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Abstract

The purpose of this study aims to develop and test a conceptual model of the relationships between the constructs of Brand Image, Price, Service Quality and Purchase Decisions in the hospitality industry. The discussion in this study focuses on (1) the effect of brand image on purchase decisions; (2) the effect of hotel price on purchase decisions; (3) the effect of service quality on purchase decisions; and (4) simultaneous effect on brand image, room price and service quality on purchase decisions. Primary data for the research were obtained using a questionnaire distributed to 455 respondents. The participants were recruited using purposive sampling method. All of the respondents had stayed in Horison Hotels West Java Area at least 1 time in the last 12 months. The research data were analyzed using LISREL 8.80 to test the models and hypotheses. The results showed that brand image, price and service quality have a positive influence on purchase decisions. Service quality obtained highest score of 0.56 than brand image which obtained a score of 0.22 also Price obtained a score of 0,19. Future research is expected to focus on other variables such as brand relationship, brand performance, and consumer brand identification. This research provides an understanding of purchase decisions in hotel industry.
Keywords: Hotel Industry, Purchase Decision, Brand Image, Price, Service Quality