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

  • Sabrina HelmEmail author
  • Andreas Eggert
  • Ina Garnefeld
Chapter
Part of the Springer Handbooks of Computational Statistics book series (SHCS)

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.

Keywords

Partial Little Square Structural Equation Modeling Customer Satisfaction Consumer Research Customer Orientation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.John and Doris Norton School of Family and Consumer SciencesUniversity of ArizonaTucsonUSA
  2. 2.University of PaderbornPaderbornGermany

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