The effect of consumer based brand equity on the consumer satisfaction and brand loyalty in the hotel industry (case study: Pars Hotels Investment Company)

Branding is one of the determinants of brand equity in the global hotel industry. This study aims to investigate the mediating effects of consumer satisfaction on the relationship between consumer-based brand equity and brand loyalty in Pars Hotels Investment Company. The conceptual model embraces independent variables of physical quality, staff behavior, ideal self-congruence, brand identity, lifestyle-congruence, and brand awareness; mediator variable of consumer satisfaction; and dependent variable of brand loyalty. This study is a survey type research. As for the sampling technique, multi-stage sampling is used with 385 guests of Pars Hotels in Kerman and Tabriz constituting the sample population. In the data analysis, confirmatory factor analysis is used to confirm the model and the structural equations (simultaneous multiple regression analysis) to answer the hypotheses. Our findings revealed that the physical quality, staff behavior, ideal self-congruence, brand identity, lifestyle-congruence, and brand awareness have significant direct impact on consumer satisfaction; consumer satisfaction has a significant direct impact on brand loyalty; and consumer satisfaction mediates the effects of physical quality, staff behavior, ideal self-congruence, brand identity, lifestyle-congruence, and brand awareness on brand loyalty.