Satisfaction, Complaint, and the Stock Value Gap

Journal of Marketing, 72(4), 29-43, 2008

16 Pages Posted: 4 May 2013

See all articles by Xueming Luo

Xueming Luo

Temple University

Christian Homburg

University of Mannheim - Department of Marketing; University of Melbourne - Department of Management and Marketing

Date Written: 2008

Abstract

This article introduces the concept of a stock value gap — the shortfall of a firm’s actual market value from its optimal market value, as measured by a best-performing benchmark. Using a large-scale, real-world database, the authors test the effects of both customer satisfaction and customer complaint on the stock value gap of firms. The results show that customer complaint has a stronger effect than customer satisfaction on the value gap. Furthermore, there is some support for the moderating influences of working capital and firm specialization. The results provide actionable guidelines to build a more complete customer equity dashboard and encourage managers to provide a supportive organizational environment to create shareholder value.

Keywords: shareholder value, benchmarking, customer satisfaction, customer complaint

JEL Classification: M21, M31, G00, G12, L86, M00, M30, M14

Suggested Citation

Luo, Xueming and Homburg, Christian, Satisfaction, Complaint, and the Stock Value Gap (2008). Journal of Marketing, 72(4), 29-43, 2008, Available at SSRN: https://ssrn.com/abstract=2260357

Xueming Luo (Contact Author)

Temple University ( email )

1810 N. 13th Street
Floor 2
Philadelphia, PA 19128
United States

HOME PAGE: http://www.fox.temple.edu/mcm_people/xueming-luo/

Christian Homburg

University of Mannheim - Department of Marketing ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

University of Melbourne - Department of Management and Marketing

5th Floor Babel Building
Melbourne, Victoria 3010
Australia

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