REPUTATION MANAGEMENT ON CUSTOMER LOYALTY OF TRANSPORTATION FIRMS IN PORT HARCOURT
Abstract
This study examined the influence of reputation management on customer loyalty of transport firms in Port Harcourt. Reputation management was proxied using trust and reciprocity as its dimensions while referrals and repeat purchase as measures of customer loyalty. Social Exchange Theory was the baseline theory which the study anchored on. The study adopted a quantitative survey research design, which data were collected from 120 customers of selected transport firms using a structured questionnaire measured on a five-point Likert scale. Reliability of the instrument was confirmed using Cronbach’s Alpha coefficients, of which all instruments fell within acceptable thresholds. Findings revealed that trust and reciprocity jointly influence customer referrals, accounting for reasonable degree of variation on referrals. Similarly, trust and reciprocity were found to have significant influence on repeat purchase as it explains relative percent of its variation. The results indicate that customers are more likely to remain loyal to transport firms that are perceived to be trustworthy and responsive. Also, the liberal actions of firm are reciprocated through repeat patronage and recommendations. The study concludes that effective reputation management is very essential as it influences customer loyalty in the transport industry. We recommend among others that organization had better understand that customer loyalty can be achieved through trust building and reciprocity-based practices.
Downloads
References
Açikgöz, A., Kayakuş, M., Zăbavă, T., & Kabas, İ. (2024). Corporate reputation management and stakeholder trust in service organizations. Journal of Business Research, 168, 114–126. https://doi.org/10.1016/j.jbusres.2023.114126
Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media a new tool for sales organizations. Journal of Business and Industrial Marketing, 31(1), 1–14. https://doi.org/10.1108/JBIM-09-2014-0170
Agyapong, G. K. Q., Mensah, H. K., & Mensah, A. F. (2020). Corporate reputation and customer retention in public transport services. Journal of Public Transportation, 23(2), 45–61.
Ayawei, P., & Amah, E. (2024). Trust building and customer patronage in logistics and transport firms. Nigerian Journal of Management Sciences, 15(1), 92–108.
Blau, P. M. (1964). Exchange and power in social life. John Wiley and Sons.
Cheung, C. M. K., & Thadani, D. R. (2012). The impact of electronic word of mouth communication. Decision Support Systems, 54(1), 461–470. https://doi.org/10.1016/j.dss.2012.06.008
Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2, 335–362. https://doi.org/10.1146/annurev.so.02.080176.002003
Fombrun, C. J., & Van Riel, C. B. M. (2004). Fame and fortune how successful companies build winning reputations. FT Prentice Hall.
Garg, R., & Singh, S. (2018). Trust and customer commitment in online service environments. International Journal of Consumer Studies, 42(2), 213–223. https://doi.org/10.1111/ijcs.12420
Gouldner, A. W. (1960). The norm of reciprocity. American Sociological Review, 25(2), 161–178. https://doi.org/10.2307/2092623
Gummerus, J., Liljander, V., Weman, E., & Pihlström, M. (2012). Customer engagement in a Facebook brand community. Management Research Review, 35(9), 857–877. https://doi.org/10.1108/01409171211256578
Helm, S. (2011). Employees awareness of their impact on corporate reputation. Journal of Business Research, 64(7), 657–663. https://doi.org/10.1016/j.jbusres.2010.09.001
Hennig-Thurau, T., Malthouse, E. C., Friege, C., Gensler, S., Lobschat, L., Rangaswamy, A., & Skiera, B. (2010). The impact of new media on customer relationships. Journal of Service Research, 13(3), 311–330. https://doi.org/10.1177/1094670510375460
Homans, G. C. (1958). Social behavior as exchange. American Journal of Sociology, 63(6), 597–606. https://doi.org/10.1086/222355
Kaur, H., & Soch, H. (2018). Satisfaction, trust and loyalty in service relationships. Journal of Services Marketing, 32(2), 130–144. https://doi.org/10.1108/JSM-06-2016-0227
Keh, H. T., & Xie, Y. (2009). Corporate reputation and customer behavioral intentions. Industrial Marketing Management, 38(7), 732–742. https://doi.org/10.1016/j.indmarman.2008.02.005
Keller, K. L. (2003). Strategic brand management building, measuring and managing brand equity (2nd ed.). Pearson Education.
Lee, J., Park, D. H., & Shin, S. Y. (2019). Reciprocity and customer repurchase intention in service industries. Service Business, 13(3), 479–499. https://doi.org/10.1007/s11628-018-0382-4
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience. Journal of Marketing, 80(6), 69–96. https://doi.org/10.1509/jm.15.0420
Mangold, W. G., & Faulds, D. J. (2009). Social media the new hybrid element of the promotion mix. Business Horizons, 52(4), 357–365. https://doi.org/10.1016/j.bushor.2009.03.002
Mas-Machuca, M., Marimon, F., & Jaca, C. (2021). Service quality and customer loyalty in transport services. Total Quality Management and Business Excellence, 32(13–14), 1533–1550. https://doi.org/10.1080/14783363.2019.1686656
Morgan, R. M., & Hunt, S. D. (1994). The commitment trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.2307/1252308
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw Hill.
Nwokoro, I., & Okonkwo, R. (2021). Competitive dynamics and service quality in Nigerian transport firms. African Journal of Business Management, 15(4), 101–113.
Ogonu, C. N., & Hamilton-Ibama, F. O. (2021). Customer experience management and marketing wellness in service firms. International Journal of Marketing Studies, 13(2), 54–67.
Oliver, R. L. (1999). Whence consumer loyalty. Journal of Marketing, 63(Special Issue), 33–44. https://doi.org/10.2307/1252099
Oliver, R. L. (2010). Satisfaction a behavioral perspective on the consumer (2nd ed.). Routledge.
Palmatier, R. W., Dant, R. P., Grewal, D., & Evans, K. R. (2006). Factors influencing the effectiveness of relationship marketing. Journal of Marketing, 70(4), 136–153. https://doi.org/10.1509/jmkg.70.4.136
Pereira, D., de Farias, S. A., & Basso, K. (2022). Trust and perceived service quality in transport services. Journal of Retailing and Consumer Services, 68, 102960. https://doi.org/10.1016/j.jretconser.2022.102960
Purnami, N. M. (2023). Corporate trust and customer loyalty in transportation services. Asian Journal of Business Research, 13(1), 77–93.
Reichheld, F. F., & Schefter, P. (2000). E loyalty your secret weapon on the web. Harvard Business Review, 78(4), 105–113.
Thibaut, J. W., & Kelley, H. H. (1959). The social psychology of groups. John Wiley and Sons.
Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A. (2019). Customer experience creation determinants. Journal of Retailing, 95(1), 1–22. https://doi.org/10.1016/j.jretai.2018.11.001
Walsh, G., & Beatty, S. E. (2007). Customer based corporate reputation. Journal of the Academy of Marketing Science, 35(1), 127–143. https://doi.org/10.1007/s11747-007-0015-7
The authors and co-authors warrant that the article is their original work, does not infringe any copyright, and has not been published elsewhere. By submitting the article to GPH-International Journal of Business Management, the authors agree that the journal has the right to retract or remove the article in case of proven ethical misconduct.
