Customer and non‐customer perspectives for examining corporate reputation

Abstract

Purpose Several studies on corporate reputation have proposed a customer‐based approach for assessing corporate reputation. Other studies proposed examining corporate reputation from the perspective of other primary stakeholder groups such as employees, investors or suppliers. Hence this paper aims to examine corporate reputation by considering both the customer's and the non‐customer's views. Design/methodology/approach This study was applied to the US wireless telecommunications industry. A random sample of 1,088 respondents composed of 518 customers and 570 representing the non‐customers, was generated for this study. The sample was randomly distributed by age, gender, income, education and geographic location. Findings The findings of this study revealed that the formation of perceptions about corporate reputation differ between customers and non‐customers. The dimension of emotional appeal is specific to the customer group and the dimension of vision and leadership is specific to the non‐customer group. Finally, social and environmental responsibility was not a significant element in forming the perceptions about corporate reputation for both customers and non‐customers. Research limitations/implications The study does not incorporate the effect of variables such as change in price or service quality nor take the impact of mergers and acquisitions into consideration. Practical implications This study helped to identify the primary and secondary elements for managing a company's reputation. Originality/value This study contributes to the literature on corporate reputation by determining how customers and non‐customers form their perceptions. The model provides a comprehensive assessment on how perceptions about corporate reputation are formed and what are the subsequent outcomes of those perceptions.