EFFECT OF CORPORATE BRAND IDENTITY ON CUSTOMER EXPECTATION IN UNITED BANK OF AFRICA

ABSTRACT

The study examines corporate brand identity on customer’s expectation of first bank Nigeria Plc.  The study was guided by four research questions and hypotheses. The study adopted survey research design. Simple random sampling technique was use to select the sample of the study who were the customers of UBA. The data from the sample respondents were collected through the use of structured questionnaire. The data collected where analyze through the use of descriptive statistic and inferential statistics of regression. The result of the analysis reveals among others that visual identity have positive and significant effects on service credibility of UBA. The study recommends that there is need for management of banks precisely UBA to re-evaluate on the type of corporate activities that they initiate.

CHAPTER ONE

   INTRODUCTION

1.1  Background to the Study

The homogenous nature of businesses today has increased the level of competition in the business world. Therefore, in an attempt to gain some sort of competitive advantage, business organizations now seek to differentiate their goods and services in a unique and peculiar way that is specific to their identity. This has led to what is called branding. However, as the concept of branding grew it began to be applied to personalities, events and other institutions (Algesheimer, Dholakia & Herrmann, 2005). Therefore, in a bid to differentiate branding for business management from other forms of branding the concept of corporate brand identity was born.

Ever since the growth of this concept, it has remained an essential strategic tool in business management (Aspizain, 2016). However, despite corporate brand identity being an essential strategic tool it remains one of the most misunderstood concepts (Zomerdijk & Voss, 2010). The American Marketing Association (2016) defined a corporate identity as a name, term, sign, symbol, or any other feature that distinguishes a corporate organization from others. Furthermore, according to Baumgarth and Schmidt (2010), it is the process of stimulating the brand name of a corporate organization as differentiated from the promotion of specific products or services. However, Dube and Kaul (2009) reckoned that corporate brand identity could be more appropriately defined as all the features associated with the company that differentiates it as an organization from its competitors. In the competitive environment that businesses find themselves today, corporate brand identity is an important asset of a company (Kotler & Keller, 2008). In several markets, corporate brand generates an exceptional identity for a company that helps to form a bond with a precise group of target population (He & Balmer, 2007).  According to Pepe, Abratt and Dion (2011) corporate brand identity is critical due to the fact that it helps business organizations achieve a higher performance. In addition, Anselmsson and Johansson (2007) said corporate brand identity is also about managing more complex organizational associations that stakeholders have with the company and the behavior of the company and its people, rather than mere associations related to individual products and services. Thues and Persson (2010) suggested that corporate brand identity provides a solid foundation for developing a coherent and engaging promise to meet the expectations of customers.

According to Anisimova (2007) the major focus of a business is always the customers. Consequently, it is vital for business organizations to meet customers’ expectations (Fetscherin & Toncar, 2010). Moreover, consumer’s expectation can vary in accordance to their race, cultural background, and also economic status (Ettlinger, 2008).

All over the world, business organizations are aware that a major key to successful corporate branding is customer satisfaction. However, a customer will only be pleased when their expectations have been met which further increases the expectations of the customer from that particular brand or at the very least maintains the level of customer expectation (Cervone, 2011). According to Kahneman (2011) based on their expectation, customers can pay a higher price for a product or services associated with a brand. Research has shown that 55% of customers are happy to pay more for the items and administrations of corporate brands in which they have high expectations. However, if the delivery of the service or product quality is lower than the expectations of the customers they end up dissatisfied (Armstrong &Kotler, 2007). Thus, corporate brand identity is formed based on the customer perception about a brand’s product and service (Kotler& Keller, 2008).

In the banking industry in Nigeria, corporate brand identity is playing a huge role in shaping consumer’s expectations. According to Onwumerre (2017) major reasons why some banks in the banking industry are excelling while some other banks are floundering is based on their corporate branding strategies and corporate brand identity which has influenced consumers’ perceptions.  According to Ekwujuru (2015) banks like Zenith and Guarantee Trust Bank, United Bank of Africa, First and Access bank have gained a majority of the market share in the banking industry in Nigeria due to their corporate brand identity strategies which make customers assured of quality, reliable and credible service and ensuring accessibility. Furthermore, their ability to integrate technological advancements such as Artificial Intelligence and Mobile Banking into their service offerings and corporate brand image has made the United Bank of Africa very unique and has set their customers’ expectations at a high level that they are willing to pay whatever it takes to remain customers of these banks.  Thus, it is not a surprise that UBA Plc is one of the top five most profitable banks in Nigeria (Wabara, 2017). Therefore, this study means to decide the effect of corporate brand identity on customer expectation of United Bank of Africa Limited. 

1.2  Statement of the Problem

Despite the importance of corporate brand identity, only little research works have empirically explored this strategic concept up to date. Past research works have fundamentally centered around the definition and conceptualization of this construct, and as a result several researchers have focused mainly on the empirical impact of it, but a few of them actually carry out further investigation of the effect of it on other concepts.

In relation to the concept of corporate brand identity, some research works are mainly centered on the effect of brand identity on the perceptions and impression of brand managers, administrators, employees and so on Ushiaghale, Amanze-Nwachukwu and Chima (2016). Though literature has generally recognized the role of customers in the success of brands, few works have applied the effect of corporate brand identity on the expectations of customers in their study. This is particularly essential in the service sector, as customer expectation plays a major role in organizational productivity.

The effect of corporate brand identity on customer expectation should be studied because it is very important in any industry especially in the banking sector. The banking industry as of late is facing a decreasing customer trust and confidence rate, a survey carried out in Nigeria showed that around 40% of customers, were totally disconnected with their banks, while 69% of them where ascertain that there is no tangible difference between banks Chima (2017) and because of this it is important to ensure that organizations reestablish the trust and confidence of customers by not attempting but actually having a positive and sound identity with the expectations of their customers as a top priority. It is as a result of this process that corporate brand identity and the roles of them and their employees are very important.

Therefore, the aim of these study is to gain more knowledge and get a better understanding of how much the expectations of customers are really affected by the identity of a corporate brand.

1.3  Objectives of the Study

The objectives of this research is to determine the effect of corporate brand identity on customer expectation of United Bank of Africa, and they are to:

1. Determine the effect of visual identity on service credibility.
2. Evaluate the effect of corporate personality on service reliability.
3. Analyses how employee commitment affects the perceived service quality.
4. Ascertain the effect of consistent communication on service accessibility.

1.4  Research Questions

The study is aimed to respond to the following

1. To what extent does visual identity affect the service credibility of the United Bank of Africa?
2. How does corporate personality affect the service reliability of the United Bank of Africa?
3. What is the effect of employees’ commitment on the perception of service quality of the United Bank of Africa?
4. Is there a relationship between consistent communication and service accessibility of the United Bank of Africa?

1.5  Research Hypotheses

The following hypotheses will be carried out in these research

H₀₁: There is no significant effect of visual identity on service credibility.

H₀₂: There is no significant effect of corporate personality on service reliability.

H₀₃: There is no significant effect of employee commitment on service quality.

H₀₄: There is no significant effect of consistent communication on service accessibility.

1.6 Scope of Study

This study is on the effect of corporate brand identity on customer expectation of the United Bank of Africa.

In carrying out this research, attention was focused on commercial banks with particular reference to United Bank of Africa in Ogun State. This is due to the fact they have been producing an extremely high performance in the banking industry. As such the research is geared to investigate how improving their corporate brand identity can improve their customer expectations and ultimately their profitability. Therefore, the target population are the customers of UBA plc in Ota, Ogun State. The customers of the United Bank of Africa in Ogun State were chosen because they form a major part of the Banking consumer market in Nigeria. Thus their views would represent an accurate picture of the effect of corporate brand identity on the customer expectation in the United Bank of Africa all across. The study will adopt the simple random sampling technique while data will be analyzed using the regression analysis method. The geographical area of the research will be the United Bank of Africa, Ota, Ogun State. At last, the study would be completed between September 2018 and April 2019 (8 months).

1.7 Significance of Study

This study will be relevant in making the management of Organizations aware of the role that corporate brand identity plays in improving customer expectation and ultimately organizational profitability. It will also help to understand the corporate branding strategies that organizations can adopt in building, managing and promoting a favorable corporate image. 

This study will also help the banking industry as it will make managers of Banks in Nigeria understand the importance of good service provision and how it improves organizational performance and profitability. It will also show the need for corporate entities to develop good attitudes and relationship towards their customers.

This work will likewise be beneficial to scholars as it is an enhancement for past scholarly work of different researchers regarding the matter of corporate brand identity and customer expectations as it sheds more light to areas that haven’t been researched on.

Finally, the research will be beneficial to the society as it will introduce the public to concepts under corporate brand identity and customer expectation. It will also show the public how their expectations toward a corporate brand are formed.

1.8 Operationalization of Variables

Operationalization is a scientific description of the research point. The variables in these study have been broken-down to two factors, which is dependent and independent variable. The dependent variable is Customer Expectation because it cannot stand on its own, it requires the other to make a meaning. While the independent that is the Corporate Brand Identity can comfortably stand on its own and make a meaning. 

The dependent variable in this research is Customer Expectation, while the independent variable is Corporate Brand Identity.

Y =f(X)

Where Y is a dependent variable, f is a function and X is an independent variable.

Therefore:

y = (Customer Expectation) (CE)

x = (Corporate Brand Identity) (CBI)

Y =CE= {y₁, y₂, y_3, y₄…. yn}

y₁= Service Credibility

y₂ = Service Reliability

y₃ = Service Quality

y₄ = Service Accessibility

X = CBI = {x₁, x₂, x₃, x₄ …. xn}

x₁ = Visual Identity

x₂ = Corporate Personality

x₃ = Employee Commitment

x₄ = Consistent communication

1.9 Operational Definition of Terms

Corporate Brand Identity: it is basically everything the organization needs the brand to be viewed as. It is the sum of all the proposition that an organization makes to their customers, the assurances it gives. It implies that an organization is more than just a thought, item or administration.

Visual Identity: noticeable components of a brand, for example, the color, logo, symbol, trademark, which give a symbolic meaning that can't be communicated through words alone

Brand Personality: is the humanistic nature of a brand, the impression that a company is its own individual.

Consistent Communication: the ability of an organization to be able to keep up with their customers so as to ensure brand success.

Employee Commitment: is the psychological connection an employee has for an organization which leads to the loyalty of that employee to the company.

Customer Expectation: Customer expectancy are the various things such as attitude, values, quality, accessibility, reliability he or she expects to see or get because of their relationship with a brand or because of the identity and reputation a brand has.

Get this material NGN 5,000

Message Us on WhatsApp  »