Customer Loyalty in hospitality industry
Today, the ultimate goal of almost every kind of business is to increase its income and sales. In other word, the business wants to not only attract new customers to the products and service but also to maintain and encourage the current customers to have repeat purchases. Brand awareness is a term used in this condition. It refers to how the firm can let customers know about the products and service and to have a clear picture of the firm when they want to recall their memories. If the firm can achieve brand awareness successfully, it means that the brand of that firm is well known in the society. This branding has many benefits to both firm and customers. In term of hotel, customers who have a strong brand loyalty in a hotel would find themselves comfortable to stay at that hotel whenever they travel and it can also reduce the perceived risk and search cost for a another brand or hotel. Concurrently for the hotel, brand owners, once hotel create and maintain a strong brand loyalty, its customers will believe in the hotel and would select the service of that hotel. Moreover, the hotel can save cost of marketing new campaign to attract new customers which is now very competitive in the hotel industry. The industry of the accommodation nowadays is very competitive. Branding is a new trend in this hotel industry today. In the term related to “Brand”, there are also many familiar words in the field. Aaker (1991) defines the word brand awareness as it refers to the perception of the customer in recognizing or recall a brand. Keller (1993), moreover, agrees with this definition and describes that brand awareness in any kind of business is represented both brand recognition and brand recall. This means that the more the hotel provides the quality of its brand, the more customers’ awareness is higher.
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