Determinants of customer loyaltyin Kenya: does corporate imageplay a moderating role?

Abstract

Purpose– Although previous studies have attempted to explain why some customers remain loyal toa product or service provider and/or why others switch, few studies have interrogated the role of socialpressure as well as the moderating role of corporate image.Methodology– The paper uses a composite measure of customer loyalty which provides bothbehavioral aspects and attitudinal loyalty. Survey data derived from a sample of 140 users of mobileservices 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 weresignificant predictors of customer loyalty, while customer satisfaction was not significant. Corporateimage was found to moderate the relationship between service value, service quality, social pressureand 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 shouldplace more emphasis on the value offered to customers as well as the needs of the social units likefamily, friends and colleagues. Moreover, telecommunication firms should invest in good corporateimage in order to realize the benefits of customer loyalty.Originality/value– The study adds value to the understanding of the determinants of customerloyalty. 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 customerloyalty should invest in corporate image.