The effect of corporate reputations on customer perceptions and cross-buying intentions

Abstract

Cross-selling additional services to existing customers is an important task for multi-service companies. This paper examines whether and how a corporate reputation influences customers' economically orientated (that is, perceived benefits of buying new services from current supplier) and relationship perceptions (that is, evaluations of relationship strength and supplier's offerings) and, in turn, their cross-buying intentions. Good corporate reputations build customer cross-buying intentions by increasing customers' expected service quality, decreasing information costs, and enhancing trust and affective commitment. Survey data from the Taiwanese life insurance industry support the arguments, and the results offer some important extensions to cross-buying theory.

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