Building Brand Equity in Hotel Industry: The Mediating Role of Customer-Based Brand Satisfaction

Abstract

Customer-based brand equity is seen as an aspect of perceived value, association and brand awareness in customers’ mind. Especially, in the case of tangible products, this issue is becoming a key element in development of hotel marketing. However, there has been only limited investigation into the impact of customer satisfaction on the relationship between brand equity and brand loyalty in the hotel industry. Therefore, this study investigates the effect of brand equity on brand loyalty in the hotel industry through customer satisfaction. It also examines whether customer satisfaction moderates the impact of brand equity on brand loyalty. Based on data collected through 1016 customers, the hypothesized structural model is conducted. The results reveal that brand equity has a positive indirect effect on brand loyalty through customer satisfaction and that brand awareness has a positively direct influence on brand loyaltys.

Keywords: Customer-Based Brand Equity, Perceived Value, Brand Awareness, Brand Association, Brand Loyalty

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