Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us

Abstract

The authors synthesize research on the relationship of customer satisfaction with customer- and firm-level outcomes using a meta-analysis based on 535 correlations from 245 articles representing a combined sample size of 1,160,982. The results show a positive association of customer satisfaction with customer-level outcomes (retention, WOM, spending, and price) and firm-level outcomes (product-market, accounting, and financial-market performance). A moderator analysis shows the association varies due to many contextual factors and measurement characteristics. The results have important theoretical and managerial implications.

Customer relational benefit: A second‐order meta‐analysis and an alternative framework

“…We aim to provide further knowledge about the associations of these outcomes, concentrating on three widely recognised theoretical frameworks of satisfaction. Oliver (2014) underscores that satisfaction is a fundamental construct related to individual, organisational and societal structures, while Mittal et al (2023) recognise its centrality on consumer‐behaviour research. Satisfaction importance is also justified because of its natural connection to loyalty and its ramifications to vertical and horizontal interactions inside organisations processes (Oliver, 1999, 2014; Pan et al, 2012).…”

“…Our cut‐off date for study inclusion was December 2021. We have included satisfaction as a central term in the search because of its main role as an outcome in consumer behaviour and in relationship marketing (Hennig‐Thurau et al, 2002; Mittal et al, 2023) streams of research.…”

“…In Customer Relational Benefit literature, the proposed links among relational benefits associated constructs with satisfaction and behavioural outcomes vary (Dimitriadis, 2010), with limited in-depth evidence about the existent associations between the constructs involved. Likewise, the literature suffers from a lack of a generalised view (Mittal et al, 2023) about the integration of these outcomes. The existence of mediating and moderating variables has been outlined as an avenue for research by previous investigations on this topic (Dimitriadis, 2010).…”

“…Scholars recognise the importance of the customer relational benefits in marketing literature, as they underscore the strategic role of such constructs for improving business practice and for explaining firm‐level outcomes (Mittal et al, 2023). Literature on customer relational benefits has evolved since seminal studies in this stream (i.e., since Oliver, 1999, 2014 on loyalty and satisfaction, Zeithaml, 1988 on perceived value, Parasuraman, 2002 on service quality, Morgan & Hunt, 1994 on trust and commitment, Kamakura et al, 2002 in assessing the service‐profit chain and others).…”

“…Our cut-off date for study inclusion was December 2021. We have included satisfaction as a central term in the search because of its main role as an outcome in consumer behaviour and in relationship marketing(Hennig-Thurau et al, 2002;Mittal et al, 2023) streams of research.4.2 | Sample and inclusion criteriaThe complete search generated 73 meta-analytical papers. After reading all of them, we rejected 28 meta-analytical studies because they did not report effect-sizes with customer relational benefits constructs.…”