IDEAS home Printed from https://ideas.repec.org/a/taf/rcitxx/v22y2019i14p1653-1658.html
   My bibliography  Save this article

Long-run causality between customer satisfaction and financial performance: the case of Marriott

Author

Listed:
  • Chew Ging Lee
  • Shi-Min How

Abstract

Prior research that examines the relationship between customer satisfaction and financial performance (FP) in the hotel sector assumes that changes in customer satisfaction lead to changes in the FP of hotels. This research note aims to bridge the gap by looking into the possibility that FP of hotels may lead to increase in customer satisfaction with the annual data of Marriott from 1995 to 2016. To study the existence of long-run interactions between customer satisfaction and FP with firm size that is proxied by number of employees as the control variable under small sample size condition, the presence of cointegration among these variables with different appropriate dependent variable is investigated with the bounds testing approach. The obtained results suggest that there is a positive long-run causality from FP to customer satisfaction, and customer satisfaction has no effect on FP in the long-run. This study also finds that firm size has no impact on customer satisfaction. Explanation on each of these findings is provided in the conclusion. The selected sample and availability of data limit the generalisability of the findings of this study. Different hotel brands, measurements and analysis techniques will further the understanding in this field.

Suggested Citation

  • Chew Ging Lee & Shi-Min How, 2019. "Long-run causality between customer satisfaction and financial performance: the case of Marriott," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(14), pages 1653-1658, August.
    • Handle: RePEc:taf:rcitxx:v:22:y:2019:i:14:p:1653-1658
    DOI: 10.1080/13683500.2018.1453788
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13683500.2018.1453788
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13683500.2018.1453788?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agag, Gomaa & Durrani, Baseer Ali & Shehawy, Yasser Moustafa & Alharthi, Majed & Alamoudi, Hawazen & El-Halaby, Sherif & Hassanein, Ahmed & Abdelmoety, Ziad H., 2023. "Understanding the link between customer feedback metrics and firm performance," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rcitxx:v:22:y:2019:i:14:p:1653-1658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rcit .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.