Effects of brand innovation and marketing dynamic capability on the performance of international hotels

The Covid-19 epidemic has resulted in a dramatic decline in hotel public consumption. Hotel performance must be enhanced through the use of a hotel marketing strategy to compete with others. The aim of this paper is to examine the relationship between the innovation of the brand, dynamic capability of marketing, brand communication, brand experience, and brand performance in Indonesian 3-5 star international hotels. The data for this study were acquired using an electronic questionnaire on Google Forms from 530 customers who stayed in hotels throughout Indonesia prior to and during the Covid-19 pandemic. Smart-PLS 3.2.9 was used to analyze the data using the outer model and the inner model. The findings indicated as follows: Brand innovation has a positive effect on brand communication;dynamic marketing capability has a positive influence on brand communication;brand communication directly has a positive effect on brand experience;brand experience significantly has a positive effect on brand performance;brand communication directly has a positive effect on brand performance;brand innovation has a positive influence on brand performance, and dynamic marketing capability has a positive effect on brand performance. This study contributes to the worldwide hotel strategy's global marketing efforts in order to compete and improve performance in an increasingly competitive hotel business. © Evo Sampetua Hariandja, Lusiana Sartika, 2022.


INTRODUCTION
Following the emergence of Covid-19, some countries enacted restrictions such as locks, border closures, and guarding distance legislation, all of which damaged the world economy, particularly the tourism industry, which includes the hotel industry (Japutra & Situmorang, 2021). Furthermore, locking down a country affects people's income, which reduces public consumption of tourism, notably hotel spending (Anguera-Torrell et al., 2021).
Indonesia has 72 international hotel chains and five local hotel chains, indicating that Indonesian and foreign guests choose international star hotels over domestic star hotels, owing to the country's greater quantity of international star hotels (BPS, 2020). However, according to Maulana Yusran, Secretary-General of Persatuan Hotel dan Restoran Indonesia (PHRI), the Covid-19 pandemic has wreaked havoc on Indonesia's hotel and restaurant business with around 1,600 establishments ceasing operations since March 2019 (Idris, 2020).
To remain competitive in today's dynamic worldwide hotel industry, which is intrinsically linked to tourism, hotels must first acquire clients (Wiastuti et al., 2020). The hotel sector must include innovative approaches for providing better service that visitors from all over the world highly value. This concept should be implemented in the hotel and tourism industries (Roespinoedji et al., 2019). Hotels should offer novel services to their clients by leveraging their service innovation skills and using dynamic marketing capability (DMC) to conduct successful marketing campaigns for their consumer segments in dynamic marketplaces (Hariandja, 2016b). International hotels should be able to expand their DMCs in order to maintain a competitive edge (Elsharnouby & Elbanna, 2021). A business that aspires to thrive in this increasingly challenging climate must constantly strengthen its capacity for innovation. When new ideas are developed and applied, innovation occurs (Jiménez-Jiménez & Sanz-Valle, 2011).
With the global Covid-19 pandemic in full swing and multiple multinational hotel chains in Indonesia, hotels must utilize intelligent marketing tactics to stay afloat. This study assembles empirical facts to determine the critical assessment of brand innovation, brand communication, brand experience, and dynamic marketing competency to enhance the brand performance of 3-5 star international hotels in Indonesia.

Brand innovation
Through every interaction of innovative concepts, brand innovation aims to convey both direct and indirect experiences to consumers. When doing brand innovation, the vital thing to do in the beginning is to win consumer trust and value to build the brand (Chien, 2013). In addition, brand innovation is to increase brand value, service products, and experience by integrating the company's competence with the participation of its consumers, which is currently snowballing in the market and becoming an attractive trend (Hsieh & Chang, 2016).
Hotels are compelled to innovate somehow because of the intense competition in the hotel industry. The ability to build brand innovation expectations is dependent on the company's ability to effectively and persuasively convey this knowledge about its brand to target consumers. Branding can promote creativity over time, offer an innovation more credibility and legitimacy, boost its profile, and make communication more feasible and efficient (Aaker, 2007). If a company can communicate this about its brand to target audiences efficiently and persuasively, it will be able to create brand innovation expectations (Pappu & Quester, 2016).
Being creative and adaptable is needed in the hospitality market climate that has changed due to the Covid-19 pandemic to develop and maintain a company's success. Brand innovation is a brand strategy that can improve brand performance (Grant, 2006

Dynamic Marketing Capability (DMC)
Marketing capabilities are described as a method of coordinating organizations using the organizational assets and capabilities to understand the clients' need to create a variety of products that are separated from rivals and achieve brand prominence (Hariandja, 2016b). On the other hand, dynamic marketing capabilities allow businesses to liberate themselves from their rigid structures. DMC is composed of three elements. First, market sensing is the ability of a business to accept the ability of its clients, partners, and competitors to interpret, store, and use data, as well as react to advancements and activities in present and futures markets. Following that, market learning, or the capacity to learn, enables an organization to maintain a long-term competitive edge over competitors, adjust to a complex and competitive environment, and be receptive to acquiring and combining external information. Learning enables us to identify new opportunities, accounts for redundancy, and incorporates information from the external environment to maximize effectiveness. Finally, consumer targeting and positioning are major considerations. This component integrates its capacity to recognize additional opportunities and then choose the best target market with the resources and strengths of the company (Hariandja, 2016a

Brand communication
Brand communication is an integral part of public relations, being a form of marketing. PR must ensure that a brand communication strategy provides a clear message that consumers can easily accept as authentic and relevant (Bhasin, 2021). Brand communication is the process of reducing the gap between consumers and their perceptions of products and services. Brand communication aims to introduce a service or product to an audience so that customers are fully aware of what is available on the market (Asy'ari & Jayen, 2020). According to Sahin et al. (2011), brand communication is done by businesses with the aim not only to create brand awareness but also to build a respectable image and standardization that the organization must aim for or exceed (Chinomona, 2016).
Companies must communicate the brand to potential customers before consumers remember and experience it. Because of the communicative nature of products, it is essential to recognize this to convey the brand promise and experience accurately (Ngatno, 2017). Brand managers must communicate efficiently and engage with their consumers during the entire buying process and after the consumption experience (Kang et al., 2017). Brand communication is not only based on promotional messages sent through the elements of integrated marketing communication but also involves the experience that a brand provides to its users so that a close relationship is established between the brand and its users (Suharyanti et al., 2019). Communicating with customers will help hotels understand what needs to be changed. Individual customers are influenced by the information given by an organization or company to take action (buy a product), and then tell others based on their experience with the product (Xie et al., 2016). If they have a positive experience when they connect with a brand, they are more likely to be satisfied. Since correlation is found between brand experience and brand loyalty, the more satisfied clients there are, the more faithful customers there would be, and the greater their loyalty, which can influence brand performance (Hussein, 2018).

Brand experience
According to Brakus et al. (2009), brand experiences are described as customers' responses (such as emotions, feelings, awareness) and behavioral tendencies stimulated by brand-related factors found in branding, packaging, communication, and the environment (Coelho et al., 2020). According to Wibowo (2011), brand experience is integral to experiential marketing. Consumers create experiences with brands ranging from product search, selecting and buying products in stores, interacting with customer service to using products so that the experience can provide value to the brand (Hanifah et al., 2018).
Providing a unique and memorable brand experience is essential to increasing the success of the performance results (Khan & Fatma, 2017). Emotions derived from interactions with a specific brand may impact the brand performance outcomes. If consumers remember its brand experience, they will remember the positive feelings associated with that brand, which will affect their intention to return and will minimize the size set by their decision when making potential accommodation choices (Casidy et al., 2018).

Brand performance
Brand performance is often a primary outcome of company operations and overall business strategy.
The definition of brand performance shows the consumer strength of a company's brand. In the tourism industry, field research on brand performance mainly assesses and analyzes brand marketing performance and brand performance from visitors' perspectives. Additionally, field research on tourism brand performance commonly focuses on hotel companies and aims to shed light on the connection among other variables affecting hotel brand performance in visitors' eyes (Unurlu & Uca, 2017).
Financial and non-financial performance are combined to create a brand performance. Market share and profitability are used to evaluate financial brand performance, whereas non-financial brand performance is measured by brand maintenance (Iyer et al., 2018). Customer satisfaction, as well as brand loyalty, have been used to assess the success of non-financial brands. According to Mason et al. (2006), several additional variables that quantify customer satisfaction, the causes of its loyalty, and even the relationship among consumer devotion and performance throughout the hotels and tourism sectors are of significant interest.

Hypotheses
This study aims to determine the consumer impact of brand innovation, DMC, brand communication, and brand experience on brand performance in 3-5 star international hotels in Indonesia. Based on the available literature, the following hypotheses were developed: H1: Brand innovation has a favorable effect on brand communication.
H2: Dynamic marketing capability has a beneficial effect on brand communication. The research framework is depicted in Figure 1.

METHODS
A quantitative research method was used in this study. Since this study aims to figure out how variables are related, descriptive research is used. The Likert scale was used as the interval measurement scale in this study. The Likert scale is used to determine the extent to which respondents agree or disagree with a question or statement contained in an electronic questionnaire distributed via G-Forms. This study employed judgmental sampling, a type of non-probability sampling. A sample size of 530 participants multiplied by the 53 indicators used was required to conduct the analysis. Individuals who stayed in 3-5 star international hotels in Indonesia before and after the Covid-19 pandemic were surveyed. The questionnaire was completed by most female respondents in the gender group, with a sample size of 62.6 percent from Tangerang, Jakarta, and Bandung. It is essential to emphasize that most of the 272 respondents were 20-24 years old. These Gen Z travelers dubbed the next generation, wield surprising influence over family travel decisions (Wiastuti et al., 2020). This is demonstrated by the fact that 80.9 percent of respondents work as college students, 80.6 percent earn less than Rp100.000 per month, and 76.2 percent travel with family as shown in Table A1, Appendix A.
The data were analyzed using the outer and inner models in Smart-PLS 3.2.9. To begin, the outer model's convergent validity, discriminant validity, and reliability were evaluated as shown in Table  A3, Appendix A. The inner model is tested for goodness of fit as depicted in Table A4, Appendix A, common method bias, common method variation, VIF, R 2 , predictive relevance as shown in Table A5, Appendix A, and hypothesis testing.

Measurement model
Following the actual convergent validity test via the loading factor value, 45 indicators are valid with a loading factor value greater than 0.7 as depicted in  HTMT was more successful at detecting discriminant validity. The accepted correlation value for HTMT is below 0.9. As a result, Table 2 below shows the suitable value of HTMT since the value obtained is below 0.9. As a result, the discriminant validity test is deemed valid.

PLS-SEM calculates the Variance Inflation Factor (VIF) in Common Method Bias testing.
The VIF statistic indicates the effect of additional independent variables on the standard error of the regression coefficient. The outer VIF value, as shown in Table 3, identifies the indicator variables that can be evaluated regardless of bias or multicollinearity.

Additionally, Podsakoff et al. (2012) argue that
Harman's single-factor test is the technique most frequently used to determine CMV infection in a single-method study design. When the variance exceeds 50%, bias exists. Table 4 illustrates the results of the Common Method Variance measurement in the SPSS application using factor analysis, indicating that the variable is appropriate because the percent variance is less than 50%.

Structural model
According to Hair et al. (2019), an R 2 value of 0.75 indicates that the product is substantial in a marketing study. If the R 2 value is 0.50, it falls into the medium category; if it is 0.25, it falls into the weak category. Table 5 will include the R 2 value for each variable. The R 2 adjusted value of 0.525 in Table 5  The result of the hypothesis testing is shown in Table 6. Hypotheses 1, 2, 3, 4, 5, 6, and 7 are acceptable as long as the T-statistic is greater than 1.96 and the p-value is less than 0.05.

DISCUSSION
The first hypothesis asserts that brand innovation improves brand communication. As shown in Table 6, this hypothesis is accepted because the T-statistic exceeds 1.96, equaling 5.161, and the p-value is less than 0.05, equaling zero. According to the path coefficient data from the original study, brand innovation has a 0.282 direct effect on brand communication.
The second hypothesis states that dynamic marketing capability benefits brand communication.
As shown in Table 6, this hypothesis is accepted since the T-statistic value is more than 1.96, equals 9.221, and the p-value is less than 0.05, which is .000. Therefore, the direct influence of dynamic marketing capability on brand communication is 0.493, based on the original sample data from the route coefficient.
According to the third hypothesis in this study, brand communication has a favorable effect on brand experience. This hypothesis is supported by the fact that the T-statistic is greater than 1.96, which equals 31.800, and the p-value is less than 0.05, which equals 0.000. Therefore, according to the route coefficient's original sample data, brand communication directly affects brand experience of 0.750.
The fourth hypothesis is that brand experience improves brand performance. As shown in Table 6, this hypothesis is supported since the T-statistic value is more than 1.96, which = 12.932, and the p-value is less than 0.05, which equals 0.000. According to the path coefficient's first sample data, brand experience significantly affects brand performance of 0.552.
The fifth hypothesis in this study claims that through brand experience, brand communication has a beneficial effect on brand performance. As shown in Table 6, this hypothesis is accepted because the T-statistic exceeds 1.96, which equals 11.766, and the p-value is less than 0.05, which is .000. As established by the original sample data from the route coefficient, brand communication directly affects brand performance of 0.414.
The sixth hypothesis asserts that brand innovation improves brand performance. As shown in Table 6, this hypothesis is accepted because the T-statistic exceeds 1.96, which equals 4.994, and the p-value is less than 0.05, which equals .000. As established by the original sample data from the path coefficient, the direct influence of brand innovation on brand performance is 0.206.
The seventh hypothesis is that dynamic marketing capability improves brand performance. This theory is confirmed by the T-statistic value above 1.96, which equals 2.931, and the p-value being less than 0.05, which equals 0.002. Therefore, accord- According to the brand innovation variable analysis, if a hotel wishes to capture market share from millennials and generation Z, it must innovate by offering new amenities and services. DMC requires hotels to provide accurate and consistent information about their properties in order for guests to make an informed selection. Additionally, hotels must collect feedback from guests to help them improve their marketing strategy. Following that, hotels are advised to adapt culturally to their surroundings to attract the appropriate market. Finally, hoteliers should use tempting advertising and incentives to entice guests to stay at their property. According to brand experience analysis, consumers can have a more pleasant experience at a hotel by giving the best service available, such as more courteous and concerned hotel staff.
Additionally, hotels must optimize their operations, innovation, and marketing efforts to entice guests to recommend the hotel to others eventually. Hotels should maintain their performance and ensure that their guests have a positive hotel experience. Additionally, hotels must supply services commensurate with the marketed and promoted features to entice repeat customers. Finally, hotels are advised to ensure that their services comply with the standards established and presented, instilling a strong desire in prospective customers to remain at the hotel.

CONCLUSION
This study aimed to develop a model of brand innovation, dynamic marketing skills, brand communication, and brand experience in 3-5 star international hotels and correlate these factors with brand performance. Brand experience will be a moderator in the relationship between brand communication and brand performance. The model's conclusions are crucial for the study as well as the performance and development of global hotel industry brands, particularly in terms of consumer responsiveness. This discovery is likely to contribute to creating a conceptual model combining brand innovation, dynamic marketing capability, brand communication, brand experience, and brand performance in the global hotel industry. This study lays the theoretical groundwork for dynamic marketing capabilities and brand performance. The purpose of this study is to analyze the relationship between brand innovation, dynamic marketing capabilities, brand communication, brand experience, and brand performance, with a focus on the hospitality industry's brand management in the context of global branding and marketing.
This study was not without limitations. The research object was respondents who have stayed at one of the 3-5 star international hotels. Obtaining respondents who fit the necessary criteria, on the other hand, is not easy. It could be due to potential differences in the positioning and segmentation of foreign threeto five-star hotels. Additionally, because this research paradigm has not been extensively explored, the available sources and hypotheses are relatively limited. Following that, the study object must be adjusted to represent the perceptions of the local audience regarding 3-5 star foreign hotels. To effect these improvements, future studies must ascertain the level of knowledge among the local community with the hotel's reputation (stars) or origin (domestic or international). By boosting the number of respondents and the generalizability of the findings, familiar research objects may help the continuation of the study. Additionally, future research is planned to examine extending the duration of the study in order to acquire the best findings and to identify other ideas that support the research model's hypothesis.