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

University of Navarra, IESE Business School; CESifo (Center for Economic Studies and Ifo Institute)

Myongjin Kim

University of Oklahoma - Department of Economics

Inhyouk Koo

Fundación 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

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Myongjin Kim (Contact Author)

University of Oklahoma - Department of Economics ( email )

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

Inhyouk Koo

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

Madrid
Spain

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