Impact of Customer Perceived Value and Customers Perception of Public Relation on Customer Loyalty with Moderating Role of Brand Image

Purpose/Significance: The purpose of this study was to investigate the relationship between customer perceived value and customer’s perception of public relation on customer loyalty with moderating role of brand image. Research was conducted on banking sector of Pakistan. Design/methodology/approach: Data collected in a survey that yielded 930 respondents. Questionnaire was adopted from research work of Zeithaml, Berry, and Parasuraman (1996) and Park, Jaworski, and Maclnnis (1986). Deductive -Positive - Quantitative Approach was used for the analysis. A theoretical framework was proposed to suggest links among variables. Multiple regression and Moderating regression were used to examine the hypothesized relationship. Findings: It was found that Customer Perceived value, Customer’s Perception of Public relation brought 94.0% change on customer loyalty. Study concluded that there was a strong positive significant relationship between proposed variables. To check the moderation of brand image researcher took the interaction of all independent variables with brand image. Results prevailed that there was significant qasi moderation exist. Research limitations/implication: Further research is indicated, to identify effects of these variables on other services provider companies of excluding Pakistani banking sector. Banking sector in Pakistan should pay more attention on Customer’s Perception of Public relation and Customer Perceived Value, in order to enhance the customer loyalty. Originality/value: This study is the first study that tests the western model on south eastern countries like Pakistan. In addition to that there is no research work found that reflects on customer perceived value and Customer’s perception of public relation with moderating effect of brand image especially on banking sector of Pakistan. This document will help managers to adopt appropriate strategies that will lead banking sector towards prosperity.