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Exploring the Impact of Corporate Reputation on Consumer Satisfaction and Loyalty

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Abstract:

Corporate reputation is known to facilitate new customer acquisition. How reputation affects already established customer relationships, however, has not been investigated in detail. Using a structural equation modelling approach and a German consumer sample, the paper is aimed at investigating the relationship between reputational perceptions of consumers, their satisfaction, and loyalty. The findings show that investing in corporate reputation is a means to augment both, satisfaction and loyalty, thereby stabilizing corporate relationships to consumers. These results stress the strategic importance of reputation as consumer loyalty is considered a pre-economic performance measure and important success factor of the firm.

Keywords: CONSUMER LOYALTY; CONSUMER SATISFACTION; CORPORATE REPUTATION; PARTIAL LEAST SQUARES; REPUTATION MANAGEMENT; STRUCTURAL EQUATION MODELLING

Document Type: Research Article

DOI: http://dx.doi.org/10.1362/147539206777036968

Publication date: March 1, 2006

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