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2.2 HYPOTHESIS DEVELOPMENT
2.2.1 SERVICE INNOVATION
In order to attract customers and maintain a competitive advantage, marketers must embrace innovation as
a critical tool. In today's global economy, innovation is regarded as a critical component of long-term success. According to
the definition, “openness to new types of technologies, the ability to search for these technologies proactively, recognize them
early, and react appropriately, as well as an attempt to use these technologies purposefully for innovation in order to develop
technologically first-class products that are superior to those of competitors,” are all characteristics of a technologically
innovative company. The ability of a firm to gain a competitive advantage through positioning is influenced by the
organization's commitment to innovation and new ideas. There are many different types of innovation development and
execution that can take place in the hospitality industry, including service innovation, product innovation, and administrative
innovation. All of these types of innovation development and execution have the potential to lead to the adoption of new ideas,
services, and products. As a result, service innovation has evolved into a complete subject that includes the investigation of
intangible processes and dynamic interactions between technical and human systems that result in service management and
organizational transformation, among other things. This form of value co-creation provides organizations with a greater
opportunity and ability to develop higher-quality service offerings, culminating in the development of new service offerings
(Agarwal, 2009).
H1: Service innovation will have a positive impact on dimensions of positioning strategy.
2.2.2 RELIABILITY
The meaning attributed to reliability in the internal service encounter appears to be similar to that assigned
to reliability in the external service encounter, with the emphasis on the timeliness and accuracy of the output, as well as on
dependability. The need for communication and problem-solving assistance is also readily evident. Perhaps this is because the
internal service encounter is a time-consuming project in which the internal customer needs to be able to freely discuss its
demands with the internal service provider, and because the latter has demonstrated flexibility and patience in responding to
these needs. Unlike service reliability, service failure refers to the loss of consumer expectations and confidence when a service
problem or query is seen by the consumer (Weun, Beatty, and Jones 2004). In order to deliver dependable service quality, the
employees must maintain consistency in their attitude, knowledge, and skills (Aryee, 2016). A service quality assessment is
required by travel companies so that they can determine the current level of service quality in the travel and tourist industry,
as well as the primary drivers for service quality improvement. A reliable assessment and measurement of service quality is
required in order to enhance service quality over time. In the tourist sector, service reliability is extremely significant since it
will influence the customer's view of the tourism service image as well as their sequence of purchasing behaviour during their
vacation (Tsaur, Chang and Yen, 2002).
H2: Reliability will have a positive impact on dimensions of positioning strategy.
2.2.3 BRAND ENDORSEMENT
When a new brand is created from an existing successful brand, this positioning strategy is utilised to assist
the new brand in gaining access to the perceptual space occupied by the old brand in the minds of customers. By establishing
and inhabiting a distinct position in the customer mind through promotional campaigns such as advertising and public relations,
it is possible to differentiate oneself from the competition (Kotha and Vadlamani, 1995). In order to achieve this level of
success, the corporation must closely monitor the marketing strategies of its competitors in order to retain a positive brand
image. The corporation will therefore hunt for market information that will assist it in continuing to operate in its current form.
The company is pursuing this approach in order to position their brand as competitively as possible. They are employing
creative strategies and methods in their advertising, improving the quality of their advertising, building brand reputation and
brand identity, and strengthening their relationships with distributors to achieve this goal. Caterpillar and John Deere, for
example, have outspent their opponents in their respective industries by raising their advertising spending and developing
distinctive imagery to differentiate themselves.
H3: Brand endorsement will have a positive impact on dimensions of positioning strategy.
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