Article2018

Assessing the effects of multichannel service provider corporate reputation on customer new product adoption and RFM value

Gianfranco Walsh · Mario Schaarschmidt · Stefan Ivens

23 citations0/0 files storedJournal of service management

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

Abstract

Purpose Service providers leverage their corporate reputation management efforts to increase revenues by shaping customer attitudes and behaviours, yet the effects on customer innovation adoption and customer value remain unclear. In an extended conceptualisation of customer-based corporate reputation (CBR), the purpose of this paper is to propose that customer perceived risk, perceived value, and service separation are contingencies of the relationship between CBR and two key customer outcomes: customer new product adoption proneness (CPA) and recency-frequency-monetary (RFM) value. Design/methodology/approach Using a predictive survey approach, 1,001 service customers assess the online or offline operations of six multichannel retailers. The hypothesised model is tested using structural equation modelling and multigroup analysis. Findings The analysis reveals significant linkages of CBR with perceived risk and perceived value, as well as between perceived risk and perceived value and from perceived value to CPA and RFM value. These linkages vary in strength across unseparated (offline) and separated (online) services. Research limitations/implications This study uses cross-sectional data to contribute to literature that relates CBR to relevant customer outcomes by considering CPA and RFM value and investigating contingent factors. It provides conceptual and empirical evidence that price appropriateness represents a new CBR dimension. Practical implications The results reveal that CBR reduces customers’ perceived risk and positively affects their perceived value, which drives CPA and RFM value. Multichannel retailers can create rewarding customer relationships by building and nurturing good reputations. Originality/value This study is the first to link CBR with customer product adoption proneness and value, two important customer measures. It proposes and tests an extended conceptualisation of CBR.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.1979A Paradigm for Developing Better Measures of Marketing Constructs 2010Signaling Theory: A Review and Assessment 2003Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model 1998Assessing Measurement Invariance in Cross‐National Consumer Research 2011Specification, evaluation, and interpretation of structural equation models 2002Corporate reputation and sustained superior financial performance

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