Table of content
Introduction
Chapter 1. Literature Review
1.1 What Is A Brand?
1.2 Brand Building Process and Brand Equity
1.3 Brand loyalty
1.4 Features of branding in the hospitality industry
1.5. Brand positioning as the basis for developing a communication strategy
Chapter 2. Research Methods
2.1. Data Collection Process
2.1.1. Empirical data
2.2. Research methods
Chapter 3. Analytical part
3.1. Analyzing the findings of empirical data
3.2. Proving the research hypotheses
3.3. Analyzing the financial data
3.4. Developing the strategic plan to improving marketing policy
3.5. Financial effectiveness of the developed strategic plan
Conclusion
References
Introduction
In the modern world, the hotel business sector occupies a significant niche. In the context
of active globalization, hotels are faced with the task of satisfying all the needs of their customers,
from the provision of overnight accommodation to the holding of business conferences.
Consumer research, identification of the main motives for purchasing hotel services and
analysis of consumer behavior equips hotel managers and specialists with a powerful arsenal,
without which successful activity in the modern market is impossible, namely, knowledge of their
customers and brand recognition by customers. “Knowing your customer” is a basic marketing
principle.
The correct understanding of customers provides the hotel with the opportunity:
● predict their needs;
● identify services that are in greatest demand;
● improve relationships with potential consumers;
● gain consumer confidence by understanding their needs;
● understand what the consumer is guided by when deciding on the choice of a particular
hotel;
● find out the sources of information used in making a purchase decision;
● establish who and how influences the development and decision-making on the acquisition
of a hotel product;
● to develop an appropriate marketing strategy and specific elements of the most effective
marketing mix;
● create a feedback system with consumers of hotel services;
● Establish effective work with clients.
The formation of a correct understanding of consumers in marketing is based on the following
principles: the consumer is independent; consumer behavior is comprehended through research;
consumer behavior is socially legal.
In the process of marketing research, a hotel company should receive answers to the following
fundamental questions:
● customer needs and wishes;
● factors affecting customer needs;
● motives leading consumers to purchase hotel services;
● existing unmet needs of clients (what services they need), which can become an important
source of ideas for the development and improvement of the company.
When purchasing a hotel product, consumers respond in a certain way to external stimuli,
including environmental factors and marketing mix factors. Moreover, the hotel can have a direct
impact only on marketing factors. It can influence the client through incentive factors only
indirectly. The decision to purchase hotel services is also influenced by the personal characteristics
of the client and his motives.
Thus, the conduct of this study of consumers of hotel services is reduced to the study of:
● factors affecting the client;
● motives of customer behavior;
Relevance
Brand recognition and brand preference by consumers is the main task of any hotel. Using
Wyndham as an example, it becomes possible to consider the main factors and motives that
influence the behavior of consumers of the services of a hotel type such as a hotel. Knowing the
wishes of customers, their preferences and intentions gives the company the basis for further
development and planning of its activities.
As the hotel industry market is growing rapidly, an organization that has a full-fledged
vision and understanding of its customers, their needs and requirements, has a significant
competitive advantage. In this regard, the study of the Wyndham customer base will help to timely
respond to all changes occurring within the hotel business market. This is the main reason for
choosing this topic for research by the author.
The aim of the research is to study customer loyalty to the brand and customer value
system in the hotel services market.
This thesis investigated the role of branding on consumer behavior, i.e. travel motivation,
in the context of the hospitality industry in Uzbekistan. The aim of the study is to investigate how
guests pick a hotel, and how a brand provides value and creates guest loyalty. Those objectives
served as the research hypothesis of this thesis.
Research Hypothesis
The efficiency of the hotels, their tools for measuring the efficiency and expansion of the
brand, enable hotels to position themselves effectively in the market. Keller and Lehmann (2006)
presented branding concepts in more detail and classified various strategic methods of hotel brand
management. The brand today is more and more global and represents the construction of the
image and the greatest possible diversification. The "selection model" involves an understanding
of the utility of a product or service and influences the consumer's choice to understand the impact
of brands (Daun, & Klinger, 2006). The brand acts as a catalyst that transforms the words and
actions of society, its competitors and the environment into an emotional bond with the local target
market. From the review of the literature and the discussion above, the following assumptions have
been made.
The main hypothesis of the study is the assumption that the key brand that affects the choice
of hotel for most respondents is the brand of the hotel.
H1: Customer brand identification will positively influence hotel brand loyalty.
H2: Brand satisfaction has a positive association with hotel brand loyalty.
H3: Brand commitment is positively related to hotel brand loyalty.
To collect primary empirical information, the author used the method of questioning
clients of the hotel. Since it is not possible to gather all the respondents who use the services
of the Wyndham Hotel in one place, we send mailings to guests by e-mail the link to a
Google
doc
(https://docs.google.com/forms/d/e/1FAIpQLSd-3ieyQYkmY3XTjCvi-
0S1V494i3IwHPQMlkxjhth85kGsEw/viewform?usp=sf_link).
The features of the survey method are considered:
● Direct communication with the object. Data are presented by participants in
the phenomena studied.
● The content of the information depends on the respondent, his attitudes and
competence. consumer hotel service
● Data is determined by the form and content of the question, procedure.
● The advantages of this method in the study are:
● Universality of application, a variety of information about objective and
subjective characteristics about the past, present, future, about the areas in
which the respondent is included.
● Data on objective processes, on the attitude of their participants to them;
motives, value orientations, mechanisms of communication of people are
investigated; analysis from different perspectives.
● The direction of the survey to more valuable information. Correction of tasks,
using the experience of an interviewer.
● The possibility of researching issues of an intimate plan.
Scientific tools for analyzing collected data
Survey of customers is not just a collection of information, but a full-fledged study. In
addition, the purpose of any research is a scientifically based interpretation of the facts studied.
The primary material needs to be processed, namely, streamlined and analyzed. After interviewing
respondents, an analysis of the research data takes place. This is a key stage. It is a set of techniques
and methods designed to check how true the assumptions and hypotheses of the study were, as
well as to answer the research questions asked. In addition, the analysis of the data obtained during
the survey revealed the strengths and weaknesses of hotels and the hotel chain. Quantitative
research is the main tool for obtaining the necessary information for planning and decision making
when the necessary hypotheses regarding consumer behavior are already formed.
Also a
qualitative analysis of the reviews of hotel visitors on the website http://www.booking.com was
also carried out. Based on these materials, recommendations were developed to increase consumer
loyalty.
After receiving the results of the survey respondents, the author, on the basis of the results
obtained, develop a marketing strategy to increase the brand awareness of the hotel International
as well as a strategy to increase customer loyalty. Then the author proved the economic efficiency
of the strategy being developed and with the help of a comparative financial analysis, the author
analyzed the financial performance of the hotel for 2017-2018 with the projected financial results
after the implementation of the marketing strategy.
Chapter 1. Literature Review
1.1.What Is A Brand?
There are several definitions and explanations that revolve around the term "brand". A
brand that accepts the literal meaning of a word and combines it into a universal business
understanding is a permanent sign strongly imprinted on a product or service. This brand has a
specific and unique company name and brand. According to the American Marketing Association
(AMA), the brand consists of several elements such as name, logo and design 1. Often the brand
works with all of these elements to uniquely identify the company and distinguish it from its
competitors. The Merriam Webster Dictionary (2013) is not just a collection of goods and / or
services produced and supplied by a company, but also a feature2.
Therefore, a brand can be a logo, slogan or catchy phrase, feature, etc. A brand is a name
that resonates in the minds of consumers and strongly influences their consumer behavior
(Kapferer 2008)3. It can be said that a mark can appear as a verbal and unwritten reciprocal
agreement between two parties, such as the manufacturer and the consumer. Put simply, a mark is
a promise between the sender (hotel) and the recipient (guest), if the recipient can form their own
individual feelings about what the mark is on the card.
Considering the various definitions of a trade mark, a hot stamp of permanent marking of
a product or service, that is to say of the trade mark, is considered successful if it contains elements
of consistency, clarity, continuity, visibility and authenticity throughout its activity (Kotler and
Pförtsch 2010)4. Consistency demonstrates the continued delivery of the promised brand value
through the provision of products / services, distribution channels, and even handling customer
complaints. Sustainability at all points of contact with the customer is crucial for the success of a
brand. The element of clarity is based on the vision, the mission and the values of the company.
This means that relevant brand stakeholders, mainly consumers, should be able to openly and
easily understand what a brand is and what it intends to offer (Kotler and Pförtsch 2010).
The element of continuity, on the one hand, is that the company is carefully and rigorously
managed so that it only changes for the better. On the other hand, the element of continuity explains
that a brand must not only be market-oriented, but also strive to be a market driver (Kotler and
Pförtsch 2010). This means that a brand does not have to be guided only by competing innovations
that set standards in an existing market, but also an innovator in setting standards for other
alternatives in the current market. In terms of visibility, this suggests that a brand should always
seek to increase its presence by increasing the target audience (Kotler and Pförtsch 2010). This is
done through intensive marketing and advertising campaigns to ensure that the brand in question
1
http://parmarketingservices.com/Docs/Branding%20White%20Paper.pdf
http://www.learnersdictionary.com/definition/brand
3
https://www.academia.edu/12869300/The_New_Strategic_Brand_Management_-_Jean_Noel_Kapferer_PDF_
4
https://books.google.co.uz/books?id=UYNBbCvK69UC&pg=PA1&hl=ru&source=gbs_toc_r&cad=4#v=onepage
&q&f=false
2
is in places where the consumer is highly sensitive to attention. These are the points where
customer response and memory are greatly improved (Kotler and Pförtsch 2010).
The last important element required for effective brand positioning is authenticity. This
element is intended to encourage marketers to original and creative thinking. The revolution in the
brand standard of the market, such as the production of a completely new product or a new service,
is binding (Kotler and Pförtsch 2010). With regard to the above elements, Kotler and Pförch (2010)
emphasize that the key to successful brand management, according to the company's top
management, is the effective interaction of three of these five elements: clarity, consistency and
leadership. Due to the ever-changing environment, which is constantly influenced by the overflow
of competitions in the market and often by the development of technologies, these three factors
have to be flexible (Kotler and Pförtsch 2010).
Perhaps in the marketing and economic literature in general today it is difficult to find a
more common term than “brand”. There are a large number of articles and dissertations, one way
or another related to the brand and / or branding. Only one thing is missing - the conventional
definition of the concepts of “branding” and “brand”, and this is the main and initial category, as
well as “exchange” in marketing. Marketing agencies and brand bloggers post a lot of practical
advice on branding and brand management on the Internet. The confident and sometimes romantic
tone of these publications creates the false impression that all issues have been resolved and it is
enough for the manufacturer to ask for help, as a brand “promising business success” will be
created at an affordable price. At the same time, the “world history of branding” keeps many failed
projects. Moreover, the algorithm of branding as a process of creating a brand is developed
thoroughly and in many ways is presented in the public domain, and the corresponding marketing
tools have been tested many times. However, for example, the Dovgan brand suffered a complete
failure (Bush, 2015)5. On the contrary, the Skechers scandal with financial and reputational costs
resulting from false promises to improve body shape and reduce weight among buyers of Skechers
Shape Ups fitness sneakers (Skechers ..., 2013), sharply increased the brand’s popularity (global)
and strengthened its market position (including through an innovative insole) “Memory Foam”,
remembering the shape of an individual foot).
Thus, the practice of branding shows that from registering a trademark for a specific
product to turning it into a brand is a "huge distance". In the process of competent branding, an
economically significant transition is made from the legal concept of “trademark” to the
5
Bush O.I. 2015. Poniatie i osobennosti zontichnogo brenda v marketingovoi teorii [The notion and features of an
umbrella brand in the marketing theory]. Vestnik Omskogo universiteta. Seriia Ekonomika (1): 61–66.
corresponding brand, interpreted as a socio-economic and sociocultural concept (Starov,
Cherenkov, Kiryukov, 2017)6. A trademark, in accordance with economic law, identifies the
manufacturer / seller, and also protects the intellectual property of its owner / user. In its simplest
form, this transformation is: 1) on the part of the seller / manufacturer — a promise to provide
added value to the buyer / user when buying a branded product; 2) on the part of the buyer / user
- the willingness to pay an increased (premium) price for goods with the specified added value.
This phenomenon existed long before the term “brand” appeared and was originally associated
with a higher skill of manufacturers and, accordingly, the quality of certain goods.
In the absence of a modern developed media environment and integrated marketing
communication technology, the formation of such “prabrands” (most often related to the place of
origin of the product, for example: “Damascus blade”, “Swiss watches”, “Czech beer”) was
organic and determined by the buyer on the market trial and error in conjunction with the word of
mouth. It is this internal transformation of the registered trademark into a brand with the external
preservation of the brand name, implying the preservation / further growth of the added value of
the branded product (in the language of the business - the brand), and this is the content and the
main function of branding.
However, as our review of relevant literature has shown, the concepts of “brand” and
“branding” do not have truly conventional definitions. Thus, F. Kotler and K. Keller believe that
“branding empowers products and services with brand strength” (Kotler, Keller, 2012). This
tautological definition gives little to understand the essence of branding. However, further the
authors cite a remark that is essential for understanding the purpose of branding: “Branding creates
mental structures that help consumers organize their knowledge of products and services in such
a way as to clarify the decision-making process, and during this process provides value for the
company” (Kotler, Keller, 2012). Note that in this definition you can see a latent view of branding
as a tool of a firm (seller) to develop a consumer solution that “provides value to firms "- positive
feedback.
Thus, since branding in the functional sense is the process of creating a brand (brand
building) and managing it (brand management), then the starting point for building a complex costvalue branding model (complex cost-value branding model), or CCVB- model, the definition of
the essence of the key concept - "brand" is selected. In accordance with the principles of
termination, definitions of key concepts should be based on elements that do not require additional
6
Starov S.A., Cherenkov V.I., Kiriukov S.I. 2017. Litsenzionnyi dogovor na tovarnyi znak kak instrument
brendinga [Trademark license agreement as a branding tool]. Brend-menedzhment (1): 60–78.
explanation (Cherenkov, Cherenkova, Maryanenko, 2010). It is preferable that a definition that is
new to any area of the theory be formed using elements of a terminological paradigm that is
relevant to this area and is already considered conventional. However, at the same time (in this
case in marketing), one often encounters difficulties, a significant part of which in modern
domestic economic science is associated with the massive borrowing of marketing knowledge
acquired abroad, including terms for which analogues simply did not exist before, and the
development and the introduction of new ones was often carried out hastily and carelessly. The
reason is trivial: the fundamental differences and gaps in the market and non-market economies,
largely represented by various, even polar phenomena and relations, had to be determined by
different terms. As for the terminological paradigm of branding, starting with the root term
“brand”, the adequate transfer of knowledge to such a relatively new business culture has proved
to be a very difficult task, requiring the application of skilled, multilaterally trained specialists.
It would seem that the current availability of the latest information in any field of
knowledge should significantly simplify the linguistic-communicative problem of transferring
new knowledge. However, even with the volume of international exchanges so much increased
today and the level of language training, the conclusion of almost a quarter century ago is still
relevant: “A very small number of economists speak Western languages at a level that ensures the
free use of foreign publications”. An important reason for this problem is the non-peer-reviewed
Internet, as well as the accelerated, commercially effective, but not always academically verified
translation of foreign economic literature, performed quickly and inexpensively. In addition, even
highly qualified translators, as a rule, do not have the economic knowledge corresponding to the
tasks of scientific translation, especially in such a rapidly developing subject area as branding,
with its constantly replenished and not yet established conceptual and categorical apparatus.
1.2.Brand Building Process and Brand Equity
For a brand to develop its capabilities, brand strategists must be holistic (Kotler and
Pförtsch, 2010). This means that marketers and brand strategists should look at the brand in
question from a very broad and not narrow perspective as this will allow a better understanding of
each brand. Creating a brand is a comprehensive knowledge of the brand's obligations and
customers. It's about really anticipating the needs of your customers.
Therefore, the creation of a brand begins with a deep understanding of the characteristics
of the goods and services of the brand (Kotler and Pförtsch, 2010). According to Kotler and
Pförtsch (2010), top management is expected to initiate the branding of the company as this is a
strategic imperative that is of great importance to the company. This means that the general
director of the company and the relevant shareholders join forces and agree on an approach to
creating a brand. This acceptance of the approach involves identifying the strengths of the brand,
ultimately ensuring the brand's stability, leadership and, of course, its international presence. In
order for a company's top management to succeed in creating a brand, it must, in addition to its
strategic mission, also contain elements of clarity, consistency, and leadership. In order for these
three elements to become aware of their strategic mission, the following branding process is
proposed:
Figure 1 Sequence of Brand Building Process by Kotler and Pförtsch (2010), p. 160)7
The illustration above (Figure 1) shows the sequence of processes for creating a mark.
Figure 1 consists of five processes: brand planning, brand analysis, brand strategy, branding and
brand auditing. The first process, brand planning, has the main goal of incorporating the day-today activities of the company according to strategic planning. Therefore, it is assumed that the
brand planning process is a process that is encouraged but more focused, considering the big
picture: this management looks at topics from a holistic perspective. This is achieved by
maintaining good stability between stamina and commitment (Kotler and Pförtsch 2010).
According to Kotler and Pförtsch (2010), for a company that has a strong position and a balance
between tolerance and participation, the following steps must be taken:
1. The formulation of the atmosphere, which ensures sustainable adaptation with constant
changes in the company.
2. Inclusion of processes that produce relevant information in a time-efficient manner; This
can be done using the SWOT analysis, as the company can determine the position of its brand and
its subsequent identity.
7
https://books.google.co.uz/books?id=UYNBbCvK69UC&pg=PA1&hl=ru&source=gbs_toc_r&cad=4#v=onepage
&q&f=false
3. Disclosure of procedures for continuous progress planning; These processes should be
centralized after a broad brand breach. This means a complete understanding of the size of the
market in which the brand operates and the corresponding growth of the market. Brand splitting
also includes available delivery channels, demographics of customers, etc.
4. Involve all employees and employees in the brand planning process as well as in the
entire brand building process. This process is considered important as it increases the motivation
among team members, thus improving the current and next steps to creating a brand.
Currently, one of the most important and popular research in marketing is research on brand
value perceived by the consumer or brand value for the consumer. This state of affairs is not
surprising: if manufacturers are able to create a valuable brand for the consumer, they will be able
to win the competition. In the Scopus electronic database, at the request of “Consumer based brand
equity,” were found 354 articles published over the past 25 years. Based on the analysis of the
brief description (content) of the articles, three articles were identified that appear to be the most
relevant, capacious, original, and informative. These are the articles “Consumer Based Brand
Equity Conceptualization & Measurement: A Literature Review” (Leslie de Chernatony, George
Christodoulides, 2009), “Measuring Brand Association Strength: A Consumer-Based Brand
Equity Approach” (A. French, G. Smith,, 2013), “Celebrity endorsement, brand credibility and
brand equity” (A. Spry, R. Pappu, T. Bettina Cornwell, 2009). These three articles were studied in
detail in order to highlight the main features of research in the field of perceived consumer value
of the brand.
A study conducted as part of the Celebrity Endorsement Brand. Credibility and brand
equity” aim to determine the dependence of the influence of celebrity brand support on the
perceived consumer value of a supported brand. The interrelation of the mediating role of brand
trust and the deterrent role of branding type (parent brand versus sub-brand) in relation to the brand
trusting value of recommender (the celebrity who supports the brand) is investigated. The
relationship between guarantor trust and brand value has been studied using the principle of
associative thinking, based on the principles of cognitive psychology, in which the theory of brand
signals was applied in order to measure the mediating role of brand trust.
The conceptual design was tested using a field experiment. The information was collected
by analyzing the results of a survey of a sample of customers in one of the Australian cities. The
information was analyzed using a structural equation model. The conceptual model used is
intended to study the influence of celebrity brand support on the perceived consumer value of a
supported brand. The interrelation of the intermediary role of brand trust and the deterrent role of
branding type (parent brand versus sub-brand) in relation to the trust value of the brand is
recommended (the celebrity who supports the brand). The relationship between guarantor trust and
brand value has been studied using the principle of associative thinking, based on the principles of
cognitive psychology. In order to measure the mediating role of brand trust within the framework
of the aforementioned principle, the theory of brand signals was applied.
The main results are that celebrity support for a particular brand has a direct impact on
brand value when these relationships contribute to increasing brand confidence. These
relationships develop differently depending on the type of branding. However, the relationship
“endorser trust - trust in delirium”, “endorser trust (celebrity supporting this product) - brand
value” were the same for all types of brands studied (parent and sub-brand).
The study shows that the star who advertises the product can be considered as the person
who should be trusted, depending on his attractiveness, expertise and the level of support provided
to him. The authors argue that even based on the support of celebrities of not the highest level, you
can create a good brand.
Initially, hypotheses were put forward regarding the relationship between the perceived
consumer value of the brand and the support of this particular brand by celebrities, and then the
studied product categories and brands were selected. Plasma panels were chosen as the parent
brand, and USB drives as the sub-brand. The investigated brands are AKAI and Panasonic. As a
result of the survey, celebrities were selected, as part of the survey, opinions about them were
studied. Researchers built models in which hypotheses were tested for justice. Using the survey,
confidence indicators of various stars were determined.
This study is one of the first to empirically test and confirm the influence of celebrity brand
support on brand confidence and perceived consumer value.
The study is very useful for managers. This study proves that celebrity support can be used
to create a brand that is valuable to consumers. In addition, the article proposes criteria according
to which such a celebrity should be selected (attractiveness, competence, and level of trust in her).
The main limitation of this study is that it studied the influence of only male stars, and they
all represented television. The influence of stars from other areas of the other sex may be slightly
different. In addition, the study was conducted in one of the Australian cities, and its results may
not be applicable in other markets. As part of the study, advertising prints were used, but the study
of other advertising media could lead to different results.
Further research should also include a comparison of the effect of using local stars, which
are popular only within the country, compared with local stars, which are also popular abroad. In
addition, the study should consider the impact of star support on the perceived brand value in the
long run.
The main goal of the article “Measuring Brand Association Sterngh: A Consumer-Based
Brand Equity Approach” is to compensate for the lack of research on measuring the key factor in
the perceived consumer value of a brand through its own methodology for measuring the strength
of associations that are formed in the minds of consumers. The study is based on the methodology
of cognitive psychology. The article discusses the recently appeared technique of creating brand
cards, which is supplemented by the authors of the article. As a result, a new methodology for
assessing the strength of "brand" associations is formed. The main research methods used in this
article are the document analysis method, formal logical research methods, focus group method,
as well as the case-study method.
The traditional analysis of brand cards, indicators that are usually used in the framework
of this analysis method, such as the number of associations in a brand card, density, neglect the
structure of consumer brand associations underlying these cards.
As a result, the authors of the article propose a new model for assessing the perceived
consumer value of the brand, justified from the point of view of theory and applicable in practice.
At the beginning of the article, literature is devoted to the brand value, its types, methods
of evaluation, theories, basic concepts and definitions are considered.
Further, the authors consider the application of the classical (traditional) method of
measuring consumers' perceived brand value for such a well-known company as McDonald's. 85
students from the UK asked to draw brand cards, which resulted in 34 negative cards and 51
positive cards.
In accordance with the traditional approach, indicators such as association map density and
weighted density were calculated. As part of the innovation proposed by the authors, an indicator
was introduced such as the strength of brand associations equal to the product of structural density
and the number of brand card associations. The indicator was calculated for the McDonald's brand.
Thus, the authors in the article proposed a new approach to assessing the perceived value
of the brand by the consumer, taking into account the number of associations in the brand card,
which can be applied on any market and for any product.
The article “Conceptualizing, Measuring and Managing Customer-Based Brand Equity”
discusses the conceptualization, measurement and management of brand value perceived by the
consumer.
At the beginning of the article, various literature is devoted to trends and theories in the
field of perceived brand value, and basic concepts, terms, and definitions are considered.
According to the authors, they were guided by 2 main goals when writing this article. The authors
studied the value of the brand in order to more accurately determine the contribution of the brand
to the financial results of the company and in order to increase the effectiveness of marketing
(marketing activities).
The purpose of the article is to help managers interested in the strategic aspects of brand
value. The main object of this article is the perceived consumer value of the brand, which is defined
as the distinctive effect in the consumer’s reaction to the marketing activity of the company in
relation to this brand, which arises from brand knowledge.
The authors argue that it is extremely important for the company to create a brand that will
be appreciated by the consumer, as this gives the company producing a product under this brand a
number of advantages.
Firstly, a successful brand is the key to high profits and good financial results. Secondly:
if the brand has a high cost for the consumer, this can enhance the effectiveness of marketing
communications (for example, if consumers are positive about the brand, then less money can be
spent on brand promotion to achieve the desired communicative effect).
In order for buyers to define the brand as “valuable,” it is necessary that it evoke strong
positive and unique associations. This can be done either by choosing the right name, logo, symbol,
and / or integrating brand identifiers in special marketing events for promotion and advertising.
Extraneous secondary sources also play an important role, which cause the so-called "secondary"
(side) associations - gossip, commercial sources of information, other companies, other brand
associations, etc.
The authors further describe two main methods by which one can evaluate the perceived
value of a brand. The indirect method requires measuring brand awareness, brand characteristics,
brand associations and the relationship between them. The direct method directly measures the
influence of brand knowledge on consumer reactions in connection with ongoing marketing
activities to promote the brand (for example, an experiment where one group of consumers
participates in a survey about their reaction to a marketing element in relation to a branded product,
and the other group about the same element, but with respect to an unknown product without a
name or a fictitiously named product).
The authors argue: in order to properly manage the perceived value of the brand by the
consumer, it is necessary to use both approaches to evaluate it. This value depends on what brand
knowledge structures arise in the consumer’s minds and what actions a company can take in order
to benefit from using these very structures.
The article used such research methods as document analysis, as well as formal logical
research methods such as induction and deduction.
The main conclusion of this article is that the authors offer 6 basic tips that will help you
effectively manage the perceived consumer value of the brand:
To determine the necessary knowledge for the consumer about the brand and its
understanding of the main benefits derived from using the brand.
Take into account both traditional and non-traditional methods of advertising, promotion
and other marketing functions.
Properly manage the applied marketing functions.
Carry out tracking studies (long-term monitoring of the consequences after a certain impact
on the object) and controlled experiments.
Evaluate potential bidders to expand the brand line.
In addition, the authors suggest areas in which to expand this study and deepen it in the
future:

clearer criteria for choosing brand identifiers (logo, symbol, sign);

study of possible losses and benefits from secondary associations, costs of their
management, etc.;
Brand image management based on territory and time.
In the article “Measuring brand value with scanner data”, using the latest information about
purchases received from a scanning device in a supermarket, the authors propose two methods for
measuring brand value, reflecting various aspects of brand value. Brand value is defined as the
value of a given product according to the consumer, adjusted to the level of the current price and
the level of current advertising costs. The intangible value of a brand reflects those qualities of a
product that are not directly related to its physical properties. It is created due to factors such as
associations that arise with the brand name and differences in brand views.
The authors measure these indicators when researching the detergent market and consider
the impact of strategic variables on these indicators.
In the article, the authors focus on the intangible value of the brand. They explore perceived
consumer value. Unlike previous studies, the authors' approach is based on the study of real
consumer behavior over a long period of time (using information about purchases obtained from
special scanners). This information is used to measure how valuable brands are to customers based
on the net worth of the powder, brand awareness, and short-term advertising costs.
Further, the authors indicate the formulas that will be used in the study, describe the
progress of the study, indicate the main difficulties that they are likely to encounter in the study.
As part of the study, the following purchase information was studied: the selected brand,
net cost (in terms of a certain amount of powder, and not based on the total cost of the package),
advertising costs for each washing powder 4 weeks before a purchase decision was made.
Next, various indicators of brand value were calculated. The authors conclude that the
concept of brand value contains both tangible and intangible components. The approach developed
in the article allows analysts to develop alternative brand assessment methods that are calculated
on the basic determinants of market share (based on indicators on which market share depends).
Intangible indicators of brand value should be used as a diagnostic tool that provides
information on the relative importance of non-product aspects in building a strong brand (for
example, advertising costs, the effectiveness of the selected distribution channel). Sometimes the
intangible value of a brand can be a more important subject of study compared to the tangible, as
it is very difficult for competitors to copy intangible benefits. In order to properly use the intangible
value of the brand, the manager must clearly identify the main physical properties that are
important for this product category.
Currently, it is very difficult for companies to create products, since it is very difficult to
separate the brand value from the rest of the company value. The intangible value of the brand
serves as a good indicator for comparing brands that have properties similar to competitors, but
contrary to logic, they occupy a significantly larger or smaller market share.
In the future (according to the authors) it is possible to expand this study, to conduct it in
the markets of other goods. Also, a useful extension would be the development of a new
measurement scale for products with the same brand but in different product categories.
The main methods used in this study: the method of analysis of documents, statistical
methods, formal - logical methods.
Currently, there is a large number of studies on brand value, but there is a lack of work on
literature review on this topic. To overcome this shortcoming, the authors in the framework of the
study "Consumer-based brand equity conceptualization and measurement: A literature review"
processed a large amount of heterogeneous information on various concepts of perceived brand
value and its measurement.
The paper systematizes and classifies both direct and indirect methods for assessing the
perceived value of a brand.
At the beginning of the article it is said that brand value is one of the main assets of the
company, through which the company can build long-term relationships with the consumer, as
well as expand and strengthen the relationship of the company with stakeholders.
Further, the article compares the concepts of brand value for a company and perceived
brand value by a consumer.
Then comes the analysis of methods for assessing the perceived consumer value of the
brand.
The authors conclude that there are two main concepts of the perceived consumer value of
the brand:

main stream based on the principles of cognitive psychology;

a secondary stream based on signal theory related to the information economy.
The authors believe that direct research methods have several disadvantages. In particular,
they are based on complex statistical models and do not provide an understanding of the sources
of brand value, so they are not of great interest to managers. Indirect methods are fairly simple,
but there is currently no clear opinion as to which indicators should be used to determine the
perceived consumer value of a brand. Indirect methods of researching the perceived consumer
value of a brand are of high value for decision-making in management. The authors believe that
when researching, measuring and determining the perceived consumer value of a brand, it is
necessary to use various methods and techniques in combination.
1.3.Brand loyalty
According to Barringer and Ireland (2009), consumer loyalty to a brand is a valuable asset
of a company whose consumers become committed to its product or service and buy it from time
to time. Two main approaches to determining brand loyalty are highlighted. The first is based on
the identification of types of consumer loyalty, and the second on the influence of various factors
of a product or service (price, quality, service, and so on) on brand loyalty (Kuusik, A. (2007). In
this paper, the second approach was chosen as the main one, but it would be appropriate to describe
the basics of the first.
First of all, it should be said that there are three main types of loyalty:
Behavioral loyalty occurs when a consumer for a long time buys a product or service of a
certain brand, but, at the same time, he may not be attached to this brand. In this case, the consumer
may be indifferent to the brand and, when a more favorable offer appears on the part of
competitors, without hesitation, prefer their product. Here, in fact, loyalty is not such, because
repeat purchases are not always the result of brand loyalty.
Relational loyalty implies consumer interest in buying a particular brand, due to the
emotional and psychological attachment of the buyer to the brand. However, commitment does
not always guarantee the availability of purchases, as the consumer may not be able to make them.
The mixed type includes both behavioral and relational loyalty. In addition to the fact that
the consumer constantly purchases brand products, he also experiences emotional attachment to
him, as well as deep satisfaction with its aspects.
Thus, dividing all consumers by their profitability and the duration of the relationship, the
company forms a strategy for each of the types:
Strangers bring small profits to the company and rarely use its products. Such clients are
of little interest to the organization, and investing in them will not bring the desired income.
Butterflies are highly profitable, but can switch to competitors' products. The strategy for
dealing with these consumers is to use them as long as possible and get the maximum profit out of
them until they go to the competitors.
Adhesives often use the company's products, but the income they bring is low. You should
try to transfer such consumers into the category of loyal friends.
Faithful friends are the most desired customers of the company, because they often use its
products and bring high profits. Such consumers should be protected in every possible way from
the influence of competitors and constantly take care of their satisfaction.
It may seem that all customers can be divided into only two groups - loyal and disloyal.
But such a division will not fully reflect their importance for the company. In this regard, there are
several stages of forming customer loyalty, which are also called levels of loyalty:
Potential buyer - there is a need for a product or service, but it is not associated with any
brand, that is, the client has not yet contacted the company and has not purchased its products.
Consumers with such a level of loyalty include those people who decided to purchase products of
this kind for the first time, as well as customers of competitors. At this stage, the main task of the
company is to convince the customer to purchase their own products, attracting his attention with
the help of various communication tools.
Random (new) buyer - a one-time purchase of products takes place. The main objective of
this stage is to arouse the desire to make a repeat purchase. Since the client first contacted the
company, his further cooperation with her will depend on his impressions of the products and the
company as a whole. It is very important that all factors affecting loyalty meet consumer
expectations.
Client - consumer periodically uses the company's products, but has not yet become a
regular customer. He can also use competitors' products. It is important here to create additional
emotional value for the buyer, that is, to exceed his expectations, as well as differentiate his
company from competitors, so that next time he turns to it. Here, some unexpected pleasant gifts
or discounts, increased attention of the staff and the like will be appropriate.
A regular customer - a consumer regularly purchases the goods of this particular brand or
turns to this company for services. The main task of this stage is to personalize the attitude towards
this client, to reveal his hidden needs and to determine the reasons for constancy. The methods of
the previous step are applicable here.
Adherent (loyal customer) - a loyal and emotionally attached customer to the company.
Such a consumer is ready to turn a blind eye to some of the shortcomings of the company, if they
are unstable. However, even such customers will prefer competitors' products if these
shortcomings are not resolved over time. Therefore, at this stage, the main task is not to disappoint
the buyer, maintain his high opinion of the brand and recall that the company treats it in a special
way.
Five consecutive stages of loyalty formation reflect the consumer’s path in his relationship
with the company. The main task of identifying loyalty levels is to make changes in relationships
noticeable both for the company and for the consumer, because investments in creating loyalty are
one of the most promising in the company’s activities (Reicheld, Frederick F., Teal, Thomas
2005)8.
Loyalty programs - a set of measures aimed at building consumer commitment to the
brand9. Yuping Liu (2007) defines loyalty programs as programs that allow customers to
accumulate free bonuses during their repeated purchases of company products10. Barry Berman
(2006) identified the following types of loyalty programs: (table 1)
Tab. 1. Typology of loyalty programs11.
Type of program
Program Features
Application example
The client receives an additional
discount or bonus when registering
for the program
• Open Membership
Buying for the symbolic value of a
special card in a supermarket
giving a certain constant discount
• Equal rewards for all
• There is no information about the
buyer and his purchase history
• Lack of targeted impact
The buyer receives 1 point for a
certain amount spent
• Open Membership
• Lack of data on purchases of a
Cumulative programs (for
example, "Raspberry")
specific client
The consumer receives a discount
or points on the accumulation
system
• Encouraging buyers to spend
Restaurants
enough to move to a new level
•
Lack
of
personalization
of
customers
Customers receive personalized
bonuses.
• Program members are segmented
Car dealerships
based on purchase history
• Personalized approach
• The need for complete customer
information
As you can see, all loyalty programs are divided into four types, depending on the bonuses
provided. In addition, the presence or absence of a personalized approach is an important aspect
of such a division.
8
Reicheld, Frederick F., Teal, Thomas. The effect of loyalty: the driving forces of economic growth, profit and
enduring value .: Per. from English - M.: Williams Publishing House, 2005. - 384 p.
/https://www.twirpx.com/file/1828768/
9
Berman, Barry ,(2006),” Developing an Effective Customer Loyalty Program”, California Management Review ,
Fall2006, Vol. 49 Issue 1, p127/ https://www.slideshare.net/tuanthuyviet/berman-2006-developing-an-effectivecustomer-loyalty-program1/
10
Yuping Liu, (2007). The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and
Loyalty, Journal of Marketing , Vol.71, (October ),19-35/
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.538.5085&rep=rep1&type=pdf/
11
Berman, Barry ,(2006),” Developing an Effective Customer Loyalty Program”, California Management Review ,
Fall2006, Vol. 49 Issue 1, p123/ https://www.slideshare.net/tuanthuyviet/berman-2006-developing-an-effectivecustomer-loyalty-program1/
Key benefits of loyalty programs:
1) Attracting new customers. Obviously, offering a discount or bonus will arouse the
interest of consumers who are not customers of the company.
2) Increasing customer satisfaction. Anyone will be pleased to receive an unexpected gift
in addition to the purchased product or service.
3) Increasing customer loyalty. Getting a discount card on the products of a particular
company reduces the likelihood of a buyer contacting competitors.
4) Increasing brand awareness. Usually, the launch of a loyalty program corresponds to its
promotion, which also affects brand recognition. Moreover, well-known loyalty programs are
sometimes a topic of discussion at different levels.
5) Decrease in "outflow" of clients. Often this happens when responding to the strategic
course of competitors that have lured consumers of the company12.
1.4.Features of branding in the hospitality industry
Currently, many world-famous hotel chains often face the fact that competitors, while
providing their services, try to reproduce the qualities and characteristics of the best hotel chains world leaders, which inevitably leads to great similarities in the hotel services offered and to some
extent complicates the choice of consumers. In this regard, hotel chains are faced with the task of
reflecting the uniqueness and value of their own services. The very concept of branding includes
the entire process of brand management - creating and promoting a brand on the market, adapting
a brand to changing environmental and internal conditions, and so on.
The brand of a hotel chain is based on its category and the range of services provided. The
basic set of services is the same for all networks and consists of a standard set that meets the
primary needs of the client (overnight, meals, security, and so on). The difference of one brand
from another consists of additional services aimed at meeting the specific needs of customers
(pool, sauna, massage, wireless Internet and the like). The main goal of such services is not only
satisfaction of any needs, but also the creation of a feeling of exceeding consumers' expectations,
since the wide range of services provided increases the significance and value of the hotel chain
in their eyes, even if visitors have no intention to use such services. The range of services provided
and their quality is reflected in the symbolism of the hotel through a star system and is probably
the most obvious attribute of a hotel brand for consumers.
Berman, Barry ,(2006),” Developing an Effective Customer Loyalty Program”, California Management Review ,
Fall2006, Vol. 49 Issue 1, p125/ https://www.slideshare.net/tuanthuyviet/berman-2006-developing-an-effectivecustomer-loyalty-program1/
12
The brand in the hotel industry has three main functions:
Differentiation, which allows to convey to the client a clear idea of the values of the hotel
chain, its individuality and the benefits of using its services.
Marketing promotion, increasing the popularity of the network and, accordingly, the
demand for its services.
Emotional and rational prerequisites for repeated calls to hotel chain services.
The development of the hotel chain is impossible without the formation of a long-term
relationship between the consumer and the brand. Consequently, the formation of brand
management in the hotel industry is based on the process aimed at building customer loyalty by
creating functional (high quality services, reasonable price) and emotional (hotel prestige, a sense
of security) benefits. To achieve this goal, hotel chains take the following steps:

study of the needs and interests of consumers (what is a client, what are its basic
needs, interests, desired impressions, and so on);

the creation of communication channels between the consumer and the brand
(personal contact, telephone conversations, the use of Internet resources and the
like);

ensuring consumer awareness of the brand’s capabilities, its positive features,
principles and standards of work (standard communication tools: advertising,
mailing list, and so on).
Creating a database of clients and fixing their frequency of accessing hotel chain services
to determine their relationship to the brand (division into groups based on the level of loyalty and
development of appropriate actions for each such group).
Thus, it can be argued that successful branding is very important for the effective
functioning and development of hotel chains and is one of the key components in the formation
and maintenance of consumer loyalty to its brand.
1.5. An analysis of empirical studies of customer satisfaction and brand loyalty
A study conducted by Gandolfo Dominici and Rosa Guzzo (2010)13 was chosen as an
example of satisfaction assessment. The object of the study was the Sporting Club Hotel, located
in southern Italy on the coast of Sicily in the city of Cefalu. The study was conducted during the
summer of 2008. Its main goal was to measure the level of customer satisfaction with hotel
services. To achieve the goal, the authors interviewed 122 hotel visitors as part of the “Critical
13
Dominici, G., Guzzo, R. (2010). Customer Satisfaction in the Hotel Industry: A Case Study from Sicily.
International Journal of Marketing Studies. Vol. 2, No. 2. p. 3-12.
Incident Approach” method, which provides information on their attitude to goods and services
purchased earlier. The survey was intended to evaluate the following factors:
1) General perception of service.
2) The quality of the transfer.
3) Quality of service at the reception desk.
4) Room quality.
5) The level of service and quality of food in the restaurant.
6) The quality of tourist and excursion services.
7) The quality of the beach complex.
8) The quality of the entertainment.
Based on the results of the study, the strengths and weaknesses of the hotel were
determined, the general level of customer satisfaction was calculated, and recommendations for
its increase were given14.
An assessment of the impact of hotel service quality factors on customer loyalty was
conducted by Al-Rousan, M. Ramzi and Badaruddin Mohamed (2010). The study was conducted
during the three months of summer 2008. The object of the study was three Marriott hotels in
various cities of Jordan. Its purpose was to test hypotheses about the impact on hotel loyalty of
factors of hotel services, such as:
1) tangible qualities (comfort, cleanliness and so on).
2) The reliability of the staff.
3) Courtesy and helpfulness of staff.
4) Confidence in the actions of staff.
5) Staff happiness (empathy with guests).
Using the “Convenience Sampling Approach” method, having interviewed 322 visitors,
the authors came to the conclusion that tangible qualities and the involvement of staff have the
greatest impact on customer loyalty. The reliability of staff and the courtesy of staff have less
impact. At the same time, the authors obtained results indicating the insignificance of confidence
in the actions of personnel for customer loyalty15.
Brand positioning as the basis for developing a communication strategy
14
Dominici, G., Guzzo, R. (2010). Customer Satisfaction in the Hotel Industry: A Case Study from Sicily.
International Journal of Marketing Studies. Vol. 2, No. 2. p. 3-12.
http://www.ccsenet.org/journal/index.php/ijms/article/view/8103
15
Al-Rousan, Ramzi, M. , Badaruddin Mohamed (2010). Customer Loyalty and the Impacts of Service Quality: The
Case of Five Star Hotels in Jordan. International Journal of Human and Social Sciences 5:13, p. 886-892.
https://publications.waset.org/4322/customer-loyalty-and-the-impacts-of-service-qualitythe-case-of-five-star-hotelsin-jordan
This definition seems to the author the most complete and suitable for further use in this
work: positioning is the process of finding such a market position for a company, product or service
that will advantageously distinguish it from the position of competitors.
Since the positioning process is part of branding, the goals and objectives of these processes
partially coincide.
The main goal of positioning is to build confidence in the consumer’s consciousness in the
exclusiveness, uniqueness and importance of the brand, as well as its significant difference from
competitors.
The purpose of positioning is to create the impression that the consumer is the best brand
in its category and has no replacement. (Makashev, Makasheva, 2011)16 Basically, this goal is
achieved using real product characteristics, that is, those characteristics that actually determine the
product, such as product characteristics (taste, smell), price, purchase assistance, or other type of
service, if the company provides it, ease of use.
Therefore, based on the previous definition, it can be assumed that the brand’s position is
the place that the brand occupies in the minds of consumers compared to competing brands.
Moreover, this position is more often determined by the consumer, rather than the company.
To put it differently, the position of the brand is what determines its identity, allows you to
rebuild from competing brands and convey to the consumer a certain value using various means
of communication.
Positioning Characteristics:
• Length over time.
Since positioning is an essential component of branding, it cannot be a short-term event.
Building the right position takes time to find sustainable means of differentiation from competing
brands and create certain emotional advantages. Nevertheless, positioning is not static: it is stable,
but can change under the influence of circumstances or at different stages of the brand’s life cycle.
• Using well-positioned positioning, companies manage to turn brand features into
advantages for consumers and, therefore, create an additional reason for them to buy.
• Positioning involves working with specific target groups. Positioning will be effective
only if the brand position is the same in the minds of all representatives of the target groups.
• Finally, brand position is always relative. Since one of the tasks of positioning is to
differentiate from competing brands, all brands occupy a certain position relative to the positions
16
Makashev Z. M., Makashev M. O. Branding: Textbook. - St. Petersburg: Peter, 2011 .-- 288 p.
of other brands. The same can be said about price, level of service and quality: all these
characteristics are evaluated by consumers in relation to competitors' offers.
As an example, consider the process of positioning the Tropicana brand. This is a juice
brand whose slogan “takes the best from fruit”. The emphasis in it is on the naturalness of the
product. At the heart of positioning is the idea of vivacity and energy that people need so much.
All brand communications are built on this idea.
In 2010, the Pepsi’s brand “Tropicana” juice company launched an advertising campaign
in the small Canadian town of Inuvik called “Brighter mornings for brighter days” 17. As part of
this campaign, an artificial sun was set in Inuvik (the fact is that in this city a polar night lasts for
31 days). The idea of the advertising company was that it is very difficult to maintain optimism
and energy without sunlight for a whole month. Tropicana decided to help the city residents by
giving them a source of energy and strength: an artificial sun (a luminous ball filled with helium).
A year later, a similar ambient was held in London on Trafalgar Square. The artificial sun
appeared an hour before dawn and disappeared after sunset for two hours, so the daylight hours of
Londoners were extended by three hours.
In addition to the listed ones, there is one more in the piggy bank of interesting advertising
actions of the brand: in 2011 a citylight was created (an advertising structure with backlighting
from the inside), into which electricity was supplied using the unusual property of oranges: their
acid, reacting with copper, gives an electric current . It was in this way that the inscription “Natural
energy” was lit on the city. The idea of communication is that oranges are known not only for their
ability to generate electricity, but also for their ability to energize the human body, giving a person
good health. The slogan "natural energy" fully reflects the idea of positioning: "Natural juice,
energizing."
Another brand, Heineken. The idea of positioning this brand includes the values of
communication, friendship and a good time in a good men's company. When developing the
Heineken advertising campaign, the idea of integrating reality into social media was used. A beer
opener was invented that connects to Facebook via bluetooth18. Thus, as soon as a person opened
a bottle of beer with this opener, an invitation for all friends from this city to come to a beer party
appeared on his Facebook page. Thus, the promotion strategy chosen by its authors is successfully
combined with positioning and broadcasts all brand values to the audience. The value of friendship
17
THE TOP MARKETERS OF 2010 /http://marketingmag.ca/brands/the-top-marketers-of-2010-6074/
18
https://www.trendhunter.com/slideshow/brewski-interactions
is successfully transmitted through communication with social networks in real time, when friends
receive an invitation to a party, or they can watch online how the Champions League party is held.
The value of a pleasant pastime is transmitted through the events held by the brand, where, in
addition to a well-spent time, the audience gets even closer communication with the brand.м
Chapter 2. Research Methods
2.1. Data collection methods and analysis tools
Marketing research is the process of searching, collecting, processing data and preparing
information for making operational and strategic decisions in the enterprise system.
Marketing research process involves the following seven steps:1. Formulating the Research Problem 2. Developing the Research Plan 3. Collect the
Information 4. Processing and Analysing the Collected Data 5. Presentation of the Findings 6.
Follow-Up and Making Decisions19.
Types of Research
One of the most time-consuming and costly stages of any marketing research is the search
and collection of information on the investigated problem. Depending on the sources of
information used, studies are divided into:

cabinet rooms;

field.
However, in practice, field and desk studies complement each other, solving their specific
range of issues.
Desk research - search, collection and analysis of existing secondary information ("desk
study"). Secondary information is data previously collected for purposes other than those currently
resolved. The main advantages of working with secondary information are: low cost of work, since
the collection of new data is not necessary; speed of information collection; the presence of several
sources of information; relative reliability of information from independent sources; the possibility
of a preliminary analysis of the problem. The obvious disadvantages of working with secondary
information are: the frequent inconsistency of secondary data with the objectives of the study, due
to the general nature of the latter; information is often outdated; the methodology and tools used
to collect the data may not be consistent with the objectives of this study. In this regard, often desk
research is supplemented by the parallel conduct of several expert interviews to increase the
validity of information20.
19
http://www.economicsdiscussion.net/marketing-2/marketing-research-process-5-step-marketing-researchprocess/31462
20
https://www.userfocus.co.uk/articles/desk-research-the-what-why-and-how.html
Field research - search, collection and processing of data specifically for a specific
marketing analysis. Any field study is based on primary information, in other words, on the data
just obtained to solve a specific problem under study. The main advantages of primary information:
data are collected in strict accordance with the exact objectives of the research task; The data
collection methodology is strictly controlled. The main disadvantage of collecting field
information is the significant cost of material and labor resources.
Depending on the tools (methods) used to collect the field (primary) information, the
research can be divided into:

quantitative;

qualitative.
Often, the practical implementation of marketing research requires an integrated approach
- the joint use of quantitative and qualitative techniques.
Quantitative research is the main tool for obtaining the necessary information for planning
and decision making when the necessary hypotheses regarding consumer behavior are already
formed. The methods of quantitative research are always based on clear mathematical and
statistical models, which allows the result not to have opinions and assumptions, but exact
quantitative (numerical) values of the studied indicators. Based on the results of quantitative
research, you can calculate the necessary production volumes, profitability, form a price, product
parameters, find unoccupied market niches and much more. The main merit of quantitative
research is that they reduce the risk of making wrong decisions and choosing inaccurate planning
parameters. Confidence that even without research everything is known about the market, often
results in insufficiently thought out and insufficiently effective actions in the market and resembles
the trial and error method. Quantitative studies are the most appropriate way to numerically
evaluate:

market capacity and patterns of supply and demand;

sales volumes of market operators;

product development prospects;

the effectiveness of various activities of companies to support and promote the product;

directions of development of the product portfolio and its individual components;

effectiveness of advertising activities;

distribution network performance;

consumer reactions to possible marketing actions of the manufacturer21.
Qualitative research, in contrast to quantitative research, does not focus on statistical
measurements, but rely on the understanding, explanation, and interpretation of empirical data and
are the source of the formation of hypotheses and productive ideas. Simply put, they do not answer
the question “how much?”, But the questions “what?” "as?" and why?". In qualitative research,
projective and stimulating techniques are widely used - unstructured, non-directive ways to ask
questions that help the researcher to reveal motives, beliefs, attitudes, attitudes, preferences,
values, degree of satisfaction, respondents' problems, etc., regarding products or brands. Projective
techniques help to overcome communication difficulties such as verbalization of feelings,
relationships, etc., as well as the identification of latent motives, implicit attitudes, repressed
feelings, etc. Qualitative research is most widely used in the study of:

patterns of consumption, buying behavior and factors determining choice;

relations to products, brands and companies;

Satisfaction with existing products

buying intentions22.
Qualitative research plays an important role in the development of new products, where
these studies allow:

understand whether there is a niche in the market for a new product;

identify relevance to new products (or product concepts).
The use of quality research at the stage of strategic development of the brand concept,
providing the opportunity:

generating a set of ideas regarding the concept of brand positioning;

brand concept evaluations;

generating ideas regarding the creative embodiment of strategic concepts;

evaluation of elements of marketing communication (name, logo, packaging, TV
advertising, etc.)
Another area of application of qualitative methodology is the so-called diagnostic studies.
Obviously, consumer and product perceptions change over time. Qualitative research in such cases
21
22
https://www.askattest.com/blog/insight/quantitative-vs-qualitative-research-and-how-to-use-each
https://www.askattest.com/blog/insight/quantitative-vs-qualitative-research-and-how-to-use-each
helps to determine the level, direction and nature of changes in brand perception and advertising
over time.
In addition, a qualitative methodology can be used in tactical research to select the most
successful version of the execution (execution) of advertising, packaging, logo. For testing,
alternative options for visual, textual, etc. elements of a specific implementation of an already
created advertisement, packaging, etc. can be offered.
Information Collection Methods
Despite the huge number of various research methods and techniques, the general scheme
of measures implemented as part of market research is quite simple and understandable. The main
sources of marketing information are:

Interviews;

Registration (observation);

Experiment;

Panel;

Expert review.
Interview (survey) - finding out the position of people or getting help from them on any
issue. A survey is the most common and critical form of data collection in marketing.
Approximately 90% of studies use this method. The survey may be oral (personal) or written.
During a written survey, participants receive questionnaires (questionnaires), which they
must fill out and give as intended. Typically, written surveys use closed-ended questions, the
answers to which are to select one of the following. Typically, in written surveys, the questionnaire
is sent to representatives of the target audience, by e-mail, mailing list or fax. The main
disadvantage limiting the use of this method is a long period and a low percentage (average 3%)
of the return of completed questionnaires.
Personal (Face-to-face) and telephone polls are called interviews.
Telephone interviews are a relatively cheap method of conducting surveys of any level of
accuracy from the point of view of sampling (the geographical location of respondents is not of
fundamental importance in terms of the cost of conducting an interview). This method is applicable
only in quantitative studies. However, there are objective disadvantages of using this method:

incomplete control over the respondent’s understanding and sincerity;

there is no way to present visual materials (samples, cards with answer options);

unrealizability of lengthy interviews (by phone it is difficult to keep the interlocutor's
attention for more than 15 minutes);

in cities with insufficient telephony it is not possible to obtain a representative sample.
Face-to-face interviews can be formalized and informal.
In a formalized interview, there is a specific survey design (usually it is a questionnaire
containing clear-cut wording of questions and well-thought-out models of answers to them).
Formalized interviews lose most of their meaning if respondents' answers are not analyzed in the
plane of their social and demographic (sectoral and geographical) characteristics. Therefore, it
necessarily involves filling out the "passport", which contains the data about each respondent, the
need for which is dictated again by the research program. Similar interviews are conducted on the
street, in shops, at social events, at the respondents' place of residence (apartment surveys), etc.
Formal surveys were most widely used in quantitative research. The main disadvantages of this
method are: relatively high cost and low geographical coverage.
Informal interviews are a specific method of collecting information in which there is only
a topic and purpose. There is no specific survey design. This makes it possible to identify the
underlying motives of consumer actions, to study both rational and irrational reasons for his
purchasing behavior. In practice, informal interviews are used in conducting qualitative research.
Informal interviews are individual and group.
Individual informal interviews are conducted one-on-one with the respondent in the form
of a dialogue, while the respondent has the opportunity to express detailed judgments on the
problem under study. One can distinguish such forms of conducting individual informal interviews
as in-depth interviews and hall tests.
In-depth interviews are a series of individual interviews on a given topic, conducted
according to a discussion guide. The interview is conducted by a specially trained highly qualified
interviewer who is well versed in the subject, owns the technique and psychological techniques of
conducting the conversation. Each interview takes place within 15-30 minutes and is accompanied
by the active participation of the respondent - he puts out cards, draws, writes, etc. In-depth
interviews, in contrast to the structured ones used in the quantitative survey, allow you to penetrate
deeper into the psychology of the respondent and better understand his point of view, behavior,
attitudes, stereotypes, etc. In-depth interviews, despite the large (in comparison with focus groups)
time spent, are very useful in situations where the atmosphere of a group discussion is undesirable.
This is necessary when studying individual problems and situations that are not customary to be
discussed in a wide circle, or when individual points of view can differ sharply from socially
approved behavior - for example, when discussing the relationship of sexes, sex, certain diseases,
hidden political beliefs, etc. . In-depth interviews are used when testing and developing initial
advertising developments (creative ideas), when you need to get direct, individual associations,
reactions and perceptions - without looking at the group. The combination of the in-depth interview
method and focus groups with the same respondents is optimal. And finally, in-depth interviews
are indispensable for conducting qualitative research, when the features of the target group make
it impossible to collect respondents for a focus group - i.e. at one time in one place for 2-3 hours.
For example, when it comes to busy businessmen, wealthy citizens, narrow professional groups,
etc.
Hall tests are semi-formalized personal interviews in a special room. As a rule, premises
are used in libraries, shops, halls of administrative buildings, etc. The respondent and the
interviewer sit down at the table, and the interview takes place in a structured conversation mode.
The need for a hall test is usually caused by one of several reasons:

testing bulky samples that are uncomfortable to wear by apartment or there is no certainty
that the apartment will have the opportunity to conduct an interview in normal conditions;

testing is limited by the number of samples;

use of special. equipment (for example, television video) for demonstration of the test
material;

The interview is conducted in crowded places of potential respondents, but it is difficult
and not suitable for conversation "on their feet."
Hall - tests formally refers to quantitative methods for obtaining information. With high-
quality hall-test methods, it is related that information is obtained on a relatively small directional
sample (from 100 to 400 people), as well as the fact that the respondent is asked to comment
(explain) his behavior. To conduct a hall test, representatives of the target group (potential
consumers) are invited to the room ("hall"), equipped for tasting goods and / or watching
advertisements, where they are given the opportunity to demonstrate their reaction to the test
material and explain the reason for their choice. In the course of answers to the questions of the
questionnaire, selection criteria, frequency and volume of consumption of brands of the studied
product group are determined. The method is used to assess the consumer properties of a new
product: taste, smell, appearance, etc. The method is also used when testing elements of a
trademark, packaging, audio and video clips, advertising messages (recognizability of an
advertising message, memorability, reliability, persuasiveness, understanding of the primary and
secondary ideas of advertising, slogan, etc.), etc.
Group informal interview (focused interview, focus group) - is a group discussion of issues
of interest by representatives of the target audience. The “focus” in such a group is on the
subjective experience of people who give their understanding and explanation of a given topic,
including all its nuances. The conversation is controlled by the moderator according to a predeveloped plan and is recorded on a videotape. As a rule, during the discussion, various projective
techniques are used to find out the "real" attitude of consumers to the subject being studied, having
received much deeper and more detailed information than at the level of "ordinary"
communication. Usually people don’t think specifically about the issues that are discussed in the
group, or are not able to compare their opinions with the opinions of other people. During the focus
group of respondents are asked not only to evaluate something on the basis of “like - not like”, but
also to explain their point of view. And the subsequent qualified analysis of the results allows us
to understand the psychological mechanisms of the formation of a particular opinion of the group
members. The main disadvantage of this method is the tendentious nature of the results. In other
words, the results of focused interviews cannot be expressed in numerical terms, for further
extrapolation to the general population of research objects. Therefore, in practice, focus - group
methodology is used in combination with quantitative research methods.
Observation (registration) is a form of marketing research, with the help of which a
systematic, systematic study of the behavior of an object or subject is carried out. Observation, in
contrast to the survey, does not depend on the willingness of the observed object to report
information. Observation is a process that is open or hidden from the observable collection and
recording of events or special moments related to the behavior of the studied object. The subject
of observation may be the properties and behavior of individuals; moving things, goods, etc. The
lack of observations is the inability to identify the opinions, ideas, knowledge of people. Therefore,
in practice, observations are usually used in conjunction with other research methods.
An experiment is a study of the influence of one factor on another while simultaneously
monitoring extraneous factors. The experiments are divided into laboratory, taking place in an
artificial setting (product test), and field, taking place in real conditions (market test). The main
disadvantages of this method are its significant cost and duration, which significantly limits the
application of this method in practical research.
A panel is a repeated collection of data from one group of respondents at regular intervals.
Thus, a panel is a type of continuous selection. It allows you to record changes in the observed
values, characteristics. A panel survey is used when studying the opinions of consumers of a
certain group for any period of time when their needs, habits, tastes, complaints are determined.
The disadvantages of using the panels are: the “mortality” of the panel, which manifests itself in
the gradual refusal of participants to cooperate or move to another consumer category, and the
“panel effect”, which consists in consciously or unconsciously changing the behavior of
participants under long-term control.
Expert assessment is an assessment of the studied processes by qualified specialists experts. Such an assessment is especially necessary when it is impossible to obtain unmediated
information about a process or phenomenon. In practice, the experts most often use the dolphin
method, the brain attack method and the synectic method.
The Delphi method is an expert survey form in which their anonymous answers are
collected over several rounds and, through familiarization with the intermediate results, receive a
group assessment of the process under study.
The brain attack method consists in the uncontrolled generation and spontaneous
interweaving of ideas by participants in a group discussion of the problem. On this basis, chains
of associations arise that can lead to an unexpected solution to the problem.
Synectics is considered a method with high creativity. The idea of the method is to
gradually alienate the original problem by constructing analogies with other areas of knowledge.
After multi-stage analogies, a quick return to the original task is made.
Analysis tools
During the processing and analysis of marketing research data, the first step is frequency
analysis. The following is a description of the statistical indicators of the studied characteristics.
Among these, the main indicators include the following:
Average (arithmetic mean value) is the quotient of dividing the sum of all values of the
attribute by their number. It is defined as the sum of the values divided by their number. It
characterizes a population as a whole. Used only to characterize interval and ordinal scales.
Dispersion - a value equal to the average value of the square of the deviations of individual
values of the signs from the average. Used only to characterize interval and ordinal.
The average linear deviation is a value equal to the average value of the module of
deviations of individual values of the characteristics from the average. Used only to characterize
interval and ordinal scales.
The standard deviation is the value equal to the square root of the variance. This is a
measure of the spread of the measured values. Used only to characterize interval and ordinal scales.
Coefficient of variation - the ratio of the standard deviation to the arithmetic mean. Used
only to characterize metric scales.
The minimum value is the smallest value of the variable found in the data array.
The maximum value is the largest value of the variable found in the data array.
Median - the value of the variable for that unit of the population, which is located in the
middle of the ranked series of frequency distribution. Cut off half of the distribution row. Used
only to characterize metric scales.
The upper quartile is the attribute value, cutting off 3/4 of the distribution series. Used only
to characterize metric scales.
The lower quartile is the value of the attribute, cutting off 1/4 of the distribution series.
Used only to characterize metric scales.
Fashion is the most common variable value, i.e. the value most likely to be encountered in
the array.
Frequency - the numerical value of the attribute (the number of respondents' answers).
Used for all kinds of scales.
Valid percentage - the proportion of the numerical value of the attribute of the total
population. Used for all kinds of scales.
The second step in the processing and analysis of marketing research data is to describe
the correlation between the studied variables. Correlation is a measure of the dependence of
variables. There are several correlation coefficients indicating the tightness of the relationship
between the studied variables. Correlation coefficients vary from +1 to -1. If the correlation
coefficient is -1, then the variables have a strict negative relationship (the higher the lower), if the
correlation coefficient is +1, then the variables have a strong positive relationship (the higher the
higher). It should be noted that if the coefficient is zero, then there is no connection between the
variables. Among the most famous and frequently used correlation coefficients are:

Pearson correlation coefficient

Spearman's correlation coefficient

Cramer Correlation Coefficient

Phi correlation coefficient.
Testing of advanced research hypotheses is carried out using correlation, analysis of
variance or factor analysis. As a result of the data analysis, the hypothesis put forward is confirmed
or rejected, which in any case indicates the result.
Conjoint analysis A method of analysis designed to evaluate and compare product
attributes in order to identify those that have the greatest impact on consumer decisions. The
Conjoint analysis method is the best technology for measuring the importance of a factor due to
the fact that it makes the respondent think not about what is important, but only about his
preference. The advantage of the method is the ability to identify latent factors that affect consumer
behavior. Using this method, you can select the optimal combination of product properties, leaving
the product in an acceptable price category.
Cluster analysis is a set of methods that allow classification of multidimensional
observations, each of which is described by a certain set of variables. The purpose of cluster
analysis is the formation of groups of similar objects that are commonly called clusters. Using
cluster analysis, you can segment the market (for example, highlighting priority consumer groups).
The application of clustering methods to segmentation is based on the following assumptions.
First, it is believed that according to the values of the variables that describe the properties of
consumers, we can distinguish groups of similar consumers. Secondly, it is believed that the best
marketing results for product promotion can be achieved in a distinguished segment. It is believed
that it is more significant for the marketing result that consumers are united in a group taking into
account measures of proximity to each other. To substantiate these assumptions, the analysis of
variance is used.
Analysis of variance. Using the analysis of variance, the effect of one or more independent
variables on one dependent variable or on several dependent variables is investigated. A statistical
analysis method that allows you to determine the reliability of the hypothesis of differences in
average values based on a comparison of variances (deviations) of distributions (for example, you
can test the hypothesis of differences between two consumer groups identified by clustering).
Unlike correlation analysis, analysis of variance makes it impossible to assess the tightness of the
relationship between variables.
Regression analysis. A statistical method for establishing the relationship between
independent and dependent variables. Regression analysis based on the constructed regression
equation determines the contribution of each independent variable to the change in the studied
(predicted) dependent variable. In marketing, it is often used to forecast demand.
Factor analysis. A set of methods that, based on real-life relationships of signs (or objects),
allow us to identify latent (or hidden) generalizing characteristics of the studied phenomena and
processes. The main objectives of factor analysis are to reduce the number of variables and
determine the structure of the relationships between variables, that is, the classification of
variables. When reducing the number of variables, the resulting variable includes the most
significant features of the variables to be combined. Classification involves the isolation of several
new factors from variables related to each other. In marketing, this method is used in connection
with a deeper analysis of consumer behavior, the development of psychography, etc. tasks in which
the identification of clearly unobservable factors is necessary.
The results of field studies are significant arrays of variables that are complex enough to
handle "manual method". To date, the arsenal of researchers has many software packages that
allow you to optimize and simplify the analysis procedure. The most widely used packages are
Vortex, SPSS, Statistica.
The program "VORTEX" is intended for:

input of primary information collected in the course of applied marketing or sociological
research;

processing and analysis of this information;

presenting the results of the analysis in the form of tables, texts, graphs and charts with the
possibility of transferring them to Microsoft Word and other Windows / NT applications.
Information analysis features:
The Vortex program allows you to produce descriptive statistics of the studied variables
(calculation of statistical indicators: average, mode, median, quartiles, variance, standard
deviation, coefficient of variation, bevel, excess, etc.);
It allows you to segment consumers according to several criteria, as well as a description
of the selected target groups (highlighting contexts - subarrays of documents for in-depth analysis,
for example, only men or only respondents aged 20-25).
Using the Vortex program, it is possible to carry out a correlation analysis that allows you
to identify the dependencies of the studied factors that affect the marketing result (calculation for
tables of two-dimensional distribution of the Pearson, Gamma, Lambda, Kramer, Yule, Fisher
correlation coefficients, X-square, Student criteria, determination of statistical significance) .
SPSS for Windows is a modular, fully integrated, fully functional software product
designed for all stages of the analytical process: planning, data collection, data access and data
management, analysis, reporting and dissemination of results. SPSS for Windows is the best
software for solving business problems and research problems using statistical methods.
SPSS software allows for frequency analysis, descriptive statistics, correlation analysis,
analysis of variance, cluster analysis, factor analysis, as well as regression analysis.
Using the analytical capabilities of the SPSS program, you can obtain the following data:

The most profitable market segments;

Strategies for positioning products / services relative to similar products / services of
competitors;

Assessment of the quality of goods / services by customers;

Prospects for development, new opportunities for growth;

Confirmation or refutation of research hypotheses.
Statistica is a universal integrated system designed for statistical analysis and data
visualization, database management and user application development, containing a wide range of
analysis procedures for use in scientific research, technology, business.
Statistica is a modern package of statistical analysis, which implements all the latest computer
and mathematical methods of data analysis. The experience of many people who successfully work
with the package indicates that the ability to access new, non-traditional methods of data analysis
(and Statistica provides such opportunities to the fullest) helps to find new ways to test working
hypotheses and research data.
Statistica software allows the following statistical data processing procedures:

Descriptive statistics;

Analysis of multidimensional tables;

Multivariate regression;

Discriminant analysis;

Correspondence analysis;

Cluster analysis;

Factor analysis;

Analysis of variance and much more.
2.2. Research Methods
This study will be aimed at testing hypotheses formulated on the basis of an analysis of the
theoretical base on the topic and studies conducted by other authors.
The ultimate goal of the study is to test the model of the influence of factors described in
the first chapter on the relative and behavioral loyalty of consumers. Based on the results of the
study, a set of recommendations for chain hotels will be offered.
To achieve the designated goal, the following tasks can be formulated:
● Assess customer satisfaction for each of the factors.
● Rate overall satisfaction with hotel services.
● Assess the level of consumer loyalty to the Wyndham.
● Test formulated hypotheses.
● To evaluate the correctness of the model of the influence of factors on consumer loyalty.
● To develop a set of recommendations to increase consumer loyalty to the Wyndham hotel
chain.
Based on the compiled model and the tasks set, the following hypotheses were formulated:
The main hypothesis of the study is the assumption that the key brand that affects the choice
of hotel for most respondents is the brand of the hotel.
The main motive for consuming hotel services is suitable price characteristics.
The territorial location of the hotel does not affect the choice of brand
There is a connection between the indicators “Product and Brand Promotion” and
“Satisfaction”.
Secondary hypotheses.
The main purpose of arriving at the hotel is work. Tourism and recreation are
secondary reasons.
Advertising hotel services is most effective.
Hotel accommodation is mainly with work colleagues.
The study will take place in several stages.
At the first stage, the primary information was obtained, which is necessary to test all the
hypotheses mentioned earlier. In this study, the survey method was used to obtain information.
“This is the most common type of case study and at the same time the most used method of
collecting primary information.” It is indispensable in situations where the characteristics of
individual consciousness are studied, which are almost not amenable to direct observation. As part
of the study, an online questionnaire was created on the Google Drive resource (Appendix 1).
Assessment of satisfaction with individual factors and indicators was set on a scale of 1 to 10,
where 1 is the minimum rating, and 10 is the maximum.
For any type of questionnaire, it is extremely important to take into account the psychology
of the respondent and direct the study, taking into account the characteristics of indirect interaction.
Thus, in this study, a questionnaire survey gives us a massive representative picture of the
factors and motives that determine the choice of clients of the Wyndham Hotel. It is the
questionnaire that will help to conduct the most complete and accurate study, since the factor of
anonymity of answers to questions has a beneficial effect on the honesty of respondents' answers.
Since questions about the use of hotel services can be attributed to personal topics, which not
everyone is ready to discuss openly, an anonymous survey will minimize the closeness of
respondents.
If we talk about the shortcomings, here we can distinguish:

It is difficult to assess the objectivity of the content of information;

Likely false, invaluable information due to the incompetence of the respondent,
random circumstances;

Imposing opinions on the respondent: incorrectly composed questions sharply
reducing the quality of information, introducing researcher's attitudes into the
information.
Deviation from the original tasks under the influence of the respondent.
In order to minimize data distortions in our study associated with these factors, the survey
should be carried out in a short time. It is impossible stretch the survey for a long time, because
by the end of the survey external circumstances may change, and the information about its conduct
will be transmitted by the respondents to each other with some comments, and these judgments
will affect the nature of the answers of those who later fall into the composition of the respondents.
In this research used the quantitative method of analyzing the collected data. Quantitative research
is the main tool for obtaining the necessary information for planning and decision making when
the necessary hypotheses regarding consumer behavior are already formed.
At the second stage, primary data processing was performed. Next, the SPSS Statistics
program was used, which allows us to compile the necessary econometric models and regressions.
Based on the analysis of these models, conclusions were drawn about the validity or failure of the
hypotheses put forward. To determine the presence of a relationship between the variables, the
Pearson correlation coefficient was used.
At the third stage, it was concluded that the developed model for creating and maintaining
consumer loyalty to the brand was viable. In addition, the analysis of the data obtained during the
survey revealed the strengths and weaknesses of hotels and the hotel chain.
After receiving the results of the survey respondents, the author, on the basis of the results
obtained, develop a marketing strategy to increase the brand awareness of the hotel International
as well as a strategy to increase customer loyalty. Then the author proved the economic efficiency
of the strategy being developed and with the help of a comparative financial analysis, the author
analyzed the financial performance of the hotel for 2017-2018 with the projected financial result
after the implementation of the marketing strategy.
Chapter 3. Analytical part
3.1. Analyzing the findings of empirical data
A descriptive analysis of the respondents indicates that 51% were male while 49% were
female. An overwhelming 30% of the respondents were between 31 and 40 years, 34% of the
respondents were between 41 and 50 years, 20% of the respondents were between 20 and 30 years
and 16% of the respondents were above 51 years of age. 59% of customers are from Russia, 7.6%
of tourists coming from Kazakhstan, 5.6% from Kyrgyzstan, 5.6% France, 4.6% from India etc.
The ratio (table 2) we investigate the hypotheses. The results show that there is a positive
correlation between key constructs. A correlation model was conducted to test the relationship between
brand loyalty, customer brand identity, brand satisfaction, and brand loyalty. The results, as shown in Table
2, show that the proposed model is appropriate for all three hypotheses, since brand identification and
loyalty (hypothesis 1) showed the results Question 5 = 0.135 and Question 7 = 0.203. This model shows
that brand loyalty can be explained as a customer's brand identification, brand loyalty and satisfaction as
independent variables. The results for Hypothesis 1 show that customer brand identity significantly and
positively affected brand loyalty. In addition, it also shows that brand satisfaction has a significant and
positive relationship with brand loyalty (Q8 = .245, Q9 =, 216), which supports H3.
Correlations
18.
1.
1. When you visited
Pearson
Hotel, was it your
Correlat
first time staying
ion
2.
1
there? (Please choose Sig. (2one response)
5.
7.
8.
9.
-,440**
-,013
,000
11.
12.
13.
14.
15.
stay
,134
,203*
,245*
,216*
,074
-,010
,232*
-,022
-,057
-,095
,892
,164
,033
,010
,024
,446
,914
,015
,820
,555
,324
110
110
110
1
-,265**
110
109
109
109
108
109
110
110
109
-
-,177
-,130
-,079
-
-,162
-,051
-,024
,003
,039
tailed)
N
2. If you have
4.
110
Pearson
-
answered yes to the
Correlat
,440**
previous question,
ion
please disregard the
Sig. (2-
following question:
tailed)
How many times
N
,227*
,274*
*
,000
,005
,017
,064
,178
,417
,004
,094
,599
,805
,971
,691
110
110
110
110
110
109
109
109
108
109
110
110
109
-,013
-,265**
1
,499*
,358*
,304*
,279*
,390*
,283*
,257*
-,013
,038
-,027
*
*
*
*
*
*
*
,000
,000
,001
,003
,000
,003
,007
,891
,693
,784
have you stayed at
this hotel in total up‐
to-date: (Please
choose one response)
4. Does the brand
Pearson
matter to you when
Correlat
choosing a hotel?
ion
Sig. (2tailed)
,892
,005
5. How do you feel
N
110
110
110
110
110
109
109
109
108
109
110
110
109
Pearson
,134
-,227*
,499**
1
,702*
,622*
,374*
,351*
,474*
,383*
,015
-,073
-,043
*
*
*
*
*
*
,000
,000
,000
,000
,000
,000
,880
,451
,655
about the brand of
Correlat
this hotel?
ion
Sig. (2-
,164
,017
,000
110
110
110
110
110
109
109
109
108
109
110
110
109
,203*
-,177
,358**
,702*
1
,696*
,374*
,397*
,489*
,467*
-,039
-,045
-,043
*
*
*
*
*
*
,000
,000
,000
,000
,000
,683
,642
,656
109
109
109
108
109
110
110
109
1
,453*
,366*
,344*
,443*
-,097
-,038
-,095
tailed)
N
7. Please indicate
Pearson
what emotions you
Correlat
have when you
ion
encounter the brand?
Sig. (2-
,033
,064
,000
,000
110
110
110
110
110
-,130
,304**
,622*
,696*
*
*
*
*
*
*
,000
,000
,000
,000
,317
,697
,325
109
109
108
109
109
109
109
1
,291*
,201*
,528*
-,137
,089
-,165
tailed)
N
8. Which statement is Pearson
most relevant to how
Correlat
well you know the
ion
brand of this hotel?
Sig. (2-
,245*
,010
,178
,001
,000
,000
109
109
109
109
109
109
-,079
,279**
,374*
,374*
,453*
*
*
*
*
,002
,037
,000
,157
,356
,086
tailed)
N
9. Let's discuss the
Pearson
reuse of Brand
Correlat
services. Indicate
ion
how likely it is that
Sig. (2-
you will reuse the
tailed)
,216*
*
,024
,417
,003
,000
,000
,000
services of this hotel? N
109
109
109
109
109
109
109
109
108
109
109
109
109
11. You consider this Pearson
,074
-,274**
,390**
,351*
,397*
,366*
,291*
1
,542*
,223*
-,036
,118
-,077
*
*
*
*
*
,000
,020
,714
,220
,425
hotel brand to be a
Correlat
luxury hotel that
ion
provides:
Sig. (2-
,446
,004
,000
,000
,000
,000
,002
109
109
109
109
109
109
109
109
108
109
109
109
109
-,010
-,162
,283**
,474*
,489*
,344*
,201*
,542*
1
,385*
-,083
-,011
,177
*
*
*
tailed)
N
12. All of the
Pearson
employees at this
Correlat
hotel delivered the
ion
service to me in a:
Sig. (2-
*
*
,000
,392
,910
,067
,914
,094
,003
,000
,000
,000
,037
,000
108
108
108
108
108
108
108
108
108
108
108
108
108
-,051
,257**
,383*
,467*
,443*
,528*
,223*
,385*
1
-,042
,039
-,071
*
*
*
*
,666
,686
,463
109
109
109
tailed)
N
13. The
Pearson
previous/current
Correlat
service experience
ion
this hotel, encourages Sig. (2you to:
,232*
*
,015
,599
,007
,000
,000
,000
,000
,020
,000
109
109
109
109
109
109
109
109
108
tailed)
N
109
14. Your gender:
Pearson
-,022
-,024
-,013
,015
-,039
-,097
-,137
-,036
-,083
-,042
,820
,805
,891
,880
,683
,317
,157
,714
,392
,666
110
110
110
110
110
109
109
109
108
109
-,057
,003
,038
-,073
-,045
-,038
,089
,118
-,011
,555
,971
,693
,451
,642
,697
,356
,220
110
110
110
110
110
109
109
-,095
,039
-,027
-,043
-,043
-,095
,324
,691
,784
,655
,656
109
109
109
109
109
1
-,175
-,076
,068
,433
110
110
109
,039
-,175
1
,144
,910
,686
,068
109
108
109
110
110
109
-,165
-,077
,177
-,071
-,076
,144
1
,325
,086
,425
,067
,463
,433
,135
109
109
109
108
109
109
109
Correlat
ion
Sig. (2tailed)
N
15. Age:
Pearson
Correlat
ion
Sig. (2-
,135
tailed)
N
18. Purpose of travel
Pearson
and stay
Correlat
ion
Sig. (2tailed)
N
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
This study has several implications for managing hotel brand loyalty. From a theoretical
perspective, this study expands on the current understanding of the hotel brand under study by
examining the role of customer brand identity, brand satisfaction, and brand loyalty. These designs
are key to developing customer loyalty to the service industry and a significant source of
competitive advantage (Ballantyne, 2005). From a practical standpoint, the results recommend
that, while building and maintaining strong brand loyalty, hotel brand managers create a positive
customer experience of the service experience. These aspects of brand management represent
important practical components that hotels must satisfy in order to meet customer expectations.
The practical implications for luxury hotels is that they must pay much more attention to building
an effective marketing strategy. Consequently, hotel managers should focus on social networking
tactics to maintain and improve levels of commitment and create higher levels of customer
satisfaction, brand identity, and brand loyalty. In this regard, in the next section, we will make a
financial analysis of the economic indicators of the hotel under study for 2019 and try to evaluate
the marketing policy of the hotel with this analysis.
109
3.3. Analyzing the financial data
On Table 3, we consider the company's revenue from sales for 2019.
Table 3.
Service sales revenue for 2019
№
Activities
Revenue
%
Cost price
%
excluding VAT
(million
soums)
1
Hotel Services
55634
70,05
41296
61,2
2
Restaurant Services
23788
29,95
26168
38,7
79422
100
67464
100
Total
The equity capital of Wyndham Hotel as of December 31, 2019 amounted to 28764
mln.UZS, which is 10651 mln.UZS. more than 01.01.2019. In table 4. we consider the value of
the net assets of WYNDHAM HOTEL for 12/31/2019 and compare with the figures for
01/01/2019.
Table 4.
Estimation of net asset value of an organization
Index
Indicator value
Change
In million UZS
In% of the balance In
sheet currency
Beginning
the
of At the end of As
of As
analyzed the analyzed 01.01.2
%
million
of UZS
31.12.2019
period
period
(01/01/2019)
(12/31/2019
1
2
3
4
5
6
7
1. Net assets
18113
28764
62,4
88,16
10651
58,80
30
0,1
0,1
-
-
28734
62,3
88,07
10651
58,90
2. Authorized 30
019
capital
3. The excess 18083
of net assets
over
authorized
capital
Diagrams 1 - 2 show the results of the analysis of changes in the main articles of assets and
liabilities of the balance sheet, structural components of the income and expenses of the enterprise,
as well as the results of calculating the profitability, liquidity and financial stability of the
enterprise based on the results of 2018-2019 calculated algorithms.
Diagram 1.
Dynamics of changes in the levels of the main items of assets and liabilities
Dynamics of changes in the levels of the main items of assets
and liabilities (mln. Soums)
35000
30000
32626
29017
28764
25000
18474
20000
18113
15629
16997
15000
10881
10543
10000
3862
5000
23
0
01.01.2018
0
01.01.2019
Assets / liabilities balance
Current assets
Fixed assets
Capital and reserves
long term duties
Short-term liabilities
Data analysis is shown in charts 1 - 2 and in table 3-4 shows:
1. The balance sheet of WYNDHAM HOTEL increased from 29017 mln.UZS. in 2018 to
32626 mln.UZS in 2019, while the main growth was due to an increase in non-on-board assets by
6454 mln.UZS;
2. The volume of current assets of WYNDHAM HOTEL in the period 2018-2019. remains
in the range of 15,000-18,000 mln.UZS;
3. The amount of equity capital of WYNDHAM HOTEL increased from 18113 mln.UZS.
in 2018 up to 28764 mln.UZS. in 2019, i.e. more than 50%;
4. The volume of long-term debt of 23 mln.UZS. in 2018 decreased to 0 UZS in 2019;
5. The amount of short-term debt in the amount of 10881 mln.UZS. in 2018 decreased to
3862 mln.UZS.
Therefore, the most important financial resources of the company are short-term, unstable
liabilities, typical for commercial enterprises, but requiring increased liquidity of the company's
assets (receivables and cash on current accounts).
Diagram 2.
The dynamics of the formation of the main items of income and expenses of
WYNDHAM HOTEL in 2018 - 2019
20182
2019
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Revenue
Management
expenses
Cost of sales
Profit (loss)
before tax
Gross profit
(loss)
Net income
(loss)
20182
70288
16596
39152
1600
31136
952
2019
87490
17716
43496
13285
43994
10628
Analysis of the dynamics of the formation of the main income and expenses of
WYNDHAM HOTEL for the period 2018-2019, as well as net profit after tax (chart 2) showed:
- As a result, revenue from the sale of services increased from 70,288 mln.UZS. in 2018 to
87,490 mln.UZS. in 2019.
- Due to the high management expenses and expenses for the provision of services in 2018
from the financial activities of the company, net profit after tax amounted to 952 mln.UZS. After
the transition to cost optimization, WYNDHAM HOTEL in 2019 made a profit of 10,628
mln.UZS.
Next, we will calculate the economic efficiency of the activities of WYNDHAM HOTEL
for 2019 and compare it with the figures of the previous year. Economic efficiency of enterprises
is expressed in terms of profitability (profitability). During the analysis of profitability indicators,
the following factors are determined.
The calculated profitability indicators of Wyndham Hotel are summarized and analyzed in
diagram 3.
Diagram 3.
Profitability indicators of Wyndham Hotel
1,6
1,34
1,4
1,2
1,07
1
0,8
0,6
0,36
0,4
0,2
0,05
0,12
0,01
0
12 month 2018
Return on assets gross profit from product sales,%
12 month. 2019
Return on equity for net profit after tax,%
Return on sales of net profit after tax
From the data in the diagram, we can see that all the indicators of profitability - assets,
capital, sales and services sold, had a growth trend in 2019, due to an increase in the volume of
profit from sales, retained earnings and net profit of the enterprise. The growth in the profitability
of sales of services sold indicates positive trends in the development of the enterprise.
Next, we calculate the ratio of own working capital (SOS). This ratio shows the sufficiency of the
organization’s own funds to finance current activities.
According to the Order of the Cabinet of Ministers of the Republic of Uzbekistan dated
January 23, 2001 N 16 "On approval of the" Guidelines for the analysis of the financial condition
of organizations ", the coefficient is calculated as follows (in the Order it refers to the ratio of own
funds):
COS ratio = (Equity - Non-current assets) / Current assets
Then we calculate the coefficient of autonomy (coefficient of financial independence). This
ratio characterizes the ratio of equity to the total capital (assets) of the organization. The ratio
shows how independent the organization is from creditors. The smaller the coefficient value, the
more the organization is dependent on borrowed funding sources, the less stable its financial
situation.
Coefficient of autonomy = Equity / Assets
The numerator and denominator of the formula are reflected in the balance sheet of the
organization, where the value of assets is always equal to the sum of the organization’s own and
borrowed capital.
Diagram 4.
The dynamics of the coefficients of autonomy, provision and coverage of reserves by
resources at WYNDHAM HOTEL in 2018 - 2019
1,8
1,6
1,6
1,4
1,13
1,2
1
0,75
0,8
0,6
0,4
0,4
0,2
0
01.01.2018
01.01.2019
The Ratio of the security of current assets ownership of working capital
Ratio of financial independence of resources - Standard = 0.5
1
The net assets of Wyndham Hotel on the last day of the analyzed period far exceed the
authorized capital of Wyndham Hotel. This ratio positively characterizes the financial situation of
Wyndham Hotel, fully satisfying the requirements of regulatory enactments for the value of the
organization’s net assets.
Taking into account the excess of net assets over the authorized capital, we can talk about
the good financial position of the organization on this basis.
3.4. Developing the strategic plan to improving marketing policy
Development of a complex of measures within the framework of the effective marketing
activities of the hotel
For more effective promotion of the Wyndham in the business tourism market, attention
should be paid to the needs and characteristics of this segment in the tourism industry.
The most effective way is advertising in all media. Developing an advertising campaign
requires a consistent approach. It is necessary to analyze each method and choose the most
effective.
An advertising campaign is a set of promotional events developed in accordance with the
marketing strategy and referrals to various segments of a tourism company’s clients in order to
arouse their interest in this company. Thus, to achieve strategic and tactical objectives. With the
help of promotional events, feedback is established with the market, the interaction of tourism
services with the surrounding market environment is ensured - intermediaries, competitors.
If the promotion of the city of Tashkent is successful among foreign countries, it means
that the tourist flow will increase and, accordingly, the Wyndham as a prestigious hotel will be
able to attract foreign tourists, meeting their high demands. Therefore, it is necessary to promote
hotel services not only on the scale of the Uzbekistan tourist market, but also internationally.
Attention should be paid to disseminating information about the hotel as the best venue for
conferences, seminars and business meetings.
Setting goals for the advertising campaign of the Wyndham:
1) increase in load in the offseason;
2) increase the image of the hotel.
Defining the objectives of an advertising campaign:
1) stimulation of travel agencies in the offseason to load the hotel;
2) an increase in income due to the sale of services to a local audience;
3) implementation of tourism development programs (seminars, forums, conferences);
Target exposure groups:
1) diplomatic missions and international organizations;
2) representative offices and branches of nonresident banks, industrial enterprises having
relations with foreign countries and other regions, branches and representative offices of
nonresident and foreign companies; foreign and Uzbekistan tourists;
3) exhibition companies and consulting firms;
4) scientific institutes;
5) local audience.
The objectives of the advertising campaign for buyers in the face of large companies
participating in large business events (forums, congresses, business meetings at the highest level):
1) sales promotion;
2) increase the image of the hotel as an ideal place for business tourism;
3) development of branding elements for certain groups: T-shirts, folders, pens, caps, etc.
The objectives of the advertising campaign for Uzbekistan and foreign tourists:
1) draw attention to the hotel through outdoor advertising;
2) the ability to use the services of a bar, cafe, accommodation in rooms (weekends) and a
restaurant.
The announced budget is: 1,190,000 soums (see table 5).
When financing an advertising campaign, the assumption is accepted as the initial premise
that the increase in the product is somewhat dependent on the increase in advertising costs. The
relative effectiveness of advertising costs decreases as it grows. It is assumed that there are some
constants:
R - sales reaction to advertising, that is, the ratio "sales volume / cost of advertising" in the
experimental verification of the effectiveness of advertising;
L - reduction in sales per unit of time at zero advertising costs.
In this case, the amount of advertising costs A, necessary in order to increase sales by S
over time t, with the existing sales volume S and at the level M of saturation of the market with
this tourist product, will be: A = (S + L + t + S) / (R * t * (1- S / M)).
Analysis of the formula shows that even in the absence of growth in sales (S = 0),
advertising costs are not equal to zero. If the volume of sales in the market is large enough and the
level of saturation of the market with this product is high, expenses can tend to large values (S /
M˟1).
As can be seen from the analysis of the growth rate of sales for the period from 2017 to
2018. there was a tendency to increase it briefly:
R = S1 / St-1
R = S98 / S97, R = 640000/460000 = 1, 39
R = S99 / S98, R = 1600000/640000 = 2, 5
Advertising costs also increased in proportion to the increase in sales and symbolics of 5%.
Table 5
Wyndham Campaign Budget
1.
Cost items for advertising media
Deadlines
Cost, in million
UZS
Exhibitions
January, February, March,
September, October
300, 0
2.
Press Advertisements
During a year
419, 5
3.
Radio Advertising
According to a separate plan
36, 0
4.
Direct mail
During a year
10, 0
5.
Printing, souvenirs
During a year
131, 0
6.
Outdoor advertising
For the season
153, 5
During the year
40, 0
According to the schedule
100, 0
7.
Advertising on well-known Internet
portals
8.
Presentations, festivals and other major
PR events
TOTAL
1 190, 0
Market conditions in 2019 were very favorable. This created a stable environment for the
effective impact of promotional events. The return on advertising was also observed. With the
growth of cost indicators of sales, additional investment in advertising is justified and profitable.
Exhibitions
The participation of the Wyndham in the international exhibition MIIT-2020 and at the
Tashkent exhibition “Resorts and Tourism-2020” contributed to the effective promotion of the
hotel's brand and services, as well as to increase its attractiveness and thereby create the necessary
excess demand for tour packages. Practice shows that the most effective promotion and sales of
tour packages is achieved by participating in the consolidated stand of the region on the largest
tourist exchange in Uzbekistan.
The results from participation in the exhibition “Resorts and Tourism” in January 2020
also had a positive effect on the promotion of the hotel.
At exhibitions, there is a real opportunity to use the entire arsenal of advertising materials,
from advertising leaflets and ending with a first-hand account of the hotel from the general director
during seminars, press conferences and media interviews held during the exhibitions.
Press
The purpose of the print media is the image impact on tour operators, travel agents.
Advertising in the press includes such publications as newspapers, magazines, reference books,
catalogs. When choosing a specific publication takes into account:
1) circulation;
2) frequency;
3) specialization of the publication;
4) the nature of advertising.
You need to choose popular, well-promoted publications. For monthly publications, the
effectiveness of advertising is high when it is placed in each issue. In this case, you should alternate
image advertising with advertising of certain services.
So, in specialized publications addressed to tourism professionals and vacationers “Turinfo”, “Voyage”, “Tourism: practice, problems, prospects”, “Tourism business”, “Tourism
and leisure” - advertising should be timed to the beginning of the season - May and in the middle
of the season to maintain the image (see table. 6).
On the eve of the season it is necessary to publish in the local press. This may be a series
of reports about the hotel’s readiness for the season, about new leisure programs for guests, about
the hotel’s work to improve the quality of service. In order to attract business tourists, prepare an
article on the availability of congress services at the hotel, the possibility of organizing business
meetings, as well as office rental services in the hotel’s business center for local residents.
Table 6
Media Advertising
№ п/п
Title of publication
Cost of
Number of
publication in outputs
USD
Amount in
thousand
soums
Newsletters
1. Central
1.
"Uzbekistann newspaper"
50
6
8500
2.
"TVNZ"
45
6
7650
3.
Turinfo
65
25
41990
2. Tashkent
4.
"Tashkent's comsomolets"
400
2
27200
5.
"Kommersant Daily"
250
2
17000
3. Regional
6.
Kuban Week
70
10
19040
7.
"Evening Rostov"
100
10
27200
8.
Business Petersburg
150
2
10200
30
10
9180
4. Local
9.
"Black Sea Health Resort"
TOTAL
167960
Magazines
10.
"Voyage"
600
1
20400
11.
“Tourism: practice,
problems, prospects”
1, 350
1
45900
12.
"Tourist business"
850
2
57800
13.
Business Travel
450
4
30600
14.
"Hotel"
2500
1
85000
TOTAL
239700
Directories, catalogs
15.
"Resorts of Uzbekistan"
150
1
5100
16.
"Rest in the Kuban"
80
1
2720
17.
"Uzbekistann tourism"
130
1
4420
TOTAL
12240
IN TOTAL
419900
Radio Advertising
This type of advertising affects a wide audience and is an effective way to promote the
services of the hotel and its image as a whole. Radio advertising has such advantages as breadth
of coverage, selectivity, relatively inexpensive type of advertising medium. The advertising video
for the Hotel Wyndham can be carried out at various radio stations, both local and regional, as
well as popular Uzbekistan radio stations. When advertising hotel services, it is necessary to reflect
its positioning so that the information is accurately directed to the target audience. As a rule, a
radio clip in time is short-lived, concise. The perception of information by ear differs from the
visual, so you should not talk in detail about all the services and offers of the hotel, it is enough to
focus the audience on any one of the most important services of the enterprise, which distinguishes
it from other hotels. For Wyndham advertising is possible on the local radio station “Max FM”. In
order to promote the services of the hotel’s business center, it is possible to direct advertising to
the local audience in the person of entrepreneurs and company owners offering them favorable
conditions for rental premises. In addition, the Wyndham practically does not use advertising on
radio stations in its communication policy. The costs of renting radio stations at radio stations are
given in table. 7.
Table 7
The cost of advertising on the radio station “Max FM”
№
п/п
Schedule of exits,
month
Chrono
me
Cost of 1
publication in
USD
The
amount of
publicatio
ns
Cist in
tousand UZS
1.
October, 2019
30
120
60
7200
2.
November, 2019
30
120
60
7200
3.
December 2019
30
120
60
7200
4.
January 2019
15
120
30
3600
5.
February 2019
15
120
30
3600
6.
May 2019
30
120
60
TOTAL
7200
36000
In October and November, intense off-season advertising. The number of ad spots 3 times
a day (9:00; 10:00; 19:00). The cost of manufacturing 90000 soums.
Direct mail
Direct mail ("direct mail"), the distribution of information and advertising materials at
exhibitions - have traditionally established themselves as one of the most effective types of
advertising in tourism. Their success consists in mailing materials and specially selected addresses
to interested parties and potential buyers. This method has one very significant advantage relatively low costs.
This type of advertising is used to send information about various offers during the offseason. This method is especially attractive, as it is very convenient for regular and corporate
clients and business travelers to find out about the latest in the hotel through direct mail. The
newsletters contain letterhead offers sent over the Internet.
Printed products
One of the most significant and important means of advertising in advertising various
services is advertising printing. Printing is indispensable as one of the types of visual agitation,
combines brevity and information content, is one of the means for conducting a number of
advertising campaigns.
It is known that printing is not necessary for the effective advertising of goods, but it is
essential for the promotion of services. Fundamentally important here is the presence of a single
corporate identity of the hotel and color scheme. The circulation should be significant to meet the
biennial needs of hotels. A shorter period (circulation) is disadvantageous, a longer one may
require early amendments to the prospectus that have occurred during this time.
The annual demand for printing products is determined by the frequency of participation
in exhibitions, the size of the hotel's agent network. For Wyndham, the optimal batch of booklets
satisfying the need for work for 2 years is 1000 copies. Changing information will be contained
on a special insert and updated as necessary (see table. 8).
Table 8
Types of advertising printing
№
п/п
Name
Amount in thousand
Cost in million
UZS.
1.
Booklet
2
29,0
2.
Avenue
1
15,0
3.
Pocket calendars
1
11,6
4.
Letterhead
2
20,0
5.
Branded pens
0,25
5,0
6.
Business Cards
0,7
1,4
7.
Company envelopes
2
8,0
8.
Hotel business card
0,5
1,0
9.
Company folders
1,5
15,0
10.
Special inserts
1
1,0
11.
Flyer
2
24,0
TOTAL
131,0
Outdoor advertising
Hotel Wyndham advertises at the airport, at the railway station. It is necessary to strengthen
the impact of advertising by placing information about the hotel on the road signs on the way to
the hotel and in the city center. The cost of such a pointer measuring 1 * 0.5 m is about 150 USD
or 1435000 soums.
Dates of the advertising campaign (see table. 9)
Table 9
Hotel advertising campaign for 2019-2020
Campaign Stage
The timing
Key events
Types of
Advertising
I
January-February
2019
Participation in
exhibitions in Tashkent
and in Tashkent
Image
II
March 2019
Participation in MIIT
Image
III
April-June2019
Conclusion of contracts
for the 2019 season.
Informational
IV
July-August 2019
Decline in advertising
activity
Supporting
V
September-November
2019
Participation in the
exhibition "Rest-2019,
Tashkent, Promotion of
services in the offseason
Stimulating
VI
December 2019
Articles in the print
media
Convincing,
image-building
Thus, the advertising campaign is a real tool for creating and enhancing the favorable image
of the hotel, promoting services in the field of business tourism, retaining regular customers, as
well as attracting new customers.
This set of measures is directly related to the work of the marketing and sales section and
affects all work and all technical and economic indicators of the hotel.
Recommendations for improving the advertising activities of the hotel:
An effective way to promote services in the modern world is the Internet. Without
information technology, it is impossible to imagine the activities of accommodation enterprises in
a highly competitive environment. Today, almost all hotels and accommodation facilities have
their own pages on the Internet, but only a few have real returns. If you try to classify, then their
hierarchy will look like this: business card; web showcases; tourist electronic shops.
Hotel Wyndham uses the basic and familiar means of advertising to promote its services.
But to achieve the results of their positioning in relation to competitors, these funds are not enough.
Therefore, you should consider other advertising opportunities that competitors have not yet
mastered. This primarily concerns the hotel website.
Wyndham has its own website www.parkhotel-Tashkent.ru. The site is very well made,
there is a version in English. The hotel offers customers on-line booking, as well as the order of
congress services. Present on the site is useful information for tourists, the necessary links and
phone numbers for direct communication with the hotel. But still there are other opportunities for
promoting and positioning the hotel through advertising in addition to the official site.
Development and promotion of the site should be carried out constantly, that is, it is
necessary to update information about hotel services, special offers. It is also possible to create
advertisements on well-known tourist Internet portals, for example, the well-known tourist portal
“100 Roads”. Also advertising in well-known search engines such as Yandex, Google and
Rambler. The Wyndham already has an agreement with Yandex on advertising. This suggests that
the hotel will expand its ability to promote services. The average number of queries per month in
the search engines in Uzbekistan is given in table. 10
Table 10
Number of queries in search engines
Keyword
Yandex
Google
Rambler
"relaxation"
2 598 679
2 240 000
298 931
"Tashkent"
849 667
823 000
100 413
"Conferences"
457 414
210 000
6 422
Given the data shown in table 10, we can confidently say that the search engines listed are
the most popular. Accordingly, the target groups targeted by the Wyndham, using the indicated
search portals, will see the hotel’s advertisement. Especially in the area of promoting Wyndham
business services in the international tourism market, advertising in a search engine such as Google
will be the most effective way. It must, however, be taken into account that advertising for foreign
tourists must be done in English. To do this, the keywords for contextual advertising in
international search engines can choose hotel reservation, business travel, Tashkent travel,
business and leisure.
Attention should also be paid to banner advertising on the Internet. When planning a banner
advertising campaign, such characteristics as:
1) CPC (Cost per click) - the cost of a click on a banner;
2) CPT (Cost per 1000 impressions) - cost per 1000 banner impressions;
3) CTR (Click through rate) - percentage of clicks to impressions;
4) Impressions - the number of banner impressions per page.
One of the most significant indicators of banner advertising, affecting the direct on the
budget of the advertising campaign and its economic efficiency - cost per click (CPC). This
indicator varies from 65 soums to 800 soums, depending on the advertising platform.
Wyndham should use banner advertising to promote its services. Official sites have all the
hotels, including competitors of the Wyndham. However, with the promotion of services, few have
mastered this method of Internet advertising.
Banner advertising is more visual, which better attracts the attention of potential hotel
guests. Banner advertising is most effective on hotel booking sites, on tourist-related Internet sites,
as well as in search engines such as MSN.COM, HRS.COM, Mail.ru, turizm.ru.
To select sites for placing banners, you should pay attention to the reservation services
located on the first lines and pages in the search engines when requesting "hotel reservation".
The link, both contextual advertising and from the banner, must be carried out to the
English version of the site if the request was made outside of Uzbekistan. For banner advertising
is also important what will be displayed on the banner. The banner itself and the information in it
should best characterize the services offered by the hotel and be as focused on the target audience
as possible.
Summing up the analysis of the media space, we can say that according to the text and
orientation of the advertising campaign it is necessary to use various portals. As for contextual
advertising, it is necessary to use the search engines Yandex, Google. Banner advertising will be
most effective on Mail.ru and Turizm.ru
3.5. Financial effectiveness of the developed strategic plan
Today, there are no universal solutions and tools in order to comprehensively evaluate the
effect of advertising and unambiguously measure the advertising impact. Of course, for each
enterprise, industry, each specific advertising campaign, it is necessary to use private criteria and
techniques. However, knowledge of the theory of the issue, as a rule, helps to choose the most
simple and effective method.
Currently, a lot of publications are devoted to the study of the effectiveness of advertising.
An analysis of approaches to solving this problem allows us to identify two main areas in which
research is conducted. The focus of the first approach is the study of the economic efficiency of
advertising. In the second approach, the intensity of information transfer in an advertising audience
and its impact on a person is studied - i.e. communicative effectiveness.
In economic efficiency, such criteria as sales, profit, market share, etc. are investigated.
The dynamics of these indicators is measured by more accurate economic methods. In this case,
the effectiveness of advertising should be understood as the change in profit under the influence
of advertising. However, a reasonable forecast of profit changes under the influence of advertising
can be provided only if the quantitative relationships between profit and all the basic values on
which it depends are known (including the parameters that determine the intensity of transfer of
information about the service and its impact on potential customers )
In both approaches to assessing the effectiveness of advertising (communicative and
economic), in essence, there are no contradictions. Advertising at the same time contributes to the
communication process and the tourism organization making a profit.
In order to analyze advertising from these positions, it is necessary to set the initial stage,
characterized by total sales of services (Ho), measured in physical terms. If p is taken as the unit
price and Y0 for the current volume of services sold in value terms, then Y0 will be calculated as
the product of the volume in quantitative terms by the unit cost of the service:
Y0 = p * Xo. (one)
If we add the specific profit (q) to the formula - the profit from each unit of service sold,
then the total profit (Z) received from the sale of Ho services will be:
Z = q * X o. (2)
When launching an advertising campaign with a cost of (I), it can be assumed that after a
certain time (at time i), due to the fact that potential customers learn about the offer, the sales
volume measured in physical (Xi) and cost terms (Yj) will change. Consequently, profits should
grow in a similar way. If the profit is greater than the initial one, then there is a positive difference
between these values (Z), which will be the main criterion for the effectiveness of advertising. The
higher Z and the lower the costs incurred (I), the more successful the advertising campaign.
In this case, the formula for determining the effectiveness will look like the ratio of profit
growth to investments in the promotion of services, i.e. ROI (Return on Investments), or return on
investment.
In the given terms (Zo, Zi and I), the advertising efficiency expressed in terms of the ROI
coefficient will look as follows:
EROI = Z / I, where: Z = Zj - Z0. (3)
The need to take into account the impact of various economic indicators in assessing the
effectiveness of advertising will be demonstrated by calculating the effectiveness of an advertising
campaign to promote the incentive tour of the Wyndham in Tashkent in 2019 compared with 2018
data. The calculation is based on formula (3).
In 2018, the hotel’s promotional activities for the promotion of congress services were not
intense, which affected the load indicators. In, the hotel conducted an advertising campaign for a
business segment worth I = 300,000 UZS. The hotel has 447 rooms. The load percentage in
December 2018 was 47.4%, in December 2018 - 76.1%, that is, 212 numbers and 340 numbers
respectively.
The average price of rooms at the Wyndham was taken as the average room price, which
amounted to 9,100000 soums (the price range depending on the room category is from 3,500000
to 22,000000 soums).
The share of the costs of maintaining and servicing one room is approximately 70% of the
average price and equals 6370000 soums.
We calculate the specific profit: q = 9100000 - 6370000 = 2730000 soums.
In this case, the total profit received from the sale of hotel services will be:
Z2008 = q * X2008 = 2730000 * 212 = 578760000 UZS,
Z2009 = q * X2009 = 2730000 * 340 = 928,200000 UZS.
Then Z = Z2009 - Z2008 = 928200000 - 578760000 = 349,440000 UZS.
Z - the main criterion for the effectiveness of advertising - in our case is positive. As noted
earlier, the success of an advertising campaign depends on the higher Z and the less expenses spent
on advertising I. In accordance with formula (3), the EROI investment return coefficient in our
case will be calculated as follows:
EROI = Z / I = 349440000/300000000 = 1.17
The return on investment ratio is slightly more than one, from which we can conclude that
the advertising campaign was relatively successful: the costs were paid off, and the profit was
positive.
Perhaps, for greater efficiency, the cost of an advertising campaign should be increased to
the average value in Tashkent - 500,000 000 soums. However, according to the marketing section
of the Wyndham, increasing advertising costs is not always cost-effective.
It should be borne in mind that the calculations do not cover all conditions that affect the
consumption of incentive offers of the hotel. For example, the share of costs can vary in the
direction of increase or decrease, the cost of rooms in a hotel can be adjusted in accordance with
the pricing policy in the "low" season, etc. Also, such a factor as the positioning of the city of
Tashkent as the capital of the XXII Winter Olympic Games in the international tourism market,
etc. was not taken into account.
The cost-effectiveness of advertising (ECR) can be calculated by another formula:
ECR = PS, where: (4)
P - profit;
C - funds spent on advertising.
The calculation is largely conditional, mainly because of the inability to unambiguously
assess profit. Often the profit appears much later than the time of advertising or is not manifested
in monetary terms.
For a comparative analysis, it is useful to calculate the cost effectiveness index (CEI) in
comparison with other competing organizations:
CEI = (Vi / Ei) x (Ej / VJ), where: (5)
Vi and V j - sales volumes of organizations, respectively, over a period of time;
Ei and Ej - the amount of advertising costs for organizations i and j, respectively, for the
same period.
Tourism organizations also use the profitability indicator as the ratio of profit to expenses:
P = Px100 / E, where: (6)
P - profitability of the advertised service,%;
P - profit received from advertising tourism services;
E - the cost of advertising services.
There are three results of profitability assessment: either the effect exists and the
advertising campaign turned out to be effective, or there is no effect, and advertising is
unprofitable, or the effect is zero, and the organization only pays for the costs of the advertising
campaign.
However, the accuracy of the assessment in this case is relative, since it is quite difficult to
quantify advertising activity, which is due to the following reasons:
1) advertising is one of many factors (for example, the level of competition, product
quality, price, etc.) that affect the marketing of tourism services;
2) the behavior of each specific consumer is difficult to predict;
3) the situation in the tourist market is dynamic and changeable.
The calculation of the economic efficiency of advertising can also be made on the basis of
a comparison of the additional gross income received as a result of advertising and the costs
associated with its implementation. Using this method, the additional turnover obtained as a result
of advertising events is determined and compared with advertising costs. The calculation is carried
out according to the following formula:
ER = [(T * P * D / 100) * (N / 100)] - 3, where: (7)
ER - cost-effectiveness of advertising;
T - average daily turnover in the pre-advertising period;
P - the increase in average daily turnover in the advertising and post-advertising period;
D - the number of days of accounting for turnover in the advertising and post-advertising
periods;
And - trade margin on the service;
S - advertising costs.
This technique is usually used to determine the cost-effectiveness of individual advertising
media or a short-term promotion.
The cost-effectiveness of advertising events at the Wyndham in Tashkent can be assessed
based on an analysis of the results of advertising in the media, in particular, on the radio. The
calculation of the economic efficiency of advertising on radio is associated with a comparison of
the income received from the use of advertising and the costs of its implementation.
The source data for calculating the effectiveness of an advertising event on the radio are
presented in table. 11.
Table 11
The income of the Wyndham before and after an advertising event on the radio in 2019
Periods
Days
Hotel income, mln.
UZS
Daily average
income
Mln. UZS
%
Before the promotion
10
21680,8
2168,08
100,0
Advertising and post-advertising
period
20
51497
2574,85
118,8
The cost of advertising on the radio amounted to 1,500 thousand UZS, the margin on hotel
services - 30%. In this case, the cost-effectiveness of the radio advertisement was:
ER = [(21680.8 * 18.8 * 30: 100) * (30: 100)] - 1500 = 2168.4 million soums.
Thus, the advertisement was successful and brought a significant economic effect.
The development of an advertising campaign to promote business services and the congress
hotel as a whole showed that the investment in this event is fully justified.
Thus, in this chapter an effective advertising campaign is developed for more effective
promotion of the Wyndham in the business tourism market. To implement the project of the
advertising campaign and further effective promotion of the Wyndham on the business tourism
market, it is proposed to improve the structure and organization of marketing activities.
Improving the work of the marketing section helps to increase the efficiency of its
activities, thereby increasing one of its main functions - expanding sales and increasing sales.
An effective advertising campaign promotes the congress hotel, increase sales and increase
the competitiveness of Wyndham in the business travel market.
Conclusion
A brand is a combination of the impression it makes on consumers and the result of their
experience with a given product. A brand is what consumers feel about a product - affection, trust
and loyalty. We can say that a successful brand is based on a good product or service. (Kotler
2009)
The growing attention to the problem of forming and managing a company's brands is
determined by the fact that well-known brands are becoming a necessary condition for a stable
position in the market, a factor of its competitiveness. In this paper, we examined the attitude of
buyers to the brands of the hotel business, because in recent years, the tourism market in
Uzbekistan is currently one of the most promising and most developed markets.
In order to determine the attitude of buyers to the brand, within the framework of this work,
we made a survey by the method of questioning and polling among hotel customers. Based on the
results of the survey, it can be concluded that descriptive analysis of the respondents indicates that
51% were male while 49% were female. An overwhelming 30% of the respondents were between
31 and 40 years, 34% of the respondents were between 41 and 50 years, 20% of the respondents
were between 20 and 30 years and 16% of the respondents were above 51 years of age. 59% of
customers are from Russia, 7.6% of tourists coming from Kazakhstan, 5.6% from Kyrgyzstan,
5.6% Bangladesh, 4.6% from Srilanka etc.
The results show that there is a positive correlation between key constructs. A correlation
model was conducted to test the relationship between brand loyalty, customer brand identity, brand
satisfaction, and brand loyalty. The results, show that the proposed model is appropriate for all
three hypotheses, since brand identification and loyalty (hypothesis 1). This model shows that
brand loyalty can be explained as a customer's brand identification, brand loyalty and satisfaction
as independent variables. The results for Hypothesis 2 show that customer brand identity
significantly and positively affected brand loyalty. In addition, it also shows that brand satisfaction
has a significant and positive relationship with brand loyalty, which supports H3.
Also round the study, we performed the financial analysis of the economic indicators of
the hotel under study for 2019 and try to evaluate the marketing policy of the hotel with this
analysis. The net assets of Wyndham Hotel on the last day of the analyzed period far exceed the
authorized capital of Wyndham Hotel. This ratio positively characterizes the financial situation of
Wyndham Hotel, fully satisfying the requirements of regulatory enactments for the value of the
organization’s net assets. Taking into account the excess of net assets over the authorized capital,
we can talk about the good financial position of the organization on this basis.
The development of an advertising campaign to promote business services and the congress
hotel as a whole showed that the investment in this event is fully justified.
Thus, this chapter has designed an effective advertising campaign to better promote
Wyndham in the business travel market. For the implementation of the advertising campaign
project and further effective promotion of Wyndham in the business travel market, it is proposed
to improve the structure and organization of marketing activities.
Improving the performance of the marketing department helps to improve the efficiency of
its activities, thereby increasing one of its main functions - increasing sales and increasing sales.
An effective advertising campaign promotes the congress hotel, increases sales and
enhances Wyndham's competitiveness in the business travel market.
References
1. Algesheimer, R., Dholakia, U. M., & Herrmann, A. (2005). The social influence of brand
community: Evidence from european car clubs. Journal of marketing, 69(3), 19-34.
2. Ali, F., & Amin, M. (2013). Determinants of customer experience and resulting satisfaction
and revisit intentions: PLS-SEM approach towards malaysian resort hotels. Asia Pacific
Journal of Innovation in Hospitality and Tourism, 3(2), 175-193.
3. Ali, F., Khan, A. & Rehman, F. (2012). An assessment of the service quality using gap
analysis: A study conducted at Chitral, Pakistan. Interdisciplinary Journal of Contemporary
Research in Business, 4(3), 259-266. Back, K. J., & Lee, J. S. (2009).
4. Country club members perceptions of value, image congruence, and switching costs: an
exploratory study of country club members loyalty. Journal of Hospitality and Tourism
Research, 33(4), 528-546.
5. Back, K. J., & Parks, S. C. (2003). A brand loyalty model involving cognitive, affective,
and conative brand loyalty and customer satisfaction. Journal of Hospitality and Tourism
Research, 27(4), 419-435.
6. Backman, S. J., & Crompton, J. L. (1991). The usefulness of selected variables for
predicting activity loyalty. Leisure Science, 13, 205-220.
7. Ballantyne, D. (2005). Customer relationship management:
Creating competitive
advantage through win-win relationship strategies. Managing Service Quality, 15(5), 485458.
8. Baloglu, S. (2001). An investigation of a loyalty typology and the multidestination loyalty
of international travelers. Tourism Analysis, 6(1), 41-52.
9. Baloglu, S. (2002). Dimensions of customer loyalty: Separating friends from well-wishers.
Cornell Hotel and Restaurant Administration Quarterly, 43(1), 4760.
10. Bagozzi, R. P., & Dholakia, U. M. (2006). Antecedents and purchase consequences of
customer participation in small group brand communities. International Journal of
Research in Marketing, 23(1), 45-61.
11. Baumgarth, C., & Schmidt, M. (2010). How strong is the business-to-business brand in the
workforce? An empirically-tested model of 'internal brand equity in a business-to-business
setting. Industrial Marketing Management, 39(8), 1250-1260.
12. Bergami M., & Bagozzi, R. P. ( 2000). Self-categorization, affective commitment and
group self-esteem as distinct aspects of social identity in the organization. British Journal
of Social Psychology, 39(4), 555-77.
13. Bhattacharya, C.B., Rao, H., Glynn, & M. A. (1995). Understanding the bond of
identification: an investigation of its correlates among art museum members. Journal of
Marketing, 59, 46-57.
14. CHRISTODOULIDES, George a L.. CHERNATONY. Consumer-Based Brand Equity
Conceptualization and Measurement: A Literature Review [online]. 2010 [cit. 2020-0102].
Dostupné
z:
https://www.researchgate.net/publication/247886486_Consumer-
based_brand_equity_conceptualisation_and_measurement_A_literature_review
15. FRENCH, A. a G. SMITH. Measuring brand association strength: a consumer based
brand
equity
approach. [online].
2013
[cit.
2020-01-02].
Dostupné
z:
https://pdfs.semanticscholar.org/309b/eda177b24cd6c783be627a8fcffeceff8865.pdf
16. SPRY, Amanda, Pappu RAVI a T. CORNWELL. Celebrity endorsement, brand credibility
and
brand
equity. [online].
2011
[cit.
2020-01-02].
Dostupné
z:
http://anandahussein.lecture.ub.ac.id/files/2015/12/Celebrity-endorsement-brandcredibility-and-brand-equity-Spry-Pappu-Cornwell-EJM-2011.pdf
17. Www.dailymail.co.uk: Skechers forced to give 520,000 customers refunds after falsely
claiming $80 sneakers would help wearers lose weight [online]. 2013 [cit. 2020-01-02].
Dostupné z: https://www.dailymail.co.uk/femail/article-2325034/Skechersforced-520000-customers-refunds-falsely-claiming-80-sneakers-help-wearers-lose-weight
18. KOTLER, Philip a Kevin Lane KELLER. Marketing Management (15th Edition). Upper
Saddle River. Chicago, 2015. ISBN 978-0133856460.
19. BARRINGER, Bruce R. a R. Duane IRELAND. Entrepreneurship: Successfully
Launching New Ventures (3rd Edition). Prentice Hall, 2009. ISBN 9780136083535.
20. KUUSIK, Andres. AFFECTING CUSTOMER LOYALTY: DO DIFFERENT FACTORS
HAVE VARIOUS INFLUENCES IN DIFFERENT LOYALTY LEVELS?. Tartu, 2007.
University of Tartu.