Abstract

The main aim of this research was to investigate the root causes of poor brand image of NFC bank Yaoundé. Specifically, the study sought to investigate the relationship between service quality and brand image of NFC Bank, to examine the relationship between advertisement and brand image of NFC Bank and to find out the relationship between brand awareness and brand image of NFC Bank. This study made use of an exploratory research design and sample size was chosen based on Krejcie and Morgan’s formula of sample size determination which gave a sample 380.

Again, the used both primary data and secondary data and questionnaires were used to gather primary data while secondary data was generated from numerous sources like books, and online journals. Data for this study was analysed using a logistic regression model and findings revealed that service quality affects brand image of NFC Bank.

Findings also revealed that advertising significantly affects brand image of NFC Bank and finally it was revealed that brand awareness significantly affects brand image of NFC Bank. A proposed model for building a strong brand for NFC Bank was recommended by the researcher.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to the Study

In today’s business world, it is critical for the companies to differentiate their products from competitors to survive in the global competition. Companies have to create something unique for the consumers in order to differentiate their products and services from those of competitors. To stay on the surface and in the consumers’ minds requires a constant development of the branding strategies the company is using. Getting into customers’ favour can bring significant advantages for the company and help it on the competitive battlefield. The company has it as responsibility to portrait a good image in the minds of their customers.

Also, branding is considered as a strategic requirement for organizations, which helps them to create more value for customers and to provide sustainable competitive advantages. The development of a strong brand in the market is the main objective of many organizations (Ballester and Aleman, 2005).

A strong brand is considered as the most valuable property of a commercial institution, since it can make organization to gain profit that is more marginal and better cooperation channels (Olson, 2008). In addition, it can enhance customer trust while purchasing products and services and helps them to perceive intangible factors properly (Chen & Chen, 2008). Brands are vital for service sector, since intangible nature of services make its quality evaluation difficult for customers (Krishnan and Hartline, 2001).

Choosing and implementing an adequate and developed strategy of brand is considered as final factor of success in a servicing organization like banks. If a customer believes that, there are significant differences among brands and this issue results in an important information part in purchase decision-making, reliance of the said customer on decision-making based on brand would be enhanced (Anand 1988). Knowledge of customer relationship dimension helps service giving organizations to Optimize.

Branding has become a necessity in business. Just a product or service is not enough anymore. Additional value and especially fine brand management are also needed. It is fascinating to study how branding can affect a human mind and successfully mediate favourable associations to consumers.

A company can be seen and examined from various angles and perspectives. Some people associate the company with its geographical image while others link it with its product range, but the pressure is for companies to stand out constantly due to the ever increasing competition. However, companies that successfully manage their brand can expect benefits such as advantages of market entry and differentiation over their competitors (Hatch & Schultz, 2000).

After 1980, one of the most important developments within branding has been manager’s increased awareness of how crucial and valuable it is for the company to have a strong brand (Reizeboz, 2003). This idea first emerged among financial analysts, who equaled a strong brand to a company’s future income.

During the second half of 1980, the idea spread to marketers who quickly understood that a brand’s value was not to be underestimated, since strong brand is possibly the most valuable asset of a company (Keller, 2002).

One example that illustrates how powerful a strong brand actually can be is the research concerning consumer preferences regarding Coca-Cola and Pepsi cola, brought forward by Merlin, (1997). The results of a blind test reveal that a clear majority preferred Pepsi to coke. However, if the consumers were aware of what brand they were drinking, a majority (as clear as in the blind test), and preferred coke to Pepsi. This conclusion can be drawn from this is that brand image to a high extent can affect consumer preferences.

The business world recognized the importance of brands, and soon the focus was shifted to understand their value, vision and purpose (Kapferer, 2008). The result was the formation of concepts known as brand identity and brand image.

1.2 Statement of the problem

Having a strong brand image is important, since it can provide a business with several benefits both externally and internally, for example generating good image, consumer confidence, loyalty breeding employee motivation, attracting new employees and stimulating investments (Christensen & Askegaard, 2001).

Powerful brands provide long-term security and growth, higher sustainable profits, and increased asset value because they achieve competitive differentiation, premium prices, higher sales volumes, economies of scale and reduced costs, and greater security of demand (Temporal, 2000).

Despite all the advantages associated with having a strong brand, NFC Bank still fall short when it comes to service quality, advertisement and brand awareness. They do very little to get their products and services to the public. Their customers have low awareness on the various products and services offered by the bank.

However, research from online platforms (website and Facebook page) of NFC Bank reveal that, NFC Bank has a limited number of Social media likes when compared to other competing banks. Customers rarely see adverts of the bank online and even when they do it is not engaging. These have let the researcher to investigate the root causes for the poor brand image of NFC Bank

1.3 Research questions

1.3.1 General research question

What are the root causes of Poor brand image in NFC Bank?

1.3.2 Specific research question

1. What is the relationship between service quality and brand image of NFC Bank?
2. What is the relationship between advertisement and brand image of NFC Bank?
3. What is the relationship between brand awareness and brand image of NFC Bank?

1.4 Research objectives

1.4.1 Main research objective

To investigate the root causes of poor brand image of NFC bank

1.44.2 Specific research objectives

1. To investigate the relationship between service quality and brand image of NFC Bank
2. To examine the relationship between advertisement and brand image of NFC Bank
3. To find out the relationship between brand awareness and brand image of NFC Bank