Is Customer Satisfaction Really a Cateh-All? The Discrepancy between Financial Performance and Survey Results
The managerial literature traditionally views customer satisfaction as a key indicator of retailer success despite research suggesting its limits as a performance metric. The research reported here focuses specifically on the relationships between satisfaction, value, and loyalty, with financially-b...
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| Published in | Journal of managerial issues Vol. 31; no. 2; pp. 137 - 150 |
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| Main Authors | , , , |
| Format | Journal Article |
| Language | English |
| Published |
Pittsburg State University
01.07.2019
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| Online Access | Get full text |
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| Summary: | The managerial literature traditionally views customer satisfaction as a key indicator of retailer success despite research suggesting its limits as a performance metric. The research reported here focuses specifically on the relationships between satisfaction, value, and loyalty, with financially-based outcomes such as earnings per share and return on assets. Retail managers are charged with increasing customer satisfaction as a key contributor to firm success. However, the extant literature reports a weak relation between customer satisfaction and a firm's organizational performance. This work attempts to determine if the drivers of loyalty and retail firm financial performance in a retail context are the same by examining the role of satisfaction and value in the process. The results provide evidence that value is a predictor of market-based success including ROA and EPS while satisfaction is a predictor of loyalty. In particular, the role of hedonic value and its impact on financial performance for retail management proves particularly interesting. |
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| ISSN: | 1045-3695 2328-7470 |