Brand Loyalty of Tourists for Ker and Downey
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Transcript of Brand Loyalty of Tourists for Ker and Downey
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.