Corporate Image Investment And Customer Loyalty In The Ghanaian Banking Industry

ABSTRACT

The primary objective of this study was to extend the current knowledge of corporate image investment dimensions by testing a comprehensive framework which comprises product attributes, relationship marketing, corporate credibility and corporate social responsibility on customer loyalty. By examining the proposed conceptual framework, this study captures broadly everything that an organisation does which invariably gives it an image in the minds of customers. The study adopts a quantitative approach and a cross-sectional research design to collect data from three hundred and sixty seven (367) customers of banks on the University of Ghana campus. Data was coded using Statistical Package for Social Sciences (SPSS V22.0). Structural Equation Modelling (SEM) was used to evaluate the proposed model for understanding the relationships among the constructs, as well as examining moderating effects of Country-Of-Origin of banks. The Findings of the study reveals a statistically significant relationship between the composite corporate image investment dimensions and customer loyalty in the Ghanaian banking industry. At individual level, the result highlights corporate social responsibility, relationship marketing and corporate credibility as the most important corporate image investment dimensions that lead to customer loyalty. Furthermore, product attributes have a significant relationship with customer loyalty but as more investment is made into it, the level of customer loyalty decreases which then affects the image of the company. A test of moderation relationship confirmed that the relationship between corporate image investment dimensions and customer loyalty is further enhanced by Country-Of-Origin of banks. The study recommends that there is no “fit for all” corporate image investment dimensions and as such corporations should have a holistic understanding of their industry before designing the appropriate corporate image investment dimensions or portfolios that aims to influence consumer behaviour.