From Brand Identity to Brand Equity: A Multilevel Analysis of the Organization–Employee Bidirectional Effects in Upscale Hotels.

Abstract

Purpose: This study examines the mechanism of how hotel executive brand identity influences physical facility quality and customer-based brand equity (CBBE) and employee-based brand equity (EBBE). Design: The study introduces a multilevel model and collects 925 executive and 1,978 employee responses from 62 upscale hotels in China. Findings: Executive brand identity positively affects employee brand internalization, which leads to positive EBBE. Meanwhile, executive brand identity positively influences the physical facility quality, which leads to positive CBBE. Practical implications: Once hotel executives have a clear understanding of the brand identity, they will provide the necessary leadership in imparting the brand identity on their employees. Hotel executives must also convince owners of the value of physical facility quality to achieve a desirable CBBE. Originality/Value: This study considers the tangible (physical facilities) and intangible (employees) elements of hotel services to comprehensively investigate the brand equity (BE) formation. By applying multilevel structural equation modeling (SEM), the study examines the bidirectional relationship between organizations and employees in the brand value transformation process.