Handbook of Management Scales/Reliable and financially strong company

Reliable and financially strong company (AVE = 0.66; CR = 0.89) Description Based on a comprehensive scale development and validation procedure, the authors find support for a five-dimensional scale to measure customer-based corporate reputation of a service firm: customer orientation, good employer, reliable and financially strong company, product and service quality, and social and environmental responsibility. Definition A reliable and financially strong company relates to the customers’ perceptions of the company’s competence, solidity, and profitability and of the firm’s vision and investment potential. Items Tends to outperform competitors. (0.78) Seems to recognize and take advantage of market opportunities. (0.75) Looks like it has strong prospects for future growth. (0.68) Looks like it would be a good investment. (0.59) Appears to make financially sound decisions. (0.59) Is doing well financially. (0.63) Seems to have a clear vision of its future. (0.58) Comments Some items (1, 2, 3, 4, 7) were adapted from a scale by Fombrun et al. (2000). The last item does not really seem to fit. It is, in general, difficult to measure constructs related to financial performance; see comments in comparative organizational performance. Source Walsh & Beatty (2007): Customer-based Corporate Reputation of a Service Firm: Scale Development and Validation. Journal of the Academy of Marketing Science, Vol. 35, No. 1, pp. 127-143.