The Combined Effects of Service Offering and Service Employees on the Perceived Corporate Reputation

Abstract

The present study contributes to the understanding of the role of two major components of the service production and delivery system in reinforcing the perceived corporate reputation. Specifically, the purpose of this study is to assess the combined effects of service offering and service employees on customers' perception of corporate reputation. A hierarchical multiple regression with interaction analysis was performed on data collected from customers of a banking institution to assess the main effect of service offering and service employees, as well as their interactive effect on customers' perception of corporate reputation. A significant interaction between service offering and service employees in their influence on corporate reputation was found. This results suggest that service employees intervene as a moderator variable in the relationship between service offering and corporate reputation. Furthermore, service organizations should focus on the crucial role of the service offering during the service encounter and recognize the importance of service employees in such way to reinforce customers' perception of corporate reputation. The study has limited generalization given the convenience sample and the great variety of service industries. The efficacy of the direct measures and the hierarchical multiple regression must be considered. It would be helpful to realize similar studies in other service settings and to explore the exact nature of the interaction between service offering and service employees.

Impact of reputational loss on financial performance of the bank

“…Carroll Craig (2015) explains this by the fact that reputation risk is the sum of potential profits and losses of reputable capital. According to Nguyen and LeBlanc (2018), the effects of reputational risk can be measured by the emergence of crises or problems. Crises usually occur due to lower degree of profitability, a slowdown in organisational processes, uncertainty in decision-making, and urgency.…”

“…The impact of risk is directly related to a specific event and to the organisation's ability to respond appropriately and solve problems. Reputation risk criteria are formed by the factors of capital, financial, operational, social and intangible risks (Nguyen & LeBlanc, 2018). Reputational risk elements can be divided into social and political, commercial and organisational (Hedgecoe, 2016).…”

“…Accordingly, reputation management is planned to take into account the purpose and orientation of the organisation, which determines the individuality of the reputational risk management model and its inconsistency with the views of certain stakeholder groups. The reputation of the organisation as a social identity is widely used in the organisation's positioning strategy, as it has a significant impact on the choice of user products and services (Nguyen & LeBlanc, 2018). In addition, a well-established reputation of the company helps to attract potential investors and skilled workers and contributes to the development and maintenance of customer loyalty.…”

“…Authors believe that proper management of these criteria can ensure business success. However, it can be noted that Nguyen and LeBlanc (2018) suggest understanding the influence of reputation through dynamism, time, bilateralism of the relationship, and the ranking of the organisation in view of its competitors, the diversity of the organisation's reputation, based on the organisations economic, social and personal background. It may be concluded that the organisation's reputation is the public's comprehensive assessment of the organisation over time.…”

Valor percibido y lealtad del cliente: estrategia co-branding de tarjetas de crédito en Bogotá – Colombia

“…Así, Petrick (2002) propone una tipología del valor percibido que incluye cinco categorías: el valor emocional, el valor social, el valor utilitario, la calidad y el precio, siendo altamente valorada y utilizada por la comunidad científica (Dedeoglu et al, 2018;Kim et al, 2018;Nguyen, 2018).…”