Congruency of perceived and manifested corporate image / Florendo M. Rabago. 6

Thesis (Ph.D.) -- Pamantasan ng Lungsod ng Maynila, 1997.;A dissertation presented to the faculty of the Graduate School of Management in partial fulfillment of the requirements for the degree Doctor of Business Administration. 56

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ABSTRACT: This study provides a framework for analyzing the extent of the relationship between the manifestation and perception of corporate image of selected Unibanks in Metro Manila. Primary objective of this study is the identification of corporate image determinants that describes the bank-market structure, i.e., (a) To identify the determinants of Corporate Image. The sub-statements of the problem advanced were: 1. What factors do the banks use to create the desired (manifested) corporate image? 2. What factors generate the perceived corporate image for the banking publics? 3. To what extent does the perceived corporate image by the publics, overlap with the manifested corporate image of the bank? 4. What factors of corporate image do clients' seek in a bank service usage situation such as: a. business usage; b. personal usage: 5. Which of the variables of corporate image contribute the most to the overlap? The following hypotheses were tested: Hypothesis 1. The manifested variables of corporate image do not differ when respondents are grouped according to bank usage ownership. Hypothesis 2. The perceived variables of corporate image do not differ when respondents are grouped according to bank ownership. Hypothesis 3. The aggregate response on the variables of corporate image do not differ when respondents are grouped to bank usage situation. FINDINGS AND CONCLUSIONS: This study assessed a mathematical model for analyzing the relationship between the manifestation and perception of corporate image. The influence of culture, character, reputation, identity, leadership, and business performance, manifested image by the bank is measured by the degree of congruity to the perceived image i.e., needs and expectancy of the beholder was incorporated to develop a hybrid congruity model wherein the Fishbein model is added. The hybrid congruity model is expressed as: Where: DBJ= The overall linear discrepancy between the jth consumers' self-image (needs & expectation) and his perception of the image of the Bth Unibank (manifested image) i= the specific image components used to assess both Unibank's (manifested utility / offerings) and self-image (needs & expectation). Pij= the jth consumer's perception on the ith image component (performance). Uij= the jth consumer's perception of utility / offering on the ith image component (performance). Ao= the person's overall attitude toward the object (corporate culture & identity) Bi= the strength of the belief that the object (corporate culture & identity) is related to attribute (character) i. E i= the person's evaluation or intensity of feelings (liking or disliking) toward attribute I (character) N= the number of relevant beliefs (reputation). The model required five sets of information which were resolved. (a) variables of corporate image; In resolving sub-problem no. 1, the self-explicated variables of corporate image enumerated by the 384 respondent aggregated to forty (40) variables. Based on a ranking process using the Mineigen values, only seventeen (17) factors were extracted based on the listed variables by the respondents. (b) relative positioning of corporate images as manifested by the banks and as perceived by component groups; After reducing the data using the process of Factor Analysis, the Factors derived from this process was compared for the manifested and perceived corporate image. The Manifested corporate image revealed fourteen (14) FACTORS while the Perceived corporate image indicated fifteen (15) FACTORS. Twelve (12) Factors are common to both images (manifested and perceived) on the usage situations and these are: bank reputation, strength, bank size, earnings of deposits/ investments, reliability, FOREX transactions, speed of service, bank image, loan amortization, service delivery, accessibility and bank universality. The five (5) factors that differ from each usage situations are: for business situation-bank stability and ease in bank transactions; for personal situation-loan availability, variety of available service, and reputation of bank officials. The statistical treatment of the Factors of a multivariate format was reduced to a bivariate analysis but strengthened by applying a tandem of three (3) non-parametric test namely; Spearman Rank Correlation Coefficient, Chi-Square Test and Correlation Matrix. Using a tandem of three test, the ranking of determinants of corporate image are strongly correlated when respondents are grouped in terms of the perceived and manifested corporate image. Implying, that the ranking of determinants of corporate image do not differ among respondents when grouped in terms of the perceived and manifested corporate image. (c) market structure- testing whether groups of bank client having diverse perception of usage situation; the Spearman Rank Correlation Coefficient= 0.623, indicated that the correlation among the ranking of factors utilized by the respondents in their choice of a bank for two bank use situation was significant. Therefore, the perceived determinants of corporate image do not differ when respondents are grouped to bank usage situation. (d) describe the degree of congruity of the manifested image to the perceived image i.e., needs and expectancy of the beholder. The Perceptual Map, could only present the visual clustering of points and the determination of the CENTROIDS. The rotation of the axis and the use of Euclidian distance established the frequency distribution along the axes connecting the centroids of the two clusters of points representing the perceived and manifested images on two Dimensions i.e., Dimension I-Service Reputation and Dimension II-Universal Strength. The shaded area representing the overlap of the two clusters of points and the intersection of the two bell-shaped frequency distribution curves representing the perceived and manifested images is the AREA OF CONGRUENCE. In three dimensional configuration, the overlap of the two clusters inclusive of the height and is conical in shape, representing the DEGREE OF CONGRUENCY. The Scree Test, revealed the first seven (7) factors for manifested corporate image i.e.: bank reputation, strength, bank size, earnings of deposits/ investments, reliability, dollar transactions and bank stability. For perceived corporate image the Factors are: bank reputation, strength, reliability, bank size, loan availment, earnings of deposits/ investments, and service delivery. A second factor analysis revealed that the following twenty-three (23) variables of a total of forty (40) variables involved in the seven (7) Factors that are significantly present in the overlap of the perceived and manifested images. These variables are: 1. CORPORATE PHILOSOPHY- this variable is considered the most dominant and strongest determinant of corporate image, as the corporate culture, rituals, symbols, logos and images, also from the influences of physical and abstract variables such as architecture, interior design, colors, advertising, employee ambience, atmospherics and business philosophy. Reflective of the public's emotional and aesthetic responses supplementing and in combination to their cognitive or evaluative responses. This identity is the manifestations and root metaphors or integrating symbols resulting from the strength of the corporate culture for the organization to grow and adapt in their environment in order to survive. It is essential that a corporate identity is distinctive, easily recognized remembered and, if possible, the character. 2. The other variable that confirms the corporate philosophy is NICE BANK ATMOSPHERE; SATISFACTORY SERVICE; COMPETENCE OF STAFF; AVAILABILITY OF SERVICE; AVAILABILITY OF STAFF; SERVICE MIDDLE CLASS UP. Corporate image advertising promotes the company (the identity and character it wants to manifest) rather than its products or services. It is designed to convey favorable impression of a firm's policies, products, and overall corporate health. 3. The seven (7) factors that are significant for the business situation are: Bank Reputation, Strength, Bank Size, Earnings of Deposits/ Investments, Reliability, FOREX transaction, and Bank Stability.

4. The six (6) factors that are significant for the personal situation are: Bank Reputation, Strength, Reliability, Bank Size, Loan Availment, and Earning of Deposits/ Investments. 5. Twelve (12) Factors are common to both usage situation and these are: bank reputation, strength, bank size, earnings of deposits/ investments, reliability, FOREX transactions, speed of service, bank image, loan amortization, service delivery, accessibility, and bank universality. 6. The five (5) Factors that differ from each usage situation are: for business situation-bank stability and ease in bank transactions; for personal situation-loan availment, variety of available service, and reputation of bank officials. 7. The perceived determinants of corporate image do not differ when respondents are grouped according to bank usage situation (personal or business). 8. The ranking of determinants of corporate image do not differ among respondents when grouped in terms of Bank Ownership both for the perceived and manifested corporate image. 9. The degree of congruity of the manifested image to the perceived image could be described by the perceptual mapping technique. 10. The variables of corporate image that contribute most to the congruency are: 1) CORPORATE PHILOSOPHY 2) SATISFACTORY SERVICE 3) PARKING AREA 4) PROXIMITY OFFICE/ RESIDENCE 5) MORE BANKING HOURS 6) POTENTIAL FOR EXPANSION 7) COMPETENCE OF STAFF 8) SERVICE MIDDLE CLASS UP 9) GROWTH HISTORY 10) NO. OF BRANCHES 11) BANK SIZE 12) HIGH TECHNOLOGY 13) LOCATED IN SHOPPING AREA 14) LOCATED IN SCHOOL AREA 15) HIGH INTEREST RATE 16) NUMBER OF COUNTERS 17) LONGER PAYMENT TERMS 18) NICE BANK ATMOSPHERE 19) INSTALLMENT PAYMENT

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