The Mediating Role of Relationship Quality in Association of Brand Performance and Repurchase Intention

The tourism development in a destination is expected to increase the popularity of traditional brand that provides beneficial impact for local community. In marketing literature, customer loyalty has been recognized as a strategyin creating the popularity of a brand.The purpose of this paper is to investigate how traditional brand and relationship quality determine repurchase intention in Balinese food business at star hotels. The paper reviews the theoretical and empirical studies in field of brand performance and relationships marketing. A conceptual model is developed and tested in 180 samples of foreign tourists who have purchased the traditional Balinese food at number of star hotels in Bali. The research then tests a model of hypothesized relationships using structural equation modeling. Specifically, recent procedures for assessing direct and mediated effects are adopted. Research results showed that from two relationship quality factors consisting of satisfaction and trust, was trust plays an important role in determining the repurchase intention. The trust mediates the association of brand customer touch points, brand strategic, and satisfaction with repurchase intention. The findings also show the brand performance has an influence on satisfaction and trust. Trust is shown to be important predictor of repurchase intention as well as the satisfaction of having an influence on trust. The paper is conducted within Balinese traditional food business at star hotels in Bali, and the findings may not be generalizable to other locations or to other markets. The findings suggest that hotel managers must realizes that developing a brand for traditional food should be able to touch the customer and provide strategic impact for hotel. However, in order for customers to repurchase, they must be earned their trust, since the effects of traditional brand performance and satisfaction are indirect. This study presents potentially valuable information for hotel managers with regards to understanding brand performance and relationship quality, which are the key drivers of repurchase intention intraditional food business.