IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v64y2011i10p1089-1096.html
   My bibliography  Save this article

Customer satisfaction and brand equity

Author

Listed:
  • Torres, Anna
  • Tribó, Josep A.

Abstract

The study here examines the interaction between shareholder value and customer satisfaction, as well as the impact on a firm's brand equity. Customer satisfaction may have a positive effect on brand equity, except when managers show excessive customer orientation, in which case the effect is negative because of reductions in shareholder value. The empirical analysis uses incomplete panel data pertaining to 69 firms from 11 nations during the period 2002-2005 and supports the theoretical contentions. This result warns of the perverse effect on brand equity of implementing policies focused exclusively on satisfying customers at the expense of shareholders' interests.

Suggested Citation

  • Torres, Anna & Tribó, Josep A., 2011. "Customer satisfaction and brand equity," Journal of Business Research, Elsevier, vol. 64(10), pages 1089-1096, October.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:10:p:1089-1096
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296310002560
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blackston, Max, 2000. "Observations: Building Brand Equity by Managing the Brand&s Relationships," Journal of Advertising Research, Cambridge University Press, vol. 40(6), pages 101-105, December.
    2. Jordi Surroca & Josep A. Tribó, 2008. "Managerial Entrenchment and Corporate Social Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(5‐6), pages 748-789, June.
    3. Demsetz, Harold & Villalonga, Belen, 2001. "Ownership structure and corporate performance," Journal of Corporate Finance, Elsevier, vol. 7(3), pages 209-233, September.
    4. Brady, Michael K. & Robertson, Christopher J., 2001. "Searching for a consensus on the antecedent role of service quality and satisfaction: an exploratory cross-national study," Journal of Business Research, Elsevier, vol. 51(1), pages 53-60, January.
    5. M. Pagano & P. F. Volpin, 2005. "Managers, Workers, and Corporate Control," Journal of Finance, American Finance Association, vol. 60(2), pages 841-868, April.
    6. Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation : An empirical analysis," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 293-315, January.
    7. Giovanni Cespa & Giacinta Cestone, 2007. "Corporate Social Responsibility and Managerial Entrenchment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 741-771, September.
    8. Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation," Scholarly Articles 29407535, Harvard University Department of Economics.
    9. Hayne E. Leland., 1998. "Agency Costs, Risk Management, and Capital Structure," Research Program in Finance Working Papers RPF-278, University of California at Berkeley.
    10. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    11. Greenley, Gordon E. & Hooley, Graham J. & Rudd, John M., 2005. "Market orientation in a multiple stakeholder orientation context: implications for marketing capabilities and assets," Journal of Business Research, Elsevier, vol. 58(11), pages 1483-1494, November.
    12. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    13. Vikas Mittal & Eugene W. Anderson & Akin Sayrak & Pandu Tadikamalla, 2005. "Dual Emphasis and the Long-Term Financial Impact of Customer Satisfaction," Marketing Science, INFORMS, vol. 24(4), pages 544-555, August.
    14. Athanassopoulos, Antreas D., 2000. "Customer Satisfaction Cues To Support Market Segmentation and Explain Switching Behavior," Journal of Business Research, Elsevier, vol. 47(3), pages 191-207, March.
    15. repec:bla:jfinan:v:53:y:1998:i:4:p:1213-1243 is not listed on IDEAS
    16. Roberts, Robin W., 1992. "Determinants of corporate social responsibility disclosure: An application of stakeholder theory," Accounting, Organizations and Society, Elsevier, vol. 17(6), pages 595-612, August.
    17. Keller, Kevin Lane, 2003. "Brand Synthesis: The Multidimensionality of Brand Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 595-600, March.
    18. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    19. Villalonga, Belen, 2004. "Intangible resources, Tobin's q, and sustainability of performance differences," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 205-230, June.
    20. M. S. Krishnan & Venkatram Ramaswamy & Mary C. Meyer & Paul Damien, 1999. "Customer Satisfaction for Financial Services: The Role of Products, Services, and Information Technology," Management Science, INFORMS, vol. 45(9), pages 1194-1209, September.
    21. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cowan, Kirsten & Guzman, Francisco, 2020. "How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study," Journal of Business Research, Elsevier, vol. 117(C), pages 683-693.
    2. Gerrit Antonides & Lies Hovestadt, 2021. "Product Attributes, Evaluability, and Consumer Satisfaction," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    3. Kui Wang & Wei Jiang, 2019. "Brand Equity and Firm Sustainable Performance: The Mediating Role of Analysts’ Recommendations," Sustainability, MDPI, vol. 11(4), pages 1-24, February.
    4. Suh, Yongyoon & Kim, Moon-Soo, 2014. "Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea," International Business Review, Elsevier, vol. 23(1), pages 115-129.
    5. Lin, Chiu Hui & Wu, Chih-Wen & Cheng, Yi-Han, 2015. "The empirical study of consumers' loyalty for display technology," Journal of Business Research, Elsevier, vol. 68(11), pages 2260-2265.
    6. Wu, Chih-Wen, 2014. "The study of service innovation for digiservice on loyalty," Journal of Business Research, Elsevier, vol. 67(5), pages 819-824.
    7. Tine Bock & Iris Vermeir & Patrick Kenhove, 2013. "“What’s the Harm in Being Unethical? These Strangers are Rich Anyway!” Exploring Underlying Factors of Double Standards," Journal of Business Ethics, Springer, vol. 112(2), pages 225-240, January.
    8. Azzam Rifi & Rania B. Mostafa, 2022. "Brand credibility and customer-based brand equity: a service recovery perspective," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(1), pages 1-16, March.
    9. Casenave, Eric & Klarmann, Martin, 2020. "The accountability paradox: How holding marketers accountable hinders alignment with short-term marketing goals," Journal of Business Research, Elsevier, vol. 112(C), pages 95-108.
    10. Gloor, Peter & Fronzetti Colladon, Andrea & Giacomelli, Gianni & Saran, Tejasvita & Grippa, Francesca, 2017. "The impact of virtual mirroring on customer satisfaction," Journal of Business Research, Elsevier, vol. 75(C), pages 67-76.
    11. Andrea Moretta Tartaglione & Ylenia Cavacece & Giuseppe Russo & Giuseppe Granata, 2019. "A Systematic Mapping Study on Customer Loyalty and Brand Management," Administrative Sciences, MDPI, vol. 9(1), pages 1-21, January.
    12. Iglesias, Oriol & Markovic, Stefan & Rialp, Josep, 2019. "How does sensory brand experience influence brand equity? Considering the roles of customer satisfaction, customer affective commitment, and employee empathy," Journal of Business Research, Elsevier, vol. 96(C), pages 343-354.
    13. Neil Thomas Bendle & Moeen Naseer Butt, 2018. "The Misuse of Accounting-Based Approximations of Tobin’s q in a World of Market-Based Assets," Marketing Science, INFORMS, vol. 37(3), pages 484-504, May.
    14. Sun, Wenbin & Ding, Yuan, 2020. "Corporate social responsibility and cash flow volatility: The curvilinear moderation of marketing capability," Journal of Business Research, Elsevier, vol. 116(C), pages 48-59.
    15. Kilian, Karsten & Müller, Michael, 2016. "Markencontrolling: Markenerfolg messbar machen," PraxisWISSEN Marketing: German Journal of Marketing, AfM – Arbeitsgemeinschaft für Marketing, vol. 1(01/2016), pages 1-21.
    16. Sergio Andres Osuna Ramirez & Cleopatra Veloutsou & Anna Morgan-Thomas, 2017. "A Systematic Literature Review of Brand Commitment: Definitions, Perspectives and Dimensions," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 3(3), pages 305-332, July.
    17. Markovich, Amiram & Efrat, Kalanit & Raban, Daphne R. & Souchon, Anne L., 2019. "Competitive intelligence embeddedness: Drivers and performance consequences," European Management Journal, Elsevier, vol. 37(6), pages 708-718.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jordi Surroca & Josep A. Tribó, 2008. "Managerial Entrenchment and Corporate Social Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(5‐6), pages 748-789, June.
    2. Isabel‐Maria García‐Sánchez & Nazim Hussain & Sana Akbar Khan & Jennifer Martínez‐Ferrero, 2020. "Managerial entrenchment, corporate social responsibility, and earnings management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1818-1833, July.
    3. Torres, Anna & Bijmolt, Tammo H.A. & Tribó, Josep A. & Verhoef, Peter, 2012. "Generating global brand equity through corporate social responsibility to key stakeholders," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 13-24.
    4. Surroca Aguilar, Jorge & Tribo Gine, José Antonio, 2009. "Is managerial entrenchment always bad? : a CSR approach," IC3JM - Estudios = Working Papers id-09-01, Instituto Mixto Carlos III - Juan March de Ciencias Sociales (IC3JM).
    5. repec:cte:idrepe:id-09-02 is not listed on IDEAS
    6. Torres Lacomba, Anna & Atribo, Jo & Bijmolt, Tammo H.A., 2010. "Generating Global Brand Equity through Corporate Social Responsibility to Key Stakeholders," Research Report 10007, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    7. repec:cte:idrepe:id-10-04 is not listed on IDEAS
    8. Ahrens, Jan-Philipp & Uhlaner, Lorraine & Woywode, Michael & Zybura, Jan, 2018. "“Shadow emperor” or “loyal paladin”? – The Janus face of previous owner involvement in family firm successions," Journal of Family Business Strategy, Elsevier, vol. 9(1), pages 73-90.
    9. Marc van Essen & J. (Hans) van Oosterhout & Pursey P. M. A. R. Heugens, 2013. "Competition and Cooperation in Corporate Governance: The Effects of Labor Institutions on Blockholder Effectiveness in 23 European Countries," Organization Science, INFORMS, vol. 24(2), pages 530-551, April.
    10. Cheung, W.K. Adrian & Wei, K.C. John, 2006. "Insider ownership and corporate performance: Evidence from the adjustment cost approach," Journal of Corporate Finance, Elsevier, vol. 12(5), pages 906-925, December.
    11. Anna Torres & Josep A. Tribó, 2007. "Ownership structure, customer satisfaction and brand equity," Economics Working Papers 1016, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2007.
    12. repec:dgr:rugsom:10007 is not listed on IDEAS
    13. Ker-Tah Hsu, 2012. "The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan," Journal of Business Ethics, Springer, vol. 109(2), pages 189-201, August.
    14. Bradley W. Benson & Wallace N. Davidson III & Hongxia Wang & Dan L. Worrell, 2011. "Deviations from Expected Stakeholder Management, Firm Value, and Corporate Governance," Financial Management, Financial Management Association International, vol. 40(1), pages 39-81, March.
    15. Renée Adams & Daniel Ferreira, 2008. "One Share-One Vote: The Empirical Evidence," Review of Finance, European Finance Association, vol. 12(1), pages 51-91.
    16. Stephen Brown & William Goetzmann & Bing Liang & Christopher Schwarz, 2008. "Mandatory Disclosure and Operational Risk: Evidence from Hedge Fund Registration," Journal of Finance, American Finance Association, vol. 63(6), pages 2785-2815, December.
    17. Minguez-Vera, Antonio & Martin-Ugedo, Juan Francisco, 2007. "Does ownership structure affect value? A panel data analysis for the Spanish market," International Review of Financial Analysis, Elsevier, vol. 16(1), pages 81-98.
    18. David Hillier & Patrick McColgan, 2008. "An analysis of majority owner‐managed companies in the UK," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(4), pages 603-623, December.
    19. Ferrell, Allen & Liang, Hao & Renneboog, Luc, 2016. "Socially responsible firms," Journal of Financial Economics, Elsevier, vol. 122(3), pages 585-606.
    20. Stavros E. Arvanitis & Theodoros V. Stamatopoulos & Dimitris Terzakis, 2018. "Is There a Non-linear Relationship of Market Value with Cash and Ownership?," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(1), pages 3-25, January-M.
    21. Manhwa Wu & Paoyu Huang & Yensen Ni, 2020. "The Impact of Institutional Shareholdings on Price Limits," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 27(3), pages 343-361, September.
    22. Greene, William H. & Hornstein, Abigail S. & White, Lawrence J., 2009. "Multinationals do it better: Evidence on the efficiency of corporations' capital budgeting," Journal of Empirical Finance, Elsevier, vol. 16(5), pages 703-720, December.
    23. Nam Hoai Tran & Chi Dat Le & David McMillan, 2020. "Ownership concentration, corporate risk-taking and performance: Evidence from Vietnamese listed firms," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1732640-173, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:64:y:2011:i:10:p:1089-1096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.