Determinants of customer loyalty in Kenya: does corporate image play a moderating role?

Abstract

Purpose – Although previous studies have attempted to explain why some customers remain loyal to a product or service provider and/or why others switch, few studies have interrogated the role of social pressure as well as the moderating role of corporate image. Methodology – The paper uses a composite measure of customer loyalty which provides both behavioral aspects and attitudinal loyalty. Survey data derived from a sample of 140 users of mobile services in Kenya was used and the hypotheses was tested using moderated regression analysis. Findings – The results indicate that perceived service value, service quality and social pressure were significant predictors of customer loyalty, while customer satisfaction was not significant. Corporate image was found to moderate the relationship between service value, service quality, social pressure and customer loyalty. Research limitations – Even though the study utilized a sample similar to other existing studies, future research should use larger samples, different measures of variables and different contexts. Implications – To improve on customer loyalty, mobile telecommunication firms in Kenya should place more emphasis on the value offered to customers as well as the needs of the social units like family, friends and colleagues. Moreover, telecommunication firms should invest in good corporate image in order to realize the benefits of customer loyalty. Originality/value – The study adds value to the understanding of the determinants of customer loyalty. More importantly, social pressure is an important determinant of customer loyalty. Second, corporate image plays a moderating role in customer behavior. Thus firms eager to engender customer loyalty should invest in corporate image.