Importance of Internal Marketing for Service Companies Corporate Reputation and Customer Satisfaction

Abstract

The aim of this paper is to measure customer-based corporate reputation of service companies and to analyze importance of internal marketing within this construct. Purpose of the research is to test the influence of corporate reputation on customer satisfaction and on other customer post-purchase behavior variables. Corporate reputation became increasingly important in today's business and academic society. Previous research analyzed it from different perspectives and different roles are assigned to it. Depending on the roles, it is represented as image, culture, identity and even as an intangible asset of a company. However, it is most frequently evaluated from the company's perspective. In our research, we explored customer-based corporate reputation construct and its dimensions. There are significant differences in importance of company's attributes depending on type of business, but we focused specifically on service companies. It may help consumer in evaluating service and overcoming insecurity due to the lack of material dimension and heterogeneity of services. Particular attention was paid to two specific dimensions of customer-based corporate reputation construct - 'Customer Orientation' and 'Good Employer'. These dimensions are recognized as visible manifestations of internal marketing in services companies. Research was conducted in Bosnia and Herzegovina and therefore customer-based corporate reputation is put in a specific cultural context. Convenient sampling method was used to gather responses from individual consumers. Responses were collected through an online survey. Scales that were developed and validated in marketing theory were adopted for the purpose of survey implementation. Customer-based corporate reputation is measured through: customer orientation, good employer, reliable and financially strong company, service quality, and social and environmental responsibility. Customer satisfaction was measured as an effect of customer reputation. Apart from descriptive and one-dimensional statistic instruments, collected data were analyzed through exploratory factor analysis. Causality between variables was tested through correlation and OLS regression analysis. This research provided more insights into two important constructs for service companies: corporate reputation and internal marketing. Results showed that elements of customer-based corporate reputation have positive and significant influence on customer satisfaction. This demonstrates that internal marketing represents an important component in building corporate reputation and that it influences customers' perception and their satisfaction. [ABSTRACT FROM AUTHOR]