The Effects of Services Marketing Mix Elements on Brand Equity and Customer Response of Tourists Hotels in the East Coast of Sri Lanka

Abstract

The purpose of the study was to examine the effect of the elements of extended service marketing mix of the east coast hotels in Sri Lanka on the creation of the brand equity and how that brand equity plays a mediating role in customers’ response. The study was quantitative in nature. Survey methodology was adopted. 163 tourists arriving in Sri Lanka who stayed in the hotels in the East Coast of Sri Lanka were surveyed. The questionnaire was used to collect the data. Smart PLS 3 was used to analyze the data. Findings suggest that people, process, physical evidence and marketing communication elements have an effect on the brand equity and in turn positively influence the customer response towards the hotel. Findings also suggest that brand equity of these hotels is partially mediating between extended marketing mix elements and customer response to the hotels. However, marketing communication is not significantly contributing to brand equity. Hoteliers in the region can focus on the people, process and physical evidence to improve their hotel performance as it also contributes to the customer responses towards hotels.