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Customer Satisfaction and Hotel Brand Equity: A Structural Equation Modelling Study
Mohamed A. Nassar
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DOI:10.17265/2328-2169/2017.08.002
University of Alexandria, Alexandria, Egypt
In this paper, a structural equation modelling technique was used to examine the effect of brand equity on customer satisfaction in the Egyptian hotel industry. Brand equity was separated into four constructs (brand loyalty, perceived quality, brand awareness and brand associations), and each one was examined individually. A sample of hotel guests, who accommodated at four- and five-star branded hotels, in four tourism destinations in Egypt, was selected. A structured questionnaire that included established scales was then used to measure brand loyalty, perceived quality, brand awareness, brand associations and customer satisfaction. Data were collected from 280 usable questionnaires answered by hotel guests, and the relationships among the four variables of brand equity and customer satisfaction were examined using correlation analysis and structural equation modelling. The study found that brand loyalty, brand awareness and brand associations all had a significant positive effect on customer satisfaction. Perceived quality, however, did not have any effect. These findings suggest that customer satisfaction is a reasonable measure for the success of branding activities, and that branding managers should focus on brand loyalty, awareness and associations to raise their customers’ satisfaction.
brand equity, customer satisfaction, hotel industry, structural equation modelling, Egypt
Journal of Tourism and Hospitality Management, July-Aug. 2017, Vol. 5, No. 4, 144-162 doi: 10.17265/2328-2169/2017.08.002
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