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An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty

An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty Customer loyalty is a major strategic objective and focus in marketing. It has been suggested that brand reputation is a major driver of customer loyalty, and hence companies seek to increase the equity of their brands. Quality affects not only customer satisfaction, but also the reputation of the brand. Thus, both brand reputation and customer satisfaction are important determinants of customer loyalty. The interaction between these two drivers of customer loyalty has, however, been neglected in the literature. Presents a theoretical model which integrates quality, brand reputation, customer satisfaction and loyalty. The model is tested in four industries, covering both business‐to‐business markets and private customer markets. The findings suggest that companies should monitor and improve both customers satisfaction and brand reputation. In situations where the intrinsic cues of the product or service are ambiguous, brand reputation is the strongest driver of customer loyalty compared with customer satisfaction. In fact, when the intrinsic cues are ambiguous, it is found that customer satisfaction is not driving customer loyalty. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Marketing Emerald Publishing

An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty

European Journal of Marketing , Volume 27 (9): 17 – Oct 1, 1993

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Publisher
Emerald Publishing
Copyright
Copyright © 1993 MCB UP Ltd. All rights reserved.
ISSN
0309-0566
DOI
10.1108/03090569310043179
Publisher site
See Article on Publisher Site

Abstract

Customer loyalty is a major strategic objective and focus in marketing. It has been suggested that brand reputation is a major driver of customer loyalty, and hence companies seek to increase the equity of their brands. Quality affects not only customer satisfaction, but also the reputation of the brand. Thus, both brand reputation and customer satisfaction are important determinants of customer loyalty. The interaction between these two drivers of customer loyalty has, however, been neglected in the literature. Presents a theoretical model which integrates quality, brand reputation, customer satisfaction and loyalty. The model is tested in four industries, covering both business‐to‐business markets and private customer markets. The findings suggest that companies should monitor and improve both customers satisfaction and brand reputation. In situations where the intrinsic cues of the product or service are ambiguous, brand reputation is the strongest driver of customer loyalty compared with customer satisfaction. In fact, when the intrinsic cues are ambiguous, it is found that customer satisfaction is not driving customer loyalty.

Journal

European Journal of MarketingEmerald Publishing

Published: Oct 1, 1993

Keywords: Brand equity; Customer satisfaction; Customer loyalty; Marketing; Quality

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