The Effect Of Brand Image On Customer Satisfaction And Loyalty (The Case Of Ethiopian Insurance corporation)

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Date

2017-06-04

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Addis Ababa University

Abstract

The purpose of this study is to examine the effect of brand image on customer satisfaction and loyalty in Ethiopian Insurance Corporation Addis Abeba customers. The study tried to explain the relationship between brand image and customer satisfaction and loyalty, the effect of brand image on customer satisfaction, and the mediating effect of customer satisfaction in brand imagecustomer loyalty relationship. Brand image benefits (i.e. functional, experiential and symbolic benefits) are used as independent variables and customer satisfaction and customer loyalty as dependent variables. Besides, questionnaires are used as data collection instrument from respondents. Correlation analysis used to analyze the relationship between the variables and regression analysis is performed to examine the effect of brand image on customer satisfaction and loyalty. The results showed that brand image benefits and customer satisfaction are positively correlated, and customer satisfaction and customer loyalty are also significantly affected by brand image benefits with different degrees. Moreover, the mediating effect of customer satisfaction in relationship to brand image benefits - customer loyalty is found partially but significant. Organizations should take into account improving and/or building of brand image so that they can be competent and have increase their market share by successful achieving customer satisfaction and loyalty.

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Keywords

brand image, customer satisfaction, customer loyalty

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