Abstract:
The major objective of the study is to understand the role of word of mouth
through brand salience and brand image as customer based brand equity
components in the creation of brand loyalty of Arugam Bay as tourist destination
among local tourists. Brand salience, brand image are used as independent
variables and the brand loyalty is used as dependent variable. A survey
questionnaire method was used as data collection technique. Convenient
sampling technique was used to draw respondents. 120 respondents were drawn
from the visitors at Arugum Bay. Collected data was analyzed using regression
and correlations. The mediating role of word of mouth was analyzed using the
method suggested by Baron and Kenny (1986). Findings reveals that brand
salience and brand image of Arugum bay create the word of mouth among the
local tourist visiting Arugum Bay. In the case of mediating role, the word of
mouth is well mediating within the brand equity components. Thus, destination
marketers need to focus on the brand salience and brand image of Arugum Bay
rather than trying to create word of mouth for this destination.
Keywords: Brand equity, word of mouth, Arugum Bay, Bran
