Online from: 1988
|Title:||Neglected outcomes of customer satisfaction|
|Author(s):||Luo X, Homburg C|
|Journal:||Journal of Marketing, Apr 2007, Volume: 71 Issue: 2 pp.133-149 (17 pages)|
|Keywords:||Advertising, Consumer Marketing, Customer Orientation, Customer Satisfaction, Employee Attitudes, General Management, Human Resource Management, Input-output Analysis, Management Attitudes, Marketing Competences, Organizational Performance, Performance Measurement, Performance Measurement (quality)|
|Article type:||Research paper|
|Reference:||36BC850 (Permanent URL)|
Design/methodology/approach - Summarizes CS literature studies in a useful CS 'outcomes' flowchart with main outcomes (customer-, efficiency-, employee, performance-related) each having subelements e.g. customer-related > behavioural intentions and customer behaviour > loyalty, repurchase, word-of-mouth, complaints, defection. Generates hypotheses regarding effects of CS on firms' advertising and promotion efficiencies and human capital performances - human capital being regarded here as employee and managerial talent.
Findings - Tests these by longitudinal analyses of secondary data concerning 139 large US companies i.e. CS (American Customer Satisfaction Index), marketing efficiency (sales/marketing spend: COMPUSTAT, Competitive Media Reporting), employee and managerial talent (Fortune's America's Most Admired Corporations), and market concentration ( Herfindahl Index: COMPUSTAT). Uses data envelopment analysis to determine efficiency. Applies two-limit Tobit modelling, seemingly unrelated regression, and sensitivity and robustness analysis in testing several models. Concludes, inter alia, that CS increases a firm's future advertising/promotion efficiency and enhances human capital performance as well.
Research limitations/implications - Seeks more research in this area.
Practical implications - Suggests managers compare marketing efficiency and CS performance against competitors and use their (hopefully) superior results in recruiting, pay, and retention policies.
Originality/value - Establishes that superior customer satisfaction results promotes human capital excellence and future advertising and promotion efficiency.