Contact Us

Jalan Kecak, No. 12, Gatot Subroto Timur - Bali
Phone: +62 361 - 426699
Fax: +62 361 - 426700
Journal Manager Whatsapp: +62 852 2767 9500
Email: [email protected]

* Sorry for not offering email form due to massive spam issue

The Emergence of Service Quality and Brand Awareness Toward Strategic Competitiveness and Its Impact on Hotel Performance

Khairunnisa Khairunnisa, Nila Krisnawati


Five-star hotels are known by their immense competitiveness, first-class portrayal and are superior in level of extravagance, eccentricity, representation, sophistication and amenities. Slow growth of five-star hotels aggravates strong competition, thus forcing hotel businesses to be competitive. This study attempts to analyze service quality and brand awareness toward strategic competitiveness and its impact on the performance of XYZ Hotel. The study applies both quantitative and qualitative research, which were obtained from questionnaire distribution to 100 respondents who have stayed at the hotel, in-depth interview with the PR and Front Office managers, and Focus Group Discussion with managers and hotel experts from Jakarta and Tangerang. The finding suggests that service quality has no correlation with strategic competitiveness and no significant impact on performance. Thus, brand awareness was found to be the most influential factor on strategic competitiveness. However, it is necessitated that five-star hotel continuously improve the quality of its service and the factors associated with service quality. 

Full Text:



Al-Qudah, K. A. (2012). The Impact of Total Quality Management on Competitive Advantage of Pharmaceutical Manufacturing Companies in Jordan. Perspectives of Innovations, Economics & Business, 59-75.

Alsaqre, O. Z. (2011, April). Investigating the Effects of Tangible and Intangible Factors on Customers' Perceived Service Quality and Loyalty in Hotel Industry in Al-Ladhiqiyah, Syria. Al-Ladhiqiyah, Syria: World Tourism Organization.

Amna, M. A. (2014, October 16). Wow, Kota Tangerang Punya 1.569 Hotel. Retrieved from Bisnis Jakarta Web site:

Auka, D. O., Bosire, J. N., & Matern, V. (2013). Perceived Service Quality and Customer Loyalty in Retail Banking in Kenya. British Journal of Marketing Studies , 32-61.

Blachier, C., & Jadoul, M. (2010). Alcatel Lucent.

CEIC Data. (2015, February 23). Incredible Growth Opportunities for Indonesia's Hotel Industry. Retrieved March 1, 2015, from CEIC Data Web site:

Chi, H. K., Yeh, H. R., & Yang, Y. T. (2009). The Impact of Brand Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty . The Journal of International Management Studies, 135-144.

Cho, E. (2011). Development of a Brand Image Scale and The Impact of Lovemarks on Brand Equity. Ames, Iowa, United States: Digital Repository Iowa State University.

Conradie, E., Roberts-Lombard, M., & Klopper, H. B. (2014). The influence of eleven Ps: An Internal Marketing and Brand Awareness Perspective in a Service Environment. Southern African Business Review, 100-121.

Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods. Singapore: McGraw-Hill.

Cooper, D., & Schindler, P. (2011). Business Research Methods. New York: Business Research Methods.

David, F. R. (2013). Strategic Management Concepts and Cases. Pearson.

Dhurup, M., Mafini, C., & Dumasi, T. (2014, April 1). The Impact of Packaging, Price and Brand Awareness on Brand Loyalty: Evidence from the Paint Retailing Industry. Vanderbijlpark, South Africa: Acta Commercil.

Djakeli, K. (2012). Matrix of Brand Awareness and a Positive Image as a Success Factor in Political PR. Scientific Journal in Humanities, 31-35.

Domazlicky, B. (2002). From Theory to Reality: Concentration Ratios. Retrieved from

Dong, K. Y. (2007). Perceived Service Quality: Analyzing Relationships Among Employees, Customers, and Financial Performance. The International Journal of Quality & Reliability Management, 908-926.

Du, J., Chen, S., & Jarrett, J. (2013). Competition in China's Real Estate Industry. The University of Rhode Island.

Ehmke, C. (2008, August 27). Strategies for Competitive Advantage. Tucson, Arizona, United States: Department of Agricultural & Resource Economics University of Arizona.

Grubor, A., Salai, S., & Lekovic, B. (2009, October 1). Service Quality As A Factor of Marketing Competitiveness. Romania: Association of Economic Universities.

Gwin, C. (2001). Babson College Horn Library. Retrieved from A guide for industry study and the analysis of firms and competitive strategy:

Harian Kompas. (2013, November 26). Atasi Defisit Rumah, Aksi Ambil Untung Berlebihan di Properti Harus Dikurang.

He, P., Murmann, S. K., & Perdue, R. R. (2012). Management Commitment and Employee Perceived Service Quality: The Mediating Role of Affective Commitment. Journal of Applied Management and Entrepreneurship.

Heise, M. (2011, December 21). Competitiveness is as Important for Balanced Growth as Fiscal Sustainability. Retrieved March 10, 2015, from The Economists Web site:

Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal (2007) 7, Number 3, 281-312.

Homer, P. M. (2008). Perceived Quality and Image: When All is Not “Rosy”. Journal of Business Research, 715-723.

HVS Global Hospitality Services. (2015). Asia Pacific Hotel Watch 2015. Singapore: Hsyndicate.

Indonesia Investments. (2014, April 4). Investments in Indonesia's Tourism Industry on Growing Tourist Numbers. Retrieved February 28, 2015, from Indonesia Investments Web site:

Investor Daily Indonesia. (2013, June 1). Investor Daily Indonesia. Retrieved from Saham Properti Tumbuh 73,11%:

Ishaq, M. I., Hussain, N., Asim, A. I., & Cheema, L. J. (2013). Brand Equity in the Pakistani Hotel industry. Revista de Administração de Empresas, 284-295.

Jonsson, C. (2009). An Exploratory Study of Competitive Strategies Among Hotels in a Small Developing Caribbean State. International Journal of Contemporary Hospitality Management, 491-500.

Kapiki, S. T. (2012). Quality Management in Tourism and Hospitality: an Exploratory Study among Tourism Stakeholders. International Journal of Economic Practices and Theories, 53-61.

Karadag, E. (2012). Basic Features of Structural Equation Modeling and Path Analysis With its Place and Importance in Educational Research Methodology. Bulgarian Journal of Science and Education Policy, 6(1), 194-212.

Katadata. (2013, September 3). News: Katadata Indonesia Business Highlight. Retrieved from Katadata Indonesia Business Highlight:

Kuhn, K.-A. L., & Alpert, F. (2010). An Application of Keller's Brand Equity Model in a B2B Context. In F. D. Riley, Brand Management (pp. 221-244). London: Sage.

Ladhari, R., & Souiden, N. (2011). Determinants of Loyalty and Recommendation: The Role of Perceived Service Quality, Emotional Satisfaction and Image . Journal of Financial Services Marketing, 16(2), 111-124. Retrieved April 12, 2015, from

Laiho, M., & Inha, E. (2012). Brand Image and Brand Awareness Case Study: Finnair in Indian Market. Halmstad, Halland, Sweden: Digitala Vetenskapliga Arkivet.

Lamb, E. G., Mengersen, K. L., Stewart, K. J., Attanayake, U., & Siciliano, S. D. (2014). Spatially Explicit Structural Equation Modeling. Ecology International Journal, 2434-2442.

Management Study Guide. (2013). Brand Management: What is Brand Awareness. Retrieved March 16, 2015, from Management Study Guide Web site:

Melia, D., & Robinson, L. (2010, January 1). Towards Performance Measurement in Hotels: An Incremental Approach. Dublin, Ireland: Dublin Institute of Technology.

Milohnic, I., & Grzinic, J. (2010). Quality Competitive Advantage of Small Hotels in Croatia. ORIGINAL SCIENTIFIC PAPER, 44-51.

Miloslava, S. (2011). Building a Strong Brand to Support Company Competitiveness. Poland: Humanitas University.

Moisescu, O. I. (2009). The Importance of Brand Awareness in Consumers' Buying Decision and Perceived Risk Assessment. Management and Marketing, 104-110.

Murasiranwa, E. T., Nield, K., & Ball, S. (2010). Hotel Service Quality and Business Performance in Five Hotels belonging to a UK Hotel Chain. International CHRIE Conference-Refereed Track. Boston: University of Massachusetts.

Mutindi, U. J., Namusonge, G., & Obwogi, J. (2013). Effects of Strategic Management Drivers on Organizational Performance: A Survey of the Hotel Industry in Kenyan Coast. International Journal of Arts and Commerce, 83-105.

Narang, R. (2010). Measuring Perceived Quality of Health Care Services in India. International Journal of Health Care Quality Assurance, 171-186.

Njovo, M., & Makacha, C. (2015). Service Quality: A Key Determinant of Organisational Competitiveness. Advances in Social Sciences Research Journal, 238-245.

Okezone. (2012). 2012, Masa Keemasan Industri Properti Indonesia. Retrieved from Kaleidoskop.

Olubunmi, O. A., Timothy, I. O., Alabi, A. O., & Israel, O. T. (2014). Competitive Strategies of Selected Quantity Surveying Firms in Nigeria. International Journal of Management, Information Technology and Engineering, 1-18.

Ongori, J. K., Iravo, M., & Munene, C. E. (2013). Factors Affecting Performance of Hotels and Restaurants in Kenya: A Case of Kisii County. Interdisciplinary Journal of Contemporary Research in Business, 897-928.

Pepall, L., Richards, D., & Norman, G. (2008). Industrial Organization: Contemporary Theory and Empirical Applications, 4th Edition. Malden: Wiley-Blackwell Publishing.

Porter, E. M. (2008, January). The Five Competitive Forces That Shape Strategy. Harvard Business Review.

Porter, M. E. (1985). Competitive Advantage. New York: The Free Press.

Ranjbarian, B., Fathi, S., & Mohammadi, M. (2013). The Effect of Brand Extension Strategies upon Competitive Advantage in Service Companies from Costumers point of View. International Journal of Academic Research in Business and Social Sciences, 474-485.

Romaniuk, J., Sharp, B., Paech, S., & Driesener, C. (2004). Brand and Advertising Awareness: A Replication and Extension of a Known Empirical Generalisation. Australasian Marketing Journal, 70-80.

Samboh, R. D. (2007). Analisa Dampak Kasus-Kasus Peledakan Bom terhadap Tingkat Hunian Hotel Berbintang di Jakarta. Panorama Nusantara, 16-25.

Santerre, R., & Neun, S. (2012). Health Economics: Theory, Insights, and Industry Studies, 6th Edition. Stamford: Cengage Learning.

Schmitt, J., Klarmann, M., & Homburg, C. (2010). Brand Awareness in Business Markets: When is it Related to Firm Performance? International Journal of Research in Marketing, 201-212.

Setiawan, M. (2012). Market Structure, Price Rigidity, and Performance in the Indonesian Food and Beverages Industry. Wageningen University, Netherlands.

Severi, E., & Ling, K. C. (2013). The Mediating Effects of Brand Association, Brand Loyalty, Brand Image and Perceived Quality on Brand Equity. Asian Social Science, 125-137.

Shepherd, W., & Shepherd, J. (2004). The Economics of Industrial Organization, Fifth Edition. Long Grove, Illinois: Waveland Press, Inc.

Shughart II, W. (2008). The Concise Encyclopedia of Economics: Industry Concentration. Retrieved from Library of Economics and Liberty:

So, K., & King, C. (2010). "When experience matters": Building and measuring hotel brand equity - The customers' perspective. International Journal of Contemporary Hospitality Management, 589-608.

Suhartanto, D. (2011). An Examination of Brand Loyalty in the Indonesian Hotel Industry. Christchurch, New Zealand : Lincoln University.

The Bank of Indonesia. (2014). Survei Harga Properti Residensial Triwulan IV - 2013. Retrieved from The Bank of Indonesia Web site:

The Five Star Travel Cooperation. (2015). The Original Five Star Standard. Retrieved March 21, 2015, from Forbes Travel Guide Web site:

Trieha, U. (2014, September 15). Perbedaan Hotel, Resort, Villa, Apartement, dan Penginapan Lainnya. Retrieved March 15, 2015, from Ensiklopedia Pengetahuan Populer Web site:

Tsai, H., Song, H., & Wong, K. K. (2008). Tourism and Hotel Competitiveness Research. Journal of Travel and Tourism Marketing, 1-45.

Tung, G.-S., Cheng, T.-M., & Wu, L.-C. (2009). The Measurement of Competitiveness of International Tourist Hotels in Taiwan . The Journal of International Management Studies, 41-49.

Vinuesa, M., Maria, L., & Olalla, R. (2011). Non-Financial Measures in Quality Environments: Their Contribution to Business Performance. ESIC Market Economic and Business Journal, 169-193.

Wang, X., & Yang, Z. (2010). The Effect of Brand Credibility on Consumers’ Brand Purchase Intention in Emerging Economies: The Moderating Role of Brand Awareness and Brand Image. Journal of Global Marketing, 177-188.

Wilkinson, J. (2013, July 24). Intensity of Rivalry (one of Porter’s Five Forces). Retrieved March March, 2015, from The Strategic CFO :

Cited by:



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Visited Number: Web
Analytics JBHOST Stats