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Reputation and product tampering in service industries

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  • Jai-Beom Kim
  • Chong Ju Choi

Abstract

This theoretical paper aims to identify the role of trust and reputation between consumers and firms when there is product tampering or other types of product liability. When product tampering occurs, trust implicitly built towards brand or corporation by consumers or customers can be dissipated. This article assesses the impact of quality uncertainty and measurement costs on the trust relationship between consumers and corporations. The ideas are also applied to the case of bank runs. Preliminary findings indicate that in cases where the trust between consumer and firms is strong, and there are high measurement costs and uncertainty, the reputational relationship between customers and firms can experience strong repercussions.

Suggested Citation

  • Jai-Beom Kim & Chong Ju Choi, 2003. "Reputation and product tampering in service industries," The Service Industries Journal, Taylor & Francis Journals, vol. 23(4), pages 3-11, September.
    • Handle: RePEc:taf:servic:v:23:y:2003:i:4:p:3-11
    DOI: 10.1080/02642060412331300972
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    Cited by:

    1. Ana Isabel Polo Peña & Dolores María Frías Jamilena & Miguel Ángel Rodríguez Molina, 2017. "The effects of perceived value on loyalty: the moderating effect of market orientation adoption," Service Business, Springer;Pan-Pacific Business Association, vol. 11(1), pages 93-116, March.
    2. Ilona Szőcs & Bodo B. Schlegelmilch & Thomas Rusch & Hamed M. Shamma, 2016. "Linking cause assessment, corporate philanthropy, and corporate reputation," Journal of the Academy of Marketing Science, Springer, vol. 44(3), pages 376-396, May.
    3. Chong Choi & Tarek Eldomiaty & Sae Kim, 2007. "Consumer Trust, Social Marketing and Ethics of Welfare Exchange," Journal of Business Ethics, Springer, vol. 74(1), pages 17-23, August.
    4. Hao-Te Lu & Yi-Chou Wang, 2020. "Does Customer-Based Reputation Lead Customers Not to Switch? Examining Moderating Influences in Hypermarkets," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(2), pages 1-64, March.
    5. Palanisamy Ganesan & Manohar Sridhar, 2016. "Service Innovation and Customer Performance of Telecommunication Service Provider: A Study on Mediation Effect of Corporate Reputation," Corporate Reputation Review, Palgrave Macmillan, vol. 19(1), pages 77-101, February.
    6. Shih-Ping Jeng, 2008. "Effects of corporate reputations, relationships and competing suppliers' marketing programmes on customers' cross-buying intentions," The Service Industries Journal, Taylor & Francis Journals, vol. 28(1), pages 15-26, January.
    7. Chong Ju Choi & Philip Cheng & Brian Hilton, 2004. "European Union: Economic Convergenceversus Social Mobility," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(4), pages 427-432.
    8. M. Sridhar & Ajay Mehta, 2018. "The Moderating and Mediating Role of Corporate Reputation in the Link Between Service Innovation and Cross-Buying Intention," Corporate Reputation Review, Palgrave Macmillan, vol. 21(2), pages 50-70, June.

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