International Journal of Academic Research in Business and Social Sciences

search-icon

Interrelationship among Corporate Image, Service Quality, Customer Satisfaction, and Customer Loyalty: Testing the moderating impact of Complaint Handling

Open access
Banking sector strives to retain their customers by satisfying their needs and try to develop long term strategies in order to form satisfied and loyal customers base. Service quality and corporate image are significant elements contribute towards customer’s satisfaction and loyalty. Therefore, current study attempts to investigate the relationship among Corporate Image, Service Quality, customer satisfaction and customer loyalty with the moderating impact of complaint handling. By adopting convenience sampling technique, data was collected through self-administered questionnaire from 213 banking sector customers. Hypothesized relationships in conceptual model were analyzed through statistical package for social sciences (SPSS). The findings unveiled that corporate image and service quality have a significant influence on customer loyalty via customer satisfaction. Moreover, moderating effect of complaint handling on the relationship of customer satisfaction and customer loyalty is evidenced from the current study. This study offers a greater understanding of the underlying processes (i.e., corporate image and service quality) which works through to contribute towards customer loyalty by customer satisfaction.
Adeniji, A. A., Osibanjo, A. O., Abiodun, A. J., & Oni-Ojo, E. (2014). Corporate image: A strategy for enhancing customer loyalty and profitability. Journal of South African Business Research, 2015.
Al-Hawari, M., Ward, T., & Newby, L. (2009). The relationship between service quality and retention within the automated and traditional contexts of retail banking. Journal of service management, 20(4): 455-472.
Ali, F., Zhou, Y., Hussain, K., Nair, P. K., & Ragavan, N. A. (2016). Does higher education service quality effect student satisfaction, image and loyalty? A study of international students in Malaysian public universities. Quality Assurance in Education, 24(1): 70-94.
Ambrose, M., Hess, R. L., & Ganesan, S. (2007). The relationship between justice and attitudes: An examination of justice effects on event and system-related attitudes. Organizational Behavior and Human Decision Processes, 103(1): 21-36.
Andreassen, T. W., & Lindestad, B. (1998). The effect of corporate image in the formation of customer loyalty. Journal of Service Research, 1(1): 82-92.
Arasli, H., Mehtap-Smadi, S., & Turan Katircioglu, S. (2005). Customer service quality in the Greek Cypriot banking industry. Managing Service Quality: An International Journal, 15(1): 41-56.
Ball, D., Coelho, P. S., & Vilares, M. J. (2006). Service personalization and loyalty. Journal of services marketing, 20(6): 391-403.
Bansal, H. S., & Taylor, S. (2015a). Investigating the relationship between service quality, satisfaction and switching intentions. Paper presented at the Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference.
Bansal, H. S., & Taylor, S. F. (2015b). Beyond service quality and customer satisfaction: investigating additional antecedents of service provider switching intentions. Paper presented at the Proceedings of the 1999 Academy of Marketing Science (AMS) Annual Conference.
Barich, H., & Kotler, P. (1991). A framework for marketing image management. MIT Sloan Management Review, 32(2): 94.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6): 1173.
Beerli, A., Martin, J. D., & Quintana, A. (2004). A model of customer loyalty in the retail banking market. European Journal of Marketing, 38(1/2): 253-275.
Bendall-Lyon, D., & Powers, T. L. (2003). The influence of mass communication and time on satisfaction and loyalty. Journal of Services marketing, 17(6): 589-608.
Bitner, M. J. (1990). Evaluating service encounters: the effects of physical surroundings and employee responses. the Journal of Marketing: 69-82.
Bloemer, J., & De Ruyter, K. (1998). On the relationship between store image, store satisfaction and store loyalty. European Journal of marketing, 32(5/6): 499-513.
Bowen, J. T., & Chen McCain, S.-L. (2015). Transitioning loyalty programs: A commentary on “the relationship between customer loyalty and customer satisfaction”. International Journal of Contemporary Hospitality Management, 27(3): 415-430.
Bowen, J. T., & Chen, S.-L. (2001). The relationship between customer loyalty and customer satisfaction. International journal of contemporary hospitality management, 13(5): 213-217.
Bryman, A. (2015). Social research methods: Oxford university press.
Caruana, A. (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European journal of marketing, 36(7/8): 811-828.
Caruana, A., & Ramaseshan, B. (2015). The Effect of Service Quality and Consumer Trust on Retail Website Loyalty, Creating and Delivering Value in Marketing: 76-76: Springer.
Chebat, J.-C., & Slusarczyk, W. (2005). How emotions mediate the effects of perceived justice on loyalty in service recovery situations: an empirical study. Journal of Business Research, 58(5): 664-673.
Cheng, B. L., & Rashid, Z. A. (2015). Interrelationships of Service Quality, Customer Satisfaction, Corporate Image and Customer Loyalty of Malaysian Hotel Industry, Cultural Tourism in a Digital Era: 37-38: Springer.
Coulter, K. S., & Coulter, R. A. (2002). Determinants of trust in a service provider: the moderating role of length of relationship. Journal of services marketing, 16(1): 35-50.
Cronin, J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of retailing, 76(2): 193-218.
Cronin Jr, J. J., & Taylor, S. A. (1992). Measuring service quality: a reexamination and extension. The journal of marketing: 55-68.
Curry, N., & Gao, Y. (2012). Low-cost airlines—a new customer relationship? An analysis of service quality, service satisfaction, and customer loyalty in a low-cost setting. Services Marketing Quarterly, 33(2): 104-118.
Dichter, E. (1985). What's in an image. Journal of consumer marketing, 2(1): 75-81.
Dick, A. S., & Basu, K. (1994). Customer loyalty: toward an integrated conceptual framework. Journal of the academy of marketing science, 22(2): 99-113.
Dimitriades, Z. S. (2006). Customer satisfaction, loyalty and commitment in service organizations: Some evidence from Greece. Management Research News, 29(12): 782-800.
Dowling, G. R. (1988). Measuring corporate images: A review of alternative approaches. Journal of Business Research, 17(1): 27-34.
Duncan, E., & Elliott, G. (2002). Customer service quality and financial performance among Australian retail financial institutions. Journal of Financial Services Marketing, 7(1): 25-41.
Ekiz, E. H. (2009). Factors influencing organizational responses to guest complaints: Cases of Hong Kong and Northern Cyprus. Journal of Hospitality Marketing & Management, 18(6): 539-573.
Finn, D. (1961). The price of corporate vanity. Harvard Business Review, 39(4): 135-143.
Ford, J. B., Paparoidamis, N., & Chumpitaz, R. (2015). Service Quality, Customer Satisfaction, Value and Loyalty: An Empirical Investigation of the Airline Services Industry, The Sustainable Global Marketplace: 187-187: Springer.
Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. the Journal of Marketing: 6-21.
Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American customer satisfaction index: nature, purpose, and findings. the Journal of Marketing: 7-18.
Fornell, C., & Wernerfelt, B. (1988). A model for customer complaint management. Marketing Science, 7(3): 287-298.
Gronholdt, L., Martensen, A., & Kristensen, K. (2000). The relationship between customer satisfaction and loyalty: cross-industry differences. Total quality management, 11(4-6): 509-514.
Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of marketing, 18(4): 36-44.
Gummesson, E. (1993). Quality management in service organizations: an interpretation of the service quality phenomenon and a synthesis of international research: ISQA.
Gundlach, G. T., & Murphy, P. E. (1993). Ethical and legal foundations of relational marketing exchanges. The Journal of Marketing: 35-46.
Gursoy, D., McCleary, K. W., & Lepsito, L. R. (20070. Propensity to complain: Effects of personality and behavioral factors. Journal of Hospitality & Tourism Research, 31(3): 358-386.
Gursoy, D., Uysal, M., Sirakaya-Turk, E., Ekinci, Y., & Baloglu, S. (2015). Performance evaluation, quality assessment, loyalty and satisfaction scales. Handbook of scales in tourism and hospitality research: 163-228.
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management, 7(4): 27-42.
Halstead, D., & Page, T. J. (1992). The effects of satisfaction and complaining behavior on consumer repurchase intentions. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 5(1): 1-11.
Hansemark, O. C., & Albinsson, M. (2004). Customer satisfaction and retention: the experiences of individual employees. Managing Service Quality: An International Journal, 14(1): 40-57.
Hirschman, A. O. (1970). Exit, voice, and loyalty: Responses to decline in firms, organizations, and states: Harvard university press.
Hoyer, W., & MacInnis, D. (2001). Consumer Behavior, 2e éd: Houghton Mifflin.
Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2001). Customer behavior. Boston, Houghton Mifflin Company.
Hu, H.-H., Kandampully, J., & Juwaheer, T. D. (2009). Relationships and impacts of service quality, perceived value, customer satisfaction, and image: an empirical study. The service industries journal, 29(2): 111-125.
Huang, M. C.-J., Wu, H. C., Chuang, S.-C., & Lin, W. H. (2014). Who gets to decide your complaint intentions? The influence of other companions on reaction to service failures. International Journal of Hospitality Management, 37: 180-189.
Hui, T. L., Chern, B. H., & Othman, M. (2011). Development of service quality dimensions in Malaysia—the case of a multicultural society. Development, 4(1).
Ibáñez, V. A., Hartmann, P., & Calvo, P. Z. (2006). Antecedents of customer loyalty in residential energy markets: Service quality, satisfaction, trust and switching costs. The Service Industries Journal, 26(6): 633-650.
Ishaq, I. M. (2012). Perceived value, service quality, corporate image and customer loyalty: Empirical assessment from Pakistan. Serbian Journal of Management, 7(1): 25-36.
Jahanshani, A. A., Hajizadeh, G. M. A., Mirdhamadi, S. A., Nawaser, K., & Khaksar, S. M. S. (2014). Study the effects of customer service and product quality on customer satisfaction and loyalty.
Kandampully, J., & Hu, H.-H. (2007). Do hoteliers need to manage image to retain loyal customers? International Journal of Contemporary Hospitality Management, 19(6): 435-443.
Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel industry: the role of customer satisfaction and image. International journal of contemporary hospitality management, 12(6): 346-351.
Kim, J., & Boo, S. (2011). Influencing factors on customers' intention to complain in a franchise restaurant. Journal of Hospitality Marketing & Management, 20(2): 217-237.
Kish, J. (2000). Before Your Customers Leave. Bank Marketing, 32(12): 30-35.
Kotler, P. (1982). Marketing for nonprofit organizations.
Kotler, P. (1999). How to create, win and dominate markets. New York: A Division of Simon & Schuster Inc.
Kumar, V., Dalla Pozza, I., & Ganesh, J. (2013). Revisiting the satisfaction–loyalty relationship: empirical generalizations and directions for future research. Journal of Retailing, 89(3): 246-262.
Kuo, C. W., & Tang, M. L. (2013). Relationships among service quality, corporate image, customer satisfaction, and behavioral intention for the elderly in high speed rail services. Journal of Advanced Transportation, 47(5): 512-525.
Lai, F., Griffin, M., & Babin, B. J. (2009). How quality, value, image, and satisfaction create loyalty at a Chinese telecom. Journal of Business Research, 62(10): 980-986.
Lam, R., & Burton, S. (2006). SME banking loyalty (and disloyalty): a qualitative study in Hong Kong. International Journal of Bank Marketing, 24(1): 37-52.
Lam, S. Y., Shankar, V., Erramilli, M. K., & Murthy, B. (2004). Customer value, satisfaction, loyalty, and switching costs: an illustration from a business-to-business service context. Journal of the academy of marketing science, 32(3): 293-311.
Lee, D., Moon, J., Kim, Y. J., & Mun, Y. Y. (2015). Antecedents and consequences of mobile phone usability: Linking simplicity and interactivity to satisfaction, trust, and brand loyalty. Information & Management, 52(3): 295-304.
Levesque, T., & McDougall, G. H. (1996). Determinants of customer satisfaction in retail banking. International Journal of Bank Marketing, 14(7): 12-20.
Liat, C. B., Mansori, S., Chuan, G. C., & Imrie, B. C. (2017). Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty. Journal of Global Marketing, 30(1): 42-51.
Liat, C. B., Mansori, S., & Huei, C. T. (2014). The associations between service quality, corporate image, customer satisfaction, and loyalty: Evidence from the Malaysian hotel industry. Journal of Hospitality Marketing & Management, 23(3): 314-326.
MacInnis, D. J., & Price, L. L. (1987). The role of imagery in information processing: Review and extensions. Journal of consumer research, 13(4): 473-491.
Martenson, R. (2007). Corporate brand image, satisfaction and store loyalty: A study of the store as a brand, store brands and manufacturer brands. International Journal of Retail & Distribution Management, 35(7): 544-555.
Maxham III, J. G., & Netemeyer, R. G. (2002). A longitudinal study of complaining customers’ evaluations of multiple service failures and recovery efforts. Journal of marketing, 66(4): 57-71.
Maxham, J. G., & Netemeyer, R. G. (2002). Modeling customer perceptions of complaint handling over time: the effects of perceived justice on satisfaction and intent. Journal of retailing, 78(4): 239-252.
McDougall, G. H., & Levesque, T. (2000). Customer satisfaction with services: putting perceived value into the equation. Journal of services marketing, 14(5): 392-410.
Mittal, B., & Lassar, W. M. (1998). Why do customers switch? The dynamics of satisfaction versus loyalty. Journal of services marketing, 12(3): 177-194.
Nguyen, N., & LeBlanc, G. (1998). The mediating role of corporate image on customers’ retention decisions: an investigation in financial services. International Journal of Bank Marketing, 16(2): 52-65.
Nguyen, N., & Leblanc, G. (2001). Corporate image and corporate reputation in customers’ retention decisions in services. Journal of retailing and Consumer Services, 8(4): 227-236.
Nor Hashima, H. (2011). Corporate image, service quality, customer perceived value, relationship quality and its effect on switching intention among Islamic banking customers in Malaysia/Nor Hashima binti Hashim. Universiti of Malaya.
Olorunniwo, F., Hsu, M. K., & Udo, G. J. (2006). Service quality, customer satisfaction, and behavioral intentions in the service factory. Journal of services marketing, 20(1): 59-72.
Orsingher, C., Valentini, S., & de Angelis, M. (2010). A meta-analysis of satisfaction with complaint handling in services. Journal of the Academy of Marketing Science, 38(2): 169-186.
Osayawe Ehigie, B. (2006). Correlates of customer loyalty to their bank: a case study in Nigeria. International Journal of Bank Marketing, 24(7): 494-508.
Pallant, J. (2007). SPSS survival manual: A step-by-step guide to data analysis using SPSS version 15. Nova Iorque: McGraw Hill.
Parasuraman, A. (1997). Reflections on gaining competitive advantage through customer value. Journal of the Academy of marketing Science, 25(2): 154.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. the Journal of Marketing: 41-50.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). Servqual: A multiple-item scale for measuring consumer perc. Journal of retailing, 64(1): 12.
Pitta, D., Franzak, F., & Fowler, D. (2006). A strategic approach to building online customer loyalty: integrating customer profitability tiers. Journal of consumer marketing, 23(7): 421-429.
Powers, T. L., & Bendall-Lyon, D. (2003). The satisfaction score. Marketing health services, 23(3): 28.
Priporas, C. V., Stylos, N., Vedanthachari, L. N., & Santiwatana, P. (2017). Service quality, satisfaction, and customer loyalty in Airbnb accommodation in Thailand. International Journal of Tourism Research.
Ramani, G., & Kumar, V. (2008). Interaction orientation and firm performance. Journal of marketing, 72(1): 27-45.
Reichheld, F. F., & Sasser, J. W. (1990). Zero defections: Quality comes to services. Harvard business review, 68(5): 105-111.
Rust, R. T., & Oliver, R. W. (1994). The death of advertising. Journal of Advertising, 23(4): 71-77.
Ryu, K., Lee, H.-R., & Gon Kim, W. (2012). The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality Management, 24(2): 200-223.
Söderlund, M. (1998). Customer satisfaction and its consequences on customer behaviour revisited: The impact of different levels of satisfaction on word-of-mouth, feedback to the supplier and loyalty. International Journal of Service Industry Management, 9(2): 169-188.
Souiden, N., Kassim, N. M., & Hong, H.-J. (2006). The effect of corporate branding dimensions on consumers' product evaluation: A cross-cultural analysis. European Journal of Marketing, 40(7/8): 825-845.
Szymanski, D. M., & Henard, D. H. (2001). Customer satisfaction: A meta-analysis of the empirical evidence. Journal of the academy of marketing science, 29(1): 16-35.
Taylor, S. A., & Baker, T. L. (1994). An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions. Journal of retailing, 70(2): 163-178.
Wang, C. Y. (2010). Service quality, perceived value, corporate image, and customer loyalty in the context of varying levels of switching costs. Psychology & Marketing, 27(3): 252-262.
Wang, Y., Lo, H.-P., & Yang, Y. (2004). An integrated framework for service quality, customer value, satisfaction: Evidence from China's telecommunication industry. Information systems frontiers, 6(4): 325-340.
Westbrook, R. A., & Oliver, R. L. (1991). The dimensionality of consumption emotion patterns and consumer satisfaction. Journal of consumer research, 18(1): 84-91.
Wilkins, H., Merrilees, B., & Herington, C. (2009). The determinants of loyalty in hotels. Journal of Hospitality Marketing & Management, 19(1): 1-21.
Woodruff, R. B. (1997). Customer value: the next source for competitive advantage. Journal of the academy of marketing science, 25(2): 139-153.
Wu, I.-L., & Huang, C.-Y. (2015). Analysing complaint intentions in online shopping: the antecedents of justice and technology use and the mediator of customer satisfaction. Behaviour & Information Technology, 34(1): 69-80.
Wu, L. (2013). The antecedents of customer satisfaction and its link to complaint intentions in online shopping: An integration of justice, technology, and trust. International Journal of Information Management, 33(1): 166-176.
Yavas, U., & Benkenstein, M. (2007). Service quality assessment: a comparison of Turkish and German bank customers. Cross Cultural Management: An International Journal, 14(2): 161-168.
Yilmaz, V., & Ari, E. (2017). The effects of service quality, image, and customer satisfaction on customer complaints and loyalty in high-speed rail service in Turkey: a proposal of the structural equation model. Transportmetrica A: Transport Science, 13(1): 67-90.
Zameer, H., Tara, A., Kausar, U., & Mohsin, A. (2015). Impact of service quality, corporate image and customer satisfaction towards customers’ perceived value in the banking sector in Pakistan. International journal of bank marketing, 33(4): 442-456.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. the Journal of Marketing: 31-46.
Zhao, L., Lu, Y., Zhang, L., & Chau, P. Y. (2012). Assessing the effects of service quality and justice on customer satisfaction and the continuance intention of mobile value-added services: An empirical test of a multidimensional model. Decision support systems, 52(3): 645-656.
Iqbal, M. S., Hassan, M. U., Sharif, S., & Habibah, U. (2017). Interrelationship among Corporate Image, Service Quality, Customer Satisfaction, and Customer Loyalty: Testing the moderating impact of Complaint Handling. International Journal of Academic Research in Business and Social Sciences, 7(11), 612-632.