The Effect of Perceived Service Quality on Brand Loyalty in Hotels: The Causal Role of Relationship Quality and the Mediating Effect of Employee Trust

Purpose - As the spread of COVID-19 has weakened recently, countries have switched to ‘with Corona’ policies. The hotel service industry, which has been hit hard in sales, is also making every effort to overcome difficulties through various brand strategies to provide high-quality services to customers and strengthen relationship quality through the trust of service employees at service points. Therefore, this study aims to verify the mediating role of employee trust in the relationship between perceived service quality and brand satisfaction and brand trust, and the causal effect of brand commitment by verifying whether brand satisfaction and brand trust affect brand loyalty or through brand commitment. Design/Methodology/Approach - Data were collected from consumers with experience using upscale hotels in Korea, and the research hypotheses were verified by structural equation model analysis using the SPSS 21.0 and Amos 21.0 statistical packages. Findings - First, the mediating effect of employee trust was confirmed in the relationship between perceived service quality, brand satisfaction, and brand trust. Second, brand satisfaction influenced brand trust and brand commitment, and brand trust influenced brand commitment. Third, brand satisfaction did not directly affect brand loyalty, but it did affect brand trust and brand commitment, and these constructs affected brand loyalty. Research Implications - In conclusion, it is necessary to manage service training for employees, as interactions with customers at the service point can provide the correct service and strengthen brand loyalty by identifying each component of brand relationship quality and checking the influence in the channel relationship.