Corporate image and corporate reputation in customers’ retention decisions in services

Corporate image and corporate reputation in customers’ retention decisions in services In the present competitive environment, corporate reputation and corporate image are acknowledged as having the potential to impact on customer loyalty toward the firm. However, the literature reveals that the precise nature of the relationships that exist between reputation and image and the understanding of their effect on customer behaviour remains a key challenge for both academia and management alike. With data collected in three service industries, namely 222 consumers in the retail sector, 171 clients of a major long-distance company and 395 students of a faculty of business administration, this study contributes to the body of knowledge by empirically testing the nature of the relationship between corporate reputation and corporate image and their effect on the customers’ retention decisions. The results of the study reveal that the degree of customer loyalty has a tendency to be higher when perceptions of both corporate reputation and corporate image are strongly favourable. Moreover, the addition of the interaction between both constructs contributes to better explain customer loyalty. The implications of the study are discussed from both the research and managerial perspectives. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Retailing and Consumer Services Elsevier

Corporate image and corporate reputation in customers’ retention decisions in services

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Publisher
Elsevier
Copyright
Copyright © 2001 Elsevier Science Ltd
ISSN
0969-6989
D.O.I.
10.1016/S0969-6989(00)00029-1
Publisher site
See Article on Publisher Site

Abstract

In the present competitive environment, corporate reputation and corporate image are acknowledged as having the potential to impact on customer loyalty toward the firm. However, the literature reveals that the precise nature of the relationships that exist between reputation and image and the understanding of their effect on customer behaviour remains a key challenge for both academia and management alike. With data collected in three service industries, namely 222 consumers in the retail sector, 171 clients of a major long-distance company and 395 students of a faculty of business administration, this study contributes to the body of knowledge by empirically testing the nature of the relationship between corporate reputation and corporate image and their effect on the customers’ retention decisions. The results of the study reveal that the degree of customer loyalty has a tendency to be higher when perceptions of both corporate reputation and corporate image are strongly favourable. Moreover, the addition of the interaction between both constructs contributes to better explain customer loyalty. The implications of the study are discussed from both the research and managerial perspectives.

Journal

Journal of Retailing and Consumer ServicesElsevier

Published: Jul 1, 2001

References

  • The social construction of reputation: certification contests, legitimation, and the survival of organizations in the American automobile industry: 1895–1912
    Rao, H
  • Reputation and corporate strategy: a review of recent theory and application
    Weigelt, K; Camerer, C

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