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Ownership structure, customer satisfaction and brand equity



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.

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  • Anna Torres & Josep A. Tribó, 2007. "Ownership structure, customer satisfaction and brand equity," Economics Working Papers 1016, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2007.
  • Handle: RePEc:upf:upfgen:1016

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    References listed on IDEAS

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    More about this item


    Corporate social responsibility; brand equity; shareholders’ commitment and customer loyalty;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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