The Effect of Corporate Branding Dimensions on Consumer Satisfaction in the Banking Industry A Case of Standard Chartered Bank Branches in Western Kenya

Abstract

The Kenyan banking sector continued to record impressive growth between 2007 and 2011, with the overall profitability rising by 30%. However, the economic survey of 20 13 indicate that the financial sector grew slower in 2012 to post a Igrowth of 6.5 per cent down from 7.8 per cent growth in 2011. In Standard Chartered Bank (SCB) in Kenya, loans declined by Sh7 billion to Sh122 billion while consumer savings declined by Sh700 million to Sh154 billion. Attempt to compensate for weak performance has seen the bank focus on cost cutting policies with little success. Despite advances from theoretical literature that corporate branding impacts on the attitudes and behaviours of consumers, to date, limited studies have been done on the effect of corporate branding dimensions. Therefore the purpose of the study was to examine the effects of corporate branding dimensions on consumer satisfaction in the banking industry. Specifically, the study sought to establish the relationship between brand image and consumer satisfaction; determine the effect of brand name on conswner satisfaction; determine the influence of brand reputation on consumer satisfaction and establish the effect of brand loyalty on customer satisfaction.A cross sectional design was used on a population of 27,740 customers. A sample of 379 respondents were selected using simple random sampling technique. Pre-validated self-administered questionnaires withCronbach's Alpha coefficient of between 0.782 and 0.892 was used.The study revealed that banks practiced corporate branding across all its dimensions by 78.37% (mean score of3.919; std. dev. = 0.847) suggesting that it's a more prevalent practice among banks in Western Kenya. Satisfaction level of customers with respect to bank services was at 81.6% (mean score 4.08; std. dev.= 0.053) implying that customers were very satisfied with the services offered by the bank. The dimensions of corporate branding (corporate brand name (jJ = 0.436, p = 0.001 < 0.05), corporate brand reputation (jJ =0.700, P = 0.000< 0.05) and corporate brand loyalty (jJ=O.262, p = 0.001< 0.05) all had significant positive effects on consumer satisfaction while corporate brand image had an insignificant positive relationship with consumer satisfaction (jJ =0.197, P = 0.145). The study concludes thatbrand name, brand loyalty and brand reputation all are significant predictors and recommends that their levels be enhanced to increase consmner satisfaction. They may be useful to managers in the banking sector and to scholars as they provide new empirical evidence on corporate branding.