Abstract
Prior research suggests that corporate image and reputation can contribute to relationship marketing and customer loyalty. However, little empirical evidence supports the influence of these constructs on customer loyalty. This study investigates the influence of corporate image – comprised of functional and emotional aspects – and reputation on customer loyalty. A structural equation model is developed to test the research hypotheses. The study was tested using data collected from a sample of Spanish consumers in a service setting. Results show that functional and emotional image have a positive influence on corporate reputation. Similarly, corporate reputation has a positive influence on customer loyalty. This study may help managers use their resources more effectively by focusing on corporate image and reputation as important strategic assets to enhance customer loyalty.
Highlights
While some studies document a positive relationship between corporate image and reputation and financial performance (Fombrun 1996; Roberts and Dowling 2002) and try to explain their underlying mechanisms and consequences (Cretu and Brodie 2007; Dowling 2006; Keh and Xie 2009; Walsh and Wiedmann 2004), existing research in the marketing literature says little about whether corporate image and allied constructs such as corporate reputation can contribute to relationship marketing and customer loyalty
The main contribution of the present study lies in its examination of the process of generating customer loyalty using the constructs of corporate image ‒functional and emotional‒ and reputation
By considering the image of a firm with the notion that corporate reputation is an important construct for understanding consumer behavior (Nguyen and Leblanc 2001; Keh and Xie 2009; Walsh et al 2009), this research suggest a framework to delve into customer loyalty
Summary
While some studies document a positive relationship between corporate image and reputation and financial performance (Fombrun 1996; Roberts and Dowling 2002) and try to explain their underlying mechanisms and consequences (Cretu and Brodie 2007; Dowling 2006; Keh and Xie 2009; Walsh and Wiedmann 2004), existing research in the marketing literature says little about whether corporate image and allied constructs such as corporate reputation can contribute to relationship marketing and customer loyalty. Many researchers in marketing have recognized the critical roles of corporate image and reputation in customersbuying behavior and their importance in developing and maintaining loyalty on the part of consumers (Dick and Basu 1994; Helm and Tolsdorf 2013; Nguyen and Leblanc 2001; Richard and Zhang 2012; Tu et al 2013). Some authors have expressed a potential link between the two concepts there is some confusion between both constructs (Abratt and Klein 2012; Gotsi and Wilson 2001; Melewar et al 2012)
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