The impact of brand image, customer satisfaction, and customer commitment on loyalty : an empirical study on Proton car owners

Abstract

Proton or Perusahaan Otomobil Nasional Sendirian Berhad is the first national car company that established in year 1983 by Malaysian Prime Minister Tun Dr. Mahathir Mohamad. Since then, Proton has become a major player in domestic market and able to export its products all around the world especially in the right-hand drive markets such as United Kingdom, Australia, South Africa, and ASEAN countries. However, market situation for Proton was not so rosy since 2000 until 2018. In addition, at that period also saw damages done to Proton’s image, it is disheartening that the existing customers to continue supporting Proton’s products and services, whilst discouraging the potential customers to even consider Proton products and services. Looking at this phenomena, it gives an opportunity to study the relationship between Proton brand image towards customer satisfaction, customer commitment, and customer loyalty. This study explains how the Customer-Based Brand Equity (CBBE) theory framework was used in examining the dimensions of Proton brand image based on the functional and the emotional attributes of image. Seven hypotheses were proposed to describe the relationship among these constructs. The data were collected via voluntarily questionnaires in Klang Valley and the hypothetical relationship were examined by using Partial Least Squares- Structural Equation Modelling (PLS-SEM). A total of 340 respondents had participated in this study. From the data collected, it indicates that the majority of Proton car owners were young Malay families based, who earned less than RM5000 with more than 10 years of driving experience. The results from this study have given empirical support to the general structure incorporated in the research model. First, the study confirmed that brand awareness, brand association, brand superiority, brand affection, brand resonance, and Corporate Social Responsibility (CSR) are the dimensions of Proton’s brand image. Next, the results showed that brand image, customer commitment, and customer satisfaction are positively and significantly related to customer loyalty. The results also showed that brand image has stronger effect on customer satisfaction, followed by customer commitment and lastly on customer loyalty. In addition, customer commitment and customer satisfaction mediate the relationship between brand image and customer loyalty. By looking at the result, it is important for practitioners to understand the importance of brand image and to keep it positive. Furthermore, the practitioners also need to take care of its customers’ happiness and make customer loyal to them for the short term and the long term as to stay competitive in the market and expand worldwide.