The Impact of Corporate Brand Reputation on Customer Satisfaction, Loyalty, and Retention: A Structural Equation Modelling and Confirmatory Factor Analysis Approach – A Case Study of Vodacom Customers in South Africa

This study examines Vodacom’s corporate brand reputation strategy in South Africa’s mobile network operator (MNO) sector, focusing on its impact on customer satisfaction, loyalty, and retention. Using structural equation modelling (SEM) and confirmatory factor analysis (CFA) on data from 389 Vodacom users, we found strong links between brand reputation, satisfaction, and loyalty, but no direct effect on retention, suggesting mediating factors. The findings underscore the importance of both functional and emotional brand components in fostering customer loyalty, indicating that MNOs should strategically manage brand perceptions. Future research should explore additional drivers of customer retention in South Africa’s MNO market. Summary Statement of Contribution: This paper provides the first empirical SEM-based analysis of Vodacom customers in South Africa to reveal that corporate brand reputation significantly enhances satisfaction and loyalty yet fails to directly drive retention, exposing an indirect loyalty-mediated path. By integrating emotional and functional brand dimensions, our findings inform MNO managers to strategically calibrate brand investments and loyalty programs, guide policymakers on consumer-focused branding standards, and enrich academic discourse on brand–retention mechanisms in high-churn telecommunications markets. Keywords: Corporate Brand Image, Customer Satisfaction, Consumer Loyalty, Customer Retention, Mobile Network Operator, Vodacom