An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty

European Journal of Marketing

ISSN: 0309-0566

Publication date: 1 October 1993

Abstract

Customer loyalty is a major strategic objective and focus in marketing. It has been suggested that brand reputation is a major driver of customer loyalty, and hence companies seek to increase the equity of their brands. Quality affects not only customer satisfaction, but also the reputation of the brand. Thus, both brand reputation and customer satisfaction are important determinants of customer loyalty. The interaction between these two drivers of customer loyalty has, however, been neglected in the literature. Presents a theoretical model which integrates quality, brand reputation, customer satisfaction and loyalty. The model is tested in four industries, covering both business‐to‐business markets and private customer markets. The findings suggest that companies should monitor and improve both customers satisfaction and brand reputation. In situations where the intrinsic cues of the product or service are ambiguous, brand reputation is the strongest driver of customer loyalty compared with customer satisfaction. In fact, when the intrinsic cues are ambiguous, it is found that customer satisfaction is not driving customer loyalty.

Keywords

Citation

Fred Selnes (1993) "An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty", European Journal of Marketing, Vol. 27 No. 9, pp. 19-35

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DOI

: https://doi.org/10.1108/03090569310043179

Publisher

:

MCB UP Ltd

Copyright © 1993, MCB UP Limited

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