Scribd
Upload
328 views1 page

Customer Satisfaction and Business Performance

This study examined the relationship between customer satisfaction and various business performance metrics using longitudinal data from one large Fortune 100 company over five years. The study found significant, moderate to strong associations between satisfaction levels and the firm's financial and market performance, including retention, revenue, earnings per share, stock price, and Tobin's q. While limited to one firm, the findings demonstrate a consistent link between customer attitudes and financial performance at the firm level, offering opportunities for future replication research.

Uploaded by

Danyal Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
328 views1 page

Customer Satisfaction and Business Performance

This study examined the relationship between customer satisfaction and various business performance metrics using longitudinal data from one large Fortune 100 company over five years. The study found significant, moderate to strong associations between satisfaction levels and the firm's financial and market performance, including retention, revenue, earnings per share, stock price, and Tobin's q. While limited to one firm, the findings demonstrate a consistent link between customer attitudes and financial performance at the firm level, offering opportunities for future replication research.

Uploaded by

Danyal Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Customer satisfaction and business performance: a firmlevel analysis

http://www.emeraldinsight.com/doi/abs/10.1108/08876041111107032
Paul Williams (School of Business and Management, American University of Sharjah, Sharjah, United Arab
Emirates)
Earl Naumann (School of Business and Management, American University of Sharjah, Sharjah, United Arab
Emirates)
Citation:
Paul Williams, Earl Naumann, (2011) "Customer satisfaction and business performance: a firmlevel
analysis", Journal of Services Marketing, Vol. 25 Iss: 1, pp.20 - 32
DOI
http://dx.doi.org/10.1108/08876041111107032
Downloads:
The fulltext of this document has been downloaded 14068 times since 2011
Acknowledgements:
Received December 2008. Revised May 2009. Accepted July 2009.
Abstract:
Purpose
This study aims to examine the relationships between customer satisfaction and a variety of company
performance metrics at the firmlevel of analysis.
Design /methodology/approach
The primary research method used in the study was a longitudinal analysis of series of quarterly surveys
of customer attitudes, in relation to various company performance metrics of one large Fortune 100
company. The data were collected over a fiveyear period and were analyzed with several statistical tests of
association.
Findings
It was found that there are significant, and moderatetostrong associations between satisfaction levels
and a firm's financial and market performance. More specifically, there are strong links between customer
satisfaction, and retention, revenue, earnings per share, stock price, and Tobin's q.
Research implications/limitations
The main implication of this study is that the longitudinal findings demonstrate a strong consistent link
between customer attitudes and financial performance at the firm level. The study is clearly limited to one
firm, from one industry sector, but offers future researchers a wealth of replication opportunities.
Originality/value
Numerous experts have noted that marketing needs to document the financial impact of marketing
activities. Unlike most studies in this area, this study investigated these associations at the firm level, rather
than at the aggregate or industry level where some relationships are potentially masked. The study also
investigated the links between satisfaction and financial performance in the businesstobusiness services
sector, rather than in businesstocustomer services. Finally, the firm provided access to large samples of
real customer attitude data over a fiveyear period, rather than from a crosssectional study.
Keywords:
Customer satisfaction, Customer loyalty, Financial performance, Stock markets, Stakeholders
Type:
Research paper

You might also like