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Measuring the impact of customer satisfaction on profitability: A sectoral analysis
Abstract
Customer satisfaction is probably one of the most frequently measured marketing constructs, with most major organisations regularly collecting data on the extent to which their customers are satisfied. This level of interest is perhaps unsurprising given that it is a basic principle of marketing that business performance is enhanced by satisfying customers. The challenges of measuring satisfaction effectively had been extensively researched and there is a growing body of evidence to support the argument that satisfied customers are more loyal. There is rather less evidence to support the proposition that satisfaction contributes to business performance, not least because of the difficulties associated with relating consumer attitudes and behaviour to financial measures of performance as well as the intervening effects of loyalty. This paper focuses exclusively on satisfaction and uses aggregate measures from the American Consumer Satisfaction Index (ACSI) for companies across a range of sectors. It provides mixed evidence for the positive, impact of satisfaction on business performance using a range of different financial measures.Journal of Targeting, Measurement and Analysis for Marketing (2001) 10, 106-116; doi:10.1057/palgrave.jt.5740038
... Existing literature on CS within the accounting domain is primarily limited (Roslender and Nielsen, 2021;Yeung and Ennew, 2001;Zhang and Pan, 2009). The importance of customers satisfaction and its value relevance for CP have been overlooked (Roslender and Nielsen, 2021;Yeung and Ennew, 2001). ...
... Existing literature on CS within the accounting domain is primarily limited (Roslender and Nielsen, 2021;Yeung and Ennew, 2001;Zhang and Pan, 2009). The importance of customers satisfaction and its value relevance for CP have been overlooked (Roslender and Nielsen, 2021;Yeung and Ennew, 2001). Yeung and Ennew (2001) attributed this shortage to the difficulties associated with linking consumer attitudes and behavior and the accompanying loyalty effects to financial performance measures. ...
... The importance of customers satisfaction and its value relevance for CP have been overlooked (Roslender and Nielsen, 2021;Yeung and Ennew, 2001). Yeung and Ennew (2001) attributed this shortage to the difficulties associated with linking consumer attitudes and behavior and the accompanying loyalty effects to financial performance measures. Mixed and inconsistent results have been documented in capturing such relationship (Drosos et al., 2011;Fornell et al., 1995;Fornell et al., 2006;Hellofs and Jacobson, 1999;Tornow and Wiley, 1991;Yeung and Ennew, 2001). ...
Purpose
Customer satisfaction (CS) is a key factor in maintaining customer relations and achieving corporate success. This paper aims to empirically investigate the value relevance of CS accounting for corporate performance (CP) of top global brands worldwide.
Design/methodology/approach
A sample of top 100 global brands located in different countries and operating over various industries is examined for a period of three years comprising 2020 till 2022. A quantitative research methodology is used for conducting content analysis of companies’ annual reports and carrying out ordinary least squares multiple regression tests using different financial and market measures, as proxies for CP.
Findings
Results show that CS can significantly enhance CP. Findings indicate a significant positive association of current and lagged CS with both profitability and market value, thereby documenting consistent evidence in a global market setting.
Research limitations/implications
The study provides an aggregate picture of the value relevance of CS while a disaggregated view across different industries can reveal deeper insights. However, the study has important implications for corporate executives, investors, accountants and standard setters, offering global insights that appreciate CS for improving CP and creating value for businesses. It helps in understanding customers preferences, designing corporate policies and strategies, predicting CP, developing alternative methods of CS measurement and reporting and recommending possible accounting treatments.
Originality/value
This study adds to the relatively limited literature on the potential contribution of CS within the accounting literature. It extends the scope of prior research by documenting quantitative empirical evidence of the value relevance of CS for CP of top global brands, using different financial and market measures. It provides international insights into a global market setting, in which diversity is inherent and competition is fierce. Hence, the study largely contributes to resolving existing debate by documenting consistent objective evidence over a wide regional diversity using various indicators.
... Agar sebuah aplikasi video conference dapat memenangkan persaingan, kepuasan konsumen memiliki peran yang sangat penting. Kepuasan konsumen dapat secara signifikan mempengaruhi loyalitas konsumen, performansi bisnis, serta profitabilitas usaha [6] Menyediakan rancangan aplikasi yang baik menjadi salah satu cara yang efektif untuk memberikan kepuasan kepada konsumen dalam pengembangan sebuah aplikasi [7] [8]. Untuk dapat unggul, aplikasi video conference harus mampu mengakomodir kebutuhan dan keinginan serta menyesuaikan dengan preferensi penggunanya, dimana salah satu cara yang efektif adalah dengan menghadirkan rancangan aplikasi yang memberikan UX yang baik sehingga dapat memberikan kepuasan bagi penggunanya. ...
... Tahap wawancara bertujuan untuk memahami konsumen secara langsung terkait atribut yang dipertimbangkan oleh konsumen dalam menggunakan aplikasi video conference. Wawancara dilakukan secara tidak terstruktur dengan topik bahasan seputar hal-hal yang dipertimbangkan dan dibutuhkan oleh konsumen terhadap QI = Relative Importance x (Evaluation of Own Product -Evaluation of competitor' s Product) (6) sebuah aplikasi video conference untuk mendukung aktivitas produktif mereka. Responden pada tahap ini adalah konsumen aplikasi video conference untuk aktivitas produktif yang menggunakan salah satu atau beberapa aplikasi video conference secara rutin dalam 3 bulan terakhir. ...
The rapid development of communication technology and the increasing need for long-distance communication in the Covid-19 pandemic era have made video conferencing applications play a vital role in human productive activities, such as working, studying, doing hobbies, and more. The increasing need has spurred video conferencing application providers to increase customer satisfaction so that it remains the first choice for the customers. To win the competition in this sector, video conferencing application providers should understand and provide the application design that provides maximum satisfaction to the customers. Therefore, this study aims to analyze customer preferences and satisfaction with the design attributes of the video conference applications which refers to the three most popular video conferencing applications in Indonesia: Zoom, Google Meet, and Skype. This study used the Kano Model to identify customer preference and satisfaction with the 46 identified design attributes of the video conferencing application. The Kano Model analysis used quantitative and qualitative approaches to produce the priority of importance for each design attribute based on customer preferences and the impact of each attribute on customer satisfaction. Based on the Kano Model resulted, there are 19 attractive attributes, 1 must-be attribute, 15 one-dimensional attributes, and 9 indifferent attributes. We also obtained the best proposed design attributes where 37 attributes refer to the Zoom application, 6 attributes refer to the Google Meet application, and 3 attributes refer to the Skype application. This study contributes to helping video conferencing application providers to develop their products better as well as being a reference for those who want to develop new video conferencing applications that can satisfy customers well. This study also has an impact as a reference in evaluating consumer satisfaction on video conferencing applications in Indonesia.
... Understanding the perceptions of CS in SCM is very crucial for the top management to always improve the company's performance (Yeung & Ennew, 2001). To measure the movement result of CS can be done by comparing to the profitability that companies have. ...
... The actions are including a high reputation, can explore the global market, having more innovation, utilize effective cost for operation, and implement continuous improvement. Other literature supported that CS improvement in SCM can improve customer loyalty that brings profit to the company (Yeung & Ennew, 2001;Islam et al., 2021). ...
Improving Customer Satisfaction (CS) is a key strategical goal for companies, especially for Small and Medium-Sized Enterprises (SMEs). The objective of this research is to find and rank the major factors supporting CS. We focus on SMEs in two emerging markets located in two countries with different geographical and supply chain environments. We test a conceptual framework that includes several factors supporting CS. The data were collected from Hungarian and Indonesian SMEs by online questionnaire. We used statistical analysis such as Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Model (SEM) to test our model and hypothesis. Based on the survey of the top management of the SMEs, the three factors that have a significant positive effect on CS in both countries are Market Pressure (MP), Organizational Culture (OC), and Corporate Strategy (CStra). The rank order is MP followed by OC and CStra in Hungary; MP, CStra, and OC for Indonesia. Even though many scholars discussed CS, a few studies have shown the connection between CS and the successful implementation of SCM. Evaluating and ranking the supporting factors contributes to the literature and business practice of SME decision-making related to SCM.
... Client-related Relational Stressors (CRS) were negatively associated with it, a result consistent with the study of Lechat and Torrès (2017) that showed that client satisfaction is both the most satisfying and intense experience for SME directors. This is probably because client satisfaction (as against dissatisfaction and conflict) is a sign of service or product quality and of sustained business profitability (Yeung & Ennew, 2001). Concerning Time Pressure (TP), this was negatively associated with job satisfaction when considered alone (i.e., bivariate correlation), a result consistent with past studies (e.g., Fors Connolly et al., 2021). ...
Peu d’études explorent les facteurs de stress et la santé au travail des dirigeants de petites et moyennes entreprises (PME), notamment dans le contexte français. La présente étude vise à identifier les stresseurs professionnels des dirigeants de PME françaises (dirigeants propriétaires et dirigeants salariés). Elle compare également les stresseurs observés en contexte français avec ceux identifiés dans la littérature internationale. Enfin, elle évalue l’impact réel des stresseurs sur l’épuisement émotionnel, la satisfaction au travail et les troubles du sommeil. Basée sur une méthode mixte, une étude qualitative par entretiens a d’abord été menée auprès de 14 dirigeants français de PME puis une étude quantitative par questionnaire auprès de 881 dirigeants français de PME (répartis en dirigeants propriétaires et salariés). Enfin, plusieurs analyses ont été menées notamment des analyses factorielles exploratoires et confirmatoires. L’étude qualitative a abouti à une liste de 36 principaux stresseurs présentés sous la forme d’items. Les analyses factorielles ont permis d’identifier quatre facteurs de stress : les ressources humaines et les problèmes de gestion, les facteurs de stress économiques et éthiques, les facteurs de stress relationnels liés aux clients et la pression du temps. Ces facteurs de stress étaient significativement associés aux trois résultats. Bien que partageant les mêmes quatre types de facteurs de stress, des différences existent entre les directeurs propriétaires et les directeurs salariés. Cette étude contribue aux connaissances et fournit des informations utiles pour les interventions pratiques des professionnels de santé (par exemple, meilleur ajustement des actions de prévention, baromètre social) et en tant qu’outil d’auto-évaluation pour les dirigeants de PME.
... According to Jiang et al. (2022), it is emphasized that businesses should focus on the impact of service-oriented production starting from (production, design to final disposal) to have product sustainability. There is still little evidence on customer satisfaction and its impact on measures of business financial performance and sustainable profit as highlighted by Yeung and Ennew (2001). Regarding this, the authors also agreed (Hogreve et al., 2021) but added the importance of digital changes according to the model (CSS & CST) for providing products/services to consumers. ...
Purpose-This research examines and investigates the importance of sustainable business profit through customers and its impacts on three key business domains: technology innovation service (TIS). The main goal was to see what were the interrelationships of business-consumers and consumers-business analysis to have a sustainable profit based on the models: Innovation and Growth Teams (IGT), Innovative Customer Relationship Management (ICRM), Business-to-Consumer (B2C), Customer Service and Support (CSS), Customer Service Technology (CST), and Multidimensional Scaling model (MDS) or the factors (F1-F14). Were these factors important to businesses and which variables had the greatest impact on sustainable profit through consumer evaluation during purchase? Research methodology-This research was carried out on manufacturing, service, and distribution businesses (consumer-business analysis) and consumers (business-consumer analysis) in 200 businesses and consumers, through the completion of the online questionnaire and the meeting with the business managers, considering the same variables during the period (2019-2022). The data processing was done through (SPSS Statistics 23) using tests and econometric analysis (descriptive, factorial, reliability, multiple regression, and multidimen-sional scaling analysis) the model shows that all factors have great effects on sustainable business profit through consumers. Findings-However, it is suggested that of great importance for a sustainable business profit through customers are: the behavior of workers and staff, handling requests faster, business support before and after purchase, providing information applications (discount, usage, term of the expiration date, product content, payment methods as well as the provision of transport by the business for consumers. Research limitations-The limitations of this research are only a certain number of variables, years, and the number of businesses, but for other analyses and research, researchers can take a larger number of variables, businesses, and/or countries using the same models. Practical implications-Based on the above questions, it was confirmed that a (TIS) through models will make the profit even more stable by strengthening the position of businesses in the market against their competitors. So, in this case there are still practical implications in three key business domains (TIS) technology, innovation, and services. Therefore, businesses should pay attention to these findings to have a sustainable business profit. Originality/Value-Research related to sustainable profit through consumers considering three key business domains technology, innovations, and services (TIS) has not been analyzed earlier in terms of consumers as buyers and businesses as providers of products and services.
... serta Yu, Chang and Huang (2006) membuktikan bahwa kepuasan berpengaruh terhadap loyalitas. SedangkanYeung and Ennew (2001) menyimpulkan dalam penelitiannya bahwa kepuasan berpengaruh terhadap kinerja keuangan, pembelian kembali dan loyalitas. Karena itu dalam konteks pemabayan pajak oleh WP, hipotesis yang diajukan adalah: ...
... Customer acceptance, according to Singam, Karunagaran, Pandiyan, Subramanian, and Govindan (2014), is something that can be assessed through several aspects that are included creative advertising, colour, and humour, distinctive, interactivity and content. In the restaurant context, customer acceptance can be measured through sales, profit, and market share (Yeung and Ennew, 2001). Angelova and Zekiri (2011) noted that customer acceptance is the manifestation felt by the customers that experienced restaurant performance that has fulfilled their expectations. ...
Due to the rise of popularity of mobile food truck businesses and in line with the challenging food business realm, the efforts of improving the business performance and resiliency demand a more comprehensive view on the influence of its operational attributes towards customer acceptance. However, without prejudice, there is still no study specifically looking at the causes and effects of food truck attributes, mediating effect of customers' acceptance, and business performance toward its business resiliency. In fact, there is still a lack of studies centrally looking at the moderating effect of social media marketing on customers' acceptance of mobile food truck businesses. Understanding these issues is considered important not only for the changes in customer's food behavioural pattern, mobile food truck operator's business survival, but country economic contribution. This research note is an effort to understand the influence of the mobile food truck operational attributes and moderating effect of social media marketing toward its business performance and resiliency. Thus, a conceptual framework integrating social media marketing toward business performance and the mobile food truck business resiliency is proposed to fill the gap and align with the earlier issues.
... More specifically, the complete consumer experience includes factors such as quality, price, functions of the product, and personal benefits gained from the product. According to Yeung & Ennew (2001) satisfied customers are more likely to be loyal and loyal customers are more profitable. Zakari & Ibrahim (2021) stated that Customers are justifications for organization's continuous existence and by extension responsible for achieving profitable performance. ...
The objective of this study was to examine the influence of marketing research on the profitability of Nigerian Deposit Money Banks in Abuja. The study was a survey research sampling the opinion of 82 staff of Zenith, Polaris, First Bank and First city monument bank, Bwari branch. Their opinion was collected using a structured questionnaire. The data obtained was analysed by tabulation and percentages, and the formulated hypotheses tested using Kendal coefficient of concordance method. The findings revealed that Banks marketing research efforts results to customer’s need identification and customer’s satisfaction; and that bank’s customer’s satisfaction through marketing research efforts enhances profitability in Abuja. The study concluded that for Deposit Money banks to maximize profit at optimum level, they have to expand the scope of marketing research and development in order to eliminate the risk involve in today’s marketing trend. Therefore the study recommended among other things that Deposit Money Banks in Nigeria should strive to monitor the degree of customer’s satisfaction with their services on a continuous basis through market situation analysis. This way, the banks will be able to see areas requiring improvement thereby facilitating the much-desired satisfactory delivery of financial services to Abuja residents. Also Banks should intensify their research efforts to provide timely information on product development and other areas that will have positive influence on their operations. Equally they should ensure that all their marketing research efforts are tailored towards customer needs and to identify not just the explicit needs of the customer, but also the latent needs.
... Les raisons qui peuvent expliquer une telle omission sont d'ordre autant pratique que théorique. Tout d'abord, d'un point de vue pratique, les ressources nécessaires ainsi que les difficultés d'accessibilité au terrain rencontrées par les chercheurs peuvent expliquer pourquoi les études au niveau d'une industrie sont absentes de la littérature (Evangelista et al., 2013 ;Yeung et Ennew, 2001). Souvent, le point d'ancrage d'études traitant du mensonge ou de la duplicité provient d'un événement saillant ou isolé. ...
Français
Cet article analyse les comportements auto-rapportés des conseiller (ère) s de boutique ainsi que les pratiques/politiques internes de sept firmes de télécommunications canadiennes. Les résultats indiquent que les comportements de duplicité et de mensonge ne sont pas distribués de façon aléatoire dans l’industrie. L’étude propose un modèle comprenant six pratiques/politiques internes qui sont en mesure d’expliquer jusqu’à 68 % des variations de ces comportements au travail.
English
Duplicity and deception in Canadian telecom. Industry scope and strategic issues
This paper analyzes the self-reported behaviors of store consultants and the internal practices/policies of seven Canadian telecommunications firms. The results indicate that duplicity and deception are not randomly distributed in the industry. Specifically, the study identifies a pattern of six internal practices/policies that can explain up to 68 % of the variation in these behaviors in employment.
ARTICLE INFO ABSTRACT Purpose: the current study is to test the impact of open-book management on customer satisfaction through the mediating role of trust in the hotel and tourism sector in Jordan from the perspective of customers. Design/methodology/ approach: The study deployed the descriptive method to describe the study sample and the analytical approach to test the study hypotheses. Furthermore, the study population comprises the hotel and tourism sector in Jordan that is indexed on the Amman stock exchange (2022) which amounts to (9) companies. Furthermore, a questionnaire was developed from the previous studies. Besides, the study sample consisted of (410) customers who is selected by a convenience sample, and the number of questionnaires returned was 358 which shaped 81%. Moreover, the hypotheses were tested using Baron and Kenny's (1986) methodology using SPSS. Findings: The current study showed that open-book management has a positive and significant impact on customer satisfaction. Further, showed that there is a positive and significant impact of open-book management on trust. Furthermore, there is a positive and significant impact of trust on customer satisfaction. In addition, trust has a partial mediating role in the relationship between open-book management and customer satisfaction. Research limitations: The current study is not free from any limitations, in this study, the limitations are employees selected by a convenience sample, Therefore, the results can't be generalized to other sectors. furthermore, there is a shortage of prior studies that addressed the same topic. Research, Managerial implications: Open-book management is considered one of the commonly used methods that assist employees to get their needs from the information and knowledge. precisely, the hotel and tourism sector in Jordan must be aware of what is making their customers satisfied by conducting studies regarding their needs and wants before introducing the products and services. Originality: Despite there being many studies conducted in the area of open-book management and customer satisfaction, few studies addressed the theme of trust as a mediating variable. Therefore, the study came up to fill the gap in the literature and provide a theoretical and practical contribution. RESUMO Objetivo: O estudo atual é testar o impacto da gestão de livros abertos na satisfação do cliente através do papel mediador da confiança no setor hoteleiro e turístico na Jordânia, a partir da perspectiva dos clientes. Design/metodologia/abordagem: O estudo empregou o método descritivo para descrever a amostra do estudo e a abordagem analítica para testar as hipóteses do estudo. Além disso, a população do estudo compreende o setor de hotelaria e turismo na Jordânia que está indexado na bolsa de valores de Amã (2022), o que equivale a (9) empresas. Além disso, foi desenvolvido um questionário a partir dos estudos anteriores. Além disso, a amostra do estudo consistiu de (410) clientes que são selecionados por uma amostra de conveniência, e o número de questionários devolvidos foi de 358, o que perfaz 81%. Além disso, as hipóteses foram testadas usando a metodologia de Baron e Kenny (1986) usando o SPSS. Conclusões: O estudo atual mostrou que a gestão de livros abertos tem um impacto positivo e significativo na satisfação do cliente. Além disso, mostrou que há um impacto positivo e significativo da gestão de livros abertos sobre a confiança. Além disso, há um impacto positivo e significativo da confiança na satisfação do cliente. Além disso, a confiança tem um papel mediador parcial na relação entre a gestão de livros abertos e a satisfação do cliente. Limitações da pesquisa: O estudo atual não está livre de quaisquer limitações, neste estudo, as limitações são funcionários selecionados por uma amostra de conveniência, portanto, os resultados não podem ser generalizados para outros setores. além disso, há uma escassez de estudos anteriores que abordaram o mesmo tópico. Pesquisa, implicações gerenciais: A gestão de livros abertos é considerada um dos métodos mais utilizados para ajudar os funcionários a obter suas necessidades a partir da informação e do conhecimento. precisamente, o setor hoteleiro e turístico na Jordânia deve estar ciente do que está deixando seus clientes satisfeitos ao realizar estudos sobre suas necessidades e desejos antes de introduzir os produtos e serviços. Originalidade: Apesar de haver muitos estudos realizados na área de gestão de livros abertos e satisfação do cliente, poucos estudos abordaram o tema da confiança como uma variável mediadora. Portanto, o estudo surgiu para preencher a lacuna existente na literatura e fornecer uma contribuição teórica e prática. Palavras-chave: Gestão de Livros Abertos, Confiança, Satisfação do Cliente, O Setor Hoteleiro e Turístico na Jordânia, Metodologia do Barão e Kenny (1986). EL IMPACTO DE LA GESTIÓN DE LIBRO ABIERTO EN LA SATISFACCIÓN DEL CLIENTE: EL PAPEL MEDIADOR DE LA CONFIANZA RESUMEN Objetivo: El presente estudio pretende comprobar el impacto de la gestión de libro abierto en la satisfacción del cliente a través del papel mediador de la confianza en el sector de la hostelería y el turismo en Jordania desde la perspectiva de los clientes. Diseño/metodología/enfoque: El estudio utilizó el método descriptivo para describir la muestra del estudio y el enfoque analítico para probar las hipótesis del estudio. Además, la población del estudio comprende el sector de la hostelería y el turismo en Jordania que está indexado en la bolsa de Ammán (2022), que asciende a (9) empresas. Además, se elaboró un cuestionario a partir de los estudios anteriores. Además, la muestra del estudio estaba formada por (410) clientes seleccionados por un muestreo de conveniencia, y el número de cuestionarios devueltos fue de 358, lo que supuso un 81%. Además, las hipótesis se comprobaron mediante la metodología de Baron y Kenny (1986) utilizando el SPSS. Resultados: El presente estudio demostró que la gestión de libro abierto tiene un impacto positivo y significativo en la satisfacción del cliente. Además, mostró que existe un impacto positivo y significativo de la gestión de libro abierto en la confianza. Además, existe un impacto positivo y significativo de la confianza en la satisfacción del cliente. Además, la confianza tiene un papel mediador parcial en la relación entre la gestión del libro abierto y la satisfacción del cliente. Limitaciones de la investigación: El presente estudio no está exento de limitaciones, en este estudio, las limitaciones son los empleados seleccionados por una muestra de conveniencia, Por lo tanto, los resultados no se pueden generalizar a otros sectores. además, hay una escasez de estudios anteriores que abordaron el mismo tema. Investigación, implicaciones directivas: Precisamente, el sector de la hostelería y el turismo en Jordania debe ser consciente de lo que satisface a sus clientes realizando estudios sobre sus necesidades y deseos antes de introducir los productos y servicios. Originalidad: A pesar de que hay muchos estudios realizados en el ámbito de la gestión del libro abierto y la satisfacción del cliente, pocos estudios abordan el tema de la confianza como variable mediadora. Por lo tanto, el estudio surgió para llenar el vacío en la literatura y proporcionar una contribución teórica y práctica.
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