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Corporate Reputation: What Do Consumers Really Care About?

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  • PAGE, GRAHAM
  • FEARN, HELEN
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    Abstract

    Do consumers really care about corporate reputation when it comes to purchasing decisions? This study tests that hypothesis by comparing consumers perceptions of companies to the consumer equity of brands owned by those companies, using international studies of brand equity and corporate reputation. The results show that poor corporate reputation makes building strong brands difficult, but a good reputation is no guarantee of success.The elements of corporate reputation that seem to matter most to consumers in practice are perceptions of fairness toward consumers, and perceptions of corporate success and leadership, rather than public responsibility. Consumers want good business practice but when it comes to brand strength and purchasing, more personally relevant factors take precedence. So pushing a corporate social responsibility agenda to consumers may not reap the strongest rewards. But ethical brands that bring no penalty in cost or quality are likely to be more successful.

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    Bibliographic Info

    Article provided by Cambridge University Press in its journal Journal of Advertising Research.

    Volume (Year): 45 (2005)
    Issue (Month): 03 (September)
    Pages: 305-313

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    Handle: RePEc:cup:jadres:v:45:y:2005:i:03:p:305-313_05

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    Cited by:
    1. Ramasamy, Bala & Yeung, Matthew C.H. & Chen, Junsong, 2013. "Selling to the urban Chinese in East Asia: Do CSR and value orientation matter?," Journal of Business Research, Elsevier, vol. 66(12), pages 2485-2491.
    2. Katri Karjalainen & Claire Moxham, 2013. "Focus on Fairtrade: Propositions for Integrating Fairtrade and Supply Chain Management Research," Journal of Business Ethics, Springer, vol. 116(2), pages 267-282, August.
    3. Goran Vlašić & Josef Langer, 2012. "Concept of reputation: different perspectives and robust empirical understandings," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 24(2), pages 219-244.
    4. Sandro Castaldo & Francesco Perrini & Nicola Misani & Antonio Tencati, 2009. "The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products," Journal of Business Ethics, Springer, vol. 84(1), pages 1-15, January.
    5. Ananya Reed & Darryl Reed, 2009. "Partnerships for Development: Four Models of Business Involvement," Journal of Business Ethics, Springer, vol. 90(1), pages 3-37, May.
    6. Alain d’Astous & Amélie Legendre, 2009. "Understanding Consumers’ Ethical Justifications: A Scale for Appraising Consumers’ Reasons for Not Behaving Ethically," Journal of Business Ethics, Springer, vol. 87(2), pages 255-268, June.
    7. Jatinder Singh & Oriol Iglesias & Joan Batista-Foguet, 2012. "Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty," Journal of Business Ethics, Springer, vol. 111(4), pages 541-549, December.
    8. Supran Kumar Sharma & Shravani Sharma, 2013. "Relationship of Corporate Social Responsibility with Consumer Buying Behavior: An Indian Perspective," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(50), pages 101-130, December.

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