A causal relationship model linking corporate reputation and customer-based brand equity : A customer perspective

Purpose The purpose of this paper is to understand the precursors of corporate reputation (CR) and their impacts on brand equity (BE), and to analyse the moderating role of corporate social responsibility (CSR) perceptions. Design/methodology/approach This study proposes a theoretical model which is tested using structural equation modelling. In total, 464 valid questionnaires were collected from a sample of customers of the biggest union of dairy cooperatives of the Iberian Peninsula. Findings Results show that the better the reputation, the higher the BE; however, these findings are more robust among customers with higher perceptions of CSR. Research limitations/implications This study is based on cross-sectional data from a single company. Practical implications The results may help managers build a better reputation and therefore increase their BE. CSR practices are essential to reinforcing this relationship. Social implications This paper contributes to the competitiveness of a type of organisation which is closely associated to the social structure of the rural population. Originality/value The results may help cooperatives’ managers to increase CR and BE. The emphasis is on the need to adopt CSR practices.