Nonlinear relationship between brand experience and customer satisfaction in the hospitality sector: an exploratory study

Abstract

This research aims at exploring the nonlinear relationship between brand experience and outcome variables, i.e. consumer satisfaction and brand loyalty. The aim is to demonstrate that increased brand experience does not always lead to positive responses from customers in terms of satisfaction and loyalty drawing from the too-much-of-a-good-thing meta-theoretical principle. Data were collected from 274 participants through questionnaires administered randomly in populated areas and further analysed using regressions. The results confirmed that there exists a nonlinear relationship between brand experience, consumer satisfaction, and brand loyalty. In other words, brand experience influences the outcome variables to a point where its effect begins to diminish and becomes negative. This makes it paramount for brand managers, especially in the tourism and hospitality sector to remain aware that delivering a superior experience to their customers does not necessarily increase their level of satisfaction. This study also provides a fresh perspective on the brand experience construct in the service industry. It departs from mainstream brand experience studies by demonstrating that the relationship between brand experience, satisfaction, and loyalty is nonlinear, where increasing brand experience is associated with diminishing returns of satisfaction and loyalty.