Influence of environmental practices on brand equity, satisfaction and word of mouth

In developed countries, a growing number of consumers have been looking for environmentally sustainable products and services. As a response to this demand, hotel managers are increasingly striving to implement sustainable practices to meet the needs of their guests, improve hotel image and create brand equity. However, empirical evidence on the existence of a positive influence of hotels’ “green” practices on brand equity, satisfaction and intention of consumers to spread a positive word of mouth (WOM) is still rather scarce. The purpose of this study is to address this gap by examining relationships between environmentally sustainable practices adopted by hotels on the one hand and brand equity dimensions (i.e., brand awareness, brand associations, perceived quality and brand loyalty), satisfaction and WOM on the other. A survey was conducted among 378 guests from three- and four-star hotels in Valencia (Spain). The results confirm the impact of “green” practices on brand equity, satisfaction and WOM. In addition, positive effects of brand equity on guest satisfaction and WOM are also confirmed.