Communicating corporate image into existence: the case of the Saudi banking industry

Abstract

PurposeThe paper seeks to explore the factors that would make an impact on the corporate image of large commercial banks in Saudi Arabia through the perceptions of direct customers. It proposes an appropriate way of measuring corporate image in the Saudi banking industry through the development of a questionnaire.Design/methodology/approachA questionnaire, presented in English and Arabic, was piloted and tested to a group of banking customers in three major cities of Saudi Arabia.FindingsResults indicate that three factors significantly influence perception: “financial prospects”, “corporate management” and “corporate communication”. These explain 67.7 per cent of the total variance. The notion of “market presence” was not strongly felt in the Saudi banking industry despite the growing trend of internationalization of large commercial banks in the country.Research limitations/implicationsCorporate image is regarded as a critical, strategic and enduring intangible asset for an organization. A favorable corporate image can be an effective form of differentiation and a source of competitive advantage ensuring long‐term success.Practical implicationsManaging complex customer relationships is a first step in creating better corporate image. Publicity tools need to be strategically deployed to create a stronger market presence. Financial performance should be appropriately communicated to instill confidence and loyalty in customers.Originality/valueThis is the first of such research conducted in Saudi Arabia. Customers' interpretation and perception of corporate image in the Saudi banking industry suggests that corporate branding is as important as corporate identity. As such, this paper reveals that complacency in corporate communication practices is the very reason why market presence fails to endure the test of time.