Brand portfolio extension of international hotel chains: a perspective on consumer confusion and consumer decision-making process

Abstract

Purpose

This study aims to pay attention to the brand portfolio extension of international hotel chains, and explores the double-edged sword effect of consumer confusion in hotel brands on the purchase decision process.

Design/methodology/approach

Four representative international hotel chains (Marriott, Accor, Wyndham and Hyatt) were selected, and this study adopted consumer confusion from both formative and reflective perspectives. First, the authors dealt with stimuli-causing consumer confusion and evaluated similarity, overload and ambiguity confusion about the brand portfolio of these major hotel companies. Second, the authors examined the influence of consumer confusion on the decision-making process, which is rooted in the awareness–interest–desire–action model.

Findings

Among the source of consumer confusion, similarity confusion was critical for Marriott, Accor and Hyatt, whereas ambiguity confusion was severe for Wyndham. Awareness was positively affected by overload confusion, but negatively affected by ambiguity confusion. Furthermore, the link between interest and desire was moderated by the consequences of consumer confusion.

Practical implications

Based on both positive and negative roles of consumer confusion, this study provides implications for enhancing brand strategy and communications of international chain hotels.

Originality/value

This present study differs from previous studies, in that it deals with consumer confusion associated with brand portfolio expansion, which produces a double-edged sword effect in the hotel context.