Article2011

The role of other customer effect in corporate marketing

111 citations0/0 files storedEuropean Journal of Marketing

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Consumer Behavior in Brand Consumption and Identification Customer Service Quality and Loyalty Corporate Identity and Reputation

Abstract

Purpose By drawing on theories of social identity, attraction, social comparison and consumer identification, this research seeks to examine how consumers' perceptions of other customers of an organisation (the other customer effect) may have an influence on corporate image and consumer‐company identification. This study aims to test a model integrating these constructs in two contexts, i.e. products and services. It also seeks to investigate the attitudinal and behavioural consequences of a favourable corporate image in order to provide more insights to the argument that a corporate marketing approach helps to enhance marketing performance. Design/methodology/approach A survey of a convenience sample of 383 adult consumers is conducted. Structural Equation Modelling (SEM) is employed in order to test the proposed model. An alternative model is examined both in products and in services contexts. Findings The results indicate that perceptions about other customers influence customers' affective and behavioural reactions towards a company for both products and services. This finding suggests that corporate‐level marketing activities aiming to increase interaction among consumers lead to favourable corporate image and higher consumer‐company identification and hence desirable marketing outcomes. Furthermore, results show that for services the other customer effect is more prominent than for product offerings. Originality/value This study extends the concept of other customer effect to the context of corporate image and consumer‐company identification studies. It provides evidence that shifting towards corporate‐level marketing gives organisations another avenue for gaining a distinct position in the minds of consumers. Furthermore, by addressing both service and product contexts, it shows that other customer effect may exist beyond services studies.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1988Structural equation modeling in practice: A review and recommended two-step approach.1998Principles and Practice of Structural Equation Modeling 1954A Theory of Social Comparison Processes 2000An Integrative Theory of Intergroup Conflict 1979The Social Psychology of Organizations.1996The Behavioral Consequences of Service Quality 1979The Social psychology of intergroup relations

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