Customer satisfaction measurement and management: A processual analysis

Customer satisfaction (CS) measurement has been widely advocated as central to the pursuit of market orientation, total quality management, and competitive advantage by allowing management to monitor and improve performance in the terms most significant to customers. However, relatively little analytical attention has been devoted to the processual issues implicit in the adoption of CS measurement systems by organizations. This paper presents executive workshop data and new survey evidence to support the contention that both research and managerial agenda should be extended to recognize the multi‐dimensionality of organizational process, and the implications of that characteristic for the adoption and use of CS measurement systems.     

Customer satisfaction and dissatisfaction in retail banking: Exploring the asymmetric impact of attribute performances

The paper presents the results of an extensive study on the determinants of customer satisfaction for a retail bank. In doing so, it uses a revised version of the traditional analyses based on derived measures of attribute importance. The need for a revised methodology is prompted by the insights of the two- and three-factor theories of customer satisfaction, such as Kano's framework. Indeed, the evidence from 5000 customers of a prominent Italian bank confirms a non-linear and asymmetric relationship between attribute performances and overall customer satisfaction. The results from both a traditional and our revised approach are compared. While this approach can be applied across different industries, it should not be assumed that the numerical results presented in the paper apply to contexts with substantially different underlying characteristics. General trends and implications for banking services are reported in the conclusions.     

Customer satisfaction underappreciation: The relation of customer satisfaction to CEO compensation

Customer satisfaction contributes to firm financial performance, but does it contribute to top executives' pay? Our empirical evidence shows that it may not. Customer-satisfying executives tend to have lower pay than their productive peers, even if both satisfaction and productivity contribute to firm financial performance. Thus, customer satisfaction is underappreciated, which may result in both less societal welfare and worse company performance. We propose a board myopia mechanism to account for this phenomenon. In facing short-term financial performance pressure from investors, and the asymmetric information availability between accounting-based and market-based assets for compensation decisions, the board of directors may be myopic, underappreciating executives who invest in market-based assets such as customer satisfaction that drive long-term returns. We examine this satisfaction underappreciation phenomenon empirically using 23 years of panel data that detail firm productivity, customer satisfaction, firm financial performance, and executive compensation. The longitudinal data are analyzed using fixed-effect panel models and a simultaneous system of panel vector autoregression equations with interactions to assess the direct effect of firm financial performance and its carryover effect to executive compensation across executives who are productive, customer-satisfying, or both. The results confirm that customer-satisfying executives are underappreciated: being productive is financially rewarding for both firms and executives, while being customer-satisfying is financially rewarding for firms but not as much for executives. We further demonstrate that using total shareholder returns to benchmark firm financial performance and reward executives with a higher proportion of stock compensation can encourage a long-term focus that alleviates this customer underappreciation.     

Customer satisfaction and Scuba-diving: Some insights from the deep

This paper explores the concept of customer satisfaction in relation to the scuba-diving consumption experience. It investigates the myriad of tangible and intangible elements of the experience, from which scuba-divers derive a sense of meaning and/or satisfaction. The results indicate that satisfaction is gained from a complex array of consumers' perceptions of the dive itself, but also from a range of associated peripheral experiences surrounding the dive such as the service provided by the operator, the ‘communitas’ from the social interaction with other divers and the functional aspects of the dive. The study takes an ethnographic approach using qualitative methods of inquiry, since the purpose of the study was to develop a deeper understanding of the inter-relationships between the levels of service provided; customer satisfaction of scuba-divers; and the dive consumption experience. The findings illuminate the diversity and complexity of dive consumption experiences themselves and the perceptual cues used by customers for determining customer satisfaction and longer term behavioural intentions.     

Customer satisfaction and retail sales performance: an empirical investigation

We measure the links between store attribute perceptions and customer satisfaction, and between customer satisfaction and sales performance. Our data set consists of six waves of customer satisfaction and sales data for about 250 retail outlets over the period 1998-2001 for a publicly held supermarket company. We construct a statistical model to address nonlinearities and asymmetries in the satisfaction-sales performance links, and we illustrate how retailers can affect store revenues by managing customer satisfaction. Contributions of our study include the analysis of behavioral consequences of customer satisfaction in the food retail sector, the accommodation of complexities in the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can employ the results for customer satisfaction policies.     

Customer satisfaction and the strategic role of university libraries

The paper stresses the importance of listening to customers at university libraries and the need to move from a library‐based view to a customer‐based view. Largely on account of their public nature, academic libraries in Finland – where the study was conducted – have until recently, based their operations and development mainly on conventional procedures and library‐based perspectives. However, in order to better serve their own clientele, as well as their parent organizations, they need to listen to the voices of their customers, the library users. One way of ‘listening’ is through a customer survey, in this case LibQUAL – a survey instrument developed in the US for libraries. It collects data on the quality of the services, thus enabling libraries to identify areas in which service levels should be improved.     

Customer satisfaction and qualities in public service: an intermediary customer perspective

From an intermediary customer perspective, this study empirically investigates the causal relationships between service quality, relationship quality, design quality, and customer satisfaction in the public service value chain. Cross-sectional survey data were collected from social work, childcare, and healthcare services and were analyzed using structural equation modeling. It is found that all the quality dimensions are antecedents to customer satisfaction and relations between quality dimensions show distinctive patterns. The results show that relationship quality does not directly affect customer satisfaction, but can indirectly influence satisfaction through the mediation of both service and design qualities. The effect of the relationship and design qualities on customer satisfaction is stronger than that of service quality.     

Customer perceived value,satisfaction, and loyalty: The role of switching costs

It is a marketplace reality that marketing managers sometimes inflict switching costs on their customers, to inhibit them from defecting to new suppliers. In a competitive setting, such as the Internet market, where competition may be only one click away, has the potential of switching costs as an exit barrier and a binding ingredient of customer loyalty become altered? To address that issue, this article examines the moderating effects of switching costs on customer loyalty through both satisfaction and perceived‐value measures. The results, evoked from a Web‐based survey of online service users, indicate that companies that strive for customer loyalty should focus primarily on satisfaction and perceived value. The moderating effects of switching costs on the association of customer loyalty and customer satisfaction and perceived value are significant only when the level of customer satisfaction or perceived value is above average. In light of the major findings, the article sets forth strategic implications for customer loyalty in the setting of electronic commerce. © 2004 Wiley Periodicals, Inc.     

Customer satisfaction and customer behavior: The differential role of brand and category expectations

Previous research has suggested that consumers use multiple strands to evaluate their satisfaction with a product and to establish postpurchase behavioral intention. However, prior empirical research has focused on which individual standard best predicts satisfaction. In contrast, this article develops and tests a model of consumer satisfaction and postpurchase behavioral intention in which consumers simultaneously use multiple standards—perceptions of performance, brand expectations, and category expectations. The results of an experiment for a simulated service encounter provide support for the proposition that consumers use multiple standards and that these standards have differential effects on such postpurchase outcomes as satisfaction, repurchase intention, and willingness to recommend. Brand expectations are shown to be better predictors of affective outcomes (such as satisfaction), while category expectations are shown to be better predictors of behavioral outcomes (repurchase and recommendation). Consistent with prior research, perceived performance is shown to have a strong effect on both satisfaction and behavioral intention.     

Customer satisfaction and corporate culture: A profile deviation analysis of a relationship marketing outcome

Customer satisfaction has been identified as an important relationship marketing outcome. As such, firms should continually track and assess customer satisfaction. The following study examines how four elements of corporate culture combine to form an optimal mix that encourages attention to and measurement of customer satisfaction. Culture is operationalized as a pattern of values and beliefs that aid individuals in understanding organizational functioning. A profile deviation analysis reveals that an optimal mix of the marketing corporate culture elements of adhocracy, clan, market, and hierarchy does exist and is positively related to customer satisfaction assessment activities. © 1997 John Wiley & Sons, Inc.     

Effects of consumer goals on attribute weighting,overall satisfaction,and product usage

With the use of field data from a live theater company, this article demonstrates that customers' goal orientation affects not only what information is used in assessing overall satisfaction, but also downstream measures of level of satisfaction and product usage. The study segmented the customers into four groups based on their goal orientations for the established arts goals of cultural enrichment and relaxation, finding that the different groups weigh the attributes of the service differentially in determining overall satisfaction based on each attribute's ability to fulfill their goals. Furthermore, customers whose goals match the organization's orientation give the product a higher evaluation and utilize it more often. © 2001 John Wiley & Sons, Inc.     

Customer perceived value,satisfaction, and loyalty: the role of willingness to share information

This study proposes and tests an integrative model to examine the relationships among customers’ willingness to share information, satisfaction, perceived value, and loyalty in a retailing context. This study extends research on customers’ willingness to share information from trust and privacy concerns toward key outcome measures such as perceived value, customer satisfaction, and loyalty, and is thus among the first to model customers’ willingness to share information with companies in robust theoretical retailing frameworks. The proposed relationships were tested using data from two retailing contexts – groceries (N = 429) and do-it-yourself (DIY) (N = 895). Findings from the two samples suggest that both perceived value and satisfaction are significant determinants of customers’ willingness to share information with a company. Although some differences emerge in the two studies, structural modeling largely supports the hypothesized framework and positions customers’ willingness to share information as an important antecedent of their loyalty intentions and behavior. This study provides practitioners with preliminary insight into the relationship between willingness to share information and perceived value, customer satisfaction, and customer loyalty. This study advances retailing research, as it is one of the few empirical studies investigating the role of customers’ willingness to share information in driving loyalty and its relationship with perceived value and satisfaction in a retailing context.     

Customer satisfaction,corporate image,and service quality in professional services

This study explores the impact of corporate image and service quality on customer satisfaction in the professional service industries. Data were collected on audit firms, sending a questionnaire to financial executives of leading Italian companies. The results show that the most important variable explaining customer satisfaction was the apparent effectiveness of the audit firm. In relation to service quality, managers' satisfaction was primarily driven by their perception of audit firm's work as a useful value-adding service. The length of audit firm–auditee relation, the location of the auditor's office, and the financial executive's personal characteristics were also significant drivers of customer satisfaction.     

Customer perceptions of frontline employee service delivery: A study of Russian bank customer satisfaction and behavioural intentions

This study examines the nature of relationships between customer perceptions of frontline employee service delivery (core and relational), satisfaction and selected behavioural intentions by using customers of a commercial retail bank in Russia as its setting. Contrary to findings from North American-Western research, the study findings show that relational service delivery only significantly impacts customer satisfaction for Russian males whereas core service delivery only impacts this affective outcome for Russian female customers. Implications of the results are discussed and future research avenues are offered.     

Customer retention in sports organization marketing: examining the impact of team identification and satisfaction with team performance

Over the past two decades, relationship marketing efforts have assumed a prominent role in sports organization marketing. A sports organization that successfully implements relationship marketing programmes is able to develop long‐term relationships with its fans, thus increasing the likelihood of customer retention. This study examines customer retention in sports organization marketing by considering the impact of team identification and satisfaction with team performance on four fan consumption behaviours: in‐person attendance, media‐based attendance, purchase of team merchandise and word‐of‐mouth communication related to the team. Survey data were collected from 300 fans of more than 40 professional and collegiate teams involved in seven sports. Results suggest that both team identification and satisfaction with team performance impact multiple consumption behaviours, as represented by fans' intentions to engage in future consumption. Team identification was found to have the greater impact on consumption behaviours, suggesting that a sports organization's continuing efforts to bond with its fans may provide greater benefits than efforts to improve the team's competitive performance.     

Perceived Omnichannel Customer Experience (OCX): Concept,measurement, and impact

Efforts to measure customer experiences (CX) in multifaceted, omnichannel, retail contexts are crucial but lacking research guidance. Prior service quality literature has established methods for measuring CX in traditional, single-channel contexts but not adapted such measures to omnichannel contexts. With a mixed method research design and studies in eight phases, the authors propose a comprehensive measurement instrument that incorporates a schema- and categorization-based theoretical conceptualization of how customers assess omnichannel retail experiences; they also integrate means–end chain theory to explain perceived omnichannel customer experience (OCX) as a construct. This construct captures multiple omnichannel evaluation dimensions: social communications, value, personalization, customer service, consistency of both product availability and prices across channels, information safety, delivery, product returns, and loyalty programs. Multiple applications of the measurement model empirically confirm the suitability of this instrument in consumer goods omnichannel retail settings. Its 36 items reflect nine first-order quality dimensions that combine to form the overall, second-order OCX construct. The measurement instrument offers sound psychometric properties, as confirmed by several reliability and validity tests, and predicts customer behavior reliably across studies. Thus, the OCX measurement instrument offers utility for theory, management practice, and further research.     

Longitudinal satisfaction measurement using latent growth curve models and extensions

Latent growth curve modeling (LGCM) is used to describe changing latent aspects over time manifested in observed indicators. A case study of satisfaction indicators of cinema visitors observed over 12 months is used to detect such transitions from excitement factors to performance factors to basic factors, as mentioned in the Kano-model. The sample is split up into groups depending on slope trajectories and intercepts. More precisely, a growth mixture model (GMM) with random slopes and random intercepts is incorporated offering the possibility of visualizations including individual intercept and slope values. This figure allows deeper insight into the modifications of time.     

Lack of attribute searchability: Some thoughts

Established theory about the searchability of product attributes has advanced a tripartite classification of product attributes and, correspondingly, a three‐pronged view of consumer evaluation procedures. Using this theory as a springboard, this article takes a closer look at the procedures consumers seem to utilize for evaluation of products that vary in their attribute searchability. Reflecting on current theory and practice, the consumer is construed to employ evaluation procedures different from those indicated by the product‐attribute typology. This is so both because consumers view the attributes differently and because they rely on biased heuristics, as might suit their expertise and involvement. To capture these consumer assessment dynamics, propositions are advanced and empirical methods to test them are suggested. © 2004 Wiley Periodicals, Inc.