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Do the best companies to work for provide better customer satisfaction?

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Author Info

  • Daniel H. Simon

    (Cornell University, Department of Applied Economics and Management, 354 Warren Hall, Ithaca, NY 14853, USA)

  • Jed DeVaro

    (Cornell University, Department of Labor Economics, 268 Ives Hall, Ithaca, NY 14853, USA)

Abstract

Using data from both the American Customer Satisfaction Index (ACSI) and Fortune Magazine's lists of Best Companies, we examine the relationship between making the '100 Best' list and customer satisfaction. Based on a subset of the 100 Best in each year from 1994 to 2002, we find strong evidence that firms on the list earn higher customer satisfaction ratings than firms not on the list. This result is stronger for firms in the service sector than for those in the manufacturing sector. Our analysis also suggests that the increase in customer satisfaction resulting from Best Company status yields about a 1.6 percent increase in return on assets. Copyright © 2006 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1303
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 27 (2006)
Issue (Month): 8 ()
Pages: 667-683

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Handle: RePEc:wly:mgtdec:v:27:y:2006:i:8:p:667-683

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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Cited by:
  1. Daniel H. Simon & Miguel I. Gómez & Edward W. McLaughlin & Dick R. Wittink, 2009. "Employee attitudes, customer satisfaction, and sales performance: assessing the linkages in US grocery stores," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 30(1), pages 27-41.
  2. Dabholkar, Pratibha A. & Abston, Kristie A., 2008. "The role of customer contact employees as external customers: A conceptual framework for marketing strategy and future research," Journal of Business Research, Elsevier, Elsevier, vol. 61(9), pages 959-967, September.
  3. Bourne, Kristina A. & Wilson, Fiona & Lester, Scott W. & Kickul, Jill, 2009. "Embracing the whole individual: Advantages of a dual-centric perspective of work and life," Business Horizons, Elsevier, Elsevier, vol. 52(4), pages 387-398, July.
  4. Edmans, Alex, 2011. "Does the stock market fully value intangibles? Employee satisfaction and equity prices," Journal of Financial Economics, Elsevier, Elsevier, vol. 101(3), pages 621-640, September.

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