Corporate Image and Brand Performance of Kenyan Universities

Abstract

The highly competitive arena of the higher education sector implies the need for a goodcorporate image. Corporate image is recognized in the literature to have a positiveimpact on customer loyalty and is also a great way of differentiating an organizationfrom its competitors as well stimulating consumers purchase. The higher educationsectors’ products and services are increasingly similar today hence the need for theinstitutions to devise strategies to differentiate their products. Literature acknowledgesthe role of corporate image as an asset which could give an organization a chance todifferentiate itself with hope of maximizing its market share, acquiring new customersretaining existing ones, as well as counteracting the competitors’ actions in order toensure success and improved performance. Organizations in the service industry are in business of creating outstanding service experiences for their customers. The management of corporate image however, is not an easy one especially in the serviceindustry given the intangibility nature of services. An organization’s propermanagement of its corporate image, can add value to a firm in a variety ways.Conversely, a negative image can destroy an organization’s reputation and isolate theircustomers. Empirical study results on corporate image and brand performancerelationship however report mixed findings hence the need for the current study. Thisstudy investigated the relationship between corporate image and brand performance ofKenyan Universities. Data for the study were collected using a semi structuredquestionnaire. The study focused on key informants mainly universities’ corporateaffairs or public relations managers or their equivalent. The study findings indicate thatthe relationship between corporate image and brand performance is statistically significant. It explained 45.1% of variation (=.451). The standardized regressioncoefficient (β) value of the computed (composite index) scores of corporate image was.672 with a t-test value of 5.290 and a significance level of p-value=.000. The findings ofthe study support the notion that corporate image impacts brand performance. Thistherefore implies that an organization that invests in brand marketing activities relating to corporate image should experience enhanced brand performance. The study’scontribution to the higher education sector is in terms of addition to the body ofknowledge. It also provides policy and managerial implications. The study only coveredKenyan universities. A similar study could also be carried out in the future focusing on