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Source publication
Purpose
The purpose of this paper is to identify the key antecedents and consequences of bank reputation and whether their relative importance varies across countries.
Design/methodology/approach
The sample consists of 900 bank customers, representative of the national populations in the UK (500) and Spain (400), two of the countries in which the...
Context in source publication
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ABSTRACT
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Citations
... Xin (2018) considers CR to be capable of eliminating most of the inefficiencies resulting from information asymmetries. A positive CR acts as a proxy of the unobservable permanent characteristics of an organisation (Ruiz et al., 2016;Zaby & Pohl, 2019), and is built through repeated satisfactory interactions between an organisation and its stakeholders (Burke et al., 2018;Dowling, 2016). It is a valuable asset that an organisation may lose if it acts opportunistically (Chun, 2005;Fombrun, 2012;Lange et al. 2011). ...
... Having a good reputation thus acts as a signal of possession of a valuable competence (Macey, 2013) and in the absence of loads of information, such a reputation helps stakeholders to form reasonable expectations about product and/or services quality ex ante. A favourable CR is an enabling tool, the basis on which stakeholders can reasonably predict the quality of engagements with a firm (Burke et al., 2018), the competitiveness of its offerings (Fombrun, 2012), or the firm's likely future behaviour (Ruiz et al., 2016). A good CR is thus valued for its ability to signal an organisation's qualities that are not easily seen. ...
... Corporate reputation, as a unique, intangible, and organisation specific asset, is key to any organisation whose existence as a business concern and long-term sustainability, rely on being trusted by various stakeholders (Burke et al., 2018;Dupont & Karpoff, 2019). This is particularly so for service-oriented organisations such as banks whose products are purchased based on reputation (Buckley & Nixon, 2009) because the intangibility of bank services makes it difficult for stakeholders to assess quality before purchase (Ruiz et al., 2016). Unlike manufacturing firms that can give lengthy product warranties to signal product quality, banks rely on CRs to signal their trustworthiness. ...
Purpose: Bank reputations took a severe knock following the global financial crisis of 2007–2009. To get the global banking industry back on its feet, regulations existing at the time were strengthened and new ones were introduced. While the industry has come a long way in clawing back its reputation, research on the present state of reputations of some global banks suggests that these reputations are still underpinned by national regulators. In the South African context, it is not clear to what extent bank reputations are underpinned by the reputation of the main banking regulator: the South African Reserve Bank (SARB). This article looks at perceptions of private banking customers to ascertain whether they believe that bank reputations derive from the reputation of the regulator.Design/methodology/approach: A quantitative research methodology was applied. Purposive sampling was used to collect data from 111 banking customers using a Likert scale. Four hypotheses on reputation-regulation relationships were then tested using the non-parametric Wilcoxon Signed Rank test.Findings/results: The results show that regulation plays no role in how private banking customers perceive bank reputations.Practical implications: This study highlights that there is little scope for banks to accrue ‘reputational rent’ by free riding on the reputation of the regulator. Banks must therefore take steps to proactively engage in their own reputation building exercises.Originality/value: This research is the first to look at the reputation–regulation interface in the local banking industry from private banking customers’ perspective. It highlights that each bank must work hard to build the reputation it desires.
... However, the factors that affect a bank's reputation might differ among different countries. For example, Ruiz and colleagues showed that CSR, which is typically considered to be a robust antecedent of reputation, might be nonsignificant (Ruiz et al., 2016) or even negatively affect bank reputation in other countries Garc ıa, 2019, 2021). Thus, the effects of irresponsibility attributions need to be examined in other countries that faced the Swiss franc mortgage crisis, such as Hungary. ...
Purpose
This study examines how potentially irresponsible banking operations affect organisational reputation. A moderated mediation model is applied to explain how major aspects of social irresponsibility affect the relationship between consumer awareness of allegedly irresponsible operations, blame and bank reputation. The empirical context is the Swiss franc mortgage crisis that affected the banking industry in most Central and Eastern European countries.
Design/methodology/approach
The research study uses data collected from a large survey (N = 1,000) conducted among Polish bank consumers, including those with mortgage loans in Swiss francs. To test the proposed model, the authors use Hayes' process macro.
Findings
The findings show that blame fully mediates the effects of corporate social irresponsibility (CSI) awareness on organisational reputation. Three facets of social irresponsibility moderate this relationship. Specifically, the perceived harm and intentionality of corporate culprits cause people to be more likely to blame a bank for the difficulties posed by indebted consumers. At the same time, the perceived complicity of consumers in misselling a mortgage reduces the level of blame and its subsequent adverse effects on bank reputation.
Originality/value
Although a strong reputation is crucial in the financial industry, few studies have attempted to address reputational risk from a consumer perspective. This study helps to understand how potentially irresponsible selling of a financial product can adversely affect a bank's reputation.
... Xin (2018) considers CR to be capable of eliminating most of the inefficiencies resulting from information asymmetries. A positive CR acts as a proxy of the unobservable permanent characteristics of an organisation (Ruiz et al., 2016;Zaby & Pohl, 2019), and is built through repeated satisfactory interactions between an organisation and its stakeholders (Burke et al., 2018;Dowling, 2016). It is a valuable asset that an organisation may lose if it acts opportunistically (Chun, 2005;Fombrun, 2012;Lange et al. 2011). ...
... Having a good reputation thus acts as a signal of possession of a valuable competence (Macey, 2013) and in the absence of loads of information, such a reputation helps stakeholders to form reasonable expectations about product and/or services quality ex ante. A favourable CR is an enabling tool, the basis on which stakeholders can reasonably predict the quality of engagements with a firm (Burke et al., 2018), the competitiveness of its offerings (Fombrun, 2012), or the firm's likely future behaviour (Ruiz et al., 2016). A good CR is thus valued for its ability to signal an organisation's qualities that are not easily seen. ...
... Corporate reputation, as a unique, intangible, and organisation specific asset, is key to any organisation whose existence as a business concern and long-term sustainability, rely on being trusted by various stakeholders (Burke et al., 2018;Dupont & Karpoff, 2019). This is particularly so for service-oriented organisations such as banks whose products are purchased based on reputation (Buckley & Nixon, 2009) because the intangibility of bank services makes it difficult for stakeholders to assess quality before purchase (Ruiz et al., 2016). Unlike manufacturing firms that can give lengthy product warranties to signal product quality, banks rely on CRs to signal their trustworthiness. ...
Purpose: Bank reputations took a severe knock following the global financial crisis of 2007–2009. To get the global banking industry back on its feet, regulations existing at the time were strengthened and new ones were introduced. While the industry has come a long way in clawing back its reputation, research on the present state of reputations of some global banks suggests that these reputations are still underpinned by national regulators. In the South African context, it is not clear to what extent bank reputations are underpinned by the reputation of the main banking regulator: the South African Reserve Bank (SARB). This article looks at perceptions of private banking customers to ascertain whether they believe that bank reputations derive from the reputation of the regulator. Design/methodology/approach: A quantitative research methodology was applied. Purposive sampling was used to collect data from 111 banking customers using a Likert scale. Four hypotheses on reputation-regulation relationships were then tested using the non-parametric Wilcoxon Signed Rank test. Findings/results: The results show that regulation plays no role in how private banking customers perceive bank reputations. Practical implications: This study highlights that there is little scope for banks to accrue ‘reputational rent’ by free riding on the reputation of the regulator. Banks must therefore take steps to proactively engage in their own reputation building exercises. Originality/value: This research is the first to look at the reputation–regulation interface in the local banking industry from private banking customers’ perspective. It highlights that each bank must work hard to build the reputation it desires.
... Joshi and Singh (2017) emphasized that whereas product-oriented businesses can rely on the physical reality of the product, service-oriented firms need to concentrate on enhancing their corporate reputation in order to attract and keep customers. Firms in the service sector, particularly banks, are urged to assess their corporate reputation and outcomes in terms of customers (Cintamür & Yüksel, 2018 (Hong & Yang, 2009;Ruiz et al., 2016;Hasan & Hossain, 2021) in banks. However, only a small number of research investigate the impact of corporate reputation on customer citizenship behavior in the banking sector (Bartikowski & Walsh, 2011;Shahsavari & Faryabi, 2013). ...
... Moreover, corporate reputation is crucial to the economic success of banks and enables them to reach higher profitability(Otto et al. 2020). Corporate reputation leads to customer satisfaction(Pool et al. 2016;Hasan & Hossain, 2021), loyalty(Ruiz et al., 2016;Aramburu & Pescador, 2019;Hasan & Hossain, 2021) and word of mouth ...
... This question was taken as a reference for this study. In the literature, studies are showing that satisfaction, trust (Walsh et al., 2009;O'Connor & Assaker, 2022), financial strength (Ruiz et al., 2016), corporate social responsibility (Jinfeng, et al., 2014;O'Connor & Assaker, 2022;Aggarwal & Saxena, 2023), customer experience, customer engagement (Fida et al., 2023) and corporate recognition awards (Hasan & Hossain, 2021) increase corporate reputation. In this study, it is predicted that the customer empowerment variable will increase corporate reputation. ...
... In order to achieve positive outcomes, firms should have a favorable reputation and should strive to maintain this reputation continuously. In the studies on the antecedents of corporate reputation in the literature (O'Connor & Assaker, 2022;Ruiz et al., 2016;Hasan & Hossain, 2021), it is noticeable that certain factors such as satisfaction, trust, service quality, corporate social responsibility are focused on. Unlike these factors, this study aims to examine the effect of customer empowerment on corporate reputation. ...
Corporate reputation perception is an effective variable in shaping customer behaviors. A positive perception of reputation leads to positive outcomes such as loyalty, positive word-of-mouth marketing, low perceived risk, and commitment. In the marketing literature, it has been observed that the factors affecting the perception of corporate reputation have not been sufficiently analyzed and certain factors such as satisfaction, trust, corporate social responsibility, and financial strength have been focused on. In this study, unlike the factors in the literature, the effect of customer empowerment on the perception of corporate reputation is examined. Customer empowerment is considered an important tool in the competitive race in marketing. Within the scope of this research, data were collected from 343 consumers by questionnaire technique. Consumers were asked to indicate their degree of agreement with the statements in the questionnaire by thinking about the clothing store they visit most frequently. SPSS 18 and AMOS 18 package programs were used in the analysis of the data obtained. In the reliability analyses, customer empowerment and corporate reputation scales were found to be reliable. As a result of the confirmatory factor analysis of the scales, it was seen that the fit index values of the scales met the reference values. It was determined that the AVE values of the scales also met the reference values. Normality test was also performed for the data in the study. Since the skewness and kurtosis values of the variables were within the reference values, it was observed that the data met the normality assumption. Then, the relationship between variables was analyzed. Partial correlation analysis was preferred for the determination of this relationship. In this direction, correlation analysis was carried out by controlling gender, age, education, and income status variables. As a result of the correlation analysis, it was observed that there is a positive relationship between customer empowerment and corporate reputation. After the determination of the relationship between the variables, path analysis was performed with the AMOS program to test the research hypothesis. In the analysis, it was seen that the fit indices of the research model provided the reference values. In addition, it was determined that customer empowerment positively and significantly effects the perception of corporate reputation.
... 2.2 Moderating role of corporate reputation in the compatibility, attitude and intention to use relationship Roberts and Dowling (2002) define corporate reputation as the way a company's past actions and future prospects are perceived by its all predominant constituents in comparison to its rivals. It serves as a mirror for the past actions of the firm and as a tool for communicating the quality of its products/services (Osakwe et al., 2020;Peji c Bach et al., 2020;Ruiz et al., 2016). In MB, the applications used for this purpose can be considered as the services that are provided by banks to their customers. ...
... Grounding on its definition, corporate reputation can be stated as a reflector of the quality of this service. Reputation is considered to have more influence on consumer attitudes when services are at issue (Ruiz et al., 2016). Despite being used as a mediating (Aramburu and Pescador, 2019;Kowalczyk and Kucharska, 2020) or an independent (Gonz alez-Rodr ıguez et al., 2019; Ion et al., 2021;Stravinskien_ e et al., 2021) variable in various studies, corporate reputation can still be tested in several relationships. ...
Purpose
This article aims to question the role of attitude towards behavior and bank reputation in the relationship between consumer compatibility and behavioral intention.
Design/methodology/approach
Using survey data from 640 mobile bank users in a developing country setting, the authors explored the conditional effects of users' compatibility on their future intention to use mobile banking services through attitude towards use as a function of perceived corporate reputation.
Findings
The results indicated that the attitude towards using mobile banking services has a partial mediating role in the relationship between compatibility and future intention to use. This indirect path depends on the reputation of the bank.
Originality/value
The original contribution of this study is to detail the mechanism between compatibility and usage intention that emerges within the scope of the model the authors propose and to realize this through the Johnson-Neyman approach.
... Ponzi et al. (2011) defined bank reputation as an opinion of respective customers that the bank is responsible, dependable, and trustworthy. Generally, a bank with a good reputation leads to the strategic and competitive advantages, customers' continuous loyalty and positive word-ofmouth (Manohar et al., 2020;Ruiz et al., 2016). Also, Ruiz et al. (2014) concluded that the bank reputation has a significant influence on the intention of customers to make positive recommendations. ...
This paper aims to study the factors affecting the intention to use a mobile wallet of the private bank in Myanmar based on the bank and customer factors. The consequences of service quality and bank reputation among the bank customers were examined in this study. The investigation of the role of word-of-mouth of the mobile wallet adoption is another objective of the study. The research hypotheses were examined using the Structural Equation Modeling (SEM) technique from data collected from 250 customers of Kanbawza (KBZ) Bank.The analysis results indicated that the word-of-mouth was found to be the major factor affecting the intention to use the mobile wallet of the private bank, followed by trust. The study also confirmed that service quality is an antecedent of bank reputation, trust and word-of-mouth. The bank reputation has a positive significant effect on the word-of-mouth, however, there is no significant impact on trust. Marketing managers and business development managers of private banks should pay more attention to improve the service quality to develop the bank reputation, trust and positive word-of-mouth which will lead to acquiring more mobile wallet users.
... Therefore, banks may offer green financial products and services to improve their competitiveness, reputation, customer loyalty, and their profitability [69], making their role in environmental sustainability vital [70]. By adopting environmentally friendly practices, banks can upgrade their non-financial performance, such as reputation and loyalty [71][72][73]. Additionally, the study by [74] identified the benefits of green banking adoption, such as green brand image, improved market share, competitive advantage, operational efficiency, risk minimization, employee satisfaction, and economic and social legitimacy. ...
Banks represent important subjects in business, with dominant positions in the financial system in the world. Banks developed various financial products and services that can cover most market needs. As a result of adequate portfolio diversifications, banks recorded positive profitability rates. In addition to being adjusted to competition, banks should also focus on the environment. Therefore, banks have recognized an opportunity to offer green products and services and support environmentally-friendly initiatives and projects. The aim of this paper is to identify whether crucial determinants of bank profitability are moderated by the presence of green loans in the bank portfolio. For this purpose, a panel fixed-effects approach was applied to data from the Republic of Serbia (2014–2021). The obtained results indicate that the presence of green loans in a bank’s portfolio moderates the influences of a bank’s liquidity on the bank’s profitability measured by return on assets (ROA) and return on equity (ROE). The contribution of the conducted research is that it is, according to the authors’ knowledge, the first measurement and estimation of the moderating effects of green loans’ presence in banks’ portfolios on their profitability. In addition to financial, marketing implications were considered.
... Likewise, Walsh et al. (2009) found empirical support for trust as antecedents of corporate reputation in the case of customers. Furthermore, Ruiz et al. (2016) indicated that there is an impact of customer trust on bank reputation in the UK and Spain. The following hypotheses are therefore formulated: ...
The world has changed dramatically since the emergence of the coronavirus disease 2019 (Covid-19) pandemic. This crisis has put companies under the test for their commitment to moral business conduct and corporate social responsibility (CSR). Facing the challenges for survival as well as financial strains could push firms with difficult choices in their CSR practices. The aim of this study is to explore the impact of CSR activities in building customer trust and company reputation with limited resources in the Covid-19 pandemic context. The paper collected data on latent constructs through a survey of 494 consumers by convenience sample in Vietnam. Confirmatory factor analysis assessed psychometric properties of the constructs, while the SEM technique was used to examine posited hypotheses. The results show that economic responsibility has a positive impact on expertise trust; legal responsibility and ethical responsibility positively impact integrity trust; philanthropic responsibility has a positive effect on social benevolence trust. However, only ethical responsibility and philanthropic responsibility can directly influence corporate reputation. In addition, three dimensions of trust strengthen the link between CSR initiatives and company reputation. Among them, social benevolence trust plays the most critical role in creating a reputation. Based on this finding, some management implications are also discussed regarding how corporations can allocate appropriate resources for different CSR activities so that they could leverage benefits from CSR strategy in their business. Moreover, the results obtained open future lines of comparative research on the impact of CSR practices, mediated by trust in corporate reputation, between countries with different cultures and religious beliefs.
... Various studies have supported this negative relationship between sustainable activities and bank risk. Ruiz et al. (2016) found that environmentally responsible actions reduce the reputational risk of banks, which leads to more stable financing conditions. Chiaramonte et al. (2021) revealed that European banks with higher sustainability scores have lower risk, while Scholtens and Van't Klooster (2019) have also shown that these banks contribute less to the risk of the whole financial system. ...
The aim of this article is to analyse how sustainable banking affects the transmission of monetary policy through the bank lending channel. We also quantify how these effects are determined by the financial strength of each bank. These objectives, which have not been studied previously, represent an important contribution because real sustainable concerns in banking did not emerged until recently, mainly with the adoption of the Sustainable Development Goals that should be reached by 2030. Since then, some studies have focused on the effects of sustainability on aspects such as bank profitability, risk or efficiency, but none has considered the effects on the bank lending channel of monetary policy. In fact, central banks have incorporated sustainability criteria into their agenda and are analyzing how to include these criteria in the monetary policy framework, so we contribute even more by shedding some light on these aspects and how they depend on the financial strength of the banking sector. We used quarterly data from 79 listed banks from the OECD between 2016 and 2019 (947 observations) and we found that the bank lending channel is operative either for banks with very low sustainability ratings or a weak financial position. When sustainability ratings increase and financial strength becomes moderate, the bank lending channel is ineffective and monetary shocks do not affect lending. For banks with certain sustainable compromises and a strong financial position, the impact of monetary shocks on lending is the opposite of the one that the bank lending channel proposes, and this impact is more intense as sustainability ratings increase. Finally, our results also show that increases in central bank assets boost lending only for banks with low or moderate sustainability ratings, regardless of their financial strength. Overall, these results suggest that more sustainable banks are less dependent on monetary policy decisions.
