The Effect of Brand Image on Building Customer Satisfaction and Loyalty: In The Case of Hilton Hotel Addis Ababa, Ethiopia

Abstract

The main objective of the study was to assess the brand image benefits that affect customer satisfaction and loyalty and also assess the level of customer satisfaction and loyalty on brand image of Hilton hotel Addis Ababa. To this purpose the researcher has studied the customer satisfaction and loyalty of the hotel using brand image benefits. The researcher uses the qualitative method with the nature of both descriptive and convenience sampling technique was used in the study to take a sample from the population. A total sample of 384 who have taken a hotel service in Hilton hotel Addis Ababa was taken as respondents. A questionnaire was designed based on the brand image benefits in order to examine all the three factors of brand image. The researcher uses the non probability sampling technique which is convenient sampling. The analysis result shows that symbolic benefits has the highest mean value followed by experiential and functional brand image benefits respectively. The independent variables functional benefits, experiential benefits and symbolic benefits has strong and positive relationship with customer loyalty, on the other hand, functional benefits, experiential benefits and symbolic benefits has strong but relatively low relationship with customer satisfaction respectively. The results of regression analysis show that functional brand image benefits and symbolic benefits have impact on customer satisfaction. However, experiential benefits have negative impact on customer satisfaction. On the other hand functional benefit has positive impact on customer loyalty, followed by experiential and symbolic benefits respectively, As a result the research hypothesis H1 and H2 has accepted because it has a significant impact on customer satisfaction and loyalty, however, H3 which is mediating effect of customer satisfaction between brand image and customer loyalty is rejected because it has not significant impact. finally, researcher recommended that since functional brand image benefits, experiential and symbolic benefits has a lower or moderate mean value; hotel shall improve the areas presented on the recommendation part to boost customer satisfaction and loyalty.