My question is how to measure the impact of customer satisfaction (proxied by the ACSI, which is a product-based measure) on a firm's financial performance (e.g., Profitability ratios, which are firm-level measure). I am thinking of using this data as it is, since the product reputation might generally affect a firm's financial performance. I would be appreciated if you send me article(s) supporting the previous argument. Thank you
Customer satisfaction has no correlation with business results. Measure Customer Value
Please see my book, Total Customer Value Management and another one, Customer Value Investment
The following papers may further help:
- Anderson, E. W., Fornell, C. and Mazvancheryl, S. K. (2004). Customer satisfaction and shareholder value. Journal of marketing, 68, 4, pp. 172-185.
- Fornell, C., Mithas, S., Morgeson III, F. V. and Krishnan, M. S. (2006). Customer satisfaction and stock prices: High returns, low risk. Journal of marketing, 70, 1, pp. 3-14.
- Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management, 7, 4, pp. 27-42.
- Ittner, C. D. and Larcker, D. F. (1998). Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of accounting research, 36, 3, pp. 1-35.
- Jones, M. A. (2006). A content analysis of customer satisfaction in annual reports. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 2006, 3, pp. 59-75.
I think you need to check this article
The Method Used for Measuring the Customers’ Satisfaction
by open this link below:
http://www.wseas.us/e-library/conferences/2010/Japan/EDU/EDU-31.pdf
if satisfaction is a flawed measurement, what is its value.
It measures transactions. It measures the experience with a transaction. You need to measure the memory of the transaction. Satisfaction measurements in themselves are measuring yourself versus yourself. You have to measure yourself versus competition.
If your child gets 90 marks today and 70 a month later, has he fared worse? What if the class average was 95 when he got 90 and 65 when he got 70. Which is better?
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