IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v28y2021i3p1142-1156.html
   My bibliography  Save this article

Modelling the impact of corporate reputation on customers' behaviour

Author

Listed:
  • Adriana Burlea‐Schiopoiu
  • Dragos Alexandru Balan

Abstract

The research aims to develop and to test a conceptual model to measure corporate reputation and assesses its impact on altering customers' normal behaviour. The findings add to the existing literature by empirically demonstrating that corporate reputation should be interpreted as a reflective construct that can be measured by the means of 25 items, grouped in seven major factors. The analysis validated a medium‐to‐high impact of reputation on customers' loyalty, word‐of‐mouth, and adoption of new product or service introductions, while the desire to pay a premium price was rejected. This study explains why executive managers should embrace corporate reputation as an imperative for the company's efforts to influence customers' behaviours and ultimately to outpace competitors. It also provides the executive management with an actionable tool to map out the corporate issues that need to be addressed and proved that companies can shorten the path to purchase by means of reputation, without a huge cost.

Suggested Citation

  • Adriana Burlea‐Schiopoiu & Dragos Alexandru Balan, 2021. "Modelling the impact of corporate reputation on customers' behaviour," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1142-1156, May.
    • Handle: RePEc:wly:corsem:v:28:y:2021:i:3:p:1142-1156
    DOI: 10.1002/csr.2113
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.2113
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.2113?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tiago Melo & Alvaro Garrido‐Morgado, 2012. "Corporate Reputation: A Combination of Social Responsibility and Industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(1), pages 11-31, January.
    2. Francisco Javier Forcadell & Elisa Aracil, 2017. "European Banks' Reputation for Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(1), pages 1-14, January.
    3. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    4. Tischer, Sven & Hildebrandt, Lutz, 2014. "Linking corporate reputation and shareholder value using the publication of reputation rankings," Journal of Business Research, Elsevier, vol. 67(5), pages 1007-1017.
    5. Yoon, Eunsang & Guffey, Hugh J. & Kijewski, Valerie, 1993. "The effects of information and company reputation on intentions to buy a business service," Journal of Business Research, Elsevier, vol. 27(3), pages 215-228, July.
    6. Francisco Javier Forcadell & Elisa Aracil & Fernando Ubeda, 2020. "Using reputation for corporate sustainability to tackle banks digitalization challenges," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2181-2193, September.
    7. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    8. Hayagreeva Rao, 1994. "The Social Construction of Reputation: Certification Contests, Legitimation, and the Survival of Organizations in the American Automobile Industry: 1895–1912," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 29-44, December.
    9. Maria Vittoria Franceschelli & Gabriele Santoro & Elisa Giacosa & Roberto Quaglia, 2019. "Assessing the determinants of performance in the recycling business: Evidence from the Italian context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1086-1099, September.
    10. Keith Weigelt & Colin Camerer, 1988. "Reputation and corporate strategy: A review of recent theory and applications," Strategic Management Journal, Wiley Blackwell, vol. 9(5), pages 443-454, September.
    11. Johan Graafland, 2018. "Does Corporate Social Responsibility Put Reputation at Risk by Inviting Activist Targeting? An Empirical Test among European SMEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(1), pages 1-13, January.
    12. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    13. Gruen, Thomas W., 1995. "The outcome set of relationship marketing in consumer markets," International Business Review, Elsevier, vol. 4(4), pages 447-469.
    14. Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas, 2018. "How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 355-372, July.
    15. Li, Jialong & Haider, Zulfiquer Ali & Jin, Xianzhe & Yuan, Wenlong, 2019. "Corporate controversy, social responsibility and market performance: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 60(C), pages 1-18.
    16. James Agarwal & Oleksiy Osiyevskyy & Percy Marquina, 2015. "Erratum to: Corporate Reputation Measurement: Alternative Factor Structures, Nomological Validity, and Organizational Outcomes," Journal of Business Ethics, Springer, vol. 130(2), pages 507-507, August.
    17. Han Lin & Saixing Zeng & Liangyan Wang & Hailiang Zou & Hanyang Ma, 2016. "How Does Environmental Irresponsibility Impair Corporate Reputation? A Multi‐Method Investigation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(6), pages 413-423, November.
    18. Sarstedt, Marko & Hair, Joseph F. & Cheah, Jun-Hwa & Becker, Jan-Michael & Ringle, Christian M., 2019. "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian marketing journal, Elsevier, vol. 27(3), pages 197-211.
    19. Bartikowski, Boris & Walsh, Gianfranco, 2011. "Investigating mediators between corporate reputation and customer citizenship behaviors," Journal of Business Research, Elsevier, vol. 64(1), pages 39-44, January.
    20. Mariano González Sánchez & María Encina Morales de Vega, 2018. "Corporate reputation and firms' performance: Evidence from Spain," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1231-1245, November.
    21. Bove, Liliana L. & Pervan, Simon J. & Beatty, Sharon E. & Shiu, Edward, 2009. "Service worker role in encouraging customer organizational citizenship behaviors," Journal of Business Research, Elsevier, vol. 62(7), pages 698-705, July.
    22. James Agarwal & Oleksiy Osiyevskyy & Percy Feldman, 2015. "Corporate Reputation Measurement: Alternative Factor Structures, Nomological Validity, and Organizational Outcomes," Journal of Business Ethics, Springer, vol. 130(2), pages 485-506, August.
    23. Stefano Dell'Atti & Annarita Trotta & Antonia Patrizia Iannuzzi & Federica Demaria, 2017. "Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 589-605, November.
    24. María D. Odriozola & Elisa Baraibar‐Diez, 2017. "Is Corporate Reputation Associated with Quality of CSR Reporting? Evidence from Spain," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(2), pages 121-132, March.
    25. Zia ur Rehman & Asad Khan & Asim Rahman, 2020. "Corporate social responsibility's influence on firm risk and firm performance: the mediating role of firm reputation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2991-3005, November.
    26. Yung‐Fu Huang & Manh‐Hoang Do & Vimal Kumar, 2019. "Consumers' perception on corporate social responsibility: Evidence from Vietnam," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1272-1284, November.
    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. José Solana‐Ibáñez & Manuel Caravaca‐Garratón, 2021. "Stakeholder engagement and corporate social reputation: The influence of exogenous factors on efficiency performance (stakeholder engagement and exogenous factors): Stakeholder engagement and exogenou," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1891-1905, November.
    2. Naveed Ahmad & Aqeel Ahmad & Irfan Siddique, 2024. "Beyond self‐interest: how altruistic values and human emotions drive brand advocacy in hospitality consumers through corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2439-2453, May.
    3. Adriana Burlea-Schiopoiu & Mara Del Baldo & Samuel O. Idowu, 2022. "The Spirit of Adventure: A Driver of Attractiveness of the Hospitality Industry for Young People during a Pandemic Crisis," IJERPH, MDPI, vol. 19(4), pages 1-16, February.
    4. Adriana Burlea-Schiopoiu & Ferjolt Ozuni, 2021. "The Potential of Albanian Tourism Sector," Sustainability, MDPI, vol. 13(7), pages 1-15, April.
    5. Zurina Ismail, 2024. "Accelerating Brand Value: The Role of CSR in Shaping Automotive Brand Reputation and Consumer Preferences," GATR Journals jmmr334, Global Academy of Training and Research (GATR) Enterprise.
    6. Wenhao Qi & Changxing Song & Meng Sun & Liguo Wang & Youcheng Han, 2022. "Sustainable Growth Drivers: Unveiling the Role Played by Carbon Productivity," IJERPH, MDPI, vol. 19(3), pages 1-25, January.

    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. Mariano González Sánchez & María Encina Morales de Vega, 2018. "Corporate reputation and firms' performance: Evidence from Spain," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1231-1245, November.
    2. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    3. Clara Pérez‐Cornejo & Esther de Quevedo‐Puente & Juan Bautista Delgado‐García, 2020. "Reporting as a booster of the corporate social performance effect on corporate reputation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1252-1263, May.
    4. Mariusz Karwowski & Monika Raulinajtys‐Grzybek, 2021. "The application of corporate social responsibility (CSR) actions for mitigation of environmental, social, corporate governance (ESG) and reputational risk in integrated reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1270-1284, July.
    5. Won‐Moo Hur & Hanna Kim & Hyun Kyung Kim, 2018. "Does customer engagement in corporate social responsibility initiatives lead to customer citizenship behaviour? The mediating roles of customer‐company identification and affective commitment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1258-1269, November.
    6. İsmail Gökhan Cintamür, 2023. "Linking Customer Justice Perception, Customer Support Perception, and Customer Citizenship Behavior to Corporate Reputation: Evidence from the Airline Industry," Corporate Reputation Review, Palgrave Macmillan, vol. 26(2), pages 111-132, May.
    7. Kevin Money & Anastasiya Saraeva & Irene Garnelo-Gomez & Stephen Pain & Carola Hillenbrand, 2017. "Corporate Reputation Past and Future: A Review and Integration of Existing Literature and a Framework for Future Research," Corporate Reputation Review, Palgrave Macmillan, vol. 20(3), pages 193-211, November.
    8. Gatzert, Nadine, 2015. "The impact of corporate reputation and reputation damaging events on financial performance: Empirical evidence from the literature," European Management Journal, Elsevier, vol. 33(6), pages 485-499.
    9. Yoori Yang & Cynthia Stohl, 2020. "The (in)congruence of measures of corporate social responsibility performance and stakeholder measures of corporate social responsibility reputation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 969-981, March.
    10. Jung, Hyo Sun & Seo, Kyung Hwa & Lee, Soo Bum & Yoon, Hye Hyun, 2018. "Corporate association as antecedents of consumer behaviors: The dynamics of trust within and between industries," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 30-38.
    11. Karaman, Abdullah S. & Orazalin, Nurlan & Uyar, Ali & Shahbaz, Muhammad, 2021. "CSR achievement, reporting, and assurance in the energy sector: Does economic development matter?," Energy Policy, Elsevier, vol. 149(C).
    12. Mooweon Rhee & Pamela R. Haunschild, 2006. "The Liability of Good Reputation: A Study of Product Recalls in the U.S. Automobile Industry," Organization Science, INFORMS, vol. 17(1), pages 101-117, February.
    13. A. Rebecca Reuber & Eileen Fischer, 2005. "The Company You Keep: How Young Firms in Different Competitive Contexts Signal Reputation through Their Customers," Entrepreneurship Theory and Practice, , vol. 29(1), pages 57-78, January.
    14. Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas, 2018. "How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 355-372, July.
    15. Nha Nguyen & Gaston LeBlanc, 2018. "The Combined Effects of Service Offering and Service Employees on the Perceived Corporate Reputation," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(2), pages 129-146, April.
    16. Redler Joern & Morschheuser Petra, 2024. "Three Root Causes for the Impasse in Reputation Measurement for Higher Education Institutions," Marketing of Scientific and Research Organizations, Sciendo, vol. 52(2), pages 26-45.
    17. Stefano Castriota & Alessandro Fedele, 2021. "Does Excellence Pay Off? Theory and Evidence from the Wine Market," BEMPS - Bozen Economics & Management Paper Series BEMPS77, Faculty of Economics and Management at the Free University of Bozen.
    18. Patrizia Fanasch, 2019. "Survival of the fittest: The impact of eco‐certification and reputation on firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 611-628, May.
    19. Tournois, Laurent, 2015. "Does the value manufacturers (brands) create translate into enhanced reputation? A multi-sector examination of the value–satisfaction–loyalty–reputation chain," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 83-96.
    20. Pina Murè & Marco Spallone & Fabiomassimo Mango & Stefano Marzioni & Lucilla Bittucci, 2021. "ESG and reputation: The case of sanctioned Italian banks," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 265-277, January.

    More about this item

    Statistics

    Access and download statistics

    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:wly:corsem:v:28:y:2021:i:3:p:1142-1156. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    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.