Understanding brand equity in hotel firms. What is the role of brand loyalty and satisfaction?

Abstract

Purpose

This paper aims to focus on examining the relationships between hotel brand equity (BE), brand satisfaction (BS) and brand loyalty, considering both behavioral loyalty (BL) and attitudinal loyalty (AL). These relationships are tested through seven causal models, i.e. one proposed model (PM) and six alternative models (AMs).

Design/methodology/approach

The fieldwork was conducted among 360 hotel guests in Spain in 2016.

Findings

The findings reveal that the PM, which considers BL, AL and BS as direct antecedents of BE, performed better than the alternative ones. AL is confirmed as the most significant driving factor of hotel BE, followed by brand image and perceived quality.

Research limitations/implications

More rigorous measurement of brand image could be used as some of its indicators did not result significantly.

Practical implications

AL needs to be highly encouraged, as concerning customers’ subjective disposition and appraisal of a brand helps them maintain preference for the brand over alternatives. In addition, a positive brand image and superior perceived quality should be considered by hotel marketers as a basis for BE building.

Originality/value

The models proposed in this study can be used to examine how hotel BE results from its potential antecedents and outcomes. The significant insight lies in identifying key drivers of BE and in considering the causal relationships between BE, satisfaction and loyalty in hotel firms.

Citation

Šerić, M. and Gil-Saura, I. (2019), "Understanding brand equity in hotel firms. What is the role of brand loyalty and satisfaction?", International Journal of Contemporary Hospitality Management, Vol. 31 No. 9, pp. 3526-3546. https://doi.org/10.1108/IJCHM-06-2018-0516