THE RELATIONSHIP OF SERVICE QUALITY, CONSUMER DECISION FACTORS AND BRAND EQUITY IN THAILAND

The Relationship of Service Quality, Consumer Decision Factors and Brand Equity in Thailand



Table of Content

CHAPTER 1: INTRODUCTION4

Background of the Problem4

Purpose of the Study5

Tourism and the Hotel Industry in Thailand5

Luxury Hotels5

Resort Hotels6

Provincial Hotels6

The Statement of the Problem8

CHAPTER 2: REVIEW OF THE LITERATURE11

Introduction11

Thai Hotel Industry11

The Definition of Service17

The Characteristics of Quality19

The Characteristics of Service Quality26

Conceptualization of Service Quality28

Measurement of Service Quality29

The Disconfirmation of Service Quality31

Expectations of Service Quality32

Brand Recognition34

Attitude35

Confidence35

Intention36

CHAPTER 3: METHODOLOGY37

Model Development37

Research Questions and Hypotheses39

Measurement and Instrument46

Instrument Reliability and Validity47

Instrument Reliability48

Instrument Validity48

Pilot Test50

Results of the Pilot Study50

Population and Study Sample Size51

Data Collection53

Data Analysis53

Interviews54

Summary56

Hospitality industry56

CHAPTER 4: ANALYSIS AND PRESENTATION OF FINDINGS58

Demographic Classification of Current Study Respondents58

Reliability Test60

Service Quality Measurement62

CHAPTER 5: DISCUSSION AND CONCLUSION66

Limitations of the Study72

Future Directions for Research73

Summary74

REFERENCE76

Chapter 1: Introduction

Background of the Problem

Every business around the world needs profit for survival and growth. The profit of a company comes from the excess of revenue over expenses. Businesses try to increase income and/or reduce expenses. Brand strategy aids businesses in achieving these performance objectives. Aaker (1991) stated that a business can manage its brand strategy to differentiate products commanding higher prices. Furthermore, businesses prefer investing in present brand names rather than developing new brand names due to the high costs of product development. Businesses can maximize profits by enhancing brand equity. Therefore, businesses need to know how to generate brand equity. Aaker (1991) explained that one category of assets that brand equity is based on is perceived quality. The world's most valuable brands, such as Disney, AT&T, Citibank and American Express are renowned for their excellent service quality.

Howard (1994) studied six components of the consumer decision model that are related to one another. These are information, brand recognition, confidence in judging the brand, attitude toward the brand, intention, and purchase. Brand recognition is formed in the consumer's mind by grouping and distinguishing processes. Brand recognition, confidence, and attitude enhance the buyer's image of the brand.

The relationship between service quality and brand equity and the mediating effects of consumer decision factors are rarely studied by researchers and marketers. Studying such a relationship, however, can contribute to marketing knowledge, and help marketers devise a brand strategy to succeed and survive in a competitive environment.

Purpose of the Study

In the Thai hotel industry, the variables are service quality, consumer decision factors, and brand equity. The purpose of this study is threefold:

To examine the relationship between service quality and consumer decision factors; and

To examine the relationship between service quality and brand equity; and

To examine the relationship between consumer decision factors and brand equity. This study will collect data from hotels in Thailand. Survey questionnaires describing the expectations and the perceptions of service quality, consumer decision factors and brand equity will be used.

Tourism and the Hotel Industry in Thailand

The Tourism Authority of Thailand (2003) reports that there are many hotels available throughout Thailand. The Tourism Authority of Thailand (2003) states that there are three types of hotels ...