1. Corporate image and corporate reputation in customers’ retention decisions in services Instructor: Kate Chen Presenter: Vicky Kao March 17 th, 2010

2. Nha Nguyen*, Gaston Leblanc (2001). Corporate image and corporate reputation in customers’ retention decisions in services Journal of Retailing and Consumer Service 8 227-236

3. Introduction Literature review Method Result and discussion Implication and conclusion

4. Introduction Numerous researchers in marketing have recognized the critical roles of corporate image and corporate reputation in customers’ buying behaviour. (Barich and Kotler, 1991; Zeithaml, 1981)

5. Introduction These two constructs are particularly important in developing and maintaining a loyalty on the part of customers. (Dick and Basu, 1994; Porter, 1985; Raj, 1985; Reynolds et al., 1974-1975)

6. Introduction To investigate, within the services industry, the relationship between corporate image and corporate reputation in the customer’s retention decision.

7. Literature review Corporate image Corporate reputation Customer loyalty Relationship between corporate image and corporate reputation, and their effect on customer loyalty

8. Corporate image Corporate image is described as the overall impression made on the mind of the public about a firm. (Barich and Kotler, 1991; Dichter, 1985; Finn, 1961, Kotlerm 1982)

9. Corporate image A company does not project a unique image. Rather, it may possess various image which differ according to a specific group, such as clients, employees, and shareholders, each of whom has different types of experiences and contacts with the company. (Dowling 1986, 1988; Gray, 1986; Kotler, 1982)

10. Corporate image Often related to symbols and values, the building of corporate image is a lengthy process which can be improved rapidly by technological breakthroughs and unexpected achievements or, conversely, destroyed by neglecting the needs and expectations of the various groups who interact with the firm. (Dichter, 1985; Herbig et al., 1994)

11. Corporate image Researchers in the field agree that corporate image is the result of a process. (Price, 1987) This sensory process arises from ideas, feelings, and previous experiences with a firm that are retrieved from memory and transformed into mental images. (Yuille and Catchpole, 1977)

12. Corporate reputation Organizational researchers examine reputation and intangible resource which may significantly contribute to an organization’s performance, and even to its survival. (Fombrun and Shanley, 1990; Hall, 1993; Rao, 1994)

13. Corporate reputation Corporate reputation may be viewed as a mirror of the firm’s history which serves to communicate to its target groups information regarding the quality of its products or services in comparison with those of its competitors. (Yoon et al., 1993)

14. Corporate reputation Corporate reputation is an “aggregation of a single stakeholder’s perceptions of how well organizational responses are meeting the demands and expectations of many organizational stakeholders.” (Wartick 1992)

15. Customer loyalty Even though the typically loyal customer can be described as the one who repeats purchases, brand loyalty cannot always be measured by purchase behaviour since the decision to buy a brand can be influenced by other moderating variables such as social norms. (Jacoby and Chesunt, 1978)

16. Customer loyalty Conceptual framework of customer loyalty, propose that loyalty is greatly affected by the relative strength of the relationship between attitude and behaviour. (DicK and Bash, 1994)

17. Relationship between corporate image and corporate reputation, and their effect on customer loyalty Suggests that a good reputation may help a pioneer firm building an innovative image in the industry while proposes that corporate reputation is a global and final outcome of the process of building a corporate image. (Franklin, 1984; Porter, 1985)

18. Relationship between corporate image and corporate reputation, and their effect on customer loyalty Numerous authors assert that a good corporate image or reputation helps to increase the firm’s sales and its market share. (Shapiro, 1982)

19. Measures Model Sample Measurement

20. Model CRL is the customer retention likelihood used as an assessment of customer loyalty toward the service firm.

21. Model IMAGE is the customer’s perceptions of the image of the service firm REPUTATION is the customer’s perceptions of the reputation of the service firm INTERACTION is the interaction between IMAGE and REPUTATION

22. Sample Retail services- 222 consumers were intercepted in shopping malls located in a mid- size city in Eastern Canada. Telecommunication services-Data was collected by personal interviews via telephone with a sample of 171 clients of a major long- distances telephone company Educational services-Questionnaire were distributed to a sample of 395 freshmen and senior of faculty of business administration.

23. Measurement Using seven-point Likert-type agreement scale with anchors of strongly disagree (1) and strongly agree (7).

24. Measurement

26. Results and discussion The more the perception of corporate image and reputation is favorable the higher are the retention likelihood scores.

27. Results and discussion

28. Beta coefficients representing the direct effect of corporate image and corporate reputation on customer retention likelihood are strongly significant.

29. Results and discussion

30. The efficacy of the direct measures used to assess corporate image and reputation must be considered. The data were collected from a convenient sample of consumers and students. As such, the study does not allow for the generalization of the findings across the services industry or even for the studied sectors.

31. Implications and conclusion The result suggests that managers of service organizations should not consider exclusively intrinsic attributes in their communication strategy.

32. Implications and conclusion The results show a significant relationship between the two concepts and should encourage us to pursue additional studies in order to determine the exact nature of this relationship.