Building Brand Equity in the Hospitality Industry

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Abstract Generally, brand equity is regarded as financial worth of the brand but brand equity is a broader term that includes both tangible and intangible assets as well as liabilities of a brand. There are certain brand assets and liabilities and brand equity is calculated by deducting brand assets from brand liabilities. Brand assets include brand loyalty, product line extensions, emotional connection, and ability to charge price premiums while brand liabilities include questionable practices, customer dissatisfaction, negative associations, and poor record on social issues. Hospitality corporations’ Marketing Efforts such as enhancing brand awareness, price-negotiations, innovations, perceived quality of product and services, and research and development enables them to develop a strong brand equity: customer loyalty, product line extensions by company, financial worth of the brand, and finally high market share and profits. Questionnaire surveys have been selected as a tool to conduct this study and 30 middle managers of hospitality corporations of US were researched that were filtered via convenience sampling. It was observed that a firm’s marketing efforts such as enhancing brand awareness, price-negotiations, innovations, perceived quality of product and services, and research enhance its brand equity. Strong brand equity was indicated by customer loyalty, product line extensions by company, financial worth of the brand, and finally high market share and profits. It is recommended that hospitality corporations must focus on these marketing efforts to increase their brand equity to gain a sustainable competitive advantage in the marketplace. Chapter 1: Introduction Background A brand can be described as a symbol, mark, and identity that are used to differentiate a product/service in the marketplace relative to its competing products and services

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