Mediating Role of Consumer Satisfaction on the Relationship Between Consumer-based Brand Equity and Brand Loyalty

Abstract

Customer satisfaction and brand loyalty have been addressed as marketing goals for many companies. Many researches have found that satisfaction has a significant favorable impact on brand royalty and a true repurchase behavior of the same brand to long term business profits. Therefore, my study investigated the impact of customer satisfaction on brand loyalty. My study aims to investigate the mediating effect of consumer satisfaction on the relationship between consumer-based brand equity and brand loyalty in the hotel and restaurant industry. By surveying 200 hotel customers, respondents, the author tried to give an empirical study to the literature. The data were analyzed by using SPSS and structural equation modeling (SEM) method via AMOS, all hypotheses in the proposed model were tested. The model fit indices are as follows: Chi-square=107.061; df=103; p value=.372; GFI=.996; AGFI=.926; RMR=.049; NFI=907; IFI=1.011; TLI=1.015; CFI=1.000; RMSEA=.000. These indexes suggest that the model is acceptable. Based on the findings, managerial implications and directions for future research are also proposed in this study.