The effect of customer-based brand equity on customer loyalty: The mediatory role of customer satisfaction and trust

The objective of this study is to determine the effect of ?Customer-Based Brand Equity (CBBE)? on Customer loyalty and the mediatory role of customer satisfaction and trust. In order to serve this purpose, a questionnaire was used as a data collection tool. The questionnaire is composed of 5 parts. The first part contains questions on demographic information. As for the second part, there are statements related to CBBE levels of hotels, in the third part statements on customer satisfaction, in the fourth part statements on brand trust, and in the five and the last part statements on brand loyalty. The population of the study is comprised of the customers at 5-star hotels. Considering the nationalities of people staying at hotels, the questionnaire form was translated into English, German and Persian. Subsequent to testing the reliability and the validity of the questionnaire, it was implemented to 918 hotel guests in 10 cites at 39 hotels. Data collected was analysed though Structural Equation Model (SEM). The findings support the premise that CBBE is made up of physical quality, personnel behaviour, and brand image. The findings show that the effect of CBBE in creating customer loyalty is low. However, it has been found out that CBBE increases customer satisfaction and trust. The findings points out that in order to increase customer satisfaction the elements CBBE, customer satisfaction and trust should coexist. The results suggest that establishments should invest in the elements of creating customer satisfaction and building trust as well as CBBE (creating brand awareness, perceived physical quality, improving personnel behaviour and brand image) in order to build customer loyalty. Keywords: Customer-Based Brand Equity, Customer Satisfaction, Trust, Customer Loyalty, Hotel Establishment, Structural Equation Modelling.