THROUGH THE EYE OF THE CUSTOMER : A STUDY OF HOW CORPORATE BRAND IMAGE IMPACT CUSTOMER LOYALTY AND CUSTOMER SATISFACTION IN THE TRAVEL INDUSTRY

Abstract: An important question in today’s research on marketing is in what way a company can influence how customers perceive their brand and in what way they can facilitate customer retention. The aim with this paper is to research the impact the corporate brand image has on customer satisfaction and customer loyalty within the travel industry to further the understanding of how branding activities influence customer preferences. By using a survey with an experimental design, where corporate brand image is manipulated through a PR-article, the results indicate that a company can influence the loyalty a customer feels toward their brand by trying to influence the corporate brand image. The results also support the idea that corporate brand image does have its own effect on customer loyalty and is not merely indirectly influencing it through customer satisfaction. Furthermore, these results are of interest to the travel industry since it indicates that PR campaigns can aid the travel agency in differentiating itself from its competitors. In an industry with intangible and homogeneous services and a highly competitive market differentiating the brand is likely to have a positive competitive effect.