Ineta Svedaite Dissertation Proposal S16136868

A study of the relative importance of various components of

brand equity within high class restaurant and the impact they
have on consumer intention and brand loyalty
Aims
To examine how various components of brand equity can influence consumer decision
making process within high class restaurant.

Objectives
To identify the main components of brand equity that influence a consumer decision to
frequent a high class restaurant.

To critically evaluate the relationship between strong brand equity and achieving a
competitive advantage within high class restaurant.

To analyse how high class restaurant brand awareness influences consumer perception of
food and service quality.

Rationale

The purpose of this study is to identify the importance of brand equity elements within a
high-class restaurant and their impact on the consumer decision making process. Because of
the significance of the consumer decision making process within the hospitality industry it is
crucial to figure out which elements of brand equity make the biggest impact on the
consumer decision to frequent a high-class restaurant and help build brand loyalty. Strong
brand equity is essential in building and maintaining a high-class restaurant brand within a
competitive market (Han, Nguyen & Lee, 2015). Numerous brand equity elements can
impact the consumer decision making process and their loyalty to the brand. By
continuously visiting the same restaurant, consumers build loyalty for the brand. Jiang, Dev
and Rao (2002) suggests that consumer’s decisions are often based on various aspects such

1
 Ineta Svedaite Dissertation Proposal S16136868

as service, price, previous experience or even the restaurant name. Existing studies show
that food quality is one of the most important aspects of the whole dining experience
(Raajpoot, 2002). However, Feldwick (2002) states that there is evidence suggesting that the
brand awareness can impact a consumer’s perception of food and service quality even
before they dine in the restaurant. Stronger high class restaurant brand awareness can
impact the consumer decision making process while choosing the restaurant to dine with.
Furthermore, as the high class restaurant environment is very competitive, it is crucial to
have strong brand equity to gain the competitive advantage within the industry to appeal to
more consumers.

Literature Review
Brand Equity
Brand equity contains various elements, such as: brand image, brand identity, brand
awareness, brand loyalty, customer perception and brand association. Each of these
elements have an impact on the consumer decision making process while interacting with
the brand (Keller, 1993). Some authors have also identified that the brand is a selection of
perceptions in the mind of the market (Feldwick, 2002). That suggests, that the brand equity
is information gathered over time about the brand in the consumer mind. In past studies,
Keller (1993), created the model of customer-based brand equity (CBBE) and defined it as
“the differential effect of brand knowledge on consumer response to the marketing of the
brand.” The main thesis of this model is that the significance of the brand is in what
consumers have discovered about the brand over certain period of time. This model helps
to understand consumer behaviour towards the brand. In the context of our research
objectives, this theory can help analysing the effect of high brand awareness and how it
influences consumer perception of food and service quality within high-class restaurant.

Brand loyalty
Feldwick (2002) suggests that the measure of consumer attachment to the specific brand
can be called brand loyalty. Generally, brand loyalty is perceived as a behavioural form
related to motivation of decision to purchase the same brand or revisit the same brand of
restaurant repeatedly. However, some behavioural intentions being a result of brand equity

2
 Ineta Svedaite Dissertation Proposal S16136868

does not mean that the brand loyalty is achieved. Brand equity analysis can identify the
main components relating to consumer decision to frequent a high-class restaurant. In past
studies, Romaniuk and Nenyzc-Thiel (2013) identified that the desirable result of CBBE is the
brand loyalty. However, the main weakness of the study is the failure to address how the
brand loyalty can be achieved. Other authors, such as Etkinci, Dawes, and Massey (2008)
created and assessed a theoretical model of various aspects influencing consumer
satisfaction within the restaurant industry. The research results showed that consumer
satisfaction depends mostly on the service received and the overall atmosphere. These two
factors have been found to be the biggest influence on consumer intention to return to the
same brand restaurant. However, their study examines a very narrow amount of consumer
brand loyalty and their intention to frequent the restaurant. In the context of this research,
to find the main components of the brand equity that influence consumer decision to
frequent a high-class restaurant, both, Etkinci et al.’s (2008) model of consumer satisfaction
and Keller’s (1993) CBBE model will support analysis.

Brand awareness
Brand awareness is identified as one of the brand benefits that provides extended value to
the brand (Aaker, 1996; Keller, 2013). As mentioned before, previous studies define brand
awareness as the perception of the particular brand in the consumer mind (Aaker, 1996).
However, Keller (2013) suggests that brand awareness is a memory associated with the
brand. Recognising the brand helps a consumer to connect the previous experience with the
brand. In his study, Keller (2013) identified that creating a strong brand awareness can lead
to the competitive advantage within the market, because it influences consumer decision to
choose to purchase from the brand they are already familiar with. That raises a theory that
high brand awareness not only provides competitive advantage within the hospitality
industry, but also influences consumer perception of the brand depending on their past
experiences. Within high class restaurants the service and food quality are one of the most
important aspects of a customer journey (Hwang and Ok, 2013). This study suggests that
consumers visiting a restaurant with a high brand awareness exceed their expectations and
it might affect their perception of the service and food quality. However, the study fails to
consider the different aspects of how consumer past experiences with the brand might be

3
 Ineta Svedaite Dissertation Proposal S16136868

influencing their perception. Past studies identified that high brand awareness had a
positive impact on brand equity and loyalty (Pike and Bianchi, 2016). This suggests that high
brand awareness has a positive influence on consumer perception, which means that a
consumer is more likely to perceive the service and food quality positively. This is important,
because brand equity and loyalty, as mentioned before, are one of the main components
influencing the customer decision-making process.

Brand image
Kotler and Keller (2006) suggest that to keep up high brand value it has to be supported by
feelings and thoughts in the mind of the consumer. If these aspects are constantly a priority
of a high-class restaurant brand, it can accomplish a competitive advantage within the
hospitality industry. The brand image becomes a competitive advantage if the restaurant
uses marketing communications by sending clear message to their consumers, which
creates a collection of perceptions in the minds of potential or existing customers. However,
Aaker (1992) identifies that brand association have a big influence on the consumer decision
making process. If the brand is associated with negative values, the consumers are more
likely to have a negative perception towards the brand. Keeping up good brand image is
very important if a high class restaurant wishes to build strong brand equity. According to
Kim and Kim (2004), brand image is the past experiences associated with a brand in the
mind of the consumer. In the context of this research, brand image is one of the main brand
equity components influencing the consumer decision making process, because good brand
image achieves positive consumer perception of the brand.

Consumer decision-making process

Han and Ryu (2012) suggest that to understand consumer decision making process means to
presume their further intentions towards the brand. In this study, understanding consumer
decision making process is one of the most important aspects, because it might help to
evaluate their needs and intentions to frequent a high class restaurant. That would support
the research objectives in order to answer the main research question.

4
 Ineta Svedaite Dissertation Proposal S16136868

Methodology
The methodology that will be applied by the study has been chosen in order to collect the
information and draw conclusions as to how various brand equity components influence the
consumer decision making process and brand loyalty within high class restaurant.
The main purpose of this study is to analyse the main aspects of brand equity and their
impact on the consumer decision-making process and brand loyalty within high class
restaurant. For this reason, this study will use interpretivism research philosophy. According
to Saunders et al. (2016) an interpretivism research philosophy is undertaken when the
study has an inductive approach and researcher interpretations are the key contributions.
Also, inductive approach helps building theory, as there is not much information available
on how the brand equity influences the consumer decision making process within high class
restaurant.

Data collection
For the purpose of this research and in order to achieve it’s objectives, data will be collected
by using both primary and secondary research. The secondary data will support the
foundation of background information, needed by the researcher to build interview
questions and to better understand the outcome of the interview. Primary data will be
collected by carrying out interviews with the customers of the high class restaurants.

Sampling design
The aim of this research is to provide an accurate conclusion to the potential influences to
the customer decision making process to clientele who have visited high class restaurant.
However, as it is impossible to gather information from every customer, the research needs
to settle for a sample. Black and Champion (1979) suggests that a sample is a part of the
components taken from a demographic, which is recognised as a member of the
demographic.

In order to achieve research objectives, the method of qualitative data collection will be
used and personal interviews will be carried out, because it is the most effective technique

5
 Ineta Svedaite Dissertation Proposal S16136868

of communication and it gives an actual insight in consumer values towards the high class
restaurant, and also supported with:

“The skill of guiding the discussion back to the topic outlined when discussions are unfruitful
while it has the disadvantages of being very costly time consuming and can introduce bias
through desires of the respondent to please the interviewer” (Aaker & Day, 1990).

For the purpose of this research, semi-structured face to face interviews will be undertaken
including two target groups: repeat visit customers and first time customers in high class
restaurant. The choice will be mostly based on researcher’s understanding about the past
experiences among interviewees, their values and reasons for visiting a high class
restaurant, which might influence the question type to suit each target group.

Analysis
The research findings will be analysed using the CBBE model, which will be looking at how
respondents related to consumer based brand equity and how that can possibly influence
their decision-making process and brand loyalty. Both target groups will have similarly
based questions, however group 1 will be asked what influenced their decision to
repeatedly choose the same high-class restaurant, while group 2 will be asked how the
brand equity elements could influence them to come back to the same high class
restaurant.

This type of analysis will provide the research with reliable consumer opinions from their
own experience and will help understand and identify the main components of brand equity
and their impact on their decision-making process and brand loyalty within high class
restaurant.

6
 Ineta Svedaite Dissertation Proposal S16136868

Limitations
Firstly, study limitations can be seen with using face to face interviews as it might influence
the target group to be subjective about the topic. In a further discussion, this might arise a
problem of data collected being subjective to someone’s opinion and will not be as reliable.
Secondly, the study is evaluating only a particular hospitality industry type (high class
restaurant) and does not compare different consumer perceptions towards various
restaurant types. In addition, the results of this research will be developed in the UK
context, which means the impact of brand equity on consumer decision making process and

brand loyalty might be different in other countries and cultures.


7
 Ineta Svedaite Dissertation Proposal S16136868

GANTT chart

8
Ineta Svedaite Dissertation Proposal S16136868

References

1. Aaker, D. (2003). Strategic marketing management. New York: John Wiley & Sons.


2. Ekinci, Y., Dawes, P. L., & Massey, G. R. (2008). An extended model of the
antecedents and consequences of consumer satisfaction for hospitality services.
European Journal of Marketing, 42(1), 35–68.
3. Feldwick, P (2002). What is brand equity, anyway? Oxford: World Advertising
Research Centre. 7-44.
4. Han, H. & Ryu, K. 2012, "The theory of repurchase decision-making (TRD): Identifying
the critical factors in the post-purchase decision-making process", International
Journal of Hospitality Management, vol. 31, no. 3, pp. 786-797.
5. Han, H.S , Nguyen B , Lee J. T. (2015). Consumer-based chain restaurant brand
equity, brand reputation, and brand trust. International Journal of Hospitality
Management. 50 (1), 84-93.
6. Hwang, J, Ok, C. (2013). The antecedents and consequence of consumer attitudes
toward restaurant brands: A comparative study between casual and fine dining
restaurants. International Journal of Hospitality Management. 32 (1), 121-131.
7. Jiang, W., Dev, C.S. and Rao, V.R., 2002. Brand extension and customer loyalty:
Evidence from the lodging industry. Cornell Hotel and Restaurant Administration
Quarterly, 43(4), pp.5-16.
8. Kanagal, N.B. 2016, "An Extended Model of Behavioural Process in Consumer
Decision Making", International Journal of Marketing Studies, vol. 8, no. 4, pp. 87.
9. Keller, K.L. (1993). Conceptualising, measuring, and managing customer-based brand
equity. Journal of Marketing. 57 (1), 1-22.
10. Nam, J., Ekinci, Y. & Whyatt, G. 2011, "Brand equity, brand loyalty and consumer
satisfaction", Annals of Tourism Research, vol. 38, no. 3, pp. 1009-1030.
11. Pike, S. & Bianchi, C. (2016). Destination Brand Equity for Australia: Testing a Model
of CBBE in Short – Haul and Long-Haul Markets. Journal of Hospitality and Tourism
Research, Vol. 40, No.1, pp.114-134.

9
Ineta Svedaite Dissertation Proposal S16136868

12. Raajpoot, N.A. (2002). TANGSERV: a multiple item scale for measuring tangible
quality in foodservice industry. Journal of Foodservice Business Research. 5 (2), 109-
127.
13. Romaniuk, J. & Nenycz-Thiel, M. 2013, "Behavioral brand loyalty and consumer
brand associations", Journal of Business Research, vol. 66, no. 1, pp. 67-72.

10