Customer Satisfaction
This paper explores links between customer satisfaction, repurchase intentions, purchase behavior, and customer profitability with empirical data on attitudes, behavior, and profitability at the customer level of analysis. Purchase behavior and profitability data,derived from the accounting system of a firm, are matched with the responses of the firm’s customers to survey questions distributed prior to the behavior and profitability outcomes. The analysis reveals a strong link between customer behavior and customer profitability, while modest links exist between repurchase intentions and subsequent behavior. Only a weak and non-significant direct link can be observed between customer satisfaction and customer profitability. This paper, then, questions customer satisfaction’s commonly assumed role as a proxy for profitability.Several authors have noted that customers generally vary in terms of profitability That is to say, one particular customer does not generate the same costs and revenues over time as another customer. Moreover, not all customers generate acceptable cost and revenue streams. For example, in retail banking,
satisfaction and repurchase intentions, the former variable explains only a fraction of the variation in the latter (r = 0.42). This suggests that factors other than satisfaction affect repurchase intentions. Early attempts to come to terms with this, albeit outside the satisfaction literature, can be found in Fishbein & Ajzen’s (1975) discussion of the individual’s perception of what relevant reference groups think, and in literature dealing with variety-seeking behavior . More recently, various switching barriers have received attention as factors which may moderate the relationship between customer satisfaction and repurchase intentions. Moreover, in Purchase volume was operationalized in terms of tons, while purchase amount refers to Swedish kronor (SEK). Observations on the three purchase behavior dimensions were availiable for three periods: 1995, 1996 and 1997. Third, it has been suggested that customer spending tends to increase over time
Some topics in this essay:
Marketing Association,
Fishbein Ajzen’s,
ANALYSIS RESULTS,
Profitability Abstract,
H3 H4,
Federal Express,
H1 Customer,
Aaker Jacobson,
Alpha European,
H4 Repurchase,
customer profitability,
repurchase intentions,
customer satisfaction,
purchase behavior,
customer level,
satisfaction repurchase intentions,
satisfaction repurchase,
behavior customer,
customer satisfaction repurchase,
behavior profitability,
behavior customer profitability,
et al,
intentions purchase,
repurchase intentions purchase,
purchase behavior profitability,
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Approximate Word count = 5961
Approximate Pages = 24 (250 words per page double spaced)
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