The Role of Corporate Image in the NCSI Model

Abstract

In building and testing NCSI models, there are some disagreements on whether or how customer expectations and corporate image constructs should be incorporated into the model. The objective of this paper is to analyze empirically, using an extensive data set, whether we should include customer expectations and corporate image in the NCSI model, and where to locate corporate image if it is to be included in the model. By conducting this analysis, the optimal revised KCSI model can be obtained. Additionally, by applying this revised model to the different types of industries and the different levels of knowledge, we tried to verify the applicability of this model. For the empirical test, we proposed two rival models based on Han's (1989) halo model and summary construct model. The results, based on data from six industries (3 manufacturing and 3 service industries) in Korea, showed that the goodness-of-fit indices of the proposed two models including corporate image are superior to that of the KCSI model. Additionally, the effect of customer expectation on customer satisfaction is positive and statistically significant. Another finding is that, disregarding industry types and the degrees of knowledge level, the summary model fits better than the halo model. Therefore, the major contribution of this paper is two-fold. First, it reveals that customer expectation is a very meaningful construct in the KCSI model when corporate image serves as a mediating variable. Second, this paper is the first to propose a specific location for corporate image within the NCSI model.

Key Words:

• ACSI
• ECSI
• KCSI
• customer satisfaction
• corporate image
• halo
• summary construct