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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
... Service quality and customer satisfaction are the main domains of the marketing literature, and studies investigating the relationship of these respective two constructs with business or financial performance are abundant (Yeung and Ennew, 2001;Yeung and Ennew, 2002;Al-Hawari and Ward, 2006;Williams and Naumann, 2009;Mahfooz, 2014;Farooq et al., 2018;El-Adly, 2019). However, these studies have not explored this relationship in the context of water service sector. ...
... Many scholars have also investigated the impact of customer satisfaction on the business performance in private sector (Williams and Naumann, 2009;Al-Dmour et al., 2019) and have found strong links between customer satisfaction and financial indicators such as sales revenue and earnings per share. Yeung and Ennew (2001) concluded a positive impact of satisfaction on business performance across a range of sectors (technology, financials, communication and transportation) in the USA while using different financial performance measures such as profitability ratios. In the water sector, Donkor (2013) investigated the effect of customer satisfaction on water utility business performance measured by the extent of cash collection and the timely payments. ...
Article
Service quality and customer satisfaction influence the financial performance of service organizations. Hence, the purpose of this paper is to investigate the path relationship of service quality to customer satisfaction to financial sustainability in the water service sector, which is vital to the sustainable future of mankind. Further, these three interrelated constructs and their dimensions are clearly articulated. SERVQUAL questionnaire responses were collected from 635 household families, and the financial sustainability indicators of 56 water providers were gathered as well. Cronbach's alpha and factor analysis were conducted to measure the internal consistency and convergent validity. Path analysis was utilized to evaluate the causal diagram by examining the relationships among service quality, customer satisfaction and financial sustainability using the AMOS software package. The results showed that the five dimensions of service quality explain 58% of the customer satisfaction variation. The responsiveness, empathy, assurance and reliability have significant impact on the customer satisfaction where p < 0.05, while the tangible dimension has an insignificant effect. The results also revealed that customer satisfaction has a significant impact on the financial sustainability indicators of the water providers, where p 5 0.000 for the debt collection ratio indicator, and p 5 0.003 for the financial efficiency ratio indicator. This research on financial sustainability is based on evidence about service quality and customer satisfaction in the Palestinian water sector. Future research on financial sustainability of the water sector may focus on the pricing mechanism and debt collection of water service. The findings suggest that water providers should recognize the importance of service quality dimensions, which strengthen the customer satisfaction, which, in turn, is a significant driver for their financial sustainability. It is, therefore, sound to draw action-oriented managerial implications from these results. The study adds to the literature of water service sector and is based on empirical evidence from primary data of household families and secondary data of water service providers from developing countries. This paper also contributes toward the strengthening of sustainability of the water service sector in Palestine-a worthy humanitarian cause. The study provides evidence useful for policy makers toward carving out policies aimed at strengthening the financial sustainability of the water service sector.
... 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. ...
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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.
... Minh and Huu (2016) claimed that customer satisfaction is becoming one of the most important goals of every company that considers long-term relationships with customers as a top priority. Yeung and Ennew (2001) stated that customer satisfaction is one of the most commonly measured marketing metrics, thus most major organizations collect data about how satisfied their customers are on a regular basis. Gustafsson et al. (2005) mentioned that custom satisfaction used to explain loyalty as a behavioral intent (e.g., probability of redemption and recommendation). ...
Article
The article analyzes an evaluation of consumer satisfaction with public transport services in the light of academic literature which highlights the importance of the public transport system and the features of public transport services. The article presents the most influential aspects of public transport services to consumer satisfaction, as evaluated by the residents of major Lithuanian cities. The opportunities for service quality improvements are also presented. In order to examine the elements of consumer satisfaction with public transport services in the major Lithuanian cities, a quantitative analysis was performed and the method of statistical analysis was applied. Student’s test was used to compare and analyze the evaluations by the residents of Vilnius and the residents of other major Lithuanian cities. The most influential elements to satisfaction with public transport services and the overall level of satisfaction with public transport services to the residents of major Lithuanian cities (N = 466) were determined. The research results and insights can be applied in planning the improvements of public transport services.
... 3G mobile phones offer communication and computing ability together in a device of mobility [22]. Previous studies showed that customer satisfaction can affect postpurchase behavior such as re-purchase and customer recommendations [23,24]. Furthermore, customer satisfaction is considered as general and acceptable reaction for meeting the needs or desire of customers [25]. ...
... First, satisfied consumers are less price-sensitive and are therefore more likely to pay premium prices [47]. Second, these consumers appreciate the services as provided and rarely require after-sales support, helping the firm control operational costs and improve business performance [65,66]. Third, interactions with satisfied consumers result in higher repurchase rates, lower consumer-maintenance costs, and lower overall transaction costs [67]. ...
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This study empirically investigates the effects of online consumer reviews on hotel accommodation performance in an e-commerce context. Online consumer reviews include two types: online consumer satisfaction and electronic word-of-mouth (eWOM). eWOM was also regarded as the proxy of consumer loyalty. Hotel-level online consumer reviews from three well-known online travel agencies (i.e., Agoda.com, Expedia.com, and Trip.com) and financial data from 88 hotels were combined and analyzed using the Hayes’ PROCESS Macro. Based on the service-profit chain (SPC) framework, the two forms of online consumer reviews, satisfaction, and eWOM, were hypothesized to have positive effects on performance. The hypothetic effects were assessed in terms of the concurrent model and three lagged models. The results indicate that satisfaction has a positive effect on eWOM. However, to our great surprise, the two forms of online consumer reviews did not directly affect hotel accommodation performance across the concurrent model and the three lagged models. Additionally, online consumer satisfaction did not influence hotel accommodation performance via eWOM. The results have several important theoretical and practical implications for online consumer relationship management in the hospitality and tourism industry. The results of this study can further clarify the relationships among online consumer satisfaction and eWOM (customer loyalty), and performance.
... The authors found evidence that customer satisfaction measures are leading indicators of consumer behaviour (customer retention, revenue and revenue growth), customer growth and accounting results (business unit revenue, profit margins, sales revenue). Their findings are supported by empirical evidence gathered by Helmi (1998), Yeung and Ennew (2001). By using a range of different financial measures, they provided evidence of a positive impact of customer satisfaction on the firm's business performance. ...
... To date, many studies have evaluated the effect of each dimension of relational capital on financial performance. The dimensions are, for instance, brand values and brand quality (Barth et al., 1998;Kallapur and Kwan, 2004), customer satisfaction (Ittner and Larker, 1998;Yeung and Ennew, 2001;Fornell et al., 2006), customer base and penetration (Amir and Lev, 1996). Furthermore, Martini et al. (2016), based on 80 largest listed companies in Germany, France, the UK, and Italy, found that relational capital is significantly related to revenues, net operating cash flow, and capital expenditures. ...
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Purpose Drawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance. Design/methodology/approach Data was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models. Findings The results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship. Research limitations/implications The focus on Iranian publicly listed companies limits the generalizability of results. Practical implications Managers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance. Originality/value To our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.
... 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: ...
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The study is to examine the effect of service quality and satisfaction of the tax compliance of taxpayers to pay taxes. It is the case study in Yogyakarta Branch of Tax Office. In the study the concept of quality of service tax office and taxpayers satisfaction based on five dimension including reliability, assurance, responsiveness, empathy, and tangible. The research data was obtained with 191 respondents involves taxpayers in the two branches of the tax office in Yogyakarta by taking a sample of convenience sampling. With the data processing program Amos, was obtained the result that service quality had a positive effect on adherence indirectly through a variable of satisfaction. While based on Wilcoxon analysis concluded that some quality assessment items, service and taxpayer satisfaction are empirically proven to different.
... First, customers are among companies' primary stakeholder groups with the potential to affect their profitability. In fact, it is an expected marketing principle that the performance of companies can be enhanced by satisfying their customers [26]. Second, while studies have investigated the mediating role of customer satisfaction in the link of companies' environmental management initiatives and their financial performance, none has-to the best of our knowledge-investigated this from the perspective of the environmental performance of companies. ...
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The academic community has been advocating for companies to focus on improving their environmental performance. While companies are increasingly taking environmental action driven mainly by top management commitment, there is interest in understanding whether by contributing to the sustainability of the natural environment companies can gain the satisfaction of their other stakeholders and in a manner that facilitates their competitiveness. With the use of partial least squares structural equation modeling among a sample of large U.S. publicly traded companies, this study investigates the role of customer satisfaction in driving an effect of companies’ environmental performance on their long-term oriented profitability. The results show that customer satisfaction positively affects the long-term oriented profitability of companies. However, customers are generally not satisfied with companies’ environmental performance. An opportunity, therefore, exists for companies to adopt new approaches to their environmental performance that are particularly focused away from reducing the use of environmental resources. An opportunity also exists for guidance to companies on environmental performance measurement metrics that reflect their involvement in the promotion of the sustainability of the natural environment.
... Based on the abovementioned analysis, we can conclude that high levels of customer satisfaction can lead to customer loyalty [40][41][42], business profitability [43,44], trust [45], customer retention [41], positive word-of-mouth [46,47], repeating sales [42,48], future revenues [49][50][51][52][53][54] increased stock prices [49,[55][56][57], and higher market share [58,59]. ...
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This aim of this paper is to measure industrial consumer satisfaction in the natural gas sector in Greece. By using the Multicriteria Satisfaction Analysis (MUSA) method, the paper measures industrial customer satisfaction based on criteria concerning the provided products and services, communication and collaboration with providers’ staff, customer service, pricing policy and website. The research results that are based on the analysis of 95 questionnaires collected during the period between June 2017 and October 2017 show that the index of the global customer has a good performance as its value is about 74.99%. Furthermore, the satisfaction criterion with the highest performance is the one concerning communication and collaboration with natural gas providers’ staff. It should be noted that the criterion concerning the provided products and services criterion is the only one with high performance and importance—meaning that it should be in the spotlight of the natural gas providers. The paper concludes that there is considerable space for improvements to be made. Customer satisfaction is of great importance for every company, as it can be highly connected with its performance. Using the results of this study, natural gas providers will have the chance to frame their future actions in order to keep their industrial customers satisfied. Taking into account both the fact that industrial customers’ share in the Greek natural gas market is about 25% and that this market has been recently liberalized, it is of vital importance for natural gas providers to have sufficient information about their industrial customers’ satisfaction.
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