An instrument to measure the customer-based corporate reputation of large service organizations

The purpose of this study is to develop a valid and reliable instrument to measure the corporate reputation of large service organizations. The validity of a discipline’s constructs is a prerequisite for effective theory development and testing. Construct validity thus lies at the very heart of both decision-making and scientific progress in marketing. The use of marketing instruments that do not demonstrate sufficient evidence of construct validity can lead to invalid results, erroneous conclusions and poor decision-making. Despite several attempts to develop an instrument to measure the corporate reputation of service organizations effectively, lingering doubts remain about the construct validity of several published instruments.

Empirical data were collected from the clients of service organization using an online survey during three waves of data collection and scale purification. Invariance testing in two different service industries confirmed that the final instrument is completely invariant, suggesting that the measurement parameters of the measurement model are the same in both samples.

Rigorous scale development led to the development of a 19-item instrument that effectively measures a large service organization’s corporate reputation along five dimensions, namely, emotional appeal, corporate performance, social engagement, good employer and service points.

The study was limited to the measurement of the corporate reputation of large service organizations.

Given the fact that corporate reputation has been described as “the ultimate determinant of competitiveness” by some executives, the outcome of this study is a proposal that large service organizations measure this intangible asset along five dimensions, namely, emotional appeal, corporate performance, social engagement, good employer and service points.

Despite several attempts to do so, a valid and reliable instrument to effectively measure the corporate reputation of service firms (particularly large ones) has remained elusive. After more than two decades after the first attempts at measurement, there are many who now call for improved methodologies and more valid instruments to measure corporate reputation, based on more rigorous theoretical and conceptual development. This study addresses a matter of concern for many managers and academics.