Customer Satisfaction and Brand Equity

Torres, A. & Tribó, J. (2011) “Do satisfied customers lead to greater brand equity?”, Journal of Business Research 64, pp. 1089-1096.

9 Pages Posted: 25 Jul 2007 Last revised: 27 Aug 2014

See all articles by Anna Torres

Anna Torres

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Josep A. Tribo

Stevens Institute of Technology

Date Written: March 1, 2007

Abstract

This paper studies the interaction between ownership structure, taken as a proxy for shareholders' commitment, and customer satisfaction - the main driver of consumer loyalty - and their impact on a firm's brand equity. The results show that customer satisfaction has a positive direct effect on brand equity but an indirect negative one because of reductions in ownership concentration. This latter effect emerges when managers are mainly customer-oriented. Such result gives out a warning signal that highlights the perverse effect of implementing policies, focused excessively on satisfying customers at the expense of shareholders, on a firm's brand equity. The empirical analysis uses an incomplete panel data comprising 69 firms from 11 nations, for the period 2002-2005.

Keywords: Corporate social responsibility, brand equity, shareholders' commitment and customer loyalty

JEL Classification: M31

Suggested Citation

Torres-Lacomba, Anna and Tribo Gine, Josep Antonio, Customer Satisfaction and Brand Equity (March 1, 2007). Torres, A. & Tribó, J. (2011) “Do satisfied customers lead to greater brand equity?”, Journal of Business Research 64, pp. 1089-1096., Available at SSRN: https://ssrn.com/abstract=1002879 or http://dx.doi.org/10.2139/ssrn.1002879

Anna Torres-Lacomba (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

Josep Antonio Tribo Gine

Stevens Institute of Technology ( email )

Hoboken, NJ 07030
United States
9292708869 (Phone)
07030 (Fax)

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