Does Job Satisfaction Increase Sales and Customer Satisfaction? Evidence from Retail Banking in South Korea

32 Pages Posted: 19 Dec 2016

See all articles by Ricard Gil

Ricard Gil

Queen's University (Canada) - Smith School of Business; Johns Hopkins University - Carey Business School

Myongjin Kim

University of Oklahoma - Department of Economics

Inhyouk Koo

FundaciĆ³n Instituto de Empresa, IE Business School, Students

Date Written: December 15, 2016

Abstract

his paper estimates the causal relationship between job satisfaction and worker productivity. Using personnel records from a retail bank in South Korea, we show that branch productivity is positively associated to average job satisfaction, but negatively to its standard deviation. We address endogeneity concerns using IV strategies and that while higher job satisfaction may increase short term productivity through sales to existing customers, excessive sales to existing customers may hurt customer satisfaction and willingness to recommend in the long run. Our ndings suggest that average job satisfaction and its dispersion are equally important to understand worker productivity.

Keywords: Productivity, Job Satisfaction, Customer Satisfaction, Word of Mouth

JEL Classification: J24, J28, M50

Suggested Citation

Gil, Ricard and Kim, Myongjin and Koo, Inhyouk, Does Job Satisfaction Increase Sales and Customer Satisfaction? Evidence from Retail Banking in South Korea (December 15, 2016). Available at SSRN: https://ssrn.com/abstract=2886959 or http://dx.doi.org/10.2139/ssrn.2886959

Ricard Gil

Queen's University (Canada) - Smith School of Business ( email )

Smith School of Business - Queen's University
143 Union Street
Kingston, Ontario K7L 3N6
Canada

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

HOME PAGE: http://carey.jhu.edu

Myongjin Kim (Contact Author)

University of Oklahoma - Department of Economics ( email )

308 Cate Center Drive
Norman, OK 73019-2103
United States

Inhyouk Koo

FundaciĆ³n Instituto de Empresa, IE Business School, Students ( email )

Madrid
Spain

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