Social Identity and the Service-Profit Chain

Homburg, Christian ; Wieseke, Jan ; Hoyer, Wayne D.

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URN: urn:nbn:de:bsz:180-madoc-256961
Document Type: Working paper
Year of publication: 2008
The title of a journal, publication series: Reihe: Wissenschaftliche Arbeitspapiere / Institut für Marktorientierte Unternehmensführung
Volume: W123e
Place of publication: Mannheim
Publishing house: Inst. für Marktorientierte Unternehmensführung, Univ. Mannheim
Publication language: English
Institution: Business School > Business-to-Business Marketing, Sales & Pricing (Homburg 1998-)
Subject: 330 Economics
Abstract: The 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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