CUSTOMER BASED BRAND EQUITY:

INDIA HOTEL INDUSTRY

FINAL RESEARCH PROJECT SUBMITTED IN PARTIAL

FULFILLMENT FOR THE REQUIREMENT OF THE TWO-
YEAR POST GRADUATE DIPLOMA IN MANAGEMENT (2019-
21)

By:

Nitin Narang

166/2019
Under the Guidance of
Dr. Smita Sharma
LBSIM, NewDelhi

LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT,

DELHI

March, 2021
 LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT, DELHI

Date……………

CERTIFICATE

This is to certify that the present study is based on my original research work and my
indebtedness to others’ works, publications, etc. wherever cited in this study has been duly
acknowledged at appropriate places.

This work has not been submitted either in part or in full for the award of any diploma or
degree in any university/ Institute and is now being submitted for evaluation in partial
fulfillment for the requirement of the Two-year Full Time Post-Graduate Diploma in
Management General/Finance/R&BA/L&SCM.

Signature of the Student

(Name & Roll No. of the student)

Prof.
Faculty Guide

2
ACKNOWLEDGEMENT

I would like to thank all the people who have helped me directly and indirectly in completion of
my project successfully.
I would like to thank all the Respondents who extended their time and support in conduction of
interviews/surveys.
It was a great privilege for me to work under the expert guidance of Dr. Smita Sharma, who was
always there to monitor my progress in the project and provide me with ample suggestions and
guidance to successfully complete this project.

Nitin Narang
166/2019
PGDM(General)
Lal Bahadur Shastri Institute of Management
 TABLE OF CONTENTS

INTRODUCTION........................................................................................................................................5
OBJECTIVE OF THE STUDY:........................................................................................................................7
LITERATURE REVIEW:...............................................................................................................................7
.................................................................................................................................................................8
.................................................................................................................................................................7
RESEARCH METHODOLOGY....................................................................................................................10
Questionnaire.........................................................................................................................................11
SAMPLE SIZE:..........................................................................................................................................13
DATA ANALYSIS:.....................................................................................................................................14
CONCLUSION:.........................................................................................................................................20
MANAGERIAL IMPLICATIONS:.................................................................................................................20
LIMITATIONS AND FUTURE RESEARCH:...................................................................................................22
INTRODUCTION
Covid-19 pandemic has caused financial problems for most of the households in India pushing more
percentage of people below poverty line and reducing the percentage of disposable income. The
condition has improved a bit post unlock 2.
Hospitality sector is the most hit during this pandemic and companies of this sector are desperately
waiting for pandemic to end and demand to rise. Market leaders suggest that a company which has a
strong brand equity is more likely to capture market share (keeping other factors competitive) when the
demand rises.
The purpose of this research work is to know whether brand equity influences customers’ repurchase
intention in the hotel industry in Indian Market.
Branding is one of the most dominant trends in the global hotel industry and literature on brand equity
has proposed numerous reasons for the growth of branding within the hotel industry.
This relationship between brand equity and consumers is built as and when consumers get to know a
brand, choose the accommodation randomly, use its facilities, evaluate their experience, and then begin
the relationship hence brand represents consumers’ experience with its organisation.
The intense competitive landscape has been linked to the perspective of brand equity, whereas
satisfaction with compliant handing has a significant impact on trust and commitment.
Finally, customers have a deeply embedded image of the brand, and prefer to repeat their experience by
choosing an equivalent brand. Overall, a hotel brand displays a relationship with customers.
Brands are a posh phenomenon that has been alive already for hundreds of years . It is essential for
every industry to build a brand so that the consumers will have a positive feeling and perception of a
brand. Today brand equity has become one of the most important marketing concept both in business
practice as well as in academic research because marketers can give competitive advantage through
successful brands. Brand equity is really , what brand contains; including brand awareness, brand
loyalty, brand association and perceived value of brand name which may be seen as a crucial strength
for companies as they provide benefits in various dimensions to marketers and consumers. Brands and
brand equity assets help the customers in interpreting and processing information, creating confidence
in the purchase decision and also help in enhancing customer satisfaction. Experts have claimed that
building brand equity is considered to be one of the key drivers of a business success. High brand
equity level results in higher consumer preferences and buy intentions, also as high returns).
Researchers also added that building and properly managing brand equity has become crucial for any
business organizations and hospitality organizations are no exception. Goodness, worth that hotel
proprietors relate to hotel brand equity also affects the performance of hotels, and strong brand equity
significantly increases the profitability of hotel business. If there is the absence of brand equity in the
hotel industry it can possibly disturb in the outflows of the customers in the hotel. Researchers also
argue that when there is positive customer perception regarding hotels service that will automatically
lead the hotel toward strong brand equity. India is a developing country where the number of tourist
visit every year and in almost every season there is a flow of tourist in the hotels. The tourism industry
has been playing a significant role in generating revenue in India. This sector includes various
infrastructures and facilities oriented to the tourists visiting the country. Most of the star-rated hotels
are situated in the capital and metropolitan cities of the country. Thousands of tourists visit India for
various reasons and for various activities from all over the world. Star rated hotels of Delhi and
Mumbai are the most and the prime target for accommodation for foreigners who visit India .
OBJECTIVE OF THE STUDY:
This research aims to focus on customer-based brand equity, and examines whether brand equity influences
customers’ repurchase intention in the hotel industry in Indian Market.

LITERATURE REVIEW:
Customer-Based Brand Equity: The Evidence from China
(Alex Y.-S. Lin Beijing Institute of Technology, Zhuhai E-Mail: alexlin218@gmail.com Yu-Ting Huang Sun
Yat-sen University E-Mail: hyouting@mail.sysu.edu.cn Meng-Kai Lin National Sun Yat-sen University E-Mail:
d006070006@student.nsysu.edu.tw , Vol. 11, No. 1, March 2015 )
Branding is one among the foremost dominant trends within the global hotel industry. This research
aims to specialise in customer-based brand equity, and examines whether brand equity influences
customers’ repurchase intention within the hotel industry in Zhuhai, China. A sample of 193 valid
responses was received through face-to-face surveys of consumers who had experienced staying in
high-star hotels. The results of the survey were analysed employing a rectilinear regression model, and
therefore the preliminary results indicate that there was a positive and meaningful relationship between
brand equity and repurchase intention. The model deployed below was used by the researchers and
hypothesis were tested which gave me an initial perspective for the research .
.

Customer-Based Brand Equity of Star Hotels in Nepal

Ousanee Sawagvudcharee1 , Kapil Khanal2, Pujan Lamichhane3 1 Dr., School of Management, Shinawatra
University, Thailand 2Assoc. Prof. Dr., Faculty of Management, Tribhuvan University, Nepal 3 MBA.
Candidate, Shinawatra University, Thailand, Volume 05 Issue 15 May 2018)
It examines the extent of impact of the independent variables: brand awareness, brand loyalty, brand
image and perceived quality on the dependent variable: customer-based brand equity. The research was
conducted employing a mixed method utilizing both quantitative and qualitative method.
The five-point Likert scale questionnaires and therefore the semi-structured interview were conducted
for data collection, the collected data were analysed using correlation and multivariate analysis aside
from the thematic analysis. The paper found that there was a positive significant relationship between
the independent variables: brand loyalty, brand image and perceived quality and the dependent
variable: customer-based brand equity. Whereas, brand awareness didn't show a big relationship with

customer-based brand equity. The model deployed below helped me gain insight how independent
variables affect customer based brand equity.

BRAND EQUITY IN THE PAKISTANI HOTEL INDUSTRY

(Submitted 09.12.2012. Approved 7.25.2013
Muhammad Ishtiaq Ishaq | Nazia Hussain | Ali Ijaz Asim | Luqman J. Cheema)
The research identifies the interrelationship of customer-based brand equity dimensions (brand
awareness, brand loyalty, brand image, and repair quality) in Pakistani hotel industry. Results
acknowledged positive and significant influences of service quality on all other dimensions of brand
name equity whereas partial mediations were endorsed among the variables. The hypotheses for this
research are as follows- H1: Perceived brand quality positively impacts customer’s repurchase
intention. H2: Brand awareness positively impacts customer’s repurchase intention. H3: Brand image
positively impacts customer’s repurchase intention. H4: Brand uniqueness positively impacts
customer’s repurchase intention.

BRAND EQUITY, BRAND LOYALTY AND CONSUMER SATISFACTION

(Janghyeon Nam Kyungnam University, South Korea ,Yuksel Ekinci Georgina Whyatt Oxford
Brookes University, UK , Vol. 38)

This study aims to research the mediating effects of consumer satisfaction on the connection between
consumer-based brand equity and brand loyalty within the hotel and restaurant industry. supported a
sample of 378 customers and using structural equation modelling approach, the five dimensions  of
brand name equity—physical quality, staff behaviour, ideal self- congruence, brand identification and
lifestyle-congruence—are found to possess positive effects on consumer satisfaction. The findings of
the study suggest that consumer satisfaction partially mediates the consequences of staff behaviour,
ideal self-congruence and brand identification on brand loyalty. the consequences of physical quality
and lifestyle-congruence on brand loyalty are fully mediated by consumer satisfaction.
Consumer satisfaction is important to long-term business success, and one among the
foremost frequently researched topics in marketing. Because consumer satisfaction has been regarded a
fundamental determinant of long-term business success, much of the research on consumer satisfaction
investigates its impact on consumers’ post consumption evaluations like behavioural and attitudinal
loyalty. it's widely accepted that satisfied consumers are less price sensitive, less influenced by
competitors’ attack and constant to the firm longer than dissatisfied customers. Although previous
research has examined the connection between consumer satisfaction and consumer loyalty, there has
been only limited investigation into the impact of consumer satisfaction on the connection between
brand equity and brand loyalty. Researchers developed and tested a conceptual model of the
antecedents and consequences of consumer satisfaction within the hospitality industry. They show that
consumer satisfaction mediates the relation- ship between the 2 components of service evaluation,
service quality, self-congruence and intentions to return. However, by that specialize in self-concept
only, their research examines a narrow aspect of symbolic consumption within hospitality services.
This study further contributes to the prevailing body of data by examining the mediating role of
consumer satisfaction on the connection between consumer-based brand equity and brand loyalty.
Hence brand image and brand loyalty must be confirmed through positive customer experiences.
Accordingly, the effect of brand name equity on brand loyalty is examined when consumers have direct
experiences with brands. Although past studies have proposed that brand equity features a direct
influence on brand loyalty; to the simplest of our knowledge, no study has examined the influence of
consumer satisfaction on the connection between brand equity and brand loyalty within the hotel
industry. The diagram drawn below shows direct and indirect effect on factors that lead to repurchase
decision.

Take Away from Literature Reviews:

Customer Repurchase Intention is based on consumer satisfaction and brand loyalty. These two terms are
further dependent on various factors of brand equity such as physical quality, staff behaviour, ideal self-
congruence, brand identification and lifestyle congruence.

RESEARCH METHODOLOGY
Research Methodology comprises of the following steps:
 Finalizing Objectives
  Building a Research Plan:
 Type of Research:
o Exploratory: First exploratory to be performed by reading reports and secondary analysis.
It will help ascertain if our research was taking the right direction. In this the secondary
research conducted will also be done.
O Conclusive: After conducting the exploratory research, efforts will be focused onto
conclusive research carried out using a Close ended Questionnaire.
 Sampling (Sampling Technique: Non-probability convenience sampling.
 Research Instrument: Questionnaire
 Data Collection:
o Primary Data: Questionnaire.
o Secondary Research: By way of reading and gaining insights from relevant research
papers.
 Data Analysis: Using SPSS.
 Findings and Conclusion

After analysing the literature reviews,

reports and performing secondary
analysis a questionnaire has been built.
Sample size has been calculated 95%
confidence level. After collecting the
responses chron bach’s alpha test,
discriminant analysis, factor analysis
will be done. After completing the
factor analysis hypothesis has been
formed which are run on multiple
regression and acceptance of
hypothesis has been proved.

Questionnaire
Questions for the questionnaire
were formed after reading various
research papers and articles which
have been later mentioned in the
references. Various independent
variables covered in the
questionnaire include physical
quality, staff behavior, ideal self-
congruence, brand identification,
lifestyle congruence, consumer
satisfaction and brand loyalty.
Demographic aspect of the
questionnaire include income,
age, education level and gender.
SAMPLE SIZE:
Sampling method used is non probabilistic convenience sampling. Confidence level taken is 95%, standard
error of sample , range is 4/6 because of 5 point likert scale. Z score is 1.96. Margin of error is 8%
(infeasible at 5% due to high sample size).

N= (z*s/e)^2

=203.

Hence sample size is 203.

DATA ANALYSIS:

 FACTOR ANALYSIS:

Descriptive Statistics

Mean Std. Deviation Analysis N

1. This brand has modern-
looking equipment and
brand’s facilities are
4.10 .792 203
visually appealing

2.This brand gives you a

visually attractive room 4.50 .575 203

3.Employees of this brand

listen to me 4.15 .827 203

4.Employees of this brand

are helpful and friendly 4.32 .745 203

5.The typical guest of this

brand has an image similar
to how i like to see myself 3.95 .819 203

6.The image of this brand is

consistent with how I like to
4.12 .836 203
see myself

7.The image of this brand is

consistent with how I would
like others to see me 3.16 1.450 203

8.If I talk about this brand, I

usually say
3.00 1.276 203

9.If a story in the media

criticises this brand, I would
feel embarrassed 2.80 1.344 203
10.When someone criticises
this brand, it feels like a
personal insult 2.49 1.191 203

11.This brand reflects my

personal lifestyle Component
3.09 1.422 203
1 2 3 4
12.Staying in this
12.Staying in this hotel
hotel brand 3.05 1.394 203
brand supports my lifestyle
.741
supports my
lifestyle
7.The image of
this brand is
consistent with .631
KMO and Bartlett's Test
how I would like
Kaiser-Meyer-Olkin Measure of KMO measure proves that factor analysis
.685 has been done correctly as min. value of it
others
Sampling to see me
Adequacy.
6.The image of should be 0.6.
Bartlett's Test of Approx. Chi-
253.023
this brand is
Sphericity Square
consistent with df .537 66
.494
Sig. .000
how I like to see
myself
5.The typical
guest of this
brand has an
.527 .343
image similar to
Rotated component matrix helped me
how i like to see in reducing the redundant variables.
Finally 4 factors emerged.
myself
F1= 12,7 {Name= Ideal self
4.Employees of congruence}
this brand are F2= 2,3,4 {Name= Service Quality}
.700 F3= 8,9 { Name= Brand
helpful and identification}
F4= 11 { Name= Lifestyle
friendly
congruence}
3.Employees of Other variables were excluded as
this brand listen .664 they were in more than 1 component
and could not fit into 1 structure.
to me
2.This brand
gives you a
.629
visually attractive
room
9.If a story in the
media criticises
this brand, I .764
Hypothesis Development:
After concluding the factor analysis and extracting 4 factors the hypothesis formed are:
H1: Ideal self-congruence has a positive effect on consumer satisfaction with brand experience.
H1 a: Ideal self-congruence has a positive effect on brand loyalty with brand experience.
H2: Service Quality has a positive effect on consumer satisfaction with brand experience.
H2 a: Service Quality has a positive effect on brand loyalty with brand experience
H3: Brand Identification has a positive effect on consumer satisfaction with brand experience.
H3 a: Brand Identification has a positive effect on brand loyalty with brand experience.
H4: Lifestyle congruence has a positive effect on consumer satisfaction with brand experience.
H4 a: Lifestyle congruence has a positive effect on brand loyalty with brand experience.

 REGRESSION:

ANOVAa
Factors 1,2,3,4 were taken as
independent variable and
customer satisfaction was taken
as a dependent variable.
Significant value of anova
proves that the regression was
 Sum of Mean
Model Squares df Square F Sig.
1 Regressi
47.190 3 15.730 9.198 .000b
on
Residual 340.318 199 1.710
Total 387.507 202
a. Dependent Variable: 15.I am willing to pay a price premium
over competing brands to be able to avail services for this brand
again.
b. Predictors: (Constant), Brand Identification, MISC,
meanservicequality

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regressio
9.352 3 3.117 5.227 .002b
n Factors 1,2,3,4
Residual 118.677 199 .596 were taken as
Total 128.030 202 independent
variable and
a. Dependent Variable: 13.I always have an excellent experience and customer
am fully satisfied when I use this brand satisfaction was
b. Predictors: (Constant), Brand Identification, MISC, taken as a
dependent
meanservicequality variable.
Significant value
of anova (.002)
proves that the
regression was
successful , in
coefficient table
significant value
of Mean ideal self-
congruence(.119),
, brand
identification(.956
),lifestyle
CONCLUSION:

This study suggests that determinants like physical quality, staff behaviour, ideal self-congruence, brand
identification and lifestyle-congruence are not all key factors. Factor analysis helped in reducing down the
number of factors to 4 which were ideal self-congruence, service quality, brand identification and lifestyle
congruence. Further while analysing that customer satisfaction and brand loyalty (which are directly related
to repurchase decision) are not dependent on all four factors. After running regression the results were:

Result 1: Ideal self-congruence, Service Quality and Brand Identification has a positive effect on consumer
satisfaction with brand experience.

Result 2: Service Quality has a positive effect on brand loyalty with brand experience

Which clearly means that service quality is the most important factor for consumer satisfaction and brand
loyalty which directly leads to customer repurchase intention!
MANAGERIAL IMPLICATIONS:
As self-congruence features a positive influence on brand loyalty, hotel marketers should study
personality characteristics of their brands from the consumer’s point of view and develop a brand
image to match with the consumer’s ideal self-concept. As consumers choose hotels beyond satisfying
their immediate needs, brand personality are often used for positioning hotel and restaurant brands in
competitive markets. for instance , if a hotel brand is found to possess friendly, sophisticated or upper
crust type personality traits, marketing campaigns should design promotions that feature these
characteristics. The findings of the self-congruence and brand identification suggest that buyers are
motivated to differentiate them- selves through brand experiences. Therefore, the brand experience
should be customised to support a customer’s individualism  so as to stimulate brand loyalty. a number
of these marketing tactics are successfully applied within the hotel industry. for instance , Wyndham
Hotels encourage customers to display their personal items (e.g., family photographs) in their rooms  to
precise their individuality. An application of those marketing tactics also enhances congruence between
hotel brand and self-concept. Another practice is to switch the layout and decor of the bedroom to
portray a particular sort of personality (e.g., an extrovert rock-star) and to make fantasy-based
symbolic consumption. As a results of this experience, consumers are ready to reach their ideal self-
concept and knowledge greater fun and entertainment. Thus, brand managers should use tangible
cues like colours, designs, mu- sic, celebrities or words as symbols for development of distinct brand
image to support brand loyalty. As self-concept exists for the aim of both protecting and enhancing a
person’s ego, a brand advertisement or a service employee should aim to make congruence with de-
sired self-concept or avoid contradicting customer’s beliefs about their self-concept.  
The findings of the study also show that buyers develop brand loyalty because the brand experience fits
well with their lifestyles and social identity. Therefore, the brand experience should empower
consumers to associate—or to disassociate—themselves with a selected social group so as to strengthen
brand equity and brand loyalty. to try to this, hotel brands should develop new products (e.g., gourmet
food, vegetarian menu, gym membership, etc.) to enhance customers’ social identity.  for instance , a
customer could also be ready

to define his social identity as a significant , designer-suit-wearing, Apple- laptop-carrying

businessman or a hedonistic clubber by engaging in several business and leisure activities in
hotels. it's essential that brand managers should think strategically about how they will strengthen their
brand identification by, for instance , capitalising on opportunities for networking and organizing
social events with themes (e.g. charity events, conferences, wine testing)  that might match with
customers’ social identity. Similarly lifestyles aren't fixed because they continuously change
throughout a consumer’s life cycle. Brand managers should continuously monitor current and potential
consumers’ life- styles to know their needs, interests, and develop suitable services so as to
reinforce brand equity. for instance , the expansion in cafe brands like Starbucks is partly being fuelled
by the demand which will fit into a busy work lifestyle. Budget hotel brands like Formula 1 and
Travelodge have appeared on growing numbers of roadside loca- tions to serve frequent travellers.  
Finally, managers of hospitality firms should make sure that existing facilities and physical
surroundings maintain, or upgrade their visual appeal so as to develop strong brand image and brand
loyalty. The front-line employees play key roles in brand development and delivering brand
promises within the hotel and restaurant industry due to high customer-to-employee interaction. the
standard of staff behaviour are often strengthened through appropriate training and recruitment pro-
grams. If in-house training programmes promote brand values, this will improve consumer-based brand
equity and brand loyalty

LIMITATIONS AND FUTURE RESEARCH:

Although this research makes contributions to the prevailing brand management literature, it's some
limitations. one among the restrictions of this research is that it's specific to at least one culture
(Indian) and one service sectors (hotels). The second limitation relates to the sample size. Therefore,
the study can't be generalized to the whole population and therefore the brand equity model should be
applied to other service dominant brands so as to determine its external validity. Although, this
research provides some preliminary insights into the relationships between consumer-based brand
equity, consumer satisfaction, and brand loyalty, future research should repose on this re- search
model and supply further insights into the character of those relationships in several consumption
situations.