The Impact of customer-based brand equity on revisit Intentions: an empirical study of business and leisure travelers at five shanghai budget hotels

Abstract

The study aims to explore how the brand equity influences the budget hotel revisit intentions from the customers’ point of view. The results show that, in sequence of the degree of significance, brand loyalty, brand awareness/brand association and perceived quality as brand equity sub-dimensions have positive relationships with perceived value and revisit intention, based on a convenience sample of 400 respondents who had stayed at top-5 budget hotels in Shanghai in year 2010. Additionally perceived value plays an increasingly important role in budget hotel revisit intentions. By adopting the approaches of multiple regression with dummy interaction regressors to the difference analysis based upon the aforementioned relationships, it was discovered that the effect of brand loyalty on revisit intention is greater for business travelers than for leisure travelers and there are no differences between business travelers and leisure travelers on the impact of brand awareness/brand association, perceived quality,perceived value on revisit intentions. As a whole, this study highlights that perceived quality was a direct determinant of revisit intentions in budget hotel segment, that’s effect was no longer mediated by the perceived value.