Neglected Outcomes of Customer Satisfaction


Homburg, Christian ; Luo, Xueming


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URL: https://ub-madoc.bib.uni-mannheim.de/24859
URN: urn:nbn:de:bsz:180-madoc-248591
Document Type: Working paper
Year of publication: 2006
The title of a journal, publication series: Reihe: Wissenschaftliche Arbeitspapiere / Institut für Marktorientierte Unternehmensführung
Volume: W101
Place of publication: Mannheim
Publishing house: Inst. für Marktorientierte Unternehmensführung, Univ. Mannheim
Publication language: English
Institution: Business School > ABWL u. Marketing I (Homburg)
Subject: 330 Economics
Abstract: Although there is significant evidence that customer satisfaction is an important driver of firm profitability, extant literature has largely neglected two intermediate outcomes of customer satisfaction - a firm’s advertising and promotion efficiency and its human capital performance. Based on longitudinal analyses of large-scale secondary data from multiple sources, the authors find that customer satisfaction boosts the efficiency of future advertising and promotion investments. This finding can be explained by the possibility that customer satisfaction generates free word-of-mouth advertising and saves subsequent marketing costs. In addition, customer satisfaction has a positive influence on a company’s excellence in human capital (employee talent and manager superiority). This finding is highly novel, indicating that human resources managers should have a strong interest in customer satisfaction as well. Finally, the moderating influence of market concentration on both relationships is investigated. The uncovered results have important implications for marketers in their dialogue with financial executives and human resources managers.

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Homburg, Christian ; Luo, Xueming (2006) Neglected Outcomes of Customer Satisfaction. Open Access Reihe: Wissenschaftliche Arbeitspapiere / Institut für Marktorientierte Unternehmensführung Mannheim W101 [Working paper]
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