The moderating effect of brand image on public relations perception and customer loyalty

An‐Tien Hsieh · Chung‐Kai Li

203 citations0/0 files storedMarketing Intelligence & Planning

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Customer Service Quality and Loyalty Marketing and Advertising Strategies Public Relations and Crisis Communication

Abstract

Purpose The purpose of the paper is to investigate the relationship between customer perceptions of public relations (PR) and customer loyalty; to test for the moderating role of brand image in that relationship. Design/methodology/approach Data were collected in a survey of customers of the insurance industry in Taiwan, using a questionnaire designed on the basis of focus‐group discussions with 30 consumers. Hierarchical regression analysis of data from 367 respondents was used to test two hypotheses. Findings The results show that consumers' perception of an organisation's PR practice is an antecedent of loyalty. The impact of public relations perception (PRP) on customer loyalty is stronger and more significant when the brand image is favourable. If it is unfavourable, the effect of PRP on customer loyalty is negligible. Research limitations/implications This study extends previous research by examining the moderating role of brand image. Further research is indicated, to identify the key moderators of the driving force of PR in relation to customer relationship marketing. Originality/value This paper proposes an original eight‐item scale for the assessment of customer PRP activity, which can be applied in practice to measure its effectiveness under different brand‐image conditions.

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References

1988Structural equation modeling in practice: A review and recommended two-step approach.1994The Commitment-Trust Theory of Relationship Marketing 1993Conceptualizing, Measuring, and Managing Customer-Based Brand Equity 2004The Social Identity Theory of Intergroup Behavior 1996The Behavioral Consequences of Service Quality 1988Possessions and the Extended Self 1986The Elaboration Likelihood Model of Persuasion 1999Whence Consumer Loyalty?

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