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 of Retailing and Consumer Services – Elsevier
Published: Jul 1, 2001
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