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Corporate Brand Image and Customer Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in Taiwan

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  • Yu-Te Tu
  • Hsiao-Chien Chang

Abstract

Corporate image has been assessed as an important antecedent of customer satisfaction and loyalty. Corporate brand is vital because positive corporate brands help companies achieving higher performance, such as sales. Marketing exists to deliver more value to satisfy customers as well as build a long-term and mutually profitability relationship with customers. If a firm’s products or services do not satisfy or meet the customer’s needs and wants, all the strategies are insufficient. With loyal customers, companies can have higher market share and reduce the operating cost. An improvement of 5 percent in customer retention leads to an increase of 25 percent to 75 percent in profit. It costs more than five times as much to obtain a new customer than to keep an existing one. This initial study was from relevant literature, then set up research structure and hypotheses. Survey was employed, and respondents were from the customers of Starbucks Coffee in Taipei area. There were 199 usable questionnaires to analyze descriptive statistics, reliability, validity, and SEM model. The research found that corporate brand image significantly affects customer satisfaction and customer loyalty, and customer satisfaction has strong impact on customer loyalty for the sample. Therefore, firms have to specifically focus on these factors in order to build a long-term and mutually profitability relationship with a customer and create loyalty as competitive advantages in the market.

Suggested Citation

  • Yu-Te Tu & Hsiao-Chien Chang, 2012. "Corporate Brand Image and Customer Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in Taiwan," Journal of Social and Development Sciences, AMH International, vol. 3(1), pages 24-32.
    • Handle: RePEc:rnd:arjsds:v:3:y:2012:i:1:p:24-32
    DOI: 10.22610/jsds.v3i1.682
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    References listed on IDEAS

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    3. Nicholas Ind, 1997. "The Corporate Brand," Palgrave Macmillan Books, in: The Corporate Brand, chapter 1, pages 1-13, Palgrave Macmillan.
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    5. R. Chumpitaz & N. Paparoidamis, 2007. "Service quality, relationship satisfaction, trust, commitment, and business-to-business loyalty," Post-Print hal-00199063, HAL.
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    Cited by:

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    2. Yibei Pu & Norzaidahwati Zaidin & Yaodong Zhu, 2023. "How Do E-Brand Experience and In-Store Experience Influence the Brand Loyalty of Novel Coffee Brands in China? Exploring the Roles of Customer Satisfaction and Self–Brand Congruity," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    3. Amna Javed & Shazaib Khan, 2014. "Consumer perception of brand trust online of clothing in Karachi: A case study of Gul Ahmed," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 61-72, March.
    4. Ogorchukwu Augustine Isimoya, 2019. "Corporate Brand Image And Customers’ Behavioural Intentions: An Empirical Study In Nigeria," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(47), pages 161-178, December.
    5. Byoungsoo Kim, 2018. "The Role of Dedication-Based and Constraint-Based Mechanisms in Consumers’ Sustainable Outcomes in the Coffee Chain Industry," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    6. Aloy Okafor & Olusoji George, 2016. "Theorising the Concept of Product Branding: A Qualitative Approach to the History of Branding; the Case of the Nigerian Milk Industry," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(2), pages 84-96, April.
    7. Hendra Pratama, 2017. "The Effect of Brand Image, Price, and Brand Awareness on Brand Loyalty, The Rule of Customer Satisfaction as a Mediating Variable," GATR Journals gjbssr469, Global Academy of Training and Research (GATR) Enterprise.
    8. Anca Madar, 2018. "How Do European Cafe Chains Managers Handle Competition?," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 3(4), pages 178-184.
    9. Balmer, John M.T. & Lin, Zhibin & Chen, Weifeng & He, Xinming, 2020. "The role of corporate brand image for B2B relationships of logistics service providers in China," Journal of Business Research, Elsevier, vol. 117(C), pages 850-861.
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    11. Pichyada Pheunpha, 2022. "Personal Traits Service Marketing Mix and Corporate Image influence the Customer Satisfaction of Shabu Restaurants in Thailand," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 10(2), pages 55-66, November.
    12. Saiful Amri & Jasman J. Ma'ruf & Mirza Tabrani & Nurdasila Darsono, 2019. "The Influence of Shopping Experience and Perceived Value Toward Customer Satisfaction and their Impacts on Customer Loyalty at Minimarkets in Aceh," International Review of Management and Marketing, Econjournals, vol. 9(4), pages 87-94.
    13. Andrea Moretta Tartaglione & Ylenia Cavacece & Giuseppe Russo & Giuseppe Granata, 2019. "A Systematic Mapping Study on Customer Loyalty and Brand Management," Administrative Sciences, MDPI, vol. 9(1), pages 1-21, January.
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