Brand Loyalty of Tourists Brand Loyalty of Tourists for Ker and Downeyfor Ker and Downey

Dr. Dhruba Kumar Gautam

Associate Professor, Tribhuvan University Dr. Sajeeb Kumar

Shrestha Lecturer, Tribhuvan

University

December 1-2, 2016Greater Noida

BIMTECH

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Background of the Background of the StudyStudy

State of connectedness to the brand (Aaker, 1991).

Tendency to buy the brand as their earlier primary choice (Yoo and Donthun, 2001).

Sincere commitment to repurchase the likely products/brands frequently in the future (Oliver, 1999).

Observable behavior and can be measured easily (Dekimpe and others, 1997).

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Ker and DowneyKer and DowneyAmerican company for 20 years in Africa and

Nepal.Ker and Downey Resort (KnD) is the chain resort

in the Annapurna region with wider extension of lodges in Bandipur and Jomsom.

Five chain lodges in the Annapurna region - Sanctury lodge, Gurung lodge, Himalayan lodge, Seti river camp, Mala lodge, and three mountain lodge (Ker and Downey Nepal, 2013b).

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……Ker & Downey offers the finest, most

complete adventure program in Nepal.Provides services to trekkers.Distance of all the lodges is one day

trekking distance providing comfort services with the gift of mountainous panorama from the height.

Lodges are promoted as the comfort lodge in the Annapurna region.

Adventure Quest Nepal Private Limited (AQN) looks all the KnD reservations and management.

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……Itineraries

- Royal Nepal Spectacular (13 nights)- Annapurna Base Camp (ABC trekking, 12 nights)- Scared mountain Trek (9 nights)- Scared Mountain Trek and River Float (11 nights)- Everest Trekking (12 days), - PoonHill Trekking (11 nights) and - Nepal Family Itinerary (8 nights)

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Research Questions and Research Questions and ObjectivesObjectivesQuestions:What are the determining factors for

brand loyalty at KnD resort?

ObjectivesTo examine the effect of antecedent

factors influencing brand loyalty at KnD resort.

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Figure 1: Research Framework9

Research Framework

PerceivedFacilities

Service Quality

PriceValue

BrandImage

BrandLoyalty

H2(2)

H1(1)

H3(3)

H5(5)

H4(4)

H6(6)

H7(7)

HypothesesH1(1) = Perceived facilities has effect on brand

loyalty.H2(2) = Perceived facilities has effect on brand

image.H3(3) = Service quality has effect on brand loyalty.H4(4) = Service quality has effect on brand image.H5(5) = Price value has effect on brand image.H6(6) = Price value has effect on brand loyalty.H7(7) = Brand image has effect on brand loyalty

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MethodologyMethodologyResearch design: Descriptive and

Explanatory.Population: Tourists who had stayed at

KnD lodges in Annapurna region. Sample: 200 visitors approached during

studySample Methods: Convenience

Sampling. Data: Primary data.Instrument: Structured questionnaire. Tools of Analysis: SEM

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AnalysisAnalysisExploratory Factor Analysis

(EFA)Bartlett's test of Sphericity (Chi-square

412.103; sig. 0.000) Kaiser-Meyer-Olkin (KMO) = 0.762Sample number were adequate. Five factors were drawn cumulatively

accounted 62.72 percent of the total variance. Statements with factor loadings greater than

0.5 were grouped in the corresponding factor.

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Table1: Rotated Component MatrixRotated Component Matrixa          

  Component

1 2 3 4 5

Pv4 0.726

Cs2 0.715

Bi6 0.665

Sq2 0.661

Bl3 0.819

Pv1 0.754

Sq3 0.581

Pv2 0.813

Bl4 0.762

Bl11 0.727

Bl10 0.646

Bl9 0.773

Bi5 0.723

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a Rotation converged in 6 iterations.

Confirmatory Factor Analysis (CFA)

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Model Fit IndicesCMIN/DF = 2.315, GFI = 0.911CFI = 0.902RMSEA = 0.041RMR = 0.020 So, the model was fairly fitted (Byrne, 2001; Hair and

others, 1998; Joreskog and Sorbom, 1993). .

Validity and Reliability of the Model

Discriminant Validity AVE should be greater than 0.50 (Fornell & Larcker,

1981). AVE should be greater than MSV AVE should be greater than ASV.

Convergent Validity:Construct Reliability (CR) should be greater than 0.7 CR should be greater than AVE.

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Table3: Validity and Reliability of Table3: Validity and Reliability of ConstructsConstructs

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CR AVE MSV ASVBrand

LoyaltyPerceivedFacilities

ServiceQuality

PriceValue

BrandImage

Brand Loyalty

0.870 0.524 0.486 0.137 0.723

Perceived Facilities

0.850 0.512 0.486 0.188 0.697 0.724

Service Quality

0.790 0.524 0.265 0.130 0.109 0.492 0.710

Price Value 0.880 0.532 0.265 0.082 0.225 0.496 0.515 0.734

Brand Image 0.870 0.510 0.023 0.008 0.226 0.151 0.512 0.095 0.708

Figure 1: Final Overall Measurement Model 17

Figure 2: Structural Equation Modeling (SEM) 18

Structural Equation Modeling (SEM)

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Variance Explained by Structural Model

• Brand image was (0.08 or 8%) and

• Brand loyalty was (0.92 or 93%).

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Hypotheses TestingTable 2

Hypothesis From ToStandardized Coefficients

S.E. t-value Remarks

H2(2) Perceived FacilitiesBrand Image

.087 .162 .537Not

Accepted

H4(4) Service QualityBrand Image

-.073 .139 -.524Not

Accepted

H5(5) Price ValueBrand Image

.067 .129 .520Not

Accepted

H7(7) Brand ImageBrand

Loyalty-.619 .475 -1.304

Not Accepted

H1(1) Perceived FacilitiesBrand

Loyalty.684 .261 2.622 Accepted

H3(3) Service QualityBrand

Loyalty.422 .256 2.648 Accepted

H6(6) Price ValueBrand

Loyalty.391 .250 1.562

Not Accepted

FindingsFindingsPerceived facilities and service quality has

shown effect on brand loyalty.Weaker role of brand image.Price value has shown no effect on brand

image and brand loyalty.

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ConclusionConclusionPerceived facilities and service

quality were the major factors KnD chain resort.

Consistent with Suhartanto (2011) that perceived facilities (value) and service quality are the predictors for determining brand loyalty.

Service quality stand for the facilities of the KnD are modern and staff performance is right at the time.

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……

Perceived facilities should be given and value should be generated from it.

Marketing manager should keep in mind when promoting the resort in the tourism sector.

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• Thank You.