The Influence of Value-Creation on Customer's Based Destination Brand Equity: Case Study Daerah Istimewa Yogyakarta and Magelang in Indonesia

Indonesian Government has shown an incredible effort to increase tourism sector's productivity by investing on infrastructures. However, to achieve this goal, branding effort needs to be employed because branding added value to its product. Measuring how the destination brand adds value to its product can be captured by Customers-Based Destination Brand Equity (CBDBE). It is important to recognize its dimensions to increase CBDBE and develop competitive strategy through Value-Creation Experience in Tourist Destination (VCETD). VCETD assesses the value-creation for tourists during their entire experience of a destination (before, during, and after their stay). Thus, this research aimed to answer two questions. First, to confirm the dimensions of CBDBE and VCETD. Second, to find out the antecedence influence of VCETD to CBDBE for planning competitive strategy. This concept was tested on Daerah Istimewa Yogyakarta and Magelang where the data collection was conducted in Departure Terminal in AdiSutjipto Airport and Borobudur temple with direct questionnaire. Then, it was analyzed using Structural Equation Modelling (SEM), whereas confirming the dimensions of VCETD and CBDBE using Second Order Confirmatory Factor Analysis then followed by Structural Model to assess the antecedence influence between the two. The results show that there are five dimensions of destination brand equity, which are destination brand awareness, destination brand image, destination brand quality, destination brand value, and destination brand loyalty and three dimensions of value creation, which are value-creation pre visit, value-creation during visit, value-creation post visit. Moreover, value-creation is proven to be significant (t-value = 8.45) as an antecedent by which the customer perceives greater Destination Brand Equity.