CUSTOMER-BASED BRAND VALUE AND ITS EFFECTS ON ENHANCING DESTINATION EQUITY IN RURAL TOURISM

Abstract

Customer-based brand value is used to show how a brand’s success can be
directly attributed to customers’ attitudes towards a certain brand. Brand as a generic concept is equally applicable in the field of the place marketing, so it is possible to conclude that tourist destinations can also be understood as unique brand allowing them to obtain higher values that are delivered to consumers. Therefore, it is more than clear that consumer perception of the brand plays a very important role in the domain of destination management. However, many previous research results are predominantly devoted to mainstream topics in tourism, ignoring the potential impact of customer-based brand value on the development of a competitive environment for building brand infrastructure in rural tourism. The aim of this paper is to study the effects of customer-based brand values on destination equity in rural tourism. To do this, a survey was conducted with 326 respondents in the territory of the Republic of Croatia and for this purpose a PLS-SEM model was evaluated. The results show a significant positive impact on rural destination equity through established customer-based brand values. Moreover, the enhancing destination equity in rural tourism is mediated by certain elements of perceived quality and destination image. This research points out that even rural areas can benefit through the application of innovative place and brand marketing strategies. It also emphasizes the need for greater orientation and strategic linking of local authorities and DMOs in creating a more attractive rural destination brand.