The Influence of Customer-Based Brand Equity on Customer Satisfaction and Brand Loyalty: Evidence from South African Mobile Telecommunications Industry

Year 2019, Volume: 11 Issue: 2, 32 - 47, 31.07.2019

Mudanganyi Marvelous Muposhi Asphat Shamhuyenhanzva Roy Malon

Abstract

The South African mobile telecommunications environment has become
increasingly competitive, with non-traditional players like FNB and Mr Price
joining the fold. Therefore, to succeed and ensure survival in such an industry, it
is imperative for mobile operators to build brand equity as it ensures customer
retention, repeat purchase patronage and safeguards the customer base from
competitive activity. In this regard, this study examined the influence of
customer-based brand equity on customer satisfaction and brand loyalty in South
Africa’s mobile cellular services. To this end, the influence of perceived quality,
brand awareness, brand associations on customer satisfaction and brand loyalty in
the South African mobile telecommunications industry was investigated.
A quantitative approach was undertaken with data collected by a survey from 240
Generation Y respondents through a structured self-administered questionnaire.
Reliability and validity tests were performed to validate the scales used in the
study. Correlation analysis and multiple regression analysis were performed to
ascertain the influence and nature of relationships between the dimensions of
brand equity and customer satisfaction as well as between customer satisfaction
and brand loyalty.
Significant positive relationships were established between perceived quality,
brand awareness, brand associations and customer satisfaction as well as brand loyalty. Perceived quality had the strongest influence on customer satisfaction,
followed by brand awareness and brand association respectively. Results also
showed a significant positive relationship between customer satisfaction and
brand loyalty.
The implication from the findings was that service providers of mobile
telecommunications in South Africa should focus on customer satisfaction and its
antecedents to develop a cadre of loyal customers. Brand managers should place
significant effort primarily on building brand equity and brand equity dimensions,
which have high importance towards customer satisfaction and ultimately brand
loyalty.

Keywords

Branding, Customer-Based brand equity, Brand loyalty, Mobile telecommunications services; Generation Y

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