Corporate Reputation and Customer Brand Switching Behavior in Sri Lankan Telecommunication Industry

Abstract

In the fiercely competitive telecommunication industry in Sri Lanka, companies tend to focus on the respective customer base without just limiting to the new customers. In this competition, the existing customers are exposed to variety of offers from the competing firms and this may be a persuasive message for the customer to switch the service provider. The corporate reputation of a company can provide a competitive edge to ensure the growth and the survival in a highly competitive environment. This study attempts to assess the impact of corporate reputation on customers brand switching behavior. The study sampled 350 individual customers who have been using the mobile service at a minimum of one year. The data were collected using self administered questionnaires. The study found that the direct impact of firms’ corporate reputation on customers brand switching behavior is significant while some of the major components of corporate reputation are with a greater contribution. Among the determinants of the corporate reputation the emotional appeal and the products and services play a large role in building the customers perception towards the corporate reputation of a firm that will lead to the switching behavior. The firm’s corporate reputation could help the marketability of its products or services and it also trigger the positive perception of quality and value of products or services in the mind of their potential customers. The findings of this study provide important implications to the telecommunication operators in their effort to increase their customer base and, more importantly, to ensure the interest of the customers towards the organization.The Kelaniya Journal of Management, Vol. 3(2); 2014: 68-84