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The importance of a good corporate image

Paper Type: Free Essay Subject: Marketing
Wordcount: 943 words Published: 1st Jan 2015

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Corporate image can defined as the perceptions of the organization reflected in the associations held in the mind of consumer (Keller, 1993). Simultaneously, corporate image described as the general impression in the minds of the customers about the particular firm (Barich and Kotler, 1991, Dichter, 1985, Zimmer & Golden, 1988). In the same time, Olins (2000) was noted that the corporate image is inconsistent over time and influenced by some forces in term of the environmental. Meanwhile, according Gray and Balmer (1998), the corporate image is the mental image of the company but they do not recognize the essential elements of corporate image. However, they are suggested that elements of corporate images are culture-dependent. According to Zins (2001), corporate image of Airline Company is related to the customer’s emotional stereotypes.

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In contrast, accordingly Grönroos (1984) identified that the corporate image is an important reason for evaluation of the service. When a firm has a good image is more likely to successful in the particular marketplace (Connor & Davidson, 1997). For the airline industry, the more favorable image passengers have will be better for the airline company to be success. But the more likely bad perception about the airline will be filtered out of passengers’ sense. The positive corporate images can be added value if the Airline Company has managed properly. Instead, the negative images might destroy company’s reputation and estrange from their customers (James Liou and Mei-Ling Chuang, 2009).

There are 35 related elements of airline image are discussed by the managers from Public Relations departments of airlines and through literature review (Nguyen and Leblanc, 2001; Ruyter and Wetzels, 2000; Gray and Balmer, 1998; Williams and Moffitt, 1997; Schmitt et al., 1995). Nevertheless, Schmitt et al. (1995) suggested that the image of a firm includes the four Ps which are properties, products, presentation, and publications. The Properties include the physical assets of a firm such as building or aircraft, Products include the goods that a company produces or the core of a service that it performs such as the comfort of seat and services provided. Presentations include the immediate objects that ‘present’ the product whether it is an item or a service such as performance on time. Finally, Publications include printed and broadcast information diffusing from the company like the advertisement or the brochures. Thus, the favourable image of the airline company was formed by the customer who is receiving higher levels of the service quality (Nguyen And Leblanc, 1998).

Hypotheses Development

2.4.3 The effect of Airline Image on Passengers’ satisfaction

The more favourable a company’s image, the more likely consumers will assume that the services provided by the company is better and worth to satisfied more than the actual price. According to Andreassen & Lindestad (1998) noted that corporate image has an impact on customer’s choice of company when service attributes are difficult to evaluate.

The customers satisfaction levels are derived from each service encounter are viewed as having an effect on image assessments. Therefore, image is viewed as cumulative construct that is updated each time the customer experiences the service. As for the influence of perceived service value on corporate image, Barich and Kotler (1991) propose that a company will have a well-built image if customers believe they were getting high value when they buy products or services from the company. However, there are several research on corporate identity-image-reputation suggests that stores with favorable image create customer satisfaction which in return to store loyalty (Barnett et al., 2006).

Translated to a retailing context, it is likely that a favorable store image increases satisfaction with the store which in turn increases store loyalty (Osman, 1993; Bloemer and de Ruyter, 1998).

H7 : Corporate image is believed to have a positive impact on passengers’ satisfaction judgment.

2.4.5 The effect of Airline Image on Repurchase Intention

According to Park. et al (2006), indicated that the airline image had a significant positive effect on behavioural intentions. Thus, the passengers who have good impression image toward the airline are more likely to fly the airline again and recommend to others by worth-of-mouth. Despite that had a few research investigated that customers’ overall assessment of corporate image is also deemed to influence customer loyalty (Reynolds et al., 1974-1975). There are a study results indicated that had support the corporate image has a strong impact on customer loyalty (Kandampully & Hu, 2007). Indeed that , the notion that a favourable store image can influence repeat patronage has been proposed by Dick and Basu (1994). Although little research has been reported on the link between customers’ assessments of image and service loyalty, Dick and Basu (1994) stress that a favourable store image can positively affect repeat patronage. However, the proposed relationship between corporate image and service loyalty was supported by Nguyen & LeBlanc (1998). Zins (2001) had argued that the strong relationships between image and quality of perceptions have stronger effect on the corporate image in turn direct effect on future loyalty.

H9: For the customer who have formed favorable image on airline will be effect on customers’ repurchase intention.

 

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