Assessing the Value-Relevance of Customer Satisfaction

36 Pages Posted: 3 Jun 2007 Last revised: 14 Aug 2011

See all articles by Robert Jacobson

Robert Jacobson

Diogenes Consulting; University of Washington - Michael G. Foster School of Business

Natalie Mizik

University of Washington

Date Written: March 21, 2009


Making use of the efficient markets hypothesis as a starting point for analysis, we outline an approach for assessing financial value-relevance of marketing metrics. We illustrate the approach by investigating the association between information contained in the American Customer Satisfaction Index (ACSI) customer satisfaction metric and stock market performance. Our findings differ from previous research in that the methodological approach we use, while nesting other models, incorporates a number of efficient market considerations that previous research has not taken into account, e.g., issues ranging from unmodeled autocorrelation, to risk adjustments, to using the unanticipated component of a series in financial market analysis. We find evidence supportive of satisfaction having value-relevance. However, the ACSI metric provides statistically significant incremental value-relevance to accounting measures only for firms in the computer/Internet sector. For other sectors, i.e., the majority of firms in the sample, unanticipated changes in satisfaction do not provide statistically significant incremental information to accounting measures in explaining stock returns.

Keywords: marketing metrics, incremental value-relevance, customer satisfaction, financial performance, efficient markets, information content

Suggested Citation

Jacobson, Robert and Mizik, Natalie, Assessing the Value-Relevance of Customer Satisfaction (March 21, 2009). Available at SSRN: or

Robert Jacobson

Diogenes Consulting ( email )

2002 1st Avenue North
Seattle, WA 98109
United States

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States
206-543-4780 (Phone)

Natalie Mizik (Contact Author)

University of Washington ( email )

Seattle, WA 98195
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics