Impact of Brand Image on Customer Loyalty in Hospitality: Ritz Carlton

This research project examines the significant impact of brand image on customer loyalty within the hospitality sector, with a specific focus on the Ritz Carlton. The study delves into the concept of brand image, exploring factors that enhance an organization's brand image and foster customer retention. By analyzing the relationship between brand image and customer loyalty, the research aims to provide insights into increasing profitability. The project highlights the crucial role of customer feedback in improving brand image and offers recommendations for maintaining positive consumer relations. The literature review covers the concept of brand image and customer loyalty, factors that increase brand image, and the relationship between brand image and customer loyalty. The research methodology, analysis, and findings are presented, followed by a critical appraisal, recommendations, and conclusions, providing a comprehensive understanding of the topic.

Research Project

Title: To analysis impact of brand image on customer loyalty in hospitality sector business – A
Case Study on Ritz Carlton.
ABSTRACT
In this research, a discussion is all about impact of brand image on customer loyalty in
hospitality sector. There is discussion over concept of brand image along with factors which can
increase the brand image of an organisation. Present report is complete based on Ritz Carlton,
which is one of the biggest organisation in hospitality sector. At last there is discussion about
some recommendations are there which will help organisation in improving their brand image.

SUMMARY
With conducting this research, it is easy to understand about impact of brand image over
customer loyalty. There are factors by which an organisation can improve their brand image
which can help them in increasing customer retention. Hence with this research it is easy to
analyse relationship between brand image and customer's loyalty which make it easy for
organisation to increase their profitability. As per this research, work over feedbacks given by
customers plays a vital role in improving the brand image of an organisation. At last there are
some recommendations which helps to get positive impact in maintaining consumer relations.

Table of Contents
ABSTRACT.....................................................................................................................................2
SUMMARY.....................................................................................................................................3
CHAPTER 1: INTRODUCTION ...................................................................................................1
1.1 Overview and Background of study.................................................................................1
1.2 Aims and Objective..........................................................................................................1
1.3 Rationale of the study.......................................................................................................2
1.4 Chapter Preview...............................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
2.1 Concept of brand image and customer loyalty in the hospitality sector businesses.........3
2.2 Factors that increase brand image to develop more significant advantages in Ritz Carlton.4
2.3 Relationship between brand image and customer loyalty to increase profitability in chosen
business...................................................................................................................................6
2.4 Ways through Ritz Carlton can improve their brand image in different areas of the world.6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
CHAPTER 4: Analysis and Findings............................................................................................10
CHAPTER 5: A CRITICAL APPRAISAL, RECOMMENDATIONS & SUGGESTIONS FOR
FURTHER WORK........................................................................................................................18
Discussion......................................................................................................................................18
CHAPTER 6: CONCLUSIONS....................................................................................................19
REFERENCES................................................................................................................................1
Appendix..........................................................................................................................................2

CHAPTER 1: INTRODUCTION
1.1 Overview and Background of study
Brand image refers to the impression of company or a particular brand in front of
customers. Brand image of company at marketplace influences its customer toward the company
and also helps organisation in gaining competitive advantage. With reference to hospitality
sector, it can be said that brand image impacts upon customer loyalty of company as if it holds
good brand image at market place then it is easier for company to influence customers toward its
product or services (Altuntaş et. al., 2014). This research is based on Ritz Carlton Hotel, a
renown hotel which offers hospitality services to customers.
Brand image of Ritz Carlton, plays an essential role in business growth of the company as
a good image of company gets customers support in quick manner. It has been analysed that this
company is having its chain hotel across the world. High presence of the company at market
place directly increases its brand image among customers. It has been analysed that in past years
rival company have conducted some unethical work within the hospitality industry which has
affected negatively on the brand image of whole industry in negatively (Berezina et. al., 2016).
In context to current situation, management team of Ritz Carlton hotel have conducted research
on the specified topic for improving their brand image at marketplace. In this regard, researcher
have prepared aims and objective for the same in order to find relevant outcome within the
provided time limit.
1.2 Aims and Objective
Aim: To analysis impact of brand image on customer loyalty in hospitality sector
business – A Case Study on Ritz Carlton.
Objectives
 To understand concept of brand image and customer loyalty in the hospitality sector
businesses.
 To analysis factors that increase brand image to develop more significant advantages in
Ritz Carlton.
 To identify relationship between brand image and customer loyalty to increase
profitability in chosen business.
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 To recommend ways through Ritz Carlton can improve their brand image in different
areas of the world.
Research questions
 What do you understand concept of brand image and customer loyalty in the hospitality
sector businesses?
 What are the factors that increase brand image to develop more significant advantages in
Ritz Carlton?
 How to identify relationship between brand image and customer loyalty to increase
profitability in chosen business?
1.3 Rationale of the study
The main purpose of conducting this research is to find out different ways by company
can enhance its brand image among customers as well as at market place. Main aid of researcher
to increase and enhance their knowledge about the company, so that they can work with this
company in effective manner. The research will also improve professional and personal skills of
researcher that will help them in conducting better research in future.
1.4 Chapter Preview
Chapter 1: Introduction
In this first section, this research will provide the brief description about whole research,
its overview, background, rationale, aims and objective.
Chapter 2: Literature review
In the second section of research, all the prepared objectives will going to be discussed
effective from the point of view of different different authors.
Chapter 3: Research Methodology
The third section of research, discusses about various tools and techniques which are
going to be used by researcher for developing valid outcome for the study.
Chapter 4: Data Analysis
In this fourth chapter, researcher evaluates collected data on the basis of prepared aims
and objectives. The sections helps reader in understanding actual outcome of the research.
Chapter 5: A Critical Appraisal, Recommendations & Suggestions for Further Work
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The fifth chapter of this research emphasis on providing recommendation to the company
by which its brand image and profitability can be increased. In this, researcher will also provide
suggestion to future researcher will help them in conducting better research in future.
Chapter 6: Conclusion
It is the last part of this research, overall finding of the study are discussed and will also
help company in choosing right recommendation by which their brand image could be improved
effectively.
CHAPTER 2: LITERATURE REVIEW
2.1 Concept of brand image and customer loyalty in the hospitality sector businesses
According to researcher, major behaviour of customers towards brand loyalty includes
reinvesting intentions of consumers, word-of-mouth, price sensitivity and many more. These are
some factors which directly affects the customer loyalty and brand image. Price sensitivity leads
towards profitability of organisation, because the more loyal a consumer is, more will be its
profitability. Along with all this, one of the prime factor is services, they are providing to their
consumers which further helps in increasing consumer's loyalty towards brand. It can be
suggested from the literature review that service quality, brand image, price sensitivity helps in
creating customer loyalty. For example, Ritz Carlton assure that all the promised services and
facilities are being provided by their employees in an efficient and effective manner. Five
dimensions which directly affects the brand image and consumer loyalty of the company is
explained below:
Reliability: it refers to the accuracy and dependability, by which a service is being
performed by the employees. Companies who fail to provide services being promised by them
directly affects the loyalty of consumers.
Responsiveness: it means how willingly service providers help their customers and
provide sufficient information to them. It is the quality of a person or employee how quickly a
person react or help someone willingly which affects the brand image of organisation.
Assurance: to which extent service providers or employees of the organisation are
knowledgeable, and have the ability to inspire their customers. In general, a positive declaration
by a person which helps in increasing the confidence and trust of other person and make him less
worried.
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Empathy: it refers to the ability of understanding other peoples feeling and offer them
attention and care they need. In today's world, day by day customer's expectations and
requirements are raising and it is the responsibility of the company to satisfy their needs and
wants. It will further help in increasing the brand image and customers loyalty towards
organisation.
Tangibles: it means how adequate physical facilities, services are provided to the
customers.
Aaker's brand equity model
It was propounded by Professor David Aaker. It is the combination of three elements
comprising of brand loyalty, brand awareness, and brand associations. According to Aaker's
brand begins with building up brand identity. In order to increase the demands and profits of the
company, sustainable brand equity helps the organisation. Brand value includes various elements
such as awareness, loyalty, brand associations and other proprietary assets. Some of them are as
follows:
 Brand awareness- This aid the company in building its brand equity. When consumers
wants to purchase a product, brand awareness helps the organisation in increasing overall
sales of the company. This help Ritz Carlton to increase similarity and liking of products
and services.
 Brand loyalty- This factor mainly focuses on distinguishing, at which level consumers
are loyal for a particular product. If Ritz Carlton is loyal towards its customers it will
further aid them in attracting new customers.
 Brand associations- This element help in process and betterment of information. Ritz
Carlton is associated with many other small firms which help them in increasing their
market share and give reasons to customers to purchase there products.
 Perceived quality- Perception provides excess edge to brand value of some products. It
is fix on some basis which includes quality, price and reasons to purchase. Ritz Carlton
have its own position at market because of perception of customers towards the company.
2.2 Factors that increase brand image to develop more significant advantages in Ritz Carlton
On the basis of perception of Kandampully, Zhang and Bilgihan (2015), it has been
analysed that brand image of company plays essential role in business growth of the company
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belonging to hospitality sector. It can be said that if an company holds positive brand image then
they are getting additional benefits from market as well as customers both. On the other hand, if
brand image of the company is not good at market place then it would be difficult for the same
organisation to sustain longer at market place. As per evaluation, it can be said that there are
numerous of factors which helps company in improving its brand image at market. These factors
also helps company in developing its brand image at marketplace so that it could raise some
additional benefits for them. Some of the main factors which increases brand image of Ritz
Carlton are defined as below:
Effective strategy: By having clear and effective strategy, Ritz Carlton can improve its
brand image at market place. This can be done in a effective manner only if its employees
follows all of the stated strategy properly and execute their operational according to it only. It
will also clearly guide employees that at what time which work is required to be done on priority.
As a result, these employees will deliver better services to customers which will ultimately
improve its brand image at market place.
Communication: Communication plays an essential role in every business organisation
which holds both positive and negative impression on the brand image of company. In context to
Ritz Carlton, it can be said communication is considered as the main factor by which brand
image of the company could be improved or raised (8 Essential Factors for Strong Brand Equity,
2019). By using positive and attracting communication while interacting with employees will
help Ritz Carlton in increasing its brand image at market place.
Awareness: It is the another factor which will help Ritz Carlton in building up positive
brand image at market place. It is required by Ritz Carlton, to adopt some better promotional and
advertisement tools so that they could enhance awareness about their products and services at
market place. This will ultimately develop brand image of Ritz Carlton effectively.
All of the above stated factors, plays an essential role in the growth of brand image of
Ritz Carlton or another companies which are belonging to the same industry. It can be said that if
these factors are considered or followed by the company in effective manner then it will easier
for them to build up their brand image at market place.
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2.3 Relationship between brand image and customer loyalty to increase profitability in chosen
business
According to the Cummings and Worley, (2014) brand image refers to the current view,
perception or concept of consumers about the brand or product. It is all about the characteristics
of brand or company. Promotions, publicity, advertising campaigns help to develop brand image
over time. According to the ideal scenario, company wants positive brand image which helps in
increasing the sales and market share of the company. It can be develop by providing quick
services, continuous innovation and improvements in the product line, increasing the quality of
products. It helps in conveying the characteristics of the product in a unique style which is totally
different from its rival at market place. Brand image includes functionality, ease of use, overall
value of product. Positive image of a brand helps in increasing the brand value as well as
goodwill of the company.
According to the Dzhandzhugazova et. al., (2016), customer loyalty means devotion of a
customer towards a particular company, brand or product line. It occurs when a person choose a
particular product instead of choosing other substitutes or products which is available at market
place. Basic meaning of loyalty, is to stick with the one supplier although they are having some
other options by their side. It is positively related to the satisfaction of consumer, as they are
willingly purchase their products and do not want to change their preference. Customer loyalty
motivate and encourage their customer's to buy products regularly to satisfy their needs.
According to the above discussed section, it is said that there is a positive relationship
between customer loyalty and brand image. Brand image helps in positively influencing the
customer loyalty. If both the factors work together effectively then it will increase the
profitability and sales of the company. Brand image and customer loyalty towards a particular
product can be increased by satisfying the expectations of consumers, providing them after sales
services and retaining them by providing discounts and attractive offers. If a company having
positive brand image along with loyal customers at marketplace, they will definitely increase
their profitability and sales by retaining their customers for a long period of time.
2.4 Ways through Ritz Carlton can improve their brand image in different areas of the world
As per the above specified report, it has been analysed that Ritz Carlton can improve their
brand image by analysing the current trend and customers preferences. To attract customers, it is
necessary to improve brand image which can further help in improving their profitability and
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sales all over the world. Some of the main recommendations for Ritz Carlton are stated as
follows:
 It is recommended by the researcher, that by involving in CSR activities company can
improve their brand image. If a company contribute some part of their total revenue in the
development of society and for some social cause it will help them in improving their
brand image. In today's era, it is compulsory for every company to follow CSR activities.
When consumer communicate with these activities, it directly impact upon brand image
of hotel in positive way.
 It is suggested by the researcher, to the management team of Ritz Carlton that they should
properly utilise social media platform for improving their brand image. Regular basis
interactions with their clients can improve their performance as employees are able to
understand actual requirement of customers which helps them in delivering exactly same
services to customers in the required manner. Positive as well as negative feedback
should be resolve within time so that customer satisfaction and loyalty can be improved.
Social media is a platform, where traveller express their view, experiences. So these
online comments and interactions plays very important role in destroying and building
the brand image of any hotel.
 It is also suggested by the researcher, that connect with guest personally. This help hotel
staff in knowing their expectations and needs which guides them in providing healthy and
comfortable environment to customers during their stay. Personally ask for their
feedbacks and reviews about the facilities they provide. Respond to any positive as well
as negative reviews and comments given by the guests. They can act as a learning activity
or opportunity for them to improve their problem. This act will help them to improve
their brand image as well as profitability.
 It is also recommended by the researcher, to the management team of Ritz Carlton that by
using guests feedback future decision can be easily taken by them. Managers can analyse
and improve their mistakes in near future, with the help of feedback given by hotel guest.
Satisfaction of customers can help in increasing the brand loyalty along with value and
image of organisation.
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