Neglected Outcomes of Customer Satisfaction

Luo, Xueming; Homburg, Christian
April 2007
Journal of Marketing;Apr2007, Vol. 71 Issue 2, p133
Academic Journal
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, namely, a firm's advertising and promotion efficiency and its human capital performance. On the basis of 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 authors investigate the moderating influence of market concentration on both relationships. The uncovered results have important implications for marketers in their dialogue with financial executives and human resources managers.


Related Articles

  • Using Extremes to Design Products and Segment Markets. Allenby, Greg M.; Ginter, James L. // Journal of Marketing Research (JMR);Nov95, Vol. 32 Issue 4, p392 

    Current marketing methodologies used to study consumers are inadequate for identifying and understanding respondents whose preferences for a product offering are most extreme. These "extreme respondents" have important implications for product design and market segmentation decisions. The...

  • Negative Word-of-Mouth by Dissatisfied Consumers: A Pilot Study. Richins, Marsha L. // Journal of Marketing;Winter83, Vol. 47 Issue 1, p68 

    While marketing scholars have emphasized the importance of customer satisfaction, few studies have examined in detail consumers' responses to dissatisfaction. This study examines correlates of one possible response--telling others about the dissatisfaction--and identifies variables that...

  • Temporal Contiguity and Negativity Bias in the Impact of Online Word of Mouth. CHEN, ZOEY; LURIE, NICHOLAS H. // Journal of Marketing Research (JMR);Aug2013, Vol. 50 Issue 4, p463 

    Prior research shows that positive online reviews are less valued than negative reviews. The authors argue that this is due to differences in causal attributions for positive versus negative information such that positive reviews tend to be relatively more attributed to the reviewer (vs. product...

  • WALKING THE TALK. Seckler, Valerie // WWD: Women's Wear Daily;2/11/2004, Vol. 187 Issue 29, p18 

    Reports on Yankelovich's conduct of research in the U.S. to determine how consumers talk about products or services they passionately like or dislike. Percentage of consumers who talk to people outside their household about products; Implications for word-of-mouth marketing.

  • THE IMPACT OF SMALL SERVICE PROVIDERS' CHRISTIAN IDENTITY ON CONSUMER PERCEPTIONS. Taylor, Valerie A.; Halstead, Diane // Academy of Marketing Studies Journal;2014, Vol. 18 Issue 2, p203 

    This research was supported by the Frank Varallo Professorship in Business Administration and the Mary Harris Distinguished Professor of Entrepreneurship both of the University of Tennessee at Chattanooga. The authors contributed equally to this work. A trend often overlooked in the small...

  • The role of frontline employees in customer engagement. Cambra-Fierro, J.; Melero-Polo, I.; Vázquez-Carrasco, R. // Revista Española de Investigación de Marketing ESIC;2014, Vol. 18 Issue 1, p67 

    The current competitive climate paves the way for a change in the management of the customer portfolio by attempting to improve the efficiency and profitability of the relational approach. Accordingly, the study of the company-customer relationship incorporates the concept of customer...

  • Effect of customer heterogeneity on the relationship satisfaction-loyalty. Fuentes-Blasco, M.; Moliner-Velázquez, B.; Gil-Saura, I. // Revista Española de Investigación de Marketing ESIC;2014, Vol. 18 Issue 1, p78 

    The need to study the differences among consumers due to their behavioural heterogeneity and the highly competitive consumer markets is recognized. In this paper, we analyse the potential heterogeneous shopping assessment in retail and how that experience may influence on consequent customer...

  • ATTRIBUTIONS AND OUTCOMES OF THE SERVICE RECOVERY PROCESS. Swanson, Scott R.; Kelley, Scott W. // Journal of Marketing Theory & Practice;Fall2001, Vol. 9 Issue 4, p50 

    Examines the impact of the service recovery process on consumer perceptions towards word-of-mouth advertising and repurchase. Definition of the attribution theory; Significance of customer behavioral intentions in stable service recoveries; Favorability of evaluations on an employee-based...

  • What's the latest buzz on buzz marketing? Nucifora, Alf // Business Journal Serving Fresno & the Central San Joaquin Valley;11/29/2002, Issue 323014, p5 

    Analyzes the existing trends of buzz marketing, a form of word-of-mouth communication. Advantages of buzz marketing; Influence of effective marketing on behaviors and attitudes of consumers; Information on different buzz marketing strategies of companies to increase their sales and revenues.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics