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The Impact of Brand Image and Customer Commitment on Loyalty: An Empirical Study of Automobile Sector

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  • Yu-TeTu Yu-TeTu
  • Tan-Kui Hsu

Abstract

Corporate brand image has been assessed as an important antecedent of customer commitment and loyalty. Corporate brands help companies achieving higher performance, such as sales. A poor brand image will lead to disaster, and lose customers. Marketing exists to deliver more value to satisfy customers as well as build a long-term and mutually profitability relationship with customers. If a firm’s products or services do not satisfy or meet the customer’s needs and wants, all the strategies are insufficient. With loyal customers, companies can have higher market share and reduce the operating cost. This initial study was from relevant literature, then set up research structure and hypotheses. Survey was employed, and respondents were collected from automobile sector in Taiwan. There were 170 usable questionnaires to analyze normality, convergent and discriminant validities, and SEM model by PASW 18 and AMOS 18.0. The research found that corporate brand image significantly affects customer commitment and loyalty, and customer commitment has strong impact on customer loyalty for the sample. Therefore, firms need to specifically focus on a long-term and mutually profitability relationship with a customer and create loyalty as competitive advantages in the markets.

Suggested Citation

  • Yu-TeTu Yu-TeTu & Tan-Kui Hsu, 2013. "The Impact of Brand Image and Customer Commitment on Loyalty: An Empirical Study of Automobile Sector," Information Management and Business Review, AMH International, vol. 5(4), pages 181-193.
    • Handle: RePEc:rnd:arimbr:v:5:y:2013:i:4:p:181-193
    DOI: 10.22610/imbr.v5i4.1042
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    References listed on IDEAS

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    1. David W. Gerbing & James C. Anderson, 1992. "Monte Carlo Evaluations of Goodness of Fit Indices for Structural Equation Models," Sociological Methods & Research, , vol. 21(2), pages 132-160, November.
    2. Nicholas Ind, 1997. "The Corporate Brand," Palgrave Macmillan Books, in: The Corporate Brand, chapter 1, pages 1-13, Palgrave Macmillan.
    3. Nicholas Ind, 1997. "The Corporate Brand," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37588-8, December.
    4. R. Chumpitaz & N. Paparoidamis, 2007. "Service quality, relationship satisfaction, trust, commitment, and business-to-business loyalty," Post-Print hal-00199063, HAL.
    5. Johnson, Michael D & Anderson, Eugene W & Fornell, Claes, 1995. "Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(4), pages 695-707, March.
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    Cited by:

    1. Syahida Abd Aziz & Muhammad Shahar Jusoh & Mohammad Harith Amlus, 2017. "Investigating Critical Success Factors of Brand Loyalty: A Meta-data Analysis Approach," International Review of Management and Marketing, Econjournals, vol. 7(3), pages 233-237.
    2. Zubair Hassan, 2017. "Impact of Social, Epistemic and Conditional Values on Customer Satisfaction and Loyalty in Automobile Industry: A Structural Equation Modelling," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 1(5), pages 29-44.

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