Abstract

This research studies the relationship between the awareness of a hotel’s parent brand and the purchasing intention of the extended brand of the hotel while considering how this relationship varies according to the perceived loyalty of the hotel’s parent brand. This empirical investigation used parent brands and extended brands of luxury hotels located in Seoul, Korea. Self-administered questionnaires were distributed to customers who experienced the extended brands of the selected hotels. 401 valid responses out of 450 questionnaires initially surveyed were finally used after the screening process for further empirical analysis. Results showed that perceived awareness of a parent brand had a significant positive effect on the purchasing intention of the extended brand. Furthermore, loyalty to the parent brand had a positive moderating effect on this relationship such that a strong positive effect of the parent brand’s awareness on the purchasing intention of the extended brand appeared to be highly loyal to the parent brand. It can be said from this research that perceived awareness of parent brands and the moderating variable of brand loyalty are two key factors that hotel managers should consider when wanting better customer responses.

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