Strengthening the Satisfaction-Profit Chain

Eugene W. Anderson and Vikas Mittal (2000). "Strengthening the Satisfaction-Profit Chain", Journal of Service Research, 3(2), November, 107-120

15 Pages Posted: 26 Oct 2013

See all articles by Eugene Anderson

Eugene Anderson

University of Michigan at Ann Arbor

Vikas Mittal

Rice University

Date Written: November 1, 2000

Abstract

Customer satisfaction programs do not always deliver anticipated results. Disenchanted, some have labeled satisfaction measurement a "trap" and argued for abandoning customer satisfaction as a means for optimizing customer retention and profitability. The authors argue that doing so may be a mistake because the satisfaction-profit chain is conceptually solid. However, to achieve results, an important step is to recognize that the links in the satisfaction-profit chain are asymmetric and nonlinear. In this article, the authors review recent developments pertaining to the asymmetric and nonlinear nature of the links involved. They also discuss several examples based on commercial satisfaction studies where incorporating the asymmetry and nonlinearity added significant value to the firm’s understanding of the satisfaction-profit chain.

Keywords: customer satisfaction, satisfaction-profit chain

Suggested Citation

Anderson, Eugene and Mittal, Vikas, Strengthening the Satisfaction-Profit Chain (November 1, 2000). Eugene W. Anderson and Vikas Mittal (2000). "Strengthening the Satisfaction-Profit Chain", Journal of Service Research, 3(2), November, 107-120. Available at SSRN: https://ssrn.com/abstract=2345327

Eugene Anderson

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Vikas Mittal (Contact Author)

Rice University ( email )

6100 South Main Street
250 McNair
Houston, TX 77005-1892
United States

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