The impact of financial performance and corporate reputation on customer purchases: the role of stakeholders and brand value in the automotive sector

Abstract

Purpose

When customers make their purchase decisions, they use all the available information from all the initiatives and behaviors that companies carry out with their stakeholders. This research aims to identify whether a company's financial performance and reputation determine the customer's perception of the company, which affects their engagement. This study is based on the theories of engagement, stakeholder and signalling. Are customers engaged solely based on their feeling of satisfaction, or do employees and brand value play a role in this engagement?

Design/methodology/approach

Secondary data was collected from 14 automotive companies and empirically tested through a longitudinal study over the period 2010–2018. For panel data analysis this study used weighted least squares.

Findings

The variables proposed in this research, firm value and corporate reputation, were significant for the analysed panel sample. Furthermore, employee satisfaction influences customer engagement as an independent and moderating variable, just like brand value.

Originality/value

This research contributes to the emerging stream of customer engagement research by combining insight as a company-initiated resource, with the sheer transaction, integrating data obtained from employees and customers in an international context.