THE IMPACT OF BRAND IMAGE ON CUSTOMER SATISFACTIONAND LOYALTY (IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The purpose of this study is to examine the impact of brand image on customer satisfaction and loyalty in the case of commercial bank of Ethiopia (CBE) in gubre branches of customers. The study explained the relationship between brand image and customer satisfaction and its relationship with customer loyalty, the impact of brand image on customer satisfaction and customer loyalty in addition to customer satisfaction effects on customer loyalty. Brand image benefits (i.e. functional, experiential and symbolic benefits) are used as independent variables and customer satisfaction and customer loyalty as dependent variables. Besides, questionnaires are used as data collection instrument from respondents. descriptive analysis were used to analyze the descriptive statics variables were used to analyze the relationship between the variables based on the respondents average response in percentage analysis of brand image benefits variables with customer satisfaction and loyalty and to examine the effect of brand image on customer satisfaction and loyalty. The results showed that brand image benefits and customer satisfaction have positive relation, and customer satisfaction and customer loyalty are also significantly affected by brand image benefits with different degrees. Moreover, the effect of customer satisfaction in relationship to customer loyalty is found significant. In addition to this, CBE currently have greater brand image in the market in delivering holistic banking service in Ethiopia even if private banks are even more competent. Therefore financial sectors particularly CBE should take into account improving and/or building of brand image so that it can obtain more competitive advantage and have maintaining and increasing its market share by successfully achieving customer satisfaction and loyalty.