The Impact of Brand Equity towards the Brand Loyalty with Special Reference to Hotel Industry in Sri Lanka

Abstract

Tourists have gained positive mind set about the Sri Lanka after the civil war. Thus it will help to develop a huge demand for the country. Tourism contributes 0.6% to the country from total GDP and was one of the fasters growing sector in the country. This study focuses on recognizing the challenges faced by hotel sector when developing brand loyalty to retain the customers and gain more sustainable profits. The study will enable hotel sector of Sri Lanka to focus on opportunities that enable to enhance brand loyalty and thereby gain a competitive edge over the international rival firms. This study justifies, the impact on brand equity towards the brand loyalty. Elements of brand equity acts as the independent variable whereas the brand loyalty is the dependent variables. For this study data were collected through a consumer survey conducted in Colombo district using random sampling method of 150 respondents. The researcher used the element of the brand equity such as brand image, brand awareness, brand association and perceived quality to measure the brand loyalty. Analysis was done for the individual element of brand equity to identify the impact towards brand loyalty Results from the frequencies, mean analysis and regression analysis showed that there is a positive impact from brand image and perceived quality towards the brand loyalty of hotels in Sri Lanka. Finally, these findings were used to suggest the strategies for industry and government to fit with the consumer expectations.