Brand equity and customer satisfaction: a comparative analysis of international and domestic tourists in Vietnam

Abstract

Purpose This paper aims to examine the relationships between brand equity, customer satisfaction and cultural distance for a tourism destination. The mediating role of customer satisfaction and the moderating effect of cultural distance in these relationships are assessed. Design/methodology/approach The direct–indirect–moderating relationships were assessed by applying covariance-based SEM (CB-SEM), mediating and multi-group analysis. A paper survey was used to collect data from 618 tourists (domestic and international tourists) visiting a destination in Vietnam. Findings The findings support direct positive links between the dimensions of brand equity and customer satisfaction, except for the effect of destination brand awareness on destination brand loyalty. This work further demonstrates the mediating effect of customer satisfaction on the indirect relationships between the dimensions of brand equity. Cultural distance was found to moderate the connections between the research concepts. Research limitations/implications Future research should explore the model’s relationships based on comparisons in different destinations, to better understand the impact of cultural factors. Originality/value This study identifies specific factors to increase branding efficiency by developing and testing the relationship between brand equity and customer satisfaction. Using moderating variables through the lens of cultural distance, it proposes a mediated model. This work contributes to practice by informing destination managers on how to improve brand equity and satisfaction based on the cultural characteristics of international and domestic visitors.