| Abstract: | Brand image is an important concept in customer loyalty and it is a crucial factor influencing the purchasing of product and service. In today’s competitive business world central to relationship marketing is customer loyalty. Considering highly competitive, complex and dynamic environment of the aviation industry together with slight differences which exist in financial services, brands become a key differentiator to enable the airline to gain a competitive advantage in the industry. The main purpose of this study is to examine the effect of brand image on customer loyalty in case of Ethiopian airlines. The target populations of this research were Ethiopian airlines customers. The study adopted both qualitative and quantitative research approach with explanatory research design. To gather the relevant data for the study objective, the data collection process is done using self- administered questionnaire filled by international passengers of Ethiopian airlines. A three –page standardized survey questionnaire was employed. Questionnaires were designed based the reviewed literature and distributed to 384 customers who were selected using convenience sampling technique. Out of these, 297 were properly completed and returned. Both primary and secondary data are used in the study. Moreover, the data collection process is done using self- administered questionnaire filled by Ethiopian airline passengers and the data were analyzed by using descriptive, correlation, and regression analysis supported by SPSS (statistical package for social sciences). The study come up with brand image has a significant effect on customer loyalty. The study revealed that the five dimensions of brand image that is, brand awareness, brand association, brand recognition perceived quality and brand trust have positive and significant relation with customer loyalty. The study recommend that brand image is very vital to attract and retain customers; therefore, continuous improvement must be maintained at all times on brand awareness, brand association, brand recognition perceived quality as well las brand trust that meet customer loyalty. |
