Side effects of city branding: differences in brand image and loyalty factors from the perspective of residents in 21 Japanese cities

The literature on city branding has two main shortcomings. First, each related factor is evaluated individually, resulting in an insufficiently comprehensive evaluation. Second, the differences between brand image and loyalty factors have not been investigated sufficiently. Addressing these gaps, this study aimed to answer the following research question: ‘From the perspective of city residents, do brand image and loyalty factors differ?’ Structural equation modeling was performed, based on data from an online survey of 800 residents in 21 major Japanese cities. Results demonstrated that educational facilities and tourism resources had the most positive impact on brand image, while urban greenery and local governments had the most positive impact on loyalty. Brand image negatively affected loyalty. City branding needs differ between elite residents (e.g. those who own multiple homes/land in the city center and are keen on improving their brand image to increase land prices), tourists, and local residents (e.g. those who are worried about their mortgages). This is supported by numerous cases worldwide of famous tourist destinations – subject to overtourism – being the reason for conflict between local residents and tourists. The results underscore that practitioners need to clarify whether their objective is to strengthen external brand image or internal loyalty.