The Effects of Brand Image on Customer Satisfaction and Loyalty: The Case of Libya Oil Ethiopia Limited

Abstract

This research was conducted to investigate The Effects of Brand Image on Customer Satisfaction and Loyalty: The Case of Libya Oil Ethiopia Limited. The research design was an explanatory method along with cross- sectional survey for this study. Brand image as a strategy has gained tremendous interest among researchers and practitioners in recent times. Thus, the study tried to assess the status and ways Brand image has been put in to practice by Libya Oil Ethiopia Limited. In addition, this research considered different Brand image dimensions such as functional benefits, experiential benefits and symbolic benefits. Data were collected through the five point’s likert scales of questionnaires. To achieve the objective of the study, 45 respondents from Retails, 23 from commercial and 16 from lubricant customers and two key participants from the three customer category a total of 6 were also involved, totally 90 participants was participated. Descriptive, correlation and regression analysis methods were used to analyze the collected data by using SPSS software version 20 and Questionnaires reliability was estimated by calculating Cronbach’s Alpha. Descriptive analysis tools such as frequency, percentage, mean and standard deviation and statistical analysis tools such as correlation coefficient was worked out and used to explore the relationships between variables. Regression analysis was performed to study the effect of independent variables on Customer Satisfaction and Loyalty. Research findings indicates that there was a significant relation between Brand image components including functional benefits, experiential benefits and symbolic benefits on customer satisfaction and also the regression testing that all variables were examined on customer loyalty; results showed that all components have a significant effect on customer loyalty. The finding also shows that Customer satisfaction has a mediating effect on the relationship between brand image and customer loyalty.