Customer based brand equity: evidence from the hotel industry ¨¸ Ruchan Kayaman and Huseyin Arasli
Eastern Mediterranean University, Gazimagusa, Turkey
Purpose – The paper aims to explore interrelations of the four brand equity components; brand awareness, brand loyalty, perceived quality and brand image in hotel industry and improve the conceptualization of customer-based hotel brand equity. Design/methodology/approach – The paper is based on the recommendations of previous studies, the scale constructed to measure consumer-based brand equity included brand awareness, brand loyalty, perceived quality and brand image. The present study used a sample of 345 actual customers from 11 different countries whose accommodation in North Cyprus hotels was used to test the relations of the proposed model Path analysis. Findings – The ﬁndings in this paper support the three-dimensional model of customer-based brand equity in hotel industry. Brand awareness dimension was not found signiﬁcant in the tested model for hotels. The present study contributes to the understanding of customer-based brand equity measurement by examining the dimensionality of this construct. Research limitations/implications – Further research in this paper should attempt to examine brand equity across many different hotel categories. This will give the opportunity to make comparisons between different hotels’ products and this concept. Furthermore, intra relationship of customer based-brand equity components on the hotel performance needs to be investigated. Practical implications – The paper shows that hotel managers and executives should try to inﬂuence; perceived quality, brand loyalty, brand image and brand awareness in their organizations and design their service delivery process by considering relations between customer based brand equity components. Originality/value – The principal contribution of the paper is that it provides important insights into the development and measurement of customer based hotel brand equity scale and limited hotel brand equity literature. Keywords Hotels, Brand equity, Brand awareness, Brand loyalty, Brand image, Cyprus, Turkey Paper type Research paper
Managing Service Quality Vol. 17 No. 1, 2007 pp. 92-109 q Emerald Group Publishing Limited 0960-4529 DOI 10.1108/09604520710720692
Introduction Branding is one of the most dominant trends in the global hotel industry. In the USA, brand penetration in the ratio of branded vs. non-branded properties is over 70 percent in the commercial lodging industry; in Canada it is just under 40 percent; and in Europe it is under 25 percent but growing (Forgacs, 2006). With this parallel the concept and measurement of brand equity in the hotel industry has gained considerable attention from academicians, practitioners, and researchers in recent years (Bailey and Ball, 2006; Kim and Kim, 2005; Prasad and Dev, 2000; Cobb-Walgren et al., 1995). A variety of reasons have been cited in the literature for the growth of branding within the hotel industry. From the consumer point of view, key beneﬁts include the reduction of perceived risks and search costs. In terms of the brand owners, key Both authors contributed equally to the article.
arguments proposed as the ability to charge a price premium over and above rival hotel chains and independent hotels, the ability to gain market share against these rivals, and the ability to keep customers by building brand loyalty which can in turn reduce marketing costs (Sangster et al., 2001). O’Neill and Mattila (2004) also indicate that brands with higher guest satisfaction levels seem to achieve not only greater revenues per guest room but also achieve higher growth rates in room revenues than brands with lower satisfaction. Despite these interests, the existing literature on brand equity within the hotel...