Increasing brand loyalty in the hospitality industry

Abstract

Hospitality companies can increasetheir market share and growth rates by increasing their brand loyal customers. This is a more profitable approach than other marketing activities, such as price cuts or promotional programs. As a mature industry, the hospitality business must pursue market-share gains, rather than market-growth gains. Acquiring new customers is expensive becauseof advertising, promotion, and start-up operating expenses. Besides, it is cheaper to serve current customers. This paper brings together the factors that contribute to brand loyalty in marketing literature and provides strategies to hospitality managers for increasing brand loyal customers.

Full text

Increasing brand loyalty in the hospitality industry
Mustafa Tepeci
School of Hotel, Restaurant, and Recreation Management, Pennsylvania State
University, Pennsylvania, USA
Introduction
Many hospitality firms are having difficulty
increasing their market share because of
rising international competition, slower
growth rates, decreased population growth,
and oversupplied and mature markets. Over
the last two years, national hotel occupancy
in the USA declined modestly, to 64.5 percent
in 1997. A record 1,480 new hotels opened, and
new records are expected to be set in the
coming years (Ford, 1998, p. 59). As a result,
an increasing number of hotel firms are
pursuing fewer new customers. Under these
circumstances, a large share of any firm's
resources must be devoted to present custo-
mers. Firms may increase sales and their
market shares by decreasing prices, expand-
ing their distribution channels, launching
promotional campaigns, and retaining their
current customers (Cravens, 1994). However,
customer loyalty would be a more profitable
approach because as a mature industry, the
hospitality business must pursue market-
share gains, rather than market-growth
gains (Jarvis and Mayo, 1986).
When customers are lost, new ones must be
attracted. However, replacement comes at a
high cost. Capturing new customers is
expensive because of advertising, promotion
and sales costs, and start-up operating
expenses (Reichheld, 1996). Reichheld, in his
book, The Loyalty Effect, argues that in
businesses like auto and life insurance and
credit card firms, attracting new customers
often costs approximately five times what it
costs to retain current customers. If compa-
nies knew how much it really costs to replace
customers, they would make more invest-
ments to retain them. For example, credit
card companies spend an average of $51 to
recruit a customer and set up the new
account (Reichheld, 1996). It costs less to
serve loyal customers because familiarity
with the company's products and services
makes customers less dependent on its em-
ployees for help and information. A satisfied,
loyal customer can contribute a great deal to
the bottom line of any company. Therefore,
the purpose of this article is to emphasize the
importance of brand loyalty and to determine
factors that contribute to brand loyalty. This
paper then provides strategies for hospitality
managers for improving brand loyal custo-
mers.
What is a brand and why is it
important?
A brand is the product or service of a
particular supplier, which is differentiated
by its name and presentation, such as
Marriott or Hilton for a hotel company. Many
hotel and restaurant chains seek to create
and fulfill the expectations of specific groups
of customers. They want to leave their mark
on a given field (e.g. Ritz Carlton for an
upscale hotel) and set their imprints on a
product or service (e.g. Disney's creative
theme park concept). Brands introduce sta-
bility into businesses, help guard against
competitive imitation, and allow consumers
to shop with confidence in an increasingly
complex world (Aaker, 1991). Once customers
have made a decision about a brand and its
associations, they are often loyal to that
brand, continue to buy it in the future,
recommend it to friends, and choose the
product over others, even those with better
features or lower prices (Assael, 1991).
Brands are natural barriers to new competi-
tors because branding reduces consumer
risks associated with the purchase of pro-
ducts or services. Thus, they support pre-
mium prices and sustain increasing revenue
because of the consumer tendency towards
long-term brand loyalty (Ehrenberg et al.,
1990).
Brand loyalty
Brand loyalty has been described as a
behavioral response and as a function of
[ 223 ]
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229
#MCB University Press
[ISSN 0959-6119]
Keywords
Brand extension, Brand loyalty,
Hospitality
Abstract
Hospitality companies can
increase their market share and
growth rates by increasing their
brand loyal customers. This is a
more profitable approach than
other marketing activities, such
as price cuts or promotional pro-
grams. As a mature industry, the
hospitality business must pursue
market-share gains, rather than
market-growth gains. Acquiring
new customers is expensive
because of advertising, promotion,
and start-up operating expenses.
Besides, it is cheaper to serve
current customers. This paper
brings together the factors that
contribute to brand loyalty in
marketing literature and provides
strategies to hospitality managers
for increasing brand loyal
customers.
The author thanks
Dr Sara C. Parks and
Dr Angela L. Farrar of the
Pennsylvania State
University for their
constructive suggestions on
earlier versions of this
article.

psychological processes (Jacoby and Kyner,
1973). That is, brand loyalty is a function of
both behavior and attitudes. Repurchase is
not sufficient evidence of brand loyalty ± the
purchasing practice should be intentional.
Brand loyalty includes some degree of com-
mitment toward the quality of a brand that is
a function of both positive attitudes and
repetitive purchases.
Generally, more than one brand is offered
of the same product within a given product
category, and a buyer has to choose one of
these brands at the moment of purchase.
Today, many products and services are sold
as branded products and services; this shows
the great confidence placed in the effective-
ness of branding. In general, the brand
chosen at many previous purchases has a
high probability of being bought again on
subsequent occasions (Reichheld, 1996).
Holiday Inn was one of the first to intro-
duce a branded service to the hotel business.
By using the brand name to assure travelers
of uniform service standards, experience,
and consistency, Holiday Inn was able to
capture a repeat customer base. To attract
different market segments and respond to a
variety of customer needs and budgets, Holi-
day Inn extended its product line from
economy (Holiday Inn Express) to upscale
(Crowne Plaza). This branding strategy
helped Holiday Inn increase occupancy and
revenue as some of the lodging segments
have become saturated (Seacord, 1996).
Importance of brand loyalty
Loyal customers are best for hospitality
firms because they are easier to serve than
non-loyal customers, and they provide higher
profitability. Reichheld in his book, The
Loyalty Effect, explains the advantages of
brand loyalty as follows:
.Continues profit. The advantages of custo-
mer loyalty are long-term and cumulative.
The longer a customer remains loyal, the
more profit a business can get from that
single customer.
.Reduces marketing cost. Businesses have
to invest money to attract new customers,
such as advertising. For loyal customers,
these costs are eliminated or minimized.
.Increases per-customer revenue growth.
Customer spending tends to increase over
time. For example, a customer who re-
peatedly stays at the same hotel becomes
more familiar with the hotel's full product
line, such as gift shops and banquet
rooms. And that customer will be likely to
sample other product lines of the com-
pany, thus helping the company achieve a
larger share of customers.
.Decreases operating cost. For a loyal cus-
tomer, the front desk clerk does not need
to spend time entering data into the
computer ± instead she/he retrieves the
loyal customer's existent data. Loyal cus-
tomers' familiarity with the company's
products makes them less dependent on
its employees for information and service,
thus decreasing servicing cost.
.Increases referrals. Satisfied customers
recommend the business to friends and
others. Referrals are a vital source of new
customers, and customers who show up
on the strength of a personal recommen-
dation tend to stay longer.
.Increases price premiums. Brand loyal
customers pay more for a brand because
they perceive some unique value in the
brand that no other alternative can pro-
vide, and they are less likely to be lured
away by a discount of a few dollars. Many
people will pay more to stay in a hotel they
know than to take a chance on a less
expensive competitor.
.Provides competitive advantage. As consu-
mers become loyal to a brand, they
become less sensitive to a price increase.
The company can maintain a price differ-
entiation over the competition because of
the product's ability to satisfy their needs.
Factors contributing to brand loyalty
In order to increase the brand loyal customer
base a hospitality firm should explore the
factors that create brand loyalty. Then,
tactics or strategies need to be developed and
implemented by all levels and functions of
the organization. For each customer, the
reason for brand loyalty may be different.
However, loyal customers generally show
these common behaviors: making repeat
purchases, trying other product lines of the
company, showing resistance to the pull of
the competition, giving referrals, providing
publicity, and serving on advisory boards
(Bowen and Shoemaker, 1998). The following
paragraphs summarize the factors that cre-
ate brand loyalty.
Awareness
The first step toward loyalty begins with the
customer's becoming aware of the product
(Aaker, 1991). At the awareness stage, a
potential customer knows that the brand
exists, but the bond between a customer and
the product is low. At this point, a brand-
name may provide the awareness of the
product because brand names offer value to
the consumers by helping them interpret,
process, store, and retrieve large quantities
of information about products (Aaker, 1991).
Awareness can be enhanced in a variety of
[ 224 ]
Mustafa Tepeci
Increasing brand loyalty in the
hospitality industry
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229

ways such as advertising, direct mail, trade
press, word-of-mouth communication, and
promotion activities (Grover and Srinivasan,
1992). The more the customer is aware of the
product, the greater the possibility that she/
he will purchase the product. Hospitality
companies need to expose their products to
more consumers to create and increase
brand-loyal consumers who will buy their
product wherever it is available. The more
places the customer can buy the product, the
more often that customer will become a new
customer of the same product in another
marketplace (Lewis et al., 1995, p. 655). Holi-
day Inn benefits from being the number one
chain in terms of size in the USA dominating
34 percent of the business-travel market
(Aylsworth, 1996).
Reputation
Selling high-quality products and command-
ing premium prices increases the reputation
of a firm; thus, developing brand loyalty. In
order to build and maintain a reputation, the
promised quality of goods or services must be
delivered. Having a good reputation in-
creases a firm's sales, attracts more custo-
mers because of word-of-mouth activity, and
cuts customer departures (Rogerson, 1983).
For a firm expanding its product line, a well-
known brand can facilitate user acceptance
of the new product (Aaker, 1991). Sellers who
develop a reputation for high quality can
often command premium prices (e.g. Ritz
Carlton).
Image
One of the first steps in maintaining custo-
mer brand loyalty is to build and sustain a
positive brand image. A strong brand image
is important to brand owners because the
brand name distinguishes a product from the
competitors' products. The image includes
colors, symbols, words, and slogans that
convey a clear, consistent message and not
simply the name (Berry et al., 1988). The
brand image plays an important role in
product choice because consumers attempt to
reinforce their self-image by buying products
that are congruent with their self-image. For
example, a consumer may drive an Alfa
Romeo rather than a generic brand because
the Alfa Romeo reflects the style and flair
that the consumer sees in his or her person-
ality. The consumer may perceive that one
brand is more desirable than its competitor's
solely because of the difference in image
(Schiffman and Kanuk, 1991).
Promotion
While promotion is the biggest reason con-
sumers initially try a product (Grover and
Srinivasan, 1992), if tied to something posi-
tive, such as a new or better facility or a new
product, it facilitates brand loyalty. Promo-
tions can be used to develop cost leadership
or differentiation, and can be used to create
loyalty through switching costs (Grover and
Srinivasan, 1992). For instance, many credit
card companies discourage existing users
from switching by offering them incentives
or better deals (e.g. lower APR).
Perceived quality
A brand should represent a credible guaran-
tee of quality to the consumers (Aaker, 1991).
Once the consumers are persuaded that the
brand offers what they expect, they stay with
the brand. Brand names provide a symbolic
meaning which assists the user in the
recognition and decision-making process. A
consumer will choose a familiar name
because brand names carry higher perceived
quality. Brands generally deliver the quality
they promised. Customers feel comfortable
with brand versus unbranded products. That
is why brand-leading products consistently
command a 10-to-15 per cent price premium
over their competition (Elliott, 1996). Custo-
mers may also see this price difference as a
quality indication.
Innovation
Innovation allows the brand to remain up-to-
date and demonstrates an unceasing atten-
tiveness to the changes in customer taste. To
keep pace with changes in the marketplace
companies should meet and exceed customer
needs and wants. Studies show that success-
ful new brands are typically more distinctive,
novel and superior in comparison to estab-
lished brands (Nowlis and Simonsen, 1996).
When companies make innovations to their
products they have to consider customers'
perceptions and attitudes. Customers may
not approve the new ideas or products. If new
additions or products, are so different from
the existing core product, consumers may not
make the proper connection between the new
product and the mature brand, and thus may
not transfer the brand's positive attributes to
the new product (Aaker and Keller, 1990).
Brand extension
Carrying the brand into new categories that
fit well with its concept and image will help
companies increase customer brand loyalty
(Aaker, 1991). When the brand's associations
and perceived quality can provide a point of
differentiation and advantage for brand
extension, the extension will be successful.
However, there is a risk that an extension
may damage the core brand by weakening its
associations or its perceived quality. If
customers want to buy a new product, they
[ 225 ]
Mustafa Tepeci
Increasing brand loyalty in the
hospitality industry
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229

will prefer a familiar brand. They already
know the brand and have the same perfor-
mance expectations with the new product. If
they do not get what they expect, they may
switch to the new brand. The reason for the
product extensions in the hospitality indus-
try (e.g. Courtyard by Marriott) is to better
meet more heterogeneous consumer tastes.
From a marketing perspective, this is a way
to reach different market segments. When a
company uses a brand name that has already
been established, some risk associated with
new products may be eliminated. For brand
names with high customer value, such as
Holiday Inn, Ramada, and Marriott in the
hospitality industry, brand extension has
been a good tool for marketing and growth
potential. Marriott estimated that adding the
Marriott name to Fairfield Inn increased
occupancy rates by 15 percent (Farquhar,
1990).
Satisfaction
The relationship between satisfaction and
brand loyalty has been observed in several
studies. Fornell (1992) examined 27 different
businesses and found strong correlations
between satisfaction and loyalty (e.g. 0.66 for
television broadcasting). Fornell further
found that loyal customers are not necessa-
rily satisfied customers, but satisfied custo-
mers tend to be loyal customers. Highly
satisfied customers are much more loyal
than satisfied customers ± any drop in total
satisfaction results in a major drop in loyalty
(Jones, 1990). Xerox conducted a study for
satisfaction using a five-point scale: 5 (highly
satisfied) to 1 (highly dissatisfied). The rela-
tionship between the scores and actual loy-
alty differed greatly. Customers giving Xerox
fives were six times more likely to repurch-
ase Xerox equipment than those giving fours
(Reichheld, 1996). This relationship is illu-
strated in Figure 1.
Customer background
Customer background characteristics may
also contribute to brand loyalty (Morgan and
Dev, 1994). Higher income customers may
stick to one premium brand because they
perceive it as a contribution to their social
status. Some brands carry images or sym-
bolic meanings that may provide social value
for them. The higher household income, the
less switching is expected because customers
can exercise their preferences independently
from monetary considerations. For instance,
customers with more income can afford to
repeat purchase of familiar lodging brands
despite limited availability and wide price
variation.
As previously stated, the reasons for being
brand loyal (e.g. brand image) may be
different for each customer. Some firms offer
trial discounts to attract new customers,
whereas others offer loyalty programs to
retain their current customers. The next
section discusses in detail how loyalty pro-
grams have an impact on brand loyalty.
Do customer loyalty programs
work?
Inspired by the airlines' success, most major
hotel and restaurant chains have developed
frequent-guest programs (e.g. Holiday Inn's
Priority Club) that reward customers for
repeat business (McCleary and Weaver, 1991,
1992; Toh et al., 1991). These programs aim to
enhance the customer's sense of membership
in a unique club with benefits from this
membership (e.g. free hotel rooms and gifts).
For the company, the goal is to thank
customers for their business and show them
that the company is interested in building
and maintaining a relationship with them
(Sparks, 1993). However, frequent-guest pro-
grams (FGP) are costly for hotel firms;
Figure 1
Customer satisfaction/loyalty relationship
[ 226 ]
Mustafa Tepeci
Increasing brand loyalty in the
hospitality industry
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229

initiation and maintenance of such a pro-
gram requires investment, and free rooms or
upgrades, newspapers, and other perks are
expensive. It is estimated that hotel compa-
nies may spend about $35 million to $50
million annually for FGPs but only get in
return $60 million to $80 million in revenues
(Bond, 1995). Although FGPs are costly, they
do work. Hilton questioned its 10,000 HHo-
nors members and found that 19 per cent of
them would not stay at a Hilton without such
a membership program. Marriott also re-
ported that its FGP members spend two-and-
a-half times more at Marriott than they did
before joining the program (Seacord, 1996).
These programs may increase firms' market
share; but, do they offer a better return than
an alternative such as a price cut and
promotion? Further research is needed to
explore this question.
Frequent-guest programs provide a variety
of information that can be used to segment
firms' customers and to establish relation-
ship marketing. Customers' needs and de-
sires can be identified with these programs
and given special attention (Sparks, 1993).
Offering FGPs tells customers they are spe-
cial. Previous studies found that consumers
like to interact with employees and enjoy the
personal attention a representative provides
(Raymond and Tanner, 1994). A loyalty pro-
gram allows firms to create a relationship
with their customers. Through this relation-
ship, hospitality firms can offer products and
services beyond the basics to add value to the
customers by continually understanding
their needs and anticipating their future
desires (Connell, 1992).
Previous studies that investigated whether
FGPs were effective in increasing customer
loyalty concluded that these programs are
``too expensive to operate'' and ``hoteliers
would be happy to drop these programs''
(McCleary and Weaver, 1991, 1992; Toh et al.,
1991). However, unless the industry
altogether drops FGPs, the individual
chains will be forced to maintain their
programs to neutralize a competitor's pro-
gram. Although FGPs are expensive to
maintain, McCleary and Weaver (1992) found
that ``business travelers who belong to FGPs
were willing to pay more than nonmembers
for a hotel room and FGP members were
more likely to bring their families along to
stay in the hotel'' (p. 60). However, in case of
competitors' price cuts or promotions, these
customers may switch to competitors.
Previous research showed that an immediate
reward (e.g. discounts) might be more
motivating than the delayed reward (Aaker,
1991).
Conclusion
In saturated and highly competitive indus-
tries such as hospitality, the key to increas-
ing and preserving market share is not just
winning customers but keeping them. Brand
loyalty is crucial in the hospitality industry
because repeat business constitutes a large
percentage of room and food sales. Brand
loyal customers resist competitors' price cuts
and help hospitality firms maintain high
occupancy rates. Since product (and service)
knowledge is an important factor in the hotel
selection process (Lewis et al., 1995), hoteliers
should make their customers aware of their
offerings. New customers will try the product
based on an initial notion of perceived quality
and if their trials result in satisfaction, the
perceived value of the product will increase,
leading to further purchases. The brand will
survive and fulfill its intention if it continu-
ously creates new ideas and attractive
choices (innovation). Over time, as familiar-
ity and expertise with the brand escalates,
the customer begins to develop a sense of
brand loyalty. This, in turn, encourages him
or her to purchase other new products under
the same brand name (brand extension).
Although building and maintaining a
brand loyal customer base is vital for com-
petitiveness in the hospitality industry, it is
hard to say that hospitality managers are
successful in ensuring customers return to
their properties (Lewis et al., 1995). Previous
studies showed that customers could easily
switch among hotel brands (Warren and
Ostergren, 1990). For some customers brand
image may be important, for others avail-
ability or frequent-guest programs. There-
fore, managers should investigate what
drives their customers to be loyal and then
determine the components of their loyalty.
Thus, managers should continually ask
themselves, how can they make a loyal
customer even more loyal. The strategies
(actions) below may help hospitality man-
agers increase their number of brand loyal
customers:
.Offering added value features and consis-
tently providing high quality service: To-
day's customers are generally more price-
conscious and are on the search for a
better deal. Thus they are knowledgeable
of the competitors' products and services.
Therefore, the offerings should live up to
their expectations. Additionally, consu-
mers' trust and confidence in hoteliers'
promises can play key roles in starting the
long-term relationship between firms and
customers.
.Staying in touch with the customers: To
develop customer loyalty to a hotel or
[ 227 ]
Mustafa Tepeci
Increasing brand loyalty in the
hospitality industry
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229

restaurant brand, firms must learn their
customers' wishes and needs, and make
certain that they meet or exceed their
specific requirements. Hospitality firms
should keep in touch with customers and
provide satisfaction and reinforcement to
current and past customers as well. Ap-
preciation of customers' business and
acting on what customers' desire can
contribute repeat business and word-of-
mouth advertisements.
.Segmenting customers by their buying
habits: Hospitality firms cannot offer a
``one size fits all'' approach to their varied
customer demands. Managers should de-
termine buying behaviors across seg-
ments (e.g. business and leisure) and
provide products (and services) that best
match customers' needs and wants.
.Selecting service-oriented employees: Front-
line employees play an integral role in
gaining loyalty because of high customer
and employee contact in the hospitality
industry. It is important to select those
employees carefully and train them well.
.Using relationship (database) marketing
and offering frequent guest programs:
Database marketing and frequent guest
programs enable hospitality firms to
understand their customers' attitudes,
behaviors, and motivations. Therefore,
they can appeal to their customers on an
individual basis. When hospitality firms
give individual attention and remember
their repeat customers, those customers
will be more likely to keep their business
with the company. Through frequent
guest programs, customers should be
rewarded and given the best value to
make them completely committed for the
company (brand).
.Building a system that facilitates organi-
zation-wide planning and implementation:
Many hospitality firms enjoy widespread
recognition of brand names (Lewis et al.,
1995); however, because of brands' rigid
standards, hospitality companies may
face difficulties in responding to changing
customer demands. Therefore, building a
brand-loyal customer base for a hospital-
ity firm is not just the marketing depart-
ment's job; it requires concerted effort
throughout the organization. Managers
should build a system that facilitates
organization-wide planning and imple-
mentation to respond to market changes.
Such a system requires a mix of strategic
management, marketing, motivation, in-
novation, training, financial techniques,
customer satisfaction, and so on.
In summary, brand loyalty is one of the most
important competitive survival tools because
loyal customers provide repeat business,
higher market shares and profits, referrals,
and competitive advantage. Loyal customers
are a continuous source of income. Accord-
ing to Woods (1995), one Delta Airlines'
lifetime customer generates $1.5 billion.
Since keeping old customers requires much
less money than acquiring new customers,
and since serving old customers is signifi-
cantly cheaper than serving new ones, hos-
pitality companies that want to improve their
market share and profitability must give
more attention to current customers.
References
Aaker, D.A. (1991), Managing Brand Equity, Free
Press, New York, NY.
Aaker, D.A. and Keller, K.L. (1990), ``Consumer
evaluations of brand extensions'', Journal of
Marketing, Vol. 54, January, pp. 27-41.
Assael, H. (1991), Consumer Behavior and
Marketing Action, PWS-KENT, Boston, MA.
Aylsworth, K. (1996), ``Hotels adopt to please
business traveler'', Grand Rapids Business
Journal, November 25, p. B1.
Berry, L., Lefkowith, E. and Claek, T. (1988), ``In
services, what's in a name?'' Harvard
Business Review, Vol. 66, September-October,
pp. 28-32.
Bond, H. (1995), ``Frequent-guest programs build
brand loyalty'', Hotel and Motel Management,
Vol. 210 No. 3, February 20, p. 23.
Bowen, J.T. and Shoemaker, S. (1998), ``Loyalty: a
strategic commitment'', The Cornell Hotel and
Restaurant Administration Quarterly,
February, pp. 12-25.
Connell, J. (1992), ``Branding hotel portfolios'',
International Journal of Contemporary Hos-
pitality Management, Vol. 4 No. 1, pp. 26-32.
Cravens, D. (1994), Strategic Marketing, Richard D.
Irwin, Inc., Boston, MA.
Ehrenberg, A.S.C., Goodhardt, G.J. and Arwise,
T.P. (1990), ``Double jeopardy revisited''
Journal of Marketing, Vol. 54 No. 3, pp. 82-91.
Elliott, T.L. III (1996), ``Brand management:
what's in store?'', Telephony, Vol. 231 No. 6,
pp. 30-5.
Farquhar, P.H. (1990), ``Managing brand equity''
Journal of Advertising Research, Vol. 30,
August-September, pp. RC7-RC12.
Ford, P. (1998), ``Slow down ahead'', Lodging, May,
pp. 58-64.
Fornell, C. (1992), ``A national customer satis-
faction barometer: the Swedish experiences'',
Journal of Marketing, Vol. 56, January,
pp. 6-21.
Grover, R. and Srinivasan, V. (1992), ``Evaluating
the multiple effects of retail promotions on
brand loyal and brand switching segments'',
Journal of Marketing Research, Vol. 29,
February, pp. 76-89.
[ 228 ]
Mustafa Tepeci
Increasing brand loyalty in the
hospitality industry
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229

Jacoby, J. and Kyner, D.B. (1973), ``Brand loyalty
versus repeat purchasing'', Journal of
Marketing Research, Vol. 10, February, pp. 1-9.
Jarvis, L.P., and Mayo, E.J. (1986) ``Winning the
market-share game'', The Cornell Hotel and
Restaurant Administration Quarterly,
November, pp. 73-9.
Jones, J.P. (1990), ``The double jeopardy of sales
promotions'', Harvard Business Review,
Vol. 68 No. 5, pp. 145-52.
Lewis R.C., Chambers, R.E. and Chacko, H.E.
(1995), Marketing Leadership in Hospitality:
Foundations and Practices, Van Nostrand
Reinhold, New York, NY.
McCleary, K.W. and Weaver, P.A. (1991), ``Are
frequent-guest programs effective?'', The
Cornell Hotel, Restaurant Administration
Quarterly, August, pp. 39-45.
McCleary, K.W. and Weaver, P.A. (1992), ``Do
business travelers who belong to frequent
guest programs differ from those who don't
belong?'', Hospitality Research Journal, Vol. 15
No. 3, pp. 51-61.
Morgan, M.S. and Dev, C.S. (1994), ``An empirical
study of brand switching for a retail service'',
Journal of Retailing, Vol. 70 No. 3, pp. 267-82.
Nowlis, S.M. and Simonsen, I. (1996), ``The effect
of new product features on brand choice'',
Journal of Marketing Research, Vol. 33,
February, pp. 36-46.
Raymond, M.A. and Tanner, J.F. Jr (1994),
``Maintaining customer relationships in
direct sales: stimulating repeat purchase
behavior'', Journal of Personnel Selling and
Sales Management, Vol. 14 No. 3 Summer,
pp. 67-76.
Reichheld, F.F. (1996), The Loyalty Effect, Harvard
Business School Press, Boston, MA.
Rogerson, W.P. (1983), ``Reputation and product
quality'', The Bell Journal of Economics,
Vol. 14, Autumn, pp. 500-10.
Schiffman, L. and Kanuk, L. (1991), Consumer
Behavior, Prentice-Hall, Englewood Cliffs, NJ.
Seacord, S. (1996), ``Who's been sleeping in our
beds?'', American Demographics, March/
April, pp. 58-65.
Sparks, B. (1993), ``Guest history: is it being
utilized?'', International Journal of
Contemporary Hospitality Management, Vol. 5
No. 1, pp. 22-7.
Toh, R.S., Rivers, M. and Withiam, G. (1991),
``Frequent-guest programs: do they fly?'' The
Cornell Hotel, Restaurant Administration
Quarterly, August, pp. 46-52.
Warren, P. and Ostergren, N.W. (1990). ``Market-
ing your hotel: challenges of the '90s'', The
Cornell Hotel and Restaurant Administration
Quarterly, May, pp. 56-9.
Woods, W. (1995), ``After all you've done for your
customers, why are they still not happy?'',
Fortune, December 11, p. 182.
[ 229 ]
Mustafa Tepeci
Increasing brand loyalty in the
hospitality industry
International Journal of
Contemporary Hospitality
Management
11/5 [1999] 223±229