The impact of customer satisfaction, customer experience and customer loyalty on brand power: empirical evidence from hotel industry
Abstract
This research aims to investigate the impact of customer satisfaction, experience, and loyalty on brand power in the Hotel industry. This study used a descriptive-survey research design based on the correlation method. The selected populations were Pars Hotels’ customers. Sample size was 384, based on Krejcie and Morgan’s sampling table. The structural equation modeling was used to evaluate the causal simulation and to examine the reliability and validity of the measuring model. The research results showed that customer expectation has the most impact on customer satisfaction with path coefficient of 0.74. On the other hand, customer loyalty, with path coefficient of 0.65, is known as an influential factor. This study helps to understand that customer satisfaction and customer expectations are positive drivers of customer loyalty. Customer loyalty also is a strong predictor of brand power in hoteling and tourism industry. By strengthening that part, which you have better resources, you can have a better supply and thus, there would be more opportunities in establishing reputation and increasing visibility.
Keyword : Brand power, customer satisfaction, customer experience, customer loyalty, hotel industry, Smart-PLS
How to Cite
Nobar, H. B. K., & Rostamzadeh, R. (2018). The impact of customer satisfaction, customer experience and customer loyalty on brand power: empirical evidence from hotel industry. Journal of Business Economics and Management, 19(2), 417-430. https://doi.org/10.3846/jbem.2018.5678
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Xiang, Z., & Gretzel, U. (2010). Role of social media in online travel information search. Tourism Management, 31(2), 179-188. https://doi.org/10.1016/j.tourman.2009.02.016
Xie, D., & Heung, V. C. (2012). The effects of brand relationship quality on responses to service failure of hotel consumers. International Journal of Hospitality Management, 31(3), 735-744. https://doi.org/10.1016/j.ijhm.2011.09.010
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Ahmed, Z., Rizwan, M., Ahmad, M., & Haq, M. (2014). Effect of brand trust and customer satisfaction on brand loyalty in Bahawalpur. Journal of Sociological Research, 5(1), 306-326. https://doi.org/10.5296/jsr.v5i1.6568
Aktepe, A., Ersöz, S., & Toklu, B. (2014). Customer satisfaction and loyalty analysis with classification algorithms and Structural Equation Modeling. Computers & Industrial Engineering, 86, 95-106. https://doi.org/10.1016/j.cie.2014.09.031
Brady, M. K., Cronin, J. J., & Brand, R. R. (2002). Performance-only measurement of service quality: a replication and extension. Journal of Business Research, 55(1), 17-31. https://doi.org/10.1016/s0148-2963(00)00171-5
Chitty, B., Ward, S., & Chua, C. (2007). An application of the ECSI model as a predictor of satisfaction and loyalty for backpacker hostels. Marketing Intelligence & Planning, 25(6), 563-580. https://doi.org/10.1108/02634500710819941
Erdem, M., & Cobanoglu, C. (2010). The impact of consumer-generated media and social networking in hospitality: the implications for consumers and hospitality managers. Journal of Hospitality Marketing & Management, 19(7), 697-699. https://doi.org/10.1080/19368623.2010.507990
Garg, R., Rahman, Z., Qureshi, M., & Kumar, I. (2012). Identifying and ranking critical success factors of customer experience in banks: An analytic hierarchy process (AHP) approach. Journal of Modelling in Management, 7(2), 201-220. https://doi.org/10.1108/17465661211242813
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International Journal of Service Industry Management, 7(4), 27-42. https://doi.org/10.1108/09564239610129931
Huang, Z. J., & Cai, L. A. (2015). Modeling consumer-based brand equity for multinational hotel brands–when hosts become customers. Tourism Management, 46, 431-443. https://doi.org/10.1016/j.tourman.2014.07.013
Javalgi, R. G., Martin, C. L., & Young, R. B. (2006). Marketing research, market orientation and customer relationship management: a framework & implications for service providers. Journal of Services Marketing, 20(1), 12-23. https://doi.org/10.1108/08876040610646545
Kao, Y. F., Huang, L. S., & Wu, C. H. (2008). Effects of theatrical elements on experiential quality and loyalty intentions for theme parks. Asia Pacific Journal of Tourism Research, 13, 163-174. https://doi.org/10.1080/10941660802048480
Keller, K. L. (2008). Strategic brand management-building, measuring, and managing brand equity (3rd ed.). United States: Pearson − Prentice Hall.
Khan, I., Garg, R. J., & Rahman, Z. (2015). Customer service experience in hotel operations: an empirical analysis. Procedia-Social and Behavioral Sciences, 189, 266-274. https://doi.org/10.1016/j.sbspro.2015.03.222
Klaus, P., & Maklan, S. (2013). Towards a better measure of customer experience. International Journal of Market Research, 55(2), 227-246. https://doi.org/10.2501/ijmr-2013-021
Kim, B. Y. (2008). Mediated effects of customer orientation on customer relationship management performance. International Journal of Hospitality and Tourism Administration, 9(2), 192-218. https://doi.org/10.1080/15256480801909089
Kottler, P., & Pfoertsch, W. (2006). Industrial brands management. Berlin, Heidelberg: Springer-Verlag.
Kumar, V., Dalla Pozza, I., & Ganesh, J. (2013). Revisiting the satisfaction–loyalty relationship: empirical generalizations and directions for future research. Journal of Retailing, 89(3), 246-262. https://doi.org/10.1016/j.jretai.2013.02.001
Lager, M. (2008). CRM: In the public interest (p. 18). CRM Mag. 6.
Lemke, F., Clark, M., & Wilson, H. (2011). Customer experience quality: an exploration in business and consumer contexts using repertory grid technique. Journal of the Academy of Marketing Science, 39(6), 846-869. https://doi.org/10.1007/s11747-010-0219-0
Leong, L. Y., Hew, T. S., Lee, V. H., & Ooi, K. B. (2015). An SEM–artificial-neural-network analysis of the relationships between SERVPERF, customer satisfaction and loyalty among low-cost and full-service airline. Expert Systems with Applications, 42(19), 6620-6634. https://doi.org/10.1016/j.eswa.2015.04.043
Loureiro, S. M. C. (2010). Satisfying and delighting the rural tourists. Journal of Travel & Tourism Marketing, 27(4), 396-408. https://doi.org/10.1080/10548408.2010.481580
Mendoza, L. E., Marius, A., Pérez, M., & Grimán, A. C. (2007). Critical success factors for a customer relationship management strategy. Information and Software Technology, 49(8), 913-945. https://doi.org/10.1016/j.infsof.2006.10.003
Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 116.
Souri, F. (2017). Investigate The relationship between brand equity, brand loyalty and customer satisfaction. International Journal of Scientific & Technology Research, 6(6), 225-231.
Suh, J. C., & Youjae, Y. (2006). When brand attitudes affect the customer satisfaction-loyalty relation: the moderating role of product involvement. Journal of Consumer Psychology, 16(2), 145-155. https://doi.org/10.1207/s15327663jcp1602_5
Taylor, S. A., Celuch, K., & Goodwin, S. (2004). The importance of brand equity to customer loyalty. Journal of Product & Brand Management, 13(4), 217-227. https://doi.org/10.1108/10610420410546934
Wang, J. N., Du, J., Chiu, Y. L., & Li, J. (2018). Dynamic effects of customer experience levels on durable product satisfaction: price and popularity moderation. Electronic Commerce Research and Applications, 28, 16-29. https://doi.org/10.1016/j.elerap.2018.01.002
Xiang, Z., & Gretzel, U. (2010). Role of social media in online travel information search. Tourism Management, 31(2), 179-188. https://doi.org/10.1016/j.tourman.2009.02.016
Xie, D., & Heung, V. C. (2012). The effects of brand relationship quality on responses to service failure of hotel consumers. International Journal of Hospitality Management, 31(3), 735-744. https://doi.org/10.1016/j.ijhm.2011.09.010
Yeng, L. C., & Mat, K. N. (2013). The antecedents of customer loyalty in Malaysian retailing: capitalizing the strategic tool. In Proceedings of 3rd Asia-Pacific Business Research Conference 25−26 February 2013, Kuala Lumpur, Malaysia. Retrieved from https://pdfs.semanticscholar.org/48e6/bd7a17c8c9fc5a9f7f85b4629912ef611152.pdf
Yilmaz, C., Alpkan, L., & Ergun, E. (2005). Cultural determinants of customer- and learning-oriented value systems and their joint effects on firm performance. Journal of Business Research, 58(10), 1340-1352. https://doi.org/10.1016/j.jbusres.2004.06.002