the model is tested from the guest perceptive, as customers themselves can provide the most valuable inputs for business strategies. Finally, the work contributes to the service field by providing an empirical evidence on the potential and impact of advanced technology.