A Study of Corporate Reputation’s Influence on Customer Loyalty Based on PLS-SEM Model

  •  Yang Zhang    


In this paper, a comprehensive corporate reputation measurement and explanation model suggested by Schwaiger was briefly introduced in the first part. Since the model’s applicability in China has been proved in former work, using structural equation modeling (SEM) and partial least squares (PLS) statistical methods and taking advantage of first-hand data, the impact of corporate reputation on customer loyalty was empirically studied in the second part of this paper. Statistical results indicate that the affective component (Likeability) of corporate reputation exerts greater and more significant influence on the establishment of customer loyalty than the cognitive component (competency) does. Furthermore, performance and corporate social responsibility (CSR) were identified to be the most two important drivers in influencing corporate reputation and also in driving customer loyalty.

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