The links of reputation with employee and customer satisfaction and loyalty : the case of Pousadas de Portugal

Abstract

The area of reputation definition, measurement and management has been a proeminent source of research, with several attempts to measure the reputation of an organization. On the grounds of the personality trait theory, and of the personification metaphor, Davies et ai (2003) have developed the Corporate Character Scale, to measure the alignment of perceptions of the two most important stakeholders of an organization, employees (identity) and customers (image), and found significant links with their satisfaction and loyalty. Customer and employee satisfaction, loyalty (attitudinal, behavioural or via recommendation), employee feel of pride towards the organization, customer perception of good-value for money, and customer experience are of particular importance in hospitality, due to the competitive environment of the sector (Bowen and Shoemaker, 1998; Tepecci, 1999). This exploratory study measures the reputation of the high-end small hotel chain Pousadas de Portugal and the links between employee and customer perceptions of the organizations' identity and image with these variables. A survey involving the employees and customers of Pousadas de Portugal, a total of 2042 respondents (528 employees and 1514 customers) was conducted using the Corporate Character Scale ( Davies et ai, 2003; 2004). Findings showed a positive relationship between reputation, employee and customer satisfaction and loyalty. Positive results of links with the other variables are also presented as well as the study limitations and suggestions for future research.