Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the literature and studies, which are significant to present the

study. A synthesis of review of literature and Gaps Bridge by the present study was also

included in this chapter.

State of the Art

The literature and studies that were reviewed were found to have bearing on the present

study. They served as bases for the conceptualization the study’s problem, research design

and methodology.

Basic Beliefs about Brand Image

Brand image is the modern perception of the customers regarding the product. It can be

defined as exclusive package in the minds of targeted customers. It gives the positioning to the

product in the market. Brand image is basically set of beliefs and faith of the customer and it

basically generated when the customer have complete knowledge regarding their product/ service.

When the customer is completely aware of the pros and cons of the product then it emotionally

attached with them but it’s a mental game because it is very important to tackle your targeted

audience through marketing strategies. It serves the company mission and vision statement and

helps the organization to complete its all goals and objectives effectively. Company’s artifacts

express organization’s reputation, motto relating organization’s business objectives and in

streamline with the prime values of organizations which are core elements of positive brand image.
So images can be evaluated beside the several orientation points like brand image, social

perspective and public image to influence the consumer of the product in order to trigger the brand

awareness and brand loyalty. Brand image is the overall impact in the customer minds that is

developed through different sources. Public relation, social networking creates positive brand

image of the product and its major chunk depend upon the community perception regarding the

product/services (Nazir, Ali and Jamil, 2016).

Brand image is the key driver of brand equity, which refers to consumer’s general

perception and feeling about a brand and has an influence on consumer behavior (Zhang, 2015).

Different marketing strategies were being used by corporations. Its purpose is to get the attention

of every possible customer and make them purchase. Even though the consumption decision of a

customer will be influenced by qualities of the brand, it can be also concluded by the customer’s

perception. Regardless of the inevitable change of consumers’ life style and way of information

processing, brand image remains its primal impact factor of consumption decisions. Therefore, the

root and foundation of brand equity are brand image and brand awareness. The concept also talked

about linking unique and strong brand association with consumers’ memories about the brand

through marketing campaigns can result to a positive brand image.

Successful Brand Image as Perceived

According to Hsieh, Pan, and Setiono (2006), a successful brand image enables consumers

to identify the needs that the brand satisfies and to differentiate the brand from its competitors, and

consequently increases the likelihood that consumers will purchase the brand. Brand image is

indispensable for marketing where customers infer the quality of products by the brand image and

are further stirred up the behavior of purchasing.

by the brand image and are further stirred up the behavior of purchasing. Ballantyne, et al. (2005)

as mentioned by Lin (2011) defined brand image as the material property associated with the brand,

such as the product name and the packing, which could make profits or sense for customers and

help or increase describing the characteristics. The important point of brand image in catering

industry is the customer benefit brought by the brand that the brand essence is delivered to the

customers. Based on the process to gradually establish the brand image in catering industry, studies

on customer satisfaction and the integration of brand image could be applied to the establishment

of brand image to thoroughly meet customer satisfaction. The brand image in catering industry

presents comprehensiveness that deeper key point of brand image, the connotation of the brand

image, would be ignored when simply considering the superficial images of name and mark.

Consequently, the establishment of brand image in catering industry is to firmly establish a brand

image basis. It is crucial to internalize the spirit of the brand to brand image so as to meet customer

satisfaction. The meaning that a brand holds for a long period of time lies in its value, from which

the foundation of a brand is confirmed and the connotation of brand image is originated. To speak

more concretely, the connotation of the brand image in catering industry consists of customer

satisfaction. Integrated promulgation is important to establish brand in catering industry as it

establishes a connection between customers and brand image. If only the core value of the catering

business is delivered to the target customer and achieved customer satisfaction, the directivity of

brand image in the catering business would be more explicit. That is, only when the core value of

brand image spreads to a customer will the brand image in the catering business be clearly

established in the brain of the customer (Lin, 2011).

Necessity of Brand Image

and also to develop sustainable competitive advantages. Successful brands will increase trust in

products and intangible services, and customer will be able to better visualize and identify their

services. As well as, it will increase high rate of brand equity, customer satisfaction, reacquisition

intention, and the level of [Link] impact of a particular brand image on the customer's mind,

and the amount of his/her satisfaction toward buying product can affect customer being loyal,

therefore, the intention of loyalty, and customer satisfaction are widely accepted as an important

issue among all manufacturers (Naimi and Shahroudi, 2014). Also, Saeed, et al. (2013) defined

brand image helps the companies to make a distinct place for their brands in the minds of the

consumers and it is believed to have an immense influence on consumer satisfaction and brand

loyalty.

Satisfaction as Conceptualized by the Customers

Customer satisfaction is the overall assessment of a customer regarding his experience in

consuming a product or receiving the service. According to Oliver (2000) as mentioned by Zhang

(2015), customers’ performance-specific expectation and expectation disconfirmation are the key

indicators of customer satisfaction. In detail, the customer satisfaction upsurges when the

expectation outdoes its projected performance. As the product performance is a significant

component of brand image, corporations could conclude the potential influence of brand image on

customer satisfaction by ascertaining the perceptual dissimilarity toward a brand between the

existing customers and non-users of the brand. There are many noteworthy impact on customer

satisfaction specifically the across E-banking, landline, mobile phone, bank and supermarket

industries. Chang et al. (2005), as mention by Zhang (2015), identified store infrastructure,

convenience, store service and sales activities as the four components of store image, and they all
impact customer satisfaction directly. Kapferer (2011) also noted that there were many dimensions

in measuring customer satisfaction, including price of goods, service efficiency, attendant attitude,

overall performance of the company, and the closeness to the ideal company.

Customer Satisfaction is a comparison of expectations versus perceptions of experience.

Customer satisfaction (CS) is a measure of the degree to which a product or service meets the

customer's expectations. Customer Satisfaction is a measurement or an indicator of the degree to

which customers or users of an organization’s product or services are pleased with those products

or services. Customer satisfaction differs depending on the situation and the product or service. A

customer may be satisfied with a product or service, an experience, a purchase decision, a

salesperson, store, service provider, or an attribute or any of these three (Upamannyu and Sankpal,

2014). Other researchers defined customer satisfaction as an evaluation after purchasing the

products or services as it meets or exceeds their expectations ant it cannot be limited into after

consumption evaluation but it could be their overall experiences of purchasing and consuming

experiences (Ray, 2009); also pointed out that customer satisfaction resulted from the

measurement of products and service according to the customer's previous experiences as well as

the overall evaluation on the consuming experience and also believed that a company giving a

worthy service quality would satisfy the needs of customers (Wan and Schell, 2013).

Customers’ Expectations

According to Baig and Batavia (2014), when the product matched with the expectation of

the customer then it boosts its satisfaction which leads to profitability. But this kind of customer

satisfaction is not easy to frequently receive and achieve by just doing the total quality management

as it also allied with minor components. It was said that it is simple to evaluate products when it

has low expectations. High satisfaction also proves harmful sometimes as it becomes essential to
ensure that level every time and moreover it also put impact on customer repurchase intention. It

was mentioned this study that the dissatisfaction came out whenever there were sensitivity and

anticipation about the product and its performance. In case of durable goods not only the

expectation but also the actual performance played important role in satisfaction or dissatisfaction.

Dissatisfaction can be only arises in non-durable goods when it did not meet with expectations. As

a main factor in corporation’s success, customer satisfaction sometimes gives corporation a

competitive edge in this matter. Customer satisfaction ensures an increased life time value of the

customers by retaining them for a long time through superior quality and satisfaction. It also stated

that service value, quality and satisfaction mutually show a vital part on consumer buying and

behavioral phenomenon. Value and customer satisfaction which are thoroughly linked elements

add a lot to keep the customer’s buying intention on the product. It is normal to invest money to

boost the customer satisfaction elements as it is a crucial foundation of customer loyalty and

retention. A satisfied customer will save our cost of attracting a new customer which will further

lead to profitability and greater market share due to the words of mouth of a contented customer.

Customer satisfaction itself plays a role of moderator between service quality and the purchase

intention as it is a key element to generate future perceptions about the product. Satisfaction levels

will less harm by the service failure when the customers will get the desired remedies in exchange.

Customers’ Brand Loyalty

Customer loyalty could be recognized as the extension of customer satisfaction. Earlier

studies define customer loyalty as repeated purchasing behaviors in a narrow sense. Generally,

customer loyalty stems from customers’ approval of a brand, which leads to their continuously

purchasing behavior of the brand and thus generates profits for the company. In the brand image

literature, brand image is perceived as an important driving force of customer loyalty. For the
supermarket industry, favorable store image is very helpful to foster customer loyalty (Zhang,

2015).

Loyalty toward a product will create over time. The concentration of formation and

development of loyalty, initially, have been on products related to services, and then, according to

concrete and tangible commodities has concentrated on brand loyalty (Naimi and Shahroudi,

2014). It was also stated that loyalty is keenness to the brand that the customers continually buy.

Naimi and Shahroudi (2014) conclude that there was no direct relationship between brand image

and customer loyalty intention, rather the brand image due to customer satisfaction will affect

customer loyalty intention; and customers are satisfied as a result of using hygiene products with

a strong brand image, and prefer continue buying that product.

According to the Lau et al. as mentioned in the study of Baig and Batavia (2014), the

marketers should emphasize to develop trust in the consumer’s mind as it will basically leads

toward the brand loyalty. This trust can only be gained by providing quality services, superior

values and ultimate satisfaction. Baig and Batavia (2014) also believed that loyal customers are

more sensitive choosing the brand but when the times come of quantity selection rather that the

price. Price elasticity has its impact on brand loyalty which means that when a brand will go to

exploit its customers more than they can bear then the loyalty will diminish. Baig and Batavia

(2014) agreed to the study of Chaudhuri, et [Link] when the product has been controlled to create

brand trust and for positive brand effect then the loyalty emerged. Loyalty can be in two

dimensions either the purchase or attitudinal. Purchase loyalty helps to give better market share

while attitudinal loyalty tends to set high prices.

According to Cronin and Taylor (2007) as quoted by Otaibi and Yasmee (2014), customer

loyalty as a construct is comprised of both customer’s attitude and behavior. Customers’ attitudinal

component represents notions like: repurchase intention or purchasing additional products or

services from the same company, willingness of recommending the company to others,

demonstration of such commitment to the company by exhibiting a resistance to switching to

another competitor and willingness to pay a price premium.

Brand loyalty is a dedication of the customer to the brand to purchase it over and over again

despite the influence of different marketing efforts of the competitors or other brands that may

cause switching behavior. According to a researcher with loyal customers companies can increase

profits because loyal customers are willing to purchase more often, pay out money on trying fresh

products, recommend products and services to others and give companies sincere suggestions.

There has also been a lot of work in classifying customer’s behavioral loyalty in different

categories e.g. According to a study three measures of loyalty could be used to segment according

to loyalty. These are Customer’s Primary Behavior- regularity and quantity of purchase,

Customer’s Secondary Behavior- customer’s word of mouth and Customer’s Intent to Repurchase-

is the customer eagerness to buy again in future (Saeed, et al., 2013).

Measuring Customers’ Loyalty

Bondesson (2012) as quoted by Nazir, Ali and Jamil (2016) confirmed that various

methods can be used to measure the loyalty. He also stated that with the assist of measuring

purchase intension and commendation the Brand Loyalty can be measured. Moreover, the

researchers experimented that brand equity has two kinds of brand strength which are mostly

focused. Brand loyalty is one of them that are empirically captured via such actions as proposal,
partiality, and customer intention of purchasing. Second factor is the willingness of a customer to

pay a particular price for a particular product.

In order to develop and sustain loyalty among the customers, it is important to find out

what drives loyalty in a particular market. The factors which lead to loyalty need to be uncovered

and understood before designing and implementing the strategies for customer retention and

loyalty. Literature proposes relationships between customer loyalty and various other business

constructs such as quality, satisfaction, trust and so on. These relationships need to be investigated

and understanding the effect of these constructs on loyalty will surely provide an insight into

customer loyalty formation. Loyal customers tend to stay with the company for an elongated

duration which results in higher buying frequency as well as larger volumes of purchases over a

period of time saving advertising and other promotional costs that generally occur in case of

attracting new customers. Companies with steady customer loyalty enjoy better financial results

triggered from higher and more frequent purchases, shorter sales cycles, positive word-of-mouth

and a strongly favorable attitude. The factors leading to loyalty and their consequences in terms of

loyalty behaviors are worth discussing as a clear understanding of these factors can lead to

effective loyalty practices for they provide a concrete base for designing efficient loyalty

programs. Moreover, awareness about the various manifestations or outcomes of customer loyalty

can pave the way for customizing these loyalty programs and bring out tangible results in terms of

cost efficiency, wide reach and increased profitability (Rai and Srivastava, 2012).
Influence of Service Quality, Brand Image, and Customer Satisfaction on Customer Loyalty

In the study of Chao, Wu and Yen (2015), The Influence of Service Quality, Brand Image,

and Customer Satisfaction on Customer Loyalty for Private Karaoke Rooms in Taiwan, there was

a positive relationship between both brand image and service quality as well as brand image and

customer loyalty, demonstrating the increasing importance of brand image in the KTV industry. It

was also argued that the customer satisfaction is vital for the brand loyalty as it is an important

reason to attach someone with a particular brand. High brand loyalty is always followed by the

least one. Different levels of customer satisfaction behave differently while creating brand loyalty.

Brand loyalty can determine with the occurrence and the consistency which customer express

while choosing brand product. Distortion in terms of frequent visits can disturb the brand loyalty

up to a great extent as it will make differences between the brand and its loyal customers.

According to Delgado-Ballester et al. as cited by Baig and Batavia (2014), trust is a key player in

creating brand loyalty as it leads towards repurchase and consumer retention. This trust itself

comes from fully achieved expectations and satisfaction.

There are studies conducted on general retail industry in Saudi Arabia, but they do not

attempt to draw a connection between the service quality perceived by Saudi customers and their

loyalty to the store. Although service quality and customer loyalty is linked through mediating the

influence of customer satisfaction, as suggested by the literature, this relationship cannot be taken

for granted in the context of different countries since culture and background differ across

countries. In the previous studies, there is an agreement on the link between perceived service

quality, customer satisfaction, and store loyalty. However, there is no consensus among

researchers on the nature of the links between these variables particularly on the causal ordering

of service quality and customer satisfaction. The non-conclusive findings of the mentioned
relationships show that the impact of service quality and customer satisfaction on customer loyalty

is complex, and it merits further investigation. Literatures indicate that studies on perception about

quality of the grocery retail environment have been primarily conducted in the Western and Eastern

countries, but only a few were conducted in the Middle East, particularly Saudi Arabia. As a result,

our interpretation on the service quality perceived by customers and the factors that influence the

provision of this service quality is somehow narrow view. This suggests the need for further

investigation in Middle East especially (Otaibi and Yasmeen, 2014).

Brand image has been viewed as an important instigator of customer satisfaction and brand

loyalty. A study affirmed that if the consumers favor the image of a store they would definitely

form a loyalty for it too and also authenticated the effect of brand image on brand loyalty. A study

found an indirect impact of brand image on customer loyalty with respect to customer satisfaction.

Customer satisfaction is a significant force informing customer loyalty and the profitability of a

business. At the end of this research we found a significant relationship among all the three

variables, i.e. Brand image and Brand loyalty and Customer satisfaction. The identification of

advantages of the brand image will assist the marketers to create successful marketing strategies.

It is very significant to learn the perception or judgment of the customer about the brand image

and whether these perceptions are aligned with their needs and goals. Knowing this would help

the practitioners reach the customers in an even more effective way. With reference to satisfaction

and loyalty, it is essential for the companies to determine customers’ satisfaction in order to

examine their product or service image, performance and whether their satisfied customers are

willing to advise their product to others in addition to having the intent to purchase their

product/service again in future. Lastly, in order to make a flourishing brand the marketers must

pay special attention to building a good brand image, customer satisfaction and brand loyalty as
part of their branding strategies. Therefore all three of these factors, i.e. brand image, brand loyalty

and satisfaction would play a vital role in shaping their brand popularity (Saeed, et al., 2013).

To sum up above all debate the aim of this research is to show the Impact of Brand Image

on the customer retention by using customer satisfaction as mediating role with the point of view

of Pakistan. For this purpose Pakistan fashion wear industry selected because customers always

remain very conscious regarding brand in modern and dynamic environment. This study described

an impact of brand image on loyalty, awareness, experience and satisfaction. It’s very important

for the customer to comprehend brand image aspect judgments. From the view of the customer,

the brand awareness, brand experience and brand loyalty play a significant role in selection of

brand and positively build its image with satisfaction point. Brand image is also acting an essential

role to increasing the customer satisfaction towards brand conservatory attitude. The above

statistical results also show that fashion wear buying behavior is associated and prejudiced by

brand awareness, brand experience and brand loyalty. The examination also shows the acceptance

that impact of customer retention on brand awareness, brand experience and brand loyalty is highly

significant (Nazir, Ali and Jamil, 2016).

Global Trends in Brand Naming

Brand names in the current global economy are considered as one of the fundamental

principles of business. Every brand wants to be powerful, should be able to correctly identify

themselves during the birth and growth stages and over time, through innovation, improve its

image in the minds of consumers. Today, the brand identity, as well as capital creates value for the

organization and its products. A powerful brand has a duty to be faithful to their identity. The study

analyzes the impact of brand identity on customer loyalty and word of mouth advertising and
variables of customer satisfaction and brand commitment have been studied as an intermediate

variable (Kazemi, PaEmami, Abbaszadeh and Pourzamani, 2013).

Brand image is a composite of perceived quality and esteem dimensions that a customer

holds and therefore reflecting a customer‘s overall impression. Koo (2003),as mentioned in the

study of Kariuki(2015), added that brand image is useful to drive loyalty, brand equity, brand

performance and purchasing habits of customers. In the paper of Mohammadian and Ronaghi

(2010), cited by Kariuki (2015), opine that in the present day business environment where there

are many products of one category that are not significantly different from each other, brands are

what cause important distinctions and the preference for one product over the other. These

differences are so important that nowadays many market leaders view their brand as a means to

create competitive advantages. Brands can play a key role in the company‘s success by developing

competitive advantages with brand performance and through non-brand related means (Kariuki,

2015).

Based on the study of Sonmez (2014), brand is the most powerful tool in order to create a

value in the customers’ mind about a company or product; it directly relates with the symbols that

take shape in their minds once hearing the name of the company. Understanding corporate

branding is vital because a positive corporate brand will help a company achieve higher levels of

performance, for example, by increasing sales without having to spend enormous amount of money

on advertising. A ‘good corporate brand’ speaks for itself. As a corporate brand is more about the

intangible and emotional values associated with a brand or company name, these values are the

most sustainable source of competitive advantage (Da Silva and Syed Alwi, 2008). In this study,

it is said that a strong positive corporate brand image does not only supports a firm to attain a

competitive advantage but also reassures repeat consumptions. It was discovered that there are two
types of corporate brand. First, corporate brand is seen as more about attributes and perceived

quality. On the other hand, it is more about the affect or the emotional feeling reaction that is

attached to the brand.

Brand Image as a Mental Image

According to Porter (1985) as cited by Oyancha (2013),brand image is a mental image that

reflects the way a brand is perceived, including all the identifying elements, the product or

company personality, and the emotions and associations evoked in the consumer’s mind. It can be

defined as a unique bundle of associations within the minds of target customers. Brand image was

viewed as an important factor in the service evaluation. There is ample evidence that image

significantly affects customers’ evaluative judgments such as perceptions of quality. Moreover,

Bloemer et al. (1998) investigated the image related issues in banks and pointed out that a positive

brand image of a bank significantly improves perceived service quality. That is, brand image is a

critical determinant of service quality. The idea behind brand image is that the consumer is not

purchasing just the product or service but also the image associated with that product or service.

Brand images should be positive, unique and instant. Brand image has

not to be created, but is automatically formed. The brand image includes products' appeal, ease of

use, functionality, fame, and overall value. Brand image is actually brand content. When the

consumers purchase the product, they are also purchasing its image. Brand image is the objective

and mental feedback of the consumers when they purchase a product. Positive brand image is

exceeding the customers’ expectations. Positive brand image enhances the goodwill and brand

value of an organization (in Oyancha, 2013).

Oyancha (2013) quoted Oliver (1997)’s note that satisfaction is a general psychological

state which is about the expectation for emotions and experience from shopping behavior.

Customer satisfaction may be defined as expectation before purchase and perception about

performance after purchase. This is a term which is used as a measure of how products and services

supplied by a company met or surpass customer expectation. In the service environment, customer

satisfaction has been seen as a special form of customer attitude. It is a phenomenon of post-

purchase reflection on how much the customer likes or dislikes the service after experiencing it ,

and it can be treated as a fulfillment of consumptive goals as experienced and described by

customers.

Huang (2000), cited by Lin (2011) , regarded four dimensions in measuring customer

satisfaction, as (1) customer expectation which reflected the expected product performance of

customers whose previous consuming experiences before purchasing would become the

expectation on product performance; (2) product performance, as a kind of comparison standard

that customers would compare the actual product performance after purchasing with the

expectation before purchasing; (3) disconfirmation, as a kind of major agent variable that a person's

expectation would be confirmed to correspond the product performance to his/her expectation, and

(4) customer satisfaction, as an output after purchasing that, when the actual product performance

was larger than or equal to the expectation before the act, the customer would feel satisfied. The

brand image target in catering businesses is the targeted customers of the brand. Modern customer-

oriented marketing theory requires an enterprise to take customer satisfaction into account when

making decisions and establishing brand image. Because the establishment of brand image in
catering industry lies in customer satisfaction, studies on customer satisfaction has become the

first priority to establish brand image. Based on customer demands, studies on customer

satisfaction could help understand, associate, and expect the products of the brand in catering

businesses that would further benefit the conformation of brand image and the development.

Thus, satisfaction is similar to an attitude, as it can be assessed as the sum of the

satisfactions with the various attributes of the product or service. This therefore means that

customer satisfaction is expectation before purchase and perception about performance after

purchase. In the service environment, customer satisfaction has been seen as a special form of

customer attitude. Measurement of customer satisfaction can help to hold existing customer and

may provide directions about how to attract new customers from the competitive business

environment (Kariuki, 2015).

Brand Identity and Customer Loyalty

The results of Kazemi, PaEmami, Abbaszadeh and Pourzamani (2013) study confirmed the

significant relationship between brand identity and customer loyalty and word of mouth

communications is significant through customer satisfaction and brand commitment in this

organization. As a result, it can be said that brand identity is one of the most important instruments

of word of mouth communications in the organizations. Based on the significance coefficient, it

can be concluded that customer satisfaction, loyalty, and commitment are the main mediating

factors of trust, brand image, and word of mouth communications that have significant positive

effect on the word of mouth communications. With regard to the significant positive effects of

brand identity on the word of mouth communications and brand identity as an image for consumer,

it is suggested for bank managers to consider this relationship and communicate a direct
relationship between brand name and their services. With regard to the significant positive

relationship between customer satisfaction and word of mouth communications, it is suggested

that the bank managers identify the effective factors on the customer satisfaction and then do the

necessary activities for improving customer satisfaction and hereby increase word of mouth

communications among customers. Services quality is the main factor in customer satisfaction

especially. It is suggested that the bank managers improve quality of their services for increasing

their customers’ satisfaction. It is necessary to do primary studies for identifying effective factors

on the services quality from customer perspective and then seek to improve them. Finally, because

word of mouth communication is one of the powerful advertisement instruments, it is suggested

for bank managers to rank their customers’ trust and deliver the services for them based on their

trust.

Perception of Branding

In the branding literature, there is a general assumption that a favorable brand image has a

positive impact on customer satisfaction. Brand image has been recognized as an important

antecedent of customer satisfaction. Hence, a positive bank brand image will tend to generate high

customer satisfaction in the bank. The first hypothesis is described as follows: H1: Bank brand

image has a positive effect on customer satisfaction. In addition, it is apparent from preceding

studies that brand image has direct and/or indirect positive effects on loyalty or behavioral

intention. As mentioned in the study of Andreassen and Lindestad (2008), Fry (2002) discovered

that brand image has a direct effect on loyalty; while in contrast, Chun (2002) found that brand

image has an indirect influence on loyalty via customer satisfaction. Moreover, brand image could

have both direct and indirect effects on loyalty. Nevertheless, brand image can be certainly viewed

as a predictor of customer loyalty. Thus, in the banking context, a positive hospital brand image
appears to stimulate customer loyalty. The second hypothesis is thus: H2: Bank brand image has

a positive effect on loyalty as measured by re-visit intention. The purpose of the research is to

investigate the relationship between brand image, customer satisfaction and loyalty intention at

Kenya commercial bank. The results show that brand image significantly related to customer

satisfaction and loyalty intention, hence we can say that the hypothesis are fully supported. Finding

of the study also suggested that customer satisfaction is the key of loyalty intention, on the basic

of the finding we can say that there is positive relationship between customer satisfaction and

loyalty intention, this is also to be say that if the users of banking services are satisfied then they

may create base of loyalty easily, therefore we can say that second hypothesis is fully supported.

Customer satisfaction and Brand Loyalty as an Issue

In a competitive business environment, customer satisfaction and brand loyalty is emerging

as an issue for which the business firms are very sensitive of. As a result, the process of building

a reputed brand image and attracting new customers remains an important task for the marketing

managers in any organization. Moreover, the congruence between the brand image and customers

‘self-image would enhance customer satisfaction and customers’ preference for the brand. In the

branding literature, there is a general view that a favorable brand image has a positive impact on

customer satisfaction. Furthermore, brand image could have both direct and indirect effects on

loyalty. Nevertheless, brand image can be certainly viewed as a predictor of customer loyalty.

Thus, in the service industry context, a positive brand image appears to stimulate customer loyalty.

It is accepted that positive brand image contributes to enhance customer loyalty and also, customer

loyalty has great roles in building strong brand image of a company. Brand image therefore is
essential for companies to gain lifetime customer loyalty which leads to gear up organizational

efficiency (Kariuki, 2015).

Synthesis of the Reviewed Literature

The review of related literature and studies has an implication on the present study. All

reviews were focused on the corporate brand image, customer satisfaction and loyalty. The

researchers and works of different writers and authors like Nazir, Ali and Jamil (2016), Chao, Wu

and Yen (2015), Kariuki (2015), Zhang (2015), Baig and Batavia (2014), Ene and Ozkaya (2014),

Naimi and Shahroudi (2014), Otaibi and Yasmeen (2014), Upamannyu and Sankpal (2014),

Zakaria, et al. (2014), Kazemi, PaEmami, Abbaszadeh and Pourzamani (2013), Oyancha (2013),

Saeed, et al. (2013), Wan and Schell (2013)gave substantial and closely related information needed

to this study.

Various findings proved that brand image has either direct or indirect impact to customer

satisfaction and loyalty can be an outcome of customer satisfaction. Nazir, Ali and Jamir (2016),

Kariuki (2015), Zhang (2015), Upamannyu and Sankpal (2014), Oyancha (2013), Kazemi,

PaEmami, Abbaszadeh and Pourzamani (2013), Saeed, et al. (2013), Lin (2011) and Hsieh, Pan

and Setiono (2006) said that brand image is a significant factor for a good evaluation of the

customers. Also, it is a reflection of opinion and impression of a customer regarding the product

or service and has influence on the behaviour of the customer.

Kariuki (2015), Zhang (2015), Baig and Batavia (2014), Naimi and Shahroudi (2014),

Otaibi and Yasmeen (2014), Upamannyu and Sankpal (2014), Kazemi, PaEmami, Abbaszadeh

and Pourzamani (2013), Oyancha (2013), Saeed, et al. (2013), Wan and Schell (2013) and

Andreassen and Lindestad (2008) discovered that customer satisfaction is the overall assessment

of a customer regarding his expectations before and after consuming the product or receiving the
service. Also, Kapferer (2011), Lin (2011) and Da Silva and Syed Alwi (2008) mentioned that

there were some dimensions and approaches that can measure and identify the customer

satisfaction.

Zakaria, et al. (2014), Oyancha (2013), Upamannyu and Sankpal (2014), Rai and

Srivastava (2012), Da Silva and Syed Alwi (2008) defined loyalty is the indication of approval of

a customer that leads to purchasing the product or availing the service continuously. Nazir, Ali and

Jamil (2016), Saeed, et al. (2013) and Sondoh, Omar, Ismail and Harum (2007) stated that there

were different classifications and measurements of loyalty.

Some researchers agreed on the direct relationship of brand image and customer

satisfaction .Nazir, Ali and Jamil (2016), Chao, Wu and Yen (2015), Upamannya and Sankpal

(2014),Kazemi, PaEmami, Abbaszadeh and Pourzamani (2013), Oyancha (2013), Saeed, et al.

(2013), Palacio, Meneses and Perez (2012), Tu, Wang and Chang (2012) and Da Silva and Syed

Alwi (2008) stated that brand image has the main role in predicting customer satisfaction. Nazir,

Ali and Jamil (2016), Chao, Wu and Yen (2015), Zhang (2015), Baig and Batavia (2014), Saeed,

et al. (2013), Tu, Wang and Chang (2012) and Sondoh, et al. (2007) learned that customer

satisfaction has a direct relationship on loyalty as it is a significant aspect to keep customers on

purchasing the product or availing the service. In addition, Kariuki (2015) and Upamannya and

Sankpal (2014) believed that brand image, customer satisfaction and loyalty has a positive

relationship in influencing each other.

From the above review of related literature and studies, the following gaps were

determined:

1. There were no studies yet conducted on corporate brand image and customer satisfaction

on loyalty considering selected coffee shops customers as the respondents of the study.

2. There were no studies yet conducted on corporate brand image and customer satisfaction

on loyalty in a selected coffee shop considering Makati City as the place of investigation.

In view of the gaps identified, the study determined that corporate brand image and

customers’ satisfaction and loyalty to coffee shops in Makati City.