A Longitudinal Analysis of Satisfaction and Profitability

Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.

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“…We selected three key attributes of the restaurant: quality of food, ambience, and service (Bernhardt, Donthu, and Kennett 2000).…”

Section: Methodsmentioning

confidence: 99%

Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay

Homburg

Koschate

Hoyer

2005

Journal of Marketing

903

546

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“…(1992) found that important indicators of patient satisfaction (e.g., nursing services) were not correlated with hospital profitability. In a study by Bernhardt et al (2000), customer satisfaction is related to profitability in individual fast food outlets but not on a national basis. Similarly, Kordupleski et al (1993) point out that not all investments in service quality will lead to increased financial returns; these investments must be tied closely to aspects which are valued by customers.…”

Section: The Satisfaction-based Path Of the Service Profit Chainmentioning

confidence: 97%

Social Identity and the Service-Profit Chain

Homburg

Wieseke

Hoyer

2009

Journal of Marketing

565

476

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The IMU offers the following services and expertise: Management Know-HowThe IMU publishes papers geared towards managers in companies. Subjects highly relevant to business practice are presented here in a compact and concise manner, and scientific research results are efficiently communicated. In many cases, these publications are based on application-oriented research and cooperation projects involving a large number of global companies. Scientific Working PapersThe scientific studies conducted by the IMU analyze new trends that have an impact on marketoriented management. On this basis, practice-oriented findings are derived and published in our series of scientific working papers. Today, many of our publications have been printed in prominent journals and honored with awards at international conferences (e.g., by the American Marketing Association). Series PublicationIn addition to publishing scientific working papers, the IMU, in cooperation with Gabler publishing house, issues a series featuring exemplary scientific findings from the field of market-oriented management. Application-oriented ResearchAt IMU, research aims at generating scientific results that are relevant to market-oriented management. Therefore, the IMU offers you the option of submitting concrete questions arising from your company practice, which are then scientifically analyzed.If you require additional information or have any questions, please contact the Institute for MarketOriented Management, University of Mannheim, L5, 1, 68131 Mannheim, Germany (phone: +49 621 / 181-1755) or visit our website at: www.imu-mannheim.de. The Institute for Market-Oriented Management AbstractThe conventional service profit chain (SPC) proposes that a firm's financial performance can be improved via a path that connects employee satisfaction, customer orientation, customer satisfaction and customer loyalty. In this paper, a complementary SPC is introduced which is built on both a conventional path as well as a social identity-based path. The latter SPC part centrally builds on customer and employee company identification as a core construct. On the basis of a large scale triadic data set that included data from employees, customers and firms, we find strong support for the extended SPC, which accounts for important customer (loyalty and willingness to pay) and firm outcomes (financial performance). Also, the effects of company identification exist incrementally beyond the effects of the conventional SPC path.

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“…It is common practice to carry out longitudinal studies at two data points. For example, Bernhard, Donthus and Kennett [78] carried out a longitudinal study at two data points over a 12-month period. Similarly, Mou and Cohen [79] carried out a longitudinal study at two data points over a 6-7-month period.…”

Section: Sample and Data Collectionmentioning

confidence: 99%

A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

Choongo

2017

Sustainability

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Abstract:The aim of this study is to investigate the impact of corporate social responsibility on firm performance using a longitudinal design in small and medium-sized enterprises (SMEs). The reported study was conducted in a Sub-Saharan African developing country, Zambia. Data were collected from 153 entrepreneurs in two surveys and changes in CSR and firm performance measures were analysed over a 12-month period using SmartPLS structural equation modelling. The findings show that the relationship between CSR and financial performance is significant. Further, the association between CSR and the two measures of firm performance (corporate reputation and employee commitment) was only partially significant over time. We discuss the relevance of these results for entrepreneurs, researchers and policy makers in understanding the outcomes of sustainability practices in SMEs in developing countries, especially in Sub-Saharan Africa.

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A Longitudinal Analysis of Satisfaction and Profitability

Cited by 407 publications

References 20 publications

Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay

Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay

Social Identity and the Service-Profit Chain

A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

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