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Published in:
2010 | OriginalPaper | Chapter
Modeling the Impact of Corporate Reputation on Customer Satisfaction and Loyalty Using Partial Least Squares
Authors : Sabrina Helm, Andreas Eggert, Ina Garnefeld
Published in: Handbook of Partial Least Squares
Publisher: Springer Berlin Heidelberg
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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.