Examining the Impact of Brand Identity on Customer Loyalty at Sonangol Integrated Logistics Services in Namibia.

Abstract

The purpose of this study was to examine the impact of brand identity on customer loyalty at Sonangol Integrated Logistics Services in Namibia. Employing a positivist research paradigm, a quantitative approach was adopted using a cross-sectional research design. Data were collected via a structured questionnaire from a stratified random sample of 272 customers, representing both corporate and general client segments. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyse the relationships between constructs. Path coefficients, t-statistics, and p-values were examined to determine the significance of each relationship. Among the tested paths, Brand Values (β = 0.527, p = 0.001) showed a strong and significant influence on Customer Loyalty, followed by Brand Visual Identity (β = 0.076, p = 0.323) and Brand Consistency (β = 0.154, p = 0.173), though the latter two were not statistically significant. Brand Personality (β = -0.017, p = 0.639) showed a weak and non significant effect. Additionally, Customer Perception was found to significantly mediate the relationship between Brand Visual Identity and Customer Loyalty (p = 0.001). The model’s explanatory power was reflected in an R² value of 0.581 for Customer Loyalty, indicating that the independent variables explained 58.1% of its variance. Reliability and validity tests confirmed the robustness of the measurement model, with Cronbach’s alpha and composite reliability values exceeding the recommended thresholds, and Average Variance Extracted (AVE) confirming convergent validity. The study highlights the critical role of brand values and customer perception in fostering loyalty, suggesting that brand personality and consistency may influence loyalty indirectly or under certain conditions. The study offers valuable insights for brand managers and marketing strategists in the logistics and energy sectors. It emphasises the importance of crafting a consistent, value-driven, and customer-aligned brand identity to foster loyalty and sustain a competitive edge. This research also contributes to the limited body of knowledge on brand identity in emerging African markets and recommends further cross-sectoral studies to validate and expand these findings. Building on the limitations identified, several avenues for future research are recommended. For example, incorporating qualitative methods such as interviews, focus groups, or case studies could provide deeper insights into customer perceptions and experiences, offering richer context beyond what structured questionnaires capture.