A Cross-National Comparison of the Role of Habit in Linkages Between Customer Satisfaction and Firm Reputation and Their Effects on Firm-Level Outcomes in Franchising

  • Brinja MeisebergEmail author
  • Rajiv P. Dant


Profiting from the substantial economic growth outside the Western economies requires firms to develop a profound understanding of effective strategies for global operations. In particular, much debate has been offered on management practices that are applicable to trigger desired customer behavior, especially, to enhance firm-level outcomes in terms of customer loyalty and word-of-mouth referral. However, research on mechanisms that can help drive such customer behavior has mainly focused on consumers’ intentional processes, which ignores the fact that frequently performed behaviors become automatic over time. Ignoring habit-persistency effects may result in systematically overestimating the effects of other practices firms adopt to influence customer behavior, e.g. striving for strategic goals like customer satisfaction or firm reputation. Against this background, this study contributes to the literature by integrating the concepts of habit creation, customer satisfaction and firm reputation and by generating cross-national insights into their effects on firm-level outcomes in terms of loyalty and word-of-mouth. Applying multigroup structural equation modeling, the analyses draw on two global fast food companies’ consumer data collected in the BRIC and their domestic US market. The results document essentially diverging nomological linkages among the concepts under study across nations and provide important intuitions on how global companies strategize best when going international.


Customer Satisfaction Customer Loyalty Uncertainty Avoidance Corporate Reputation Customer Behavior 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Ajzen I (1991) The theory of planned behavior. Organ Behav Hum Decis Process 50:179–211CrossRefGoogle Scholar
  2. Anderson RE, Srinivasan SS (2003) E‐satisfaction and e‐loyalty: a contingency framework. Psychol Market 20:123–138CrossRefGoogle Scholar
  3. Bagozzi RP, Yi Y, Phillips LW (1991) Assessing construct validity in organizational research. Adm Sci Q 36:421–458CrossRefGoogle Scholar
  4. Barnett ML, Jermier JM, Lafferty BA (2006) Corporate reputation: the definitional landscape. Corp Reputation Rev 9:26–38CrossRefGoogle Scholar
  5. Bennett R, Rentschler R (2003) Foreword by the guest editors. Corp Reputation Rev 6:207–210CrossRefGoogle Scholar
  6. Bollen KA (1998) Structural equation models. John Wiley, New York, NYGoogle Scholar
  7. Bolton RN (1998) A dynamic model of the duration of the customer’s relationship with a continuous service provider: the role of satisfaction. Market Sci 17:45–65CrossRefGoogle Scholar
  8. Borker DR (2012) Accounting, culture, and emerging economies: IFRS in the BRIC countries. J Bus Econ Res 10:313–324Google Scholar
  9. Brouthers KD, Hennart JF (2007) Boundaries of the firm: insights from international entry mode research. J Manage 33:395–425Google Scholar
  10. Brown JJ, Reingen PH (1987) Social ties and word-of-mouth referral behavior. J Consum Res 14:350–362CrossRefGoogle Scholar
  11. Brown TJ, Dacin PA, Pratt MG, Whetten DA (2006) Identity, intended image, construed image, and reputation: an interdisciplinary framework and suggested terminology. J Acad Market Sci 34:99–106CrossRefGoogle Scholar
  12. Calantone RJ, Schmidt JB, Song XM (1996) Controllable factors of new product success: a cross-national comparison. Market Sci 15:341–358CrossRefGoogle Scholar
  13. Calantone RJ, Kim D, Schmidt JB, Cavusgil ST (2006) The influence of internal and external firm factors on international product adaptation strategy and export performance: a three-country comparison. J Bus Res 59:176–185CrossRefGoogle Scholar
  14. Caruana A, Ewing MT (2010) How corporate reputation, quality, and value influence online loyalty. J Bus Res 63:1103–1110CrossRefGoogle Scholar
  15. Chen Y, Ganesan S, Liu Y (2009) Does a firm’s product-recall strategy affect its financial value? An examination of strategic alternatives during product-harm crises. J Market 73:214–226CrossRefGoogle Scholar
  16. Chin WW (1998) The partial least squares approach for structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Psychology Press, New York, NYGoogle Scholar
  17. Chiou JS, Droge C (2006) Service quality, trust, specific asset investment, and expertise: direct and indirect effects in a satisfaction-loyalty framework. J Acad Market Sci 34:613–627CrossRefGoogle Scholar
  18. Cooley WW, Lohnes PR (1971) Multivariate data analysis. Wiley, New York, NYGoogle Scholar
  19. Craig CS, Douglas SP (2006) Beyond national culture: implications of cultural dynamics for consumer research. Int Market Rev 23:322–342CrossRefGoogle Scholar
  20. Crosby LA, Evans KR, Cowles D (1990) Relationship quality in services selling. An Interpersonal Influence Perspective. J Market 54:68–81CrossRefGoogle Scholar
  21. Dant RP, Schul PL (1992) Conflict resolution processes in contractual channels of distribution. J Market 56:38–54CrossRefGoogle Scholar
  22. Dant RP, Perrigot R, Cliquet G (2008) A cross-cultural comparison of the incidence of plural forms in franchise networks: United States, France, and Brazil. J Small Bus Manage 48:286–311CrossRefGoogle Scholar
  23. De Mooij M (2004) Consumer behavior and culture: consequences for global marketing and advertising. Sage, Thousand Oaks, CAGoogle Scholar
  24. De Mooij M (2010) Consumer behavior and culture: consequences for global marketing and advertising. Sage, LondonGoogle Scholar
  25. De Mooij M, Hofstede G (2010) The Hofstede model: applications to global branding and advertising strategy and research. Int J Advertising 29(1):85–110CrossRefGoogle Scholar
  26. De Mooij M, Hofstede G (2002) Convergence and divergence in consumer behavior: implications for international retailing. J Retailing 78:61–69CrossRefGoogle Scholar
  27. De Wulf K, Odekerken-Schröder G, Iacobucci D (2001) Investments in consumer relationships: a cross-country and cross-industry exploration. J Market 65:33–50CrossRefGoogle Scholar
  28. Douglas SP, Craig CS (1983) Examining performance of US multinationals in foreign markets. J Int Bus Stud 14:51–62CrossRefGoogle Scholar
  29. Evanschitzky H, Wunderlich M (2006) An examination of moderator effects in the four-stage loyalty model. J Serv Res 8:330–345CrossRefGoogle Scholar
  30. File KM, Judd BB, Prince RA (1992) Interactive marketing: the influence of participation on positive word-of-mouth referrals. J Serv Market 6(4):5–14CrossRefGoogle Scholar
  31. Fombrun CJ (1996) Reputation: realizing value from the corporate image. Harvard Business Press, Boston, MAGoogle Scholar
  32. Fombrun CJ, Gardberg NA, Sever JM (2000) The reputation quotient SM: a multi-stakeholder measure of corporate reputation. J Brand Manage 7:241–255CrossRefGoogle Scholar
  33. Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Market Res 18:39–50CrossRefGoogle Scholar
  34. Ganesan S (1994) Determinants of long-term orientation in buyer–seller relationships. J Market 58:1–19CrossRefGoogle Scholar
  35. Ganesan S, George M, Jap S, Palmatier RW, Weitz B (2009) Supply chain management and retailer performance: emerging trends, issues, and implications for research and practice. J Retailing 85:84–94CrossRefGoogle Scholar
  36. Garson GD (2010) Structural equation modeling. N.C. State University, RaleighGoogle Scholar
  37. Grünhagen M, Dant RP, Zhu M (2012) Emerging consumer perspectives on american franchise offerings: variety seeking behavior in China. J Small Bus Manage 50:596–620CrossRefGoogle Scholar
  38. Hall R (1993) A framework linking intangible resources and capabilities to sustainable competitive advantage. Strategic Manage J 14:607–618CrossRefGoogle Scholar
  39. Han X, Kwortnik RJ, Wang C (2008) Service loyalty an integrative model and examination across service contexts. J Serv Res 11:22–42CrossRefGoogle Scholar
  40. Hellier PK, Gursen GM, Carr RA, Ricard JA (2003) Customer repurchase intention: a general structural equation model. Eur J Market 37(11/12):1762–1800CrossRefGoogle Scholar
  41. Herbig P, Milewicz J, Golden J (1994) A model of reputation building and destruction. J Bus Res 31:23–31CrossRefGoogle Scholar
  42. Hofstede G (1980) Culture’s consequences: international differences in work related values. Sage, Beverly Hills, CAGoogle Scholar
  43. Hofstede G (1994) Values survey module 1994 manual. University of Limburg, Maastricht, The NetherlandsGoogle Scholar
  44. Hofstede G (2001) Culture’s consequences: comparing values, behaviors, institutions, and organizations across nations. Sage, Thousand Oaks, CAGoogle Scholar
  45. Hofstede G, Hofstede GJ (2005) Cultures and organizations. Software of the Mind. McGraw-Hill, New York, NYGoogle Scholar
  46. Holtbrügge D, Baron A (2013) Market entry strategies in emerging markets: an institutional study in the BRIC countries. Thunderbird Int Bus Rev 55:237–252CrossRefGoogle Scholar
  47. Homburg C, Droll M, Totzek D (2008) Customer prioritization: does it pay off, and how should it be implemented? J Market 72:110–130CrossRefGoogle Scholar
  48. Iacobucci D, Saldanha N, Deng X (2007) A meditation on mediation: evidence that structural equations models perform better than regressions. J Consum Psychol 17:139–153CrossRefGoogle Scholar
  49. Jacoby J, Chestnut RW (1978) Brand loyalty: measurement and management (157). John Wiley, New York, NYGoogle Scholar
  50. Johnson J, Tellis GJ (2008) Drivers of success for market entry into China and India. J Market 72:1–13CrossRefGoogle Scholar
  51. Jolley B, Mizerski R, Olaru D (2006) How habit and satisfaction affects player retention for online gambling. J Bus Res 59:770–777CrossRefGoogle Scholar
  52. Jones GH, Jones BH, Little P (2000) Reputation as reservoir: buffering against loss in times of economic crisis. Corp Reputation Rev 3:21–29CrossRefGoogle Scholar
  53. Jonsson FY (1998) Nonlinear structural equation models: the Kenny–Judd model with interaction effects. In: Schumacker RE, Marcoulides GA (eds) Interaction and nonlinear effects in structural equation modeling. Lawrence Erlbaum, Mahwah, NJ, pp 17–42Google Scholar
  54. Kaufmann PJ, Lafontaine F (1994) Costs of control: the source of economic rents for McDonald’s franchisees. J Law Econ 37:417CrossRefGoogle Scholar
  55. Kenny DA, Judd CM (1984) Estimating the nonlinear and interactive effects of latent variables. Psychol Bull 96:201CrossRefGoogle Scholar
  56. Limayem M, Hirt S, Cheung C (2007) How habit limits the predictive power of intentions: the case of IS continuance. MIS Q 31:705–737Google Scholar
  57. Lindblad E, Lyttkens CH (2002) Habits versus choice: the process of decision-making in health related behavior. Soc Sci Med 55:451–465CrossRefGoogle Scholar
  58. Liu-Thompkins Y, Tam L (2013) Not all repeat customers are the same: designing effective cross-selling promotion on the basis of attitudinal loyalty and habit. J Market 77:21–36CrossRefGoogle Scholar
  59. Martenson R (2007) Corporate brand image, satisfaction and store loyalty: a study of the store as a brand, store brands and manufacturer brands. Int J Retail Distrib Manage 35:544–555CrossRefGoogle Scholar
  60. Mazursky D, Jacoby J (1986) Exploring the development of store images. J Retailing 62:145–165Google Scholar
  61. McFarland RG, Bloodgood JM, Payan JM (2008) Supply chain contagion. J Market 72:63–79CrossRefGoogle Scholar
  62. Neal DT, Wood W, Quinn JM (2006) Habits: a repeat performance, current directions. Psychol Sci 15:198–202Google Scholar
  63. Newman JW, Werbel RA (1973) Multivariate analysis of brand loyalty for major household appliances. J Market Res 10:404–409CrossRefGoogle Scholar
  64. Nunnally JC, Bernstein IH (1994) Psychometric theory. McGraw-Hill, New York, NYGoogle Scholar
  65. Oliver RL (1980) A cognitive model of the antecedents and consequences of satisfaction decisions. J Market Res 17:460–469CrossRefGoogle Scholar
  66. Oliver RL (1997) Satisfaction: a behavioral perspective on the consumer. Irwin/McGraw-Hill, New York, NYGoogle Scholar
  67. Oliver RL (1999) Whence consumer loyalty? J Market 63:33–44CrossRefGoogle Scholar
  68. Pan Y, Li S, Tse DK (1999) The impact of order and mode of market entry on profitability and market share. J Int Bus Stud 30:81–103CrossRefGoogle Scholar
  69. Pearl J (2012) The causal foundations of structural equation modeling. Computer Science Department, University of California, Los Angeles, CA. Technical report R-370Google Scholar
  70. Pizanti I, Lerner M (2003) Examining control and autonomy in the franchisor-franchisee relationship. Int Small Bus J 21:131–159CrossRefGoogle Scholar
  71. Podolny JM (1993) A status-based model of market competition. Am J Sociol 98:829–872CrossRefGoogle Scholar
  72. Podsakoff PM, MacKenzie SB, Lee JY, Podsakoff NP (2003) Common method biases in behavioral research: a critical review of the literature and recommended remedies. J Appl Psychol 88:879CrossRefGoogle Scholar
  73. Reichheld FF (1996) Learning from customer defections. Harv Bus Rev 74:56Google Scholar
  74. Reinartz W, Krafft M, Hoyer WD (2004) The customer relationship management process: its measurement and impact on performance. J Market Res 41:293–305CrossRefGoogle Scholar
  75. Reynolds KE, Beatty SE (1999) Customer benefits and company consequences of customer-salesperson relationships in retailing. J Retailing 75:11–32CrossRefGoogle Scholar
  76. Rhee M, Haunschild PR (2006) The liability of good reputation: a study of product recalls in the US automobile industry. Organ Sci 17:101–117CrossRefGoogle Scholar
  77. Schoorman FD, Mayer RC, Davis JH (2007) An integrative model of organizational trust: past, present, and future. Acad Manage Rev 32:344–354CrossRefGoogle Scholar
  78. Seetharaman PB (2004) Modeling multiple sources of state dependence in random utility models: a distributed lag approach. Market Sci 23:263–271CrossRefGoogle Scholar
  79. Shapiro C (1983) Premiums for high quality products as returns to reputations. Q J Econ 98:659–679CrossRefGoogle Scholar
  80. Sheth J, Park W (1974) A theory of multidimensional brand loyalty. Adv Consum Res 1:449–459Google Scholar
  81. Tellis GJ, Stremersch S, Yin E (2003) The international takeoff of new products: the role of economics, culture, and country innovativeness. Market Sci 22:188–208CrossRefGoogle Scholar
  82. Tomkins SS (1987) Script theory. In: Aronoff J, Rabin AI, Zucker RA (eds) The emergence of personality. Springer, New York, NY, pp 147–216Google Scholar
  83. Triandis HC (1980) Reflections on trends in cross-cultural research. J Cross Cult Psychol 11:35–58CrossRefGoogle Scholar
  84. Verplanken B, Aarts H (1999) Habit, attitude, and planned behaviour: is habit an empty construct or an interesting case of goal-directed automaticity? Eur Rev Soc Psychol 10:101–134CrossRefGoogle Scholar
  85. Verplanken B, Orbell S (2003) Reflections on past behaviour: a self-report index of habit strength. J Appl Soc Psychol 33:1313–1330CrossRefGoogle Scholar
  86. Vignali C (2001) McDonald’s ‘think global, act local’–the marketing mix. Br Food J 103:97–111CrossRefGoogle Scholar
  87. Wang Y, Kandampully HPL, Shi G (2006) The role of brand equity and corporate reputation literature. Corp Reput Rev 12(4):357–387Google Scholar
  88. Webb TL, Sheeran P (2006) Does changing behavioral intentions engender behavior change? A meta-analysis of the experimental evidence. Psychol Bull 132:249CrossRefGoogle Scholar
  89. Weigelt K, Camerer C (1988) Reputation and corporate strategy: a review of recent theory and applications. Strategic Manage J 9:443–454CrossRefGoogle Scholar
  90. Wong HY, Merrilees B (2007) Multiple roles for branding in international marketing. Int Market Rev 24:384–408CrossRefGoogle Scholar
  91. Wong A, Sohal A (2003) Service quality and customer loyalty perspectives on two levels of retail relationships. J Serv Market 17:495–513CrossRefGoogle Scholar
  92. Wood W, Neal DT (2009) The habitual consumer. J Consum Psychol 19:579–592CrossRefGoogle Scholar
  93. Yiu DW, Lau CM (2008) Corporate entrepreneurship as resource capital configuration in emerging market firms. Entrepreneurship Theory Pract 32:37–57CrossRefGoogle Scholar
  94. Yiu D, Makino S (2002) The choice between joint venture and wholly owned subsidiary: an institutional perspective. Organ Sci 13:667–683CrossRefGoogle Scholar
  95. Zeithaml V (2000) Service quality, profitability, and the economic worth of customers: what we know and what we need to learn. J Acad Market Sci 28:67–85CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  1. 1.Institute of Strategic ManagementWestfälische Wilhelms-Universität MünsterMünsterGermany
  2. 2.University of OklahomaNormanUSA
  3. 3.Griffith Business SchoolSouthportAustralia

Personalised recommendations