Do Changes in Customer Satisfaction Lead to Changes in Sales Performance in Food Retailing?

44 Pages Posted: 28 Apr 2003

See all articles by Miguel Ignacio Gomez

Miguel Ignacio Gomez

Cornell University - Food Industry Management Program

Edward W. McLaughlin

Cornell University - School of Applied Economics and Management

Dick R. Wittink

Yale University, School of Management (Deceased)

Date Written: April 2003

Abstract

We measure the links between store attribute perceptions and customer satisfaction, and between customer satisfaction and sales performance, in the food retail sector. Our data set consists of six waves of customer satisfaction and sales information for about 250 stores over the period 1998-2001 for a publicly held supermarket company. We construct a statistical model to address nonlinearities and asymmetries in the satisfaction-sales performance links, and we illustrate how food retailers can affect store revenues by managing customer satisfaction. Contributions of our study include the analysis of behavioral consequences of customer satisfaction in the food retail sector, the measurement of complexities of the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can use such results for customer satisfaction policies.

Suggested Citation

Gomez, Miguel Ignacio and McLaughlin, Edward W. and Wittink, Dick R., Do Changes in Customer Satisfaction Lead to Changes in Sales Performance in Food Retailing? (April 2003). Available at SSRN: https://ssrn.com/abstract=398720

Miguel Ignacio Gomez (Contact Author)

Cornell University - Food Industry Management Program ( email )

Department of Applied Economics and Management
Ithaca, NY 14853
United States
607-255-8472 (Phone)
607-255-4776 (Fax)

Edward W. McLaughlin

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States
607-255-3169 (Phone)
607-255-4776 (Fax)

Dick R. Wittink

Yale University, School of Management (Deceased)

N/A

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