The Effect of Corporate Image On Customer Loyalty: The Mediating Effect of Customer Satisfaction

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The Effect of Corporate Image on Customer Loyalty: The Mediating Effect of

Customer Satisfaction
Article · April 2020
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The Journal of Research on the Lepidoptera Volume 51 (2): 124-138
The Lepidoptera Research Foundation. April 2020
ISSN 0022-4324 (print) ISSN 2156-5457 (online)
The Effect of Corporate Image on Customer Loyalty: The Mediating Effect of

AHMAD SHUKRI YAZID1, IBRAHIM MKHEIMER2 AND MOHD SADAD MAHMUD3
1
Profesor, Faculty of Business and Management, Universiti Sultan Zainal Abidin (UniSZA), Terengganu,
Malaysia.
2
PhD Student, Faculty of Business and Management, Universiti Sultan Zainal Abidin (UniSZA),
Terengganu, Malaysia.
3
Seniour Lecturer, Faculty of Business and Management Sciences, Universiti Sultan Zainal
Abidin,(Terengganu), Malaysia
1
shukri@unisza.edu.my, 2amkhiemer@yahoo.com, 3mohdsadad@unisza.edu.my
Abstract.
The study aims to investigate the effect of corporate image on customer loyalty with mediating effect of
customer satisfaction. A self-administered questionnaire was designed and the Structural Equation
Modeling (SEM) technique was also used to test hypotheses of the study. The results showed a major
understanding of the theoretical structure by which the mutual relationship between corporate image,
customer satisfaction and customerloyalty. Customer satisfaction has a mediating effect in relationship
between corporate image and customer loyalty. This study contributes theoretically by investigating how
strong corporate image rooted and built in the mind of customers about the telecommunication firms in
Jordan can createcustomer satisfaction and loyalty. Practically, the finding suggest that firm should
maintain good corporate image in order to maintain customers’ satisfaction which lead to loyalty among
customers.
Keywords. Customer Satisfaction, Corporate Image, Customer Loyalty, Structural Equation Modeling
Received: 27 February 2020

Accepted: 15 March 2020
DOI: 10.36872/LEPI/V51I2/301083
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INTRODUCTION
As one of the most precious corporate intangible assets, corporate image has been taken unmatched
concern from both academicians and business researchers. Moreover, a part of successful experiment in corporate
image management in one area could reproduce in another area, because of its culture and environment
characteristics, so good corporate image is great significance in corporate efficiency[1]. Literature in the corporate
image domain showed that improving a positive image for company's stakeholders has attractive organisational
findings, for example, favorable response into different topics like large customer, retention, satisfaction and
loyalty. [2] Emphasized that it is compulsory for policy makers to understand the factors which impact the image
that people have about the companies to earn high positioning in the marketplace. The objective of this research is
to discuss and analyze the role of corporate image on customer loyalty with analysing customer satisfaction as
mediator.
LITERATURE REVIEW
Corporate Image Definition and Significance
The concept of corporate image turned out to be more vital for organizations to maintain solid position
and foothold in the market. [3] Characterized corporate image as "the consumers’ associations arising from
corporate activities related to public affairs, literature and arts, social welfare, and so on‖. Corporate image in this
manner is the consumers’ general evaluation of the organization. [4] Viewed corporate image as one of the
strategic assets that lead to a competitive advantage as well encouraging conditions for long survival and
organization development. [5] Attempted to collect many practical cases that emphasize the importance of
corporate image management, especially in dealing with crisis. Planning for a positive image in advertising
campaigns is not enough unless the organization has operations to root its positive image. In the event of a crisis,
[6] showed that ignore the media may have a negative impact; he also believed that in the worst circumstances,
the admission of faults and then the announcement of the measures to be taken to solve this problem.
Highly corporate image is assumed to provide truthfulness to customers, which consequently lead up to
enhance in the way of brand quality recognized [7]. [8] Referred it as the total emotions in the mind of customers
into the particular production. [9] Stated the concept image as a process by which ideas, emotions and previous
experience with a particular organization are saved in customer’s memory and shifting into behaviors based on
these saved categories. [10] Characterized corporate image as the customers’ private comprehension of a
company and its operations.
Particularly, corporate image and reputation are considered as intangible assets which provide the
organizations with an opportunity to distinguish themselves from others to maximize profits, expanding their
market shares, acquiring possible customers, high rate retention and weaken the competitors’ threats [11].
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Corporate image consists of realization of the company as a citizen, as an owner or investor. The organisations
have a lot of different images according to its connection with its different stakeholder [12]. Through
communications, public relations, transaction designs, distribution systems, unique product characteristics,
company name, location, price, and quality and so forth, you may form yourself in the business world [13]. Most
literature which examined corporate image and reputation used these two definitions interchangeably; moreover,
many researchers have been recently disposed to differentiate the two definitions related to their cores [14].
Hence, the researchers would like to express their position regarding to whether reputation should classify within
image or not or the opposite [15], without seeking more in the definitional argument relating this matter, as
focusing on this issue may take us out of the purposes of our study. The study’s point of view is the corporate
image and reputation is theoretically convoluted and collateral linked [16]and correlative.
Corporate Image Effect on Customer Satisfaction and Customer Loyalty
In business field, the researches exposed crucial part for corporate image in consumption behaviors for
customers in products or services enterprises [17]. In the business field, the researches have exposed crucial part
for corporate image in consumption behaviors for customers in products or services enterprises [17]. Corporate
image is significantly associated with customer loyalty in various industries like education and telecommunication
in multiple areas [18]. Another investigator[11]debated that corporate image is a backbone for the organizations to
broaden their profits, to be survive in the competition, winning new customers, expanding their market values.
Recent studies concluded the considerable effect of corporate image to customer loyalty [19]. [20]Proved positive
effect of corporate image on customers’ satisfaction and loyalty.[21] showed a significant association between
brand’s image and customer satisfaction, and this finding is compatible with a theory suggested by [21] [22]
which demonstrated that if customers prefer brand image, they will possibly show a specific level of loyalty.
[23]clarified customer loyalty as an immersed belief to repurchase or support a preferred items in the
future, that way creating repetition loyalty, although circumstances impact and marketing plans making the
possibility to turn behaviors. [24]Revealed that corporate image is linked favourably with customer loyalty but no
correlation was appeared between satisfaction and loyalty based on his measure asking CEOs of specific
organizations to scale their own organizations from six criterions which include; producing perfect services,
having efficiency, being creative, having long-term strategy and customizing customer needs. They also
manifested a significant relationship amongst corporate image and satisfaction. Corporate image is a mirror that
reflects the company as an object and its crops. Loyal customer is more willing to buy the same product over and
over, give favorable word-of-mouth and be ready to pay more, [7]. [25]Showed in their study that the effect of
corporate image into customer satisfaction, just to lock-in contracts, hence consisted with [20] who stated
corporate image as a major motive for customer satisfaction in the store brands and manufacturer brands.
Otherwise,[18]noted that satisfaction hasn’t a significance and direct effect on corporate image. High level of
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customer satisfaction doesn’t need produce to positive image. This discrepancy found in the literature that stated
that corporate image is the mission of the cumulative impact of dissatisfaction or satisfaction [26]. Moreover, in
the Nguyen and Leblanc study, satisfaction accomplished by the perceived value for service had a frank impact on
image, which was presented by the emphasis of Barich and Kotler that the company obtains intense image if the
customers think that they extradite great value in their interactions with the company [27]. Based on the literature
above we can form the hypothesis as follow.
H1: Corporate image has a significant effect on customer satisfaction.
H2: Corporate image has a significant effect on customer loyalty.
Mediating Effect of Customer Satisfaction
The positive corporate image for company might be useful in competitive environment, since it may
distinguish a company from its rivals[28]. Based on literature review [29], it was revealed that the university
image was directly effect to student loyalty, and also showed the mediation effect of student satisfaction in the
relationship among university image and student loyalty. [30]In a study belonging similar variables of this study
in Taiwan revealed the company’s brand image influenced both customer satisfaction and loyalty, the intensity of
customer satisfaction as well influenced on customer loyalty. [24]Concluded that both corporate image and
customer satisfaction had impacted the customer loyalty. The corporate image also directly affects the customer
perception which the customer may re-purchase again when they are satisfied. Testing the causal effect of the
corporate image to customer satisfaction, [31]have displayed that a good-quality services is considered essential
base of reputation management due to it’s a demand for gaining customer satisfaction. Findings of [32]noted that
the student satisfaction also several three antecedent constructs which are image, trust, and perceived value – had
a significant effect on loyalty at 0.05 level. The hypothesis can structure as follow.
H3: Customer satisfaction mediates the relationship between corporate image and customer loyalty.
Corporate Image Customer Loyalty
Figure 1.Conceptual Research Framework

RESEARCH METHODOLOGY
Study Method and Instrument
Quantitative methodis largely employed in social sciences studies. It indicates to these data collection
(e.g. survey) and analysis (e.g. statistical technique) methods which gather or use figures data [33]. Quantitative
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studies stratify with positivist philosophy (the hypothetical-deductive method), and is considered to be efficient
for a study with a large amount of participants as statistical analysis can be utilized [34]. It is time reusable
because of the accuracy and reliability in developing the constructs in the model, which assure to be valid and
reliable in several areas [34].All variables have been measured by using ten Likert-type point scale, asking
respondents to mention their levels of their agreement or disagreement with a group of statement. To make sure
that most of the participants can read and comprehend the questionnaire, it was written first in English and
validate its content via panel of academicians who specialized in this field; then it was translated into Arabic after
editing well by languages specialist who fluent in both Arabic and English as well has an experience in translation
academic papers. The study attempted to embrace measurements from prior studies, and at the same time
attempted to adapt them to become convenient with this study, such as, second part is the items measure
perception level of corporate image developed by [10] were referred, the third part has been drawn to measure
customers satisfaction by items developed by [35], the fourth has designed for scaling the customer loyalty items
developed by [17]. Self-administered questionnaires delivered to randomly selected customers who deal with
these firms by the researcher. A pilot test was achieved with a group of customers to test the reliability of the
instrument, also the necessary amendments in wording have been checked prior distributing finally the survey to
the targeted sample. Structural equation modelling (SEM) using AMOS 21 as a statistical technique was used to
analyze the data collected and test the hypotheses; as well descriptive statistics and Exploratory Factor Analysis
(EFA) were used to extract the dimensions of the latent variables.
DATA ANALYSIS AND FINDINGS
Data Preparation for Analysis
Data editing and coding is the first step before further analysis should be done in order to make sure the
data are valid for further analysis. According to [36] data editing is a process deals with scanning and correcting
illogical, inconsistent, and ungagged data and missing. Data screening is also an important phase of the research
and is mandatory due to possible errors or biased responses in order to get valid data. The majority of the
respondents of this study was between the ages of 31-40 representing (44.4%) of the total respondents which
means the Jordanian society is young society and the older people was (9.9%), meanwhile, the percent of the
educated respondents was (60.9%) university degree holders which means the prevalence of university education
levels among the sample of the study. While the percent of respondents’ occupation was private occupation also
means good presence for private sector in Jordan in creating job opportunities as well stand hand by hand with
government in producing vacancies for fresh graduates and job seekers in the most sectors in Jordan. The Zain
firm obtained the highest rate of participants in the study which indicated and consistent with official figure that
Zain firm had the biggest market share in telecommunication sector in Jordan with percentage of (39.1%). Most
of the participants dealt with the company between 7-9 years with percent of (36.6%), this indicates the late
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prevalence and dominance of mobile services in Jordan comparing with other area of the world like gulf area due
to high income of these countries and their purchase ability of these countries to buy more than other countries
like Jordan which the poverty rate according to the last official figure in 2010, was
14.4%http://dosweb.dos.gov.jo. Exploratory Factor Analysis (EFA) has been used to see how many components
of these three constructs (Table 1). Corporate image construct has been extracted, it revealed two dimensions for
corporate image; we named them: institutional image and functional image, these items have been adopted for this
study from [37]. Customer satisfaction was operationalized via seven items; and customer loyalty also was rotated
into two dimensions, we named them positive Word Of Mouth (WOM) and repurchase.
Table 1.Rotated Component Matrix of Variables
Corporate image component/s Customer satisfaction Customer loyalty component/s
component/s
Item Institutional Functional Item Customer Item Positive Repurchase
image image satisfaction WOM
CI7 .913 CS4 .951 CL6 .924
CI9 .903 CS2 .948 CL5 .919
CI8 .902 CS3 .946 CL4 .911
CI6 .890 CS1 .926 CL3 .904
CI10 .786 CS5 .916 CL8 .876
CI4 .773 CS7 .761 CL9 .837
CI5 .746 CS8 .707 CL2 .813
CI2 .722 CL10 .805
CI3 .717 CL1 .698
CI1 .617 CL11 .692
Using CFA to fit the results of corporate image construct, the study conducted what called principle
component analysis with a common option Rotation (Varimax) using ≥ 0.6 as cut-off to accept items. The
corporate image instrument initially comprised 13 items, after did EFA it become 10 items divided into two
components illustrated in Table 1. The Kaiser Meyer Olkin (KMO) measures stated the sampling adequacy of
analysis, the values obtained of corporate image, customer satisfaction and customer loyalty was 0.863, 0.938 and
0.833 respectively which were above the minimum limit of 0.5 [38]. Basically, customer satisfaction had eight
items; however, they were loaded as one component. Customer loyalty had ten items; however, they were loaded
as two components. After reduce the data, the reliability coefficient called (Cronbach’s alpha α) were good for all
factors (above 0.7): institutional image (0.917), functional image (0.895), customer satisfaction (0.933), positive
WOM (0.926), and repurchase (0.759).
The study also used a Structural Equation Modeling (SEM) technique through AMOS21 to analyse both
measurement and structural models. In addition the validity and reliability relationships between latent constructs
and measurement variables have been checked, the Composite Reliability (CR) was approved though AMOS
129
program[39]: CRs of all latent construct were greater than 0.5, hence were fit. Factor loading as well of all items
have got above 0.6. The study also assessed convergence validity through the Average Variance Extracted (AVE),
rely on factor loading [40]. These AVEs values of all constructs were above 0.5 (Table 2); therefore, the
convergence validity was supported. The first run of the theoretical model has appeared that some of goodness of
fitness were not fit for another indices, which means the researcher should delete the factor loadings less than 0.6
once each time; then run again the model to see if the fitness indices are fit or not. This trial takes long time and
calculates estimates over and over until all fitness indices achieved the required level of acceptance, after deleting
lower factor loading but the indices still not fit; the researcher should check the Modification Indices (MI) to
know if there are redundant items and delete the lower one or correlate them to fit the indices, also this takes time
and effort until to get the final structural of the model as shown in figure 2.
Figure 2. Final Structural Model

To enhance the fitness of the model, another assessment has been conducted by evaluation the estimation
of the Modification Indices (MI) to check items redundancy. Many items showed large correlation with other
items, more than 0.85 [40] which demonstrate not found of discriminant validity. As a result, highly correlated
statements were deletedcalledCI1, CI10, CS1, CL5 and CL10. The Confirmatory Factor Analysis (CFA) for
pooled measurement model was executed after skipping these items, and the results provided has achieved the
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required model fit. The final structural model showed all indices have achieved the required level as well no lower
factor loading less than 0.6 appeared in the model, the analysis is fine to further analysis. Convergent validity
indicates to the measure of the same concept by various methods. As stated by [40], Convergent validity should
be displayed with the item reliability, Construct Reliability (CR), and Average Variance Extracted (AVE). The
AVE and CR values for the constructs were illustrated in table 2.
Table 2. Convergent Validity of Constructs
Second order First order Items Factor loading C.R AVE
Corporate Image Institutional image 0.98 0.879 0.645 0.931
Functional image 0.95 0.907 0.710
CS2 0.79
CS3 0.81
Customer Satisfaction CS4 0.83 0.879 0.479
CS5 0.85
CS6 0.73
CS7 0.78
Customer Loyalty Positive WOM 0.95 0.902 0.715 0.912
Repurchase 0.96 0.914 0.727
Table 3 presents the standardized coefficient obtained from model estimations. The study also evaluated
the fitness for total model, including both measurement and structural model through certain values like RMSEA,
GFI, and CFI, TLI, NFI and ChiSq/df. The results revealed that RMSEA, GFI, CFI, TLI, NFI and ChiSq/df were
0.055, 0.900, 0.969, 0.964, 0.936 and 1.862accordingly, indicating satisfactory level which considering the
prevailing criterias acceptance for model fit.
Table 3. Results of Path Coefficients
Causal path Estimate S.E t-Value Sig. Result
H1 Customer satisfaction <--- corporate image 1.102 .085 12.957 0.000 Significant
H2 Customer loyalty <--- customer satisfaction .383 .056 6.867 0.000 Significant
Corporate image was positively and significantly affected to customer satisfaction connection.
Specifically, corporate image of the pooled subjects had a significantly positive effect on customer satisfaction
(1.102, P.000), supporting H1. The positive effect of corporate image on customer loyalty (.383, P.000) was also
appeared supporting H2.
Testing Study Hypotheses
H1: corporate image has a significant effect on customer loyalty.

As hypothesized, corporate image was found to be positively related to customer loyalty. The probability
of obtaining the critical ratio (CR) as great as 13.954 in absolute values are lower than 0.05 (Table 4). In other
word, the regression weight values for corporate image in the prediction of customer loyalty is significantly
different from zero at level of 0.05. Thus, the above research hypothesis is supported.
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Table 4. Result of Hypothesis 1

Estimate S.E C.R. P-value Result
Customer loyalty <--- Corporate image 1.116 .080 13.954 0.000* Significant
Note: * Significant at P≤ 0.05
H2: corporate image has a significant effect on customer satisfaction.
As hypothesized, corporate image was found to be positively related to customer satisfaction. The
probability of obtaining the critical ratio as great as 12.818in absolute values are less than 0.05 (Table 5). In other
word, the regression weight values for corporate image in the prediction of customer satisfaction is significantly
different from zero at level of 0.05. Thus, the above research hypothesis is supported.
Table 5. Result of Hypothesis 2
Estimate S.E C.R. P-value Result
Customer satisfaction <--- Corporate image 1.124 .088 12.818 0.000* Significant
Note: * Significant at P ≤ 0.05
Mediation Test
To test the mediating effect of customer satisfaction in the relationship between corporate image and
customer loyalty (H3), the study used path analysis relies on SEM to test the indirect effect. The mediating effect
according to [41] exists under the following conditions:
1. X (exogenous) is significantly related to M (Mediator).
2. M is significantly related to Y (endogenous).
3. The relationship of X to Y decreases when M mediator enter the model.
Hence, the study resulted that all the mediating condition set by [41]were satisfied for the hypothesis of
(H3) i.e. the relationships of X to Y should reduce the substantially when inserting the mediator M as a Y
predictor. As can be seen from figure 3 the standardized path coefficient after entering the mediator has been
reduced. Specifically, the study found that the standardized coefficients have been decreased from (1.1161 to
0.679) for (corporate image→ customer loyalty).
H3: customer Satisfaction mediates the relationship between corporate image and customer loyalty. The
direct effect of corporate image on customer loyalty is significant, as β: 1.116 and p-value: 0.000 (Figure 3 and
Table 6).
Corporate 1.116 Customer

Image Loyalty
Figure 3. Standardized Path Coefficient of X to Y
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As customer satisfaction entered the model as mediator (Figure 3), the direct effect of corporate image on
customer loyalty is reduced from 1.116 to 0.679due to the mediation effect of customer satisfaction. However, it
is still significant since the probability of obtaining the critical ratio as great as 8.222 in absolute value andless
than of 0.05. In other word, the regression weight value for corporate imagein the prediction of customer loyaltyis
significantly different at level of 0.05. Table 6, showed that the corporate imagehad a significant and direct effect
on customer satisfaction, as the probability of the critical ratio as great as 12.957 in absolute value is less than
0.05. In other word, the regression weight value for corporate imagein the prediction of customer satisfaction is
significantly different at level of 0.05. Referring to Table 6, customer satisfactionhas significant direct effects on
customer loyaltyas β:.383 and p-value = 0.000 the probability of the critical ratio as large as 6.867 and less than
0.05. In other word, the regression weight value for customer satisfactionin the prediction of customer loyaltyis
significantly different at level of 0.05.
Customer
satisfaction
1.102 .383
.679
Corporate Customer
image loyalty
Figure 4. Standardized Path Coefficient while entering M

Table 6. Standardized Path Coefficients
H3 Beta S.E C.R. P-value Result
Estimate
Customer loyalty <--- Corporate image .679 .083 8.222 0.000* Significant
Customer satisfaction <--- Corporate image 1.102 .085 12.957 0.000* Significant
Customer loyalty <--- Customer satisfaction .383 .056 6.867 0.000* Significant
Note: * Significant at P ≤ 0.05
As proposed by many scholars, applying Bootstrapping is important to re-confirm the result from
mediation analysis[42]. Bootstrapping is a re-sampling procedure to test the indirect effect. According to
[42]Bootstrapping is a method of sampling with replacement whereby one instructs the algorithm to take the
sample size from the existing dataset. Thus, the Bootstrapping was conducted with 1000 bootstrap sample and
bias corrected confidence interval 95% in order to confirm the mediation test done before for the effect of
133
customer satisfaction as mediator in the relationship between corporate image and customer loyalty. Table 7
shows the summary of direct and indirect effects among the X and Y after M entered.
Table 7. Direct and Indirect Effects
Indirect Effect Direct Effect
Bootstrapping Result .354 .570
Bootstrapping P-Value .004 .002
Result Significant Significant
Type of Mediation Partial mediation since both direct and
indirect effects are significant
DISCUSSION AND CONCLUSION
The study has suggested an investigation of the mediating effect of customer satisfaction in the process of
analyzing or measuring the effect of corporate image to customer loyalty in telecommunication industry in the
Jordan. Based on three criterions, a type of mediation is partially since the direct effect still significant after enters
the mediator. This study concludes that customer satisfaction mediates the relationships among corporate image
and customer loyalty as partial mediator. The conclusion is the customer satisfaction has played a mediating effect
in this particular relationship. The literature appeared that corporate image had a positive effect into customer
loyalty also to customer satisfaction [43]. In business environment, there is important risk which indicates the
customers strictly evaluate the firms before making subscription with a particular telecommunication firm.
Reducing this risk, customers prefer to transact with reliable telecommunication firm and deal with noble
corporate image, and the image plays a major role in forming customer’s perception [44].Differently, this study
differs from [45], which they revealed that partially brand image does not have significance towards customer
satisfaction. These findings demonstrated that affect factor of these two constructs are significant. Therefore, it
can be deduced that there is positive effect between these factors. This result coincided and matched with
[46]study.[47]referenced that there was remarkable proof in current literature confirming a relationship between
corporate image and the degree of satisfaction declared by customer, it is usually debated the customer
satisfaction should treated the final and strategic organizational objective of all companies. More particularly,
there is a general confirmation in the existing literature support the findings of our study such as [48]who
examined this relationship in an Australian context and found supported relationship and uncovered the corporate
image had a direct and significant effect on customer loyalty. The result also stated that, corporate image of
mobile telecommunication firms in Jordan was a critical factor in creating customer loyalty. It affirmed the
previous study, which indicated that corporate image might lead to customer loyalty in the telecommunication
market [49]. This study further suggests that giving attention to corporate image which surely helps in facilitating
customers’ knowledge on services produced or produced by the company in order to reduce risk while taking a
purchase decision. Customers are concerned to deal with a company that has a good corporate image to lessen
their uncertainty. The study found that corporate image was associated with customers’ behavior. For example,
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corporate social works those foster customers’ perceptions on a company. In other words, a kind corporate image
would encourage companies to improve customer’s expectation, satisfy their needs and minimize risk of
consumption to develop business.
Implications of the Study
The current study may contribute to the existing literature in some ways. First, the findings may be
pertinent to decision makers, giving them standards for the management of their organizations social practices and
traits for the offering products or services with social aspects. Second, the study contributes to the progression and
realization of corporate image in Jordan. It also enhance the current body of literature by the results and
implications which may assist decision makers and strategists to provide them a measurement for their actions
and structure a good image to attract more satisfaction and loyalty of customers.Theresultsadvice the companies
to develop and enhance their images in order tomaintain its competitive advantage and market positioning which
can obtain from attracting potential customers and make them more satisfied and loyal. The findings provided
remarkable implication to the management, which suggested that maintaining a positive corporate image of the
company would gain potential customer and becoming loyal of the company.
Limitations and Future Studies
The study has geographical and industrial limitations; it concentrated just on companies running on the
Jordanian context. Consequently, the results from this study are only to be taken into the context of the
telecommunication market in Jordan, it concentrated also on the relationship among corporate image, customer
satisfaction and customer loyalty in Jordan context, especially in telecommunication sector. There are some
limitations in the present literature on corporate image in developing countries, fewer studies of corporate image
have been conducted in the developing states than in developed states, the scope of the study was limited to the
three telecommunication firms in Jordan which were (Zain, Umniah and Orange), this will limit the
generalizability of the findings to other sectors in Jordan. So the major limitation of this study is the lack of
generalizability of the results due to the data for this study gathered from the subjects in one country evaluating
one industry. The study was also limited to framework variables such as corporate image to observe the customer
loyalty, there are many indicators can be used for further study to examine broader relationship may include
service quality. There are also several important variables not considered in this study such as environment
factors, the scale of the enterprise.
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The Effect of Corporate Image on Customer Loyalty: The Mediating Effect of

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Ahmad Shukri Yazid Ibrahim Mkheimer

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Mohd Sadad Mahmud

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The Effect of Corporate Image on Customer Loyalty: The Mediating Effect of

Received: 27 February 2020

Corporate Image Definition and Significance

Corporate Image Customer Loyalty

Figure 1.Conceptual Research Framework

Study Method and Instrument

Data Preparation for Analysis

Figure 2. Final Structural Model

H1: corporate image has a significant effect on customer loyalty.

Table 4. Result of Hypothesis 1

Corporate 1.116 Customer

Figure 3. Standardized Path Coefficient of X to Y

Figure 4. Standardized Path Coefficient while entering M

[4] Smaizien, I. &Orzekauskas, P. Corporate image audit. Vadyba/Management, 1(10), 89-96,2006.

[24] Oliver, S. Corporate Communication. Kogan Page, London,2006.

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