E-ISSN : 2963-4946
Vol. 2 No. March 06, 2024 https://ajosh.org/
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1277
The Impact of Destination Brand Authenticity on Tourist
Loyalty in Yogyakarta: A Study on Generation Z
Rayhan Razaqi Sjuhada
1*
, Naila Zulfa
2
Universitas Gadjah Mada Yogyakarta, Indonesia
E-mail: rayhansjuhada@mail.ugm.ac.id
1*
, nailazulfa@ugm.ac.id
2
*Correspondence: rayhansjuhada@mail.ugm.ac.id
KEYWORDS
ABSTRACT
Brand authenticity;
Tourism; Brand
Engagement; Brand
loyalty; Brand
management.
This research aims to determine the effect of authenticity on
loyalty through the interaction of tourists in Yogyakarta. The
City of Yogyakarta, a tourist destination located in the heart
of the island of Java, is designated as a Super Priority
Tourism Destination area to accelerate the regional
economy. Until July 2022, 3.9 million recorded tourists were
visiting Yogyakarta City destinations. Understanding tourist
loyalty can help destination marketers reduce marketing
costs. In previous studies, it has been found that tourist
loyalty is influenced by destination brand authenticity and is
supported by the involvement of destination brand
engagement. This research is quantitative and was carried
out using a survey method. Data analysis was performed
using simple and multiple regression analysis using the
SPSS (Statistical Package for Service Solutions) version 26.
The results showed a direct influence of brand authenticity
and engagement on tourist loyalty and an indirect effect.
Between brand authenticity and tourist loyalty through
destination brand engagement. Tourist destination
managers, especially D.I Yogyakarta, can use the results of
this research to design the Yogyakarta City destination brand
in a marketing strategy that can re-attract tourists in
Yogyakarta.
Attribution- ShareAlike 4.0 International (CC BY-SA 4.0)
Introduction
Tourism has experienced significant growth in Indonesia in recent years and has
emerged as a major contributor to the nation's economy (Jaelani, 2017). In 2020, the
tourism industry accounted for 3.2% of Indonesia's GDP, equivalent to IDR 502.22
trillion (Statista, 2020). Yogyakarta, a city in the heart of Java with a population
exceeding 300,000, is one of the most sought-after destinations in Indonesia (Munarko et
al., 2021). Its reputation in education, culture, and tourism has positioned it as a hub for
Southeast Asia heritage, cultural, and educational tourism (Csobanka, 2016).
Destination marketers should identify unique aspects of their destination that
differentiate it from others. As (Dedeoğlu et al., 2019) pointed out, branding has emerged
The Impact of Destination Brand Authenticity on Tourist Loyalty in Yogyakarta: A
Study on Generation Z
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1278
as a crucial tool for distinguishing between destinations. Some cities, such as Paris, which
has its romantic branding, Hallstatt in Austria, which has its picturesque natural scenery
of Hallstatt in Austria, and Tokyo, which has its renowned buildings and megapolitan
density, have shown successful branding efforts. Research in tourism notes that
authenticity plays a significant role in effective branding initiatives (Chen et al., 2020).
Thus, marketers need to comprehend the authenticity of their city, as well as its
underlying drivers and consequences. In addition, the proliferation of counterfeit goods
has rendered many branding efforts increasingly insignificant, and consumers are
growing more discerning in their search for brands that are genuine, original, relevant,
and authentic (Davis et al., 2019).
The relationship between tourists and a destination (city) brand can result in
destination brand engagement, characterised as a psychological state and behaviour
connecting consumers with brands (Dwiaryanti, 2023). Previous research has indicated
that engagement and authenticity positively impact tourist loyalty. (Rahman et al., 2021)
Argue that retaining existing customers is more profitable for a brand than acquiring new
ones. High customer loyalty has several advantages, such as reducing marketing costs,
promoting positive word-of-mouth (both online and offline), and decreasing the
likelihood of customers switching to competitors (Saeed & Shafique, 2020). Thus, it is
essential to investigate tourist loyalty by looking at two critical antecedents, i.e.,
destination brand authenticity and engagement.
(Alimuddin & Poddala, 2023) Assesses that Gen Z, a generation born between 1996
and 2010, will be the generation that has strong influences on travel consumption
behaviour. Therefore, understanding the preferences and behaviours of Generation Z
tourists is crucial for the future of the tourism industry (Gohary et al., 2020). Additionally,
this generation values products that offer authentic experiences and reflect real life, as
demonstrated by the European Travel Commission (2020).
Hypothesis development
Destination Brand Authenticity and Destination Brand Engagement
Hypothetically, creating an authentic brand destination will correlate positively
with brand engagement. Bryce, Curran, O'Gorman, and (Pranatasari & Diva, 2020) found
that destination brand authenticity enhances tourist engagement. These findings suggest
that when destination brand authenticity is high, the need for authenticity is fulfilled, and
tourists are likelier to achieve high levels of destination brand engagement (Bryce et al.,
2015). Therefore, we propose the following hypothesis:
H1 Destination brand authenticity positively influences destination brand engagement.
Destination Brand Authenticity and Tourist Loyalty
Previous research has demonstrated the favourable impact of brand authenticity on
tourist loyalty. In the tourism and hospitality industry, genuine experiences are a
significant factor in attracting tourists. As a result, when a destination's brand authenticity
is high, it increases the likelihood that tourists will return to the destination and
recommend it to others. Research has shown that perceived authenticity positively
Rayhan Razaqi Sjuhada, Naila Zulfa
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1279
influences customer loyalty to tourist destinations (Taheri et al., 2018). Based on this, we
propose the following hypothesis:
H2 Destination brand authenticity positively affects the intention to revisit the city of
Yogyakarta.
H3 Destination brand authenticity positively affects the intention to provide
recommendations for the City of Yogyakarta.
Destination Brand Engagement (DBE)
The study conducted by So et al. (2016) presented the behavioural perspective on
brand and customer engagement, which refers to the personal relationship between the
customer and the brand, as demonstrated through cognitive, affective, and behavioural
responses outside of purchases. The study identified five key factors of brand
engagement: enthusiasm, attention, absorption, interaction, and identification. On the
other hand, the psychological and behavioural perspective defines destination brand
engagement as the level of an individual's mental state related to a brand, which motivates
and is characterised by cognitive, emotional, and behavioural activity in direct brand
interactions.
This research model is a replication of a prior study titled "The Impact of
Destination Brand Authenticity and Destination Brand Self-congruence on Tourist
Loyalty: The Mediating Role of Destination Brand Engagement" by Ruixia Chen, Zhimin
Zhou, Ge Zhan, and Nan Zhou in 2020. This study aims to analyse the impact of
destination brand authenticity on tourists' loyalty in Yogyakarta, with brand engagement
as a mediating variable. The referenced journal outlines two independent variables:
destination brand authenticity and destination brand self-congruence. Subsequently, one
mediating variable, destination brand engagement, influences two dependent variables:
the intention to revisit and recommend to others.
One of the variables is Destination brand self-congruence. This variable is derived
from self-concept, which pertains to an individual's perception. Generally, self-concept
consists of two fundamental dimensions: actual self and ideal self. The actual self reflects
how individuals perceive themselves, while the ideal self represents how they wish to
perceive themselves. (Prihantini, 2019) It remains unclear which dimension enhances the
relationship between tourists and a destination brand. Therefore, destination brand self-
congruence is not included in this study. On the other hand, this research will focus on
how tourists subjectively evaluate the level of authenticity of a destination.
(Prihantini, 2019) definition of customer brand engagement as all activities related
to interactions between consumers and brands that positively impact cognitive, emotional,
and behavioural factors. This perspective emphasises the relationship between consumers
and brands. Research has shown that highly engaged customers are likelier to recommend
a brand to others, accept brand mistakes, and create memorable experiences (Chen et al.,
2020). Based on these findings, the following hypothesis is proposed:
H4. Destination brand engagement had a positive effect on revisit intentions.
H5. Destination brand engagement has a positive effect on recommendation intention
The Impact of Destination Brand Authenticity on Tourist Loyalty in Yogyakarta: A
Study on Generation Z
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1280
Engagement has been considered valuable for enhancing consumer-centric
behaviour's predictive and explanatory power, particularly brand loyalty. In practical
application, customer engagement is a crucial method for fostering loyalty (Bowden,
2009), and the literature strongly supports the link between brand engagement and
consumer loyalty (France et al., 2016). Thus, we propose the following hypothesis:
H6. Destination brand authenticity has a positive effect on revisit intention through
destination brand engagement
H7. Destination brand authenticity positively affects recommendation intention through
destination brand engagement.
Research Methods
The current research employs a quantitative methodology to investigate the effects
of destination brand authenticity on tourist loyalty in Yogyakarta City, with brand
engagement acting as a mediating variable. This research employed a non-probability
sampling technique with a purposive sampling design. This design does not ensure equal
representation for each potential respondent. The sample criteria were Generation Z
tourists who had visited the city of Yogyakarta within the last six months, based on the
recommendations of (Chen et al., 2020). The study used a minimum of 150 respondents
who met the criteria for a suitable sample size of 30 question items and exhibited
appropriate data distribution using a 5-point Likert scale.
The survey was conducted using an online data collection platform, Google Forms,
which offers the advantage of reaching large populations and can be quickly accessed.
The Google Form link was distributed through social media and messaging applications
like WhatsApp, Instagram, Telegram, and Facebook. The validity of the research
instrument was established through factor analysis and Average Variance Extracted
(AVE) tests for convergent validity. A reliability test using Cronbach's alpha was also
performed on the research instrument.
The data analysis was conducted using a four-step regression analysis to evaluate
the significance of the estimates for indirect effects. This involved a regression of the
mediating variable on the independent variable, a simple regression of the dependent
variable on the mediating variable, a regression of the dependent variable on the
independent variable, and a regression of the dependent variable on both the dependent
and mediating variables. The analysis was followed by bootstrapping and the PROCESS
test, as well as the classical assumption test, normality test, multicollinearity test, and
significance level test.
Results and Discussions
The researchers were able to obtain data from a sample of 222 individuals, with
214 of them meeting the required criteria. The sample was categorised based on four
demographic variables: age, level of education, place of residence, and monthly income.
Table 1
Summary of Regression Result
Hypothesis
Dec.
Β
Lower CI
Upper
CI
Information
Rayhan Razaqi Sjuhada, Naila Zulfa
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1281
H1
DBA-
DBE
0.505
0.409
0.594
H1 Accepted
H2
DBA-
REV
0.190
0.166
0.209
H2 Accepted
H3
DBA-
REC
0.164
0.123
0.200
H3 Accepted
H4
DBE-
REV
0.347
0.316
0.387
H4 Accepted
H5
DBE-
REC
0.284
0.247
0.318
H5 Accepted
H6
DBA-
DBE
0.150
0.100
0.225
H6 Accepted
DBE-
REC
H7
DBA-
DBE
0.108
0.064
0.155
H7 Accepted
DBE-
REC
The initial hypothesis reported a confidence interval (CI) of 0.409 to 0.594 and a
significance level of 0.000, indicating that destination brand authenticity has a statistically
significant positive impact on destination brand engagement. This finding aligns with the
findings of (Taheri et al., 2018), who discovered that the authenticity of destination
attributes enhances tourist engagement.
This study analysed authenticity across four dimensions: continuity, credibility,
integrity, and symbolism. In the context of Yogyakarta City, maintaining authenticity as
tourism trends evolve is critical to its survival. One aspect of authenticity examined in
this research is the moral dimension of credibility and integrity. Yogyakarta City is known
for its moral aspects, such as its inhabitants' warmth, friendliness, and politeness. Based
on these results, when the authenticity of the Yogyakarta City destination brand is high,
tourists tend to have strong destination brand engagement.
The second hypothesis has a confidence interval (CI) value ranging from 0.166 to
0.209 and a significance level of 0.000, indicating that destination brand authenticity has
a statistically significant positive impact on the intention to revisit. Similarly, the third
hypothesis has a CI value ranging from 0.123 to 0.200 and a significance level 0.000,
indicating that destination brand authenticity has a statistically significant positive impact
on the intention to provide recommendations. As (Chen et al., 2020) noted, when a
destination's brand authenticity is high, the need for authenticity among tourists is
satisfied, increasing the likelihood that they will revisit the destination and recommend it
to others. Additionally, it found that tourist loyalty to a destination is driven by its
authenticity.
The Impact of Destination Brand Authenticity on Tourist Loyalty in Yogyakarta: A
Study on Generation Z
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1282
This study examines the impact of destination brand authenticity on the revisit
intention and the recommendation intention of Generation Z tourists in Yogyakarta City.
According to the findings, the marketing efforts of destination marketers have been
deemed honest by this demographic, as reflected in promotional materials that showcase
genuine aspects of the city. The research suggests that these efforts positively influence
the likelihood of tourists returning and recommending the destination to others.
The fourth hypothesis has a confidence interval (CI) of 0.316 to 0.387 and a
significance level of 0.000, indicating that destination brand engagement significantly
positively affects the intention to revisit. Similarly, the fifth hypothesis has a CI of 0.247
to 0.318 and a significance level of 000, indicating that destination brand engagement
significantly positively affects the intention to give recommendations. This suggests that
tourists with high engagement are more likely to recommend destinations to others. (Chen
et al., 2020) also argue that destinations with high engagement provide unforgettable
tourism experiences.
Therefore, it can be concluded that tourists' loyalty to Yogyakarta City will be
higher if the destination brand engagement is high. This concept is defined as interactions
that improve cognitive processes, affective aspects, and activation in the City of
Yogyakarta, influencing tourists' return and their desire to provide recommendations. The
open public spaces in Yogyakarta, such as South Alun Alun, North Alun Alun, and JNM
Block, facilitate increased tourist interaction and can impact tourist loyalty.
The results in Table 1 confirm the validity of hypotheses six and seven through
indirect effects of 0.150 and 0.108, respectively. This aligns with the research conducted
by Schau et al. (2009), which suggests that engagement is a promising concept for
predicting and explaining consumer-focused behavioural outcomes, such as brand
loyalty. As technology progresses, online engagement with destinations can enhance
perceived authenticity and engagement among tourists. This study emphasises the crucial
role of creating destination brand engagement in tourism destination development,
particularly in the relationship between the authenticity of the City of Yogyakarta and the
loyalty of Generation Z tourists in the City of Yogyakarta.
Conclusion
The study concludes a positive relationship between destination brand authenticity,
destination brand engagement, and tourist loyalty in Yogyakarta City, especially among
Generation Z travellers. In addition, this study also found that the involvement of
destination brands has a direct and indirect positive influence on tourist loyalty in
Yogyakarta City. Factors such as affection, activation, and cognitive processes in a
destination's brand engagement contribute to the city's Generation Z traveller loyalty rate.
The managerial benefit of this study is that it will assist the Yogyakarta government
and tourism businesses in evaluating the branding strategies that have been implemented.
The research also provides marketers with insight into the importance of authenticity in
destination brand sustainability. To that end, marketers can consider measures such as
exposing emerging tourist attractions, aligning brand image with actual conditions in
society, improving aspects of integrity, and strengthening destination symbolism.
Rayhan Razaqi Sjuhada, Naila Zulfa
Asian Journal of Social and Humanities, Vol. 2 No. March 06, 2024 1283
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