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Modeling the Impact of Corporate Reputation on Customer Satisfaction and Loyalty Using Partial Least Squares

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Handbook of Partial Least Squares

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Abstract

Reputation is one of the most important intangible assets of a firm. For the most part, recent articles have investigated its impact on firm profitability whereas its effects on individual customers have been neglected. Using data from consumers of an international consumer goods producer, this paper (1) focuses on measuring and discussing the relationships between corporate reputation, consumer satisfaction, and consumer loyalty and (2) examines possible moderating and mediating effects among the constructs. We find that reputation is an antecedent of satisfaction and loyalty that has hitherto been neglected by management. Furthermore, we find that more than half of the effect of reputation onto loyalty is mediated by satisfaction. This means that reputation can only partially be considered a substitute for a consumer’s own experiences with a firm. In order to achieve consumer loyalty, organizations need to create both, a good reputation and high satisfaction.

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Author information

Authors and Affiliations

  1. John and Doris Norton School of Family and Consumer Sciences, University of Arizona, 650 N. Park Ave, 210078, Tucson, AZ, 85721-0078, USA

    Sabrina Helm

  2. University of Paderborn, Warburger Str. 100, 33098, Paderborn, Germany

    Andreas Eggert & Ina Garnefeld

Authors
  1. Sabrina Helm
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  2. Andreas Eggert
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  3. Ina Garnefeld
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Corresponding author

Correspondence to Sabrina Helm .

Editor information

Editors and Affiliations

  1. Dept. Inf. Systems & Decision Sciences, ESSEC Business School of Paris, av. Bernard Hirsch, Cergy Pontoise CX, 95021, France

    Vincenzo Esposito Vinzi

  2. Bauer College of Business, University of Houston, Houston, 77204-6282, U.S.A.

    Wynne W. Chin

  3. Nijmegen School of Management, Radboud University, Nijmegen, Netherlands

    Jörg Henseler

  4. School of Economics & Management, BeiHang University, XueYuan Road 37, Beijing, 100083, China, People's Republic

    Huiwen Wang

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Helm, S., Eggert, A., Garnefeld, I. (2010). Modeling the Impact of Corporate Reputation on Customer Satisfaction and Loyalty Using Partial Least Squares. In: Esposito Vinzi, V., Chin, W., Henseler, J., Wang, H. (eds) Handbook of Partial Least Squares. Springer Handbooks of Computational Statistics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-32827-8_23

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