Customer-based brand equity building: Empirical evidence from Croatian upscale hotels

The marketing literature suggested that customers are adding incremental value to a product by its brand, conceptualizing this phenomenon in terms of brand equity. This article is a contribution to this area of study as it provides a new understanding of the process of brand equity building, when approached from the customer point of view. The empirical research is centred on the hospitality industry, more specifically, upscale (i.e. four- and five-star) hotels in Croatia. The data were collected from 475 guests in 24 upscale hotels. The results reveal that image and loyalty exert a direct impact on the overall brand equity, while the influence of trust and affective commitment is mediated by loyalty.