Dual Emphasis and the Long-Term Financial Impact of Customer Satisfaction
Vikas Mittal, Eugene W. Anderson, Akin Sayrak, & Pandu Tadikamalla. (2005). "Dual Emphasis and the Long-Term Financial Impact of Customer Satisfaction". Marketing Science, 24(4), Fall 2005, 544-555
12 Pages Posted: 25 Oct 2013
Date Written: 2005
Abstract
This paper draws on the quality profitability emphasis framework of Rust, Moorman, and Dickson (2002) (Rust, Roland T., Christine Moorman, Peter R. Dickson. 2002. Getting returns from service quality: Revenue expansion, cost reduction, or both. J. Marketing 66 (October) 7-24.) to examine the association between customer satisfaction and long-term financial performance among firms that achieve a dual emphasis (focusing on both revenue-expansion and cost-reduction simultaneously, rather than solely emphasizing one over the other). Using a longitudinal data set of 77 firms from the United States, we test this hypothesis and find that the association between customer satisfaction and long-term financial performance is positive and relatively stronger for firms that successfully achieve a dual emphasis. We build on the work of Rust, Moorman, and Dickson (2002), who investigated the financial impact of engaging in the process of achieving a dual emphasis.
Collectively, these studies show that while achieving a dual emphasis is desirable for long-run financial success, the process of achieving a dual emphasis may not be as financially rewarding in the short run. Firms pursuing a dual emphasis need to consider both short- and long-term consequences of their strategy.
Keywords: customer satisfaction; services marketing; marketing strategy and metrics
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Corporate Social Responsibility, Customer Satisfaction, and Market Value
By Xueming Luo and Cb Bhattacharya
-
By Michael Ahearne, Cb Bhattacharya, ...
-
By Xueming Luo and Naveen Donthu
-
Retail Store Execution: An Empirical Study
By Marshall Fisher, Jayanth Krishnan, ...
-
Factors Leading to Group Identification: A Field Study of Winners and Losers
By Robert Fisher and Kirk Wakefield
-
The Effect of Labor on Profitability: The Role of Quality
By Zeynep Ton
-
The Effect of Supply Reliability in a Retail Setting with Joint Marketing and Inventory Decisions
By Shaoxuan Liu, Kut C. So, ...
-
Impact of Outsourcing on Business-to-Business Marketing: An Agenda for Inquiry