The Effects of Corporate Image, Service Quality, Consumer Satisfaction, and Perceived Value on Consumer Loyalty: A Field Experience

In today’s stiff competitive business world and saturated market condition forces, every marketer needs to make a consumer loyal to their brand to survive the businesses. Telecommunication industry is not exceptional to them. This study investigated the effects of corporate image, service quality, customer satisfaction, and perceived value to examine consumer loyalty. The study surveyed 237 students using random sampling method by the means of systematic random sampling method. Partial Least Squares-based Structural Equation Modelling (PLS-SEM) was employed to analyse the collected data. The estimation revealed that corporate image, perceived value, and consumer satisfaction have a significant direct effect on consumer loyalty, while service quality does not have. Furthermore, service quality, and perceived value have a positive direct effect on consumer satisfaction, whereas, corporate image does not positively relate. The relationship of corporate image, perceived value on consumer loyalty significantly mediated by consumer satisfaction. However, the mediation effect of consumer satisfaction does not exist between the relationship of service quality and consumer loyalty. In addition, the study also tests the moderation effect of trust which have positively affect between the relationship of consumer satisfaction and loyalty. These findings provide new insights into this areas of studies. The discussions, implications, and limitations of this study are also stated.

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