MEDIATING EFFECT OF CUSTOMER SATISFACTION ON RELATIONSHIP BETWEEN BRAND IMAGE DIMENSIONS AND CUSTOMER LOYALTY IN FIVE STAR RATED HOTELS WITHIN NAIROBI CITY, KENYA

Abstract

A strong brand image can give the hotel truly loyal guests and an identity that distinguishes the hotel from others. It guarantees consistent service quality, risk reducer, enhances customer satisfaction thus leading to customer loyalty. Lack of brand image has contributed to low customer satisfaction and loyalty. Hence the study seeks to determine customer satisfaction as a mediator between brand image and customer loyalty in selected five-star rated hotels within Nairobi City, Kenya. The study was guided by the following specific objectives; to determine the effect of functional image , symbolic image , social image, apperance enhancement image and the mediating effect of customer satisfaction on the relationship between brand image dimensions and customer loyalty. The study adopted an explanatory research design. Brand relationships and information integration theories grounded the study variables. Target population was 5605 respondents with a sample size of 216. Systematic sampling technique was used to select the key informants to be used in the study. Primary data was collected using questionnaires. Cronbach’s Alpha was used to check for reliability of questionnaire. Data was analyzed using Statistical Package for Social Science (SPSS) Version 23. Pilot study was done to test the validity of the study. Descriptive statistics was carried out and inferential tests specifically the Multiple Linear Regression was used to establish the effect of independent variables on dependent variable and the mediating effect. The findings from the study were that functional image had a significant effect customer loyalty with a p-value = 0.000 being e <0.05 hence a significant effect on the dependent variable. On symbolic image, the study found out p-value = 0.023 which is less than r<0.05 implying a significant effect on the dependent variable. On social image there was no significant effect on customer loyalty with a p value of 0.517 being p > 0.05. This implied that the social image did not significantly affect the dependent variable, customer loyalty. Finally, the findings showed that appearance enhancement image had coefficients of estimate which was significant, p-value = 0.006 which is less than p< 0.05.