What’s important for relationship management? The mediating roles of relational trust and satisfaction for loyalty of cooperative banks’ customers

Abstract

Building on the corporate reputation model, this study investigates the drivers of customer-based corporate reputation. We consider two corporate reputation dimensions (i.e., the cognitive dimension competence and the affective dimension likeability, and their effects on customer satisfaction and loyalty). Adapting the model to the banking sector, we theoretically extend this model by reasoning that customer satisfaction and relational trust are mediators of the relationship between the two corporate reputation dimensions and loyalty. Studying a sample of 675 customers and members of cooperative banks in Germany, we find perceived attractiveness to be the most important driver of corporate reputation. Furthermore, we confirm a positive relationship between corporate reputation and loyalty, and a mediating effect of both satisfaction and relational trust. With our study, we give support for the proposition of customer satisfaction's as well as relational trust’s role as mediators of the relationship between corporate reputation and loyalty. With this research, we expand our knowledge on the well-known corporate reputation model, which has high relevance and important implications for marketing research and relationship management practice.