Corporate image as an enabler of customer retention

Abstract

Purpose This study aims to examine the extent of corporate image of mobile telecommunication company on service quality and price fairness, which subsequently play important roles in influencing customer satisfaction and loyalty. Design/methodology/approach A questionnaire was administered to subscribers of mobile service providers in Brunei. The proposed research model was tested using structural equation modeling to estimate the relationships between corporate image, service quality, price fairness, customer satisfaction and loyalty. Findings The results indicated that favorable corporate image positively affects network quality, customer support and price fairness, which, in turn, lead to formation of customer satisfaction and customer loyalty. Originality/value This study demonstrates the magnitude of corporate image as an enabler of market dominance, recognizing that superior corporate image can become a first mover advantage and competitive advantage, which explains the high customer retention of a mobile telecommunication company. The effects of corporate image as a first mover advantage have not been highlighted in the literature of first mover advantage of mobile telecommunication; therefore, this study provides a new insight in this study area.