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The Dimensionality of Customer Satisfaction Survey Responses and Implications for Driver Analysis

Author

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  • Joachim Büschken

    (Catholic University of Eichstätt-Ingolstadt, 84059 Ingolstadt, Germany)

  • Thomas Otter

    (Goethe University Frankfurt, 60629 Frankfurt am Main, Germany)

  • Greg M. Allenby

    (Fisher College of Business, Ohio State University, Columbus, Ohio 43210)

Abstract

The canonical design of customer satisfaction surveys asks for global satisfaction with a product or service and for evaluations of its distinct attributes. Users of these surveys are often interested in the relationship between global satisfaction and attributes; regression analysis is commonly used to measure the conditional associations. Regression analysis is only appropriate when the global satisfaction measure results from the attribute evaluations and is not appropriate when the covariance of the items lie in a low-dimensional subspace, such as in a factor model. Potential reasons for low-dimensional responses are that responses may be haloed from overall satisfaction and there may be an unintended lack of item specificity. In this paper we develop a Bayesian mixture model that facilitates the empirical distinction between regression models and relatively much lower-dimensional factor models. The model uses the dimensionality of the covariance among items in a survey as the primary classification criterion while accounting for the heterogeneous usage of rating scales. We apply the model to four different customer satisfaction surveys that evaluate hospitals, an academic program, smartphones, and theme parks, respectively. We show that correctly assessing the heterogeneous dimensionality of responses is critical for meaningful inferences by comparing our results to those from regression models.

Suggested Citation

  • Joachim Büschken & Thomas Otter & Greg M. Allenby, 2013. "The Dimensionality of Customer Satisfaction Survey Responses and Implications for Driver Analysis," Marketing Science, INFORMS, vol. 32(4), pages 533-553, July.
  • Handle: RePEc:inm:ormksc:v:32:y:2013:i:4:p:533-553
    DOI: 10.1287/mksc.2013.0779
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    References listed on IDEAS

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    Cited by:

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    2. Allenby, Greg M., 2017. "Structural forecasts for marketing data," International Journal of Forecasting, Elsevier, vol. 33(2), pages 433-441.
    3. Zhang, Yifan & Fong, Duncan K.H. & DeSarbo, Wayne S., 2021. "A generalized ordinal finite mixture regression model for market segmentation," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 1055-1072.
    4. Tammo H.A. Bijmolt & Michel Wedel & Wayne S. DeSarbo, 2021. "Adaptive Multidimensional Scaling: Brand Positioning Based on Decision Sets and Dissimilarity Judgments," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 8(1), pages 1-15, June.
    5. Nino Hardt & Alex Varbanov & Greg M. Allenby, 2016. "Monetizing Ratings Data for Product Research," Marketing Science, INFORMS, vol. 35(5), pages 713-726, September.
    6. Stan Lipovetsky & W. Michael Conklin, 2015. "Predictor relative importance and matching regression parameters," Journal of Applied Statistics, Taylor & Francis Journals, vol. 42(5), pages 1017-1031, May.
    7. Arpan Kumar Kar & Amit Kumar Kushwaha, 2023. "Facilitators and Barriers of Artificial Intelligence Adoption in Business – Insights from Opinions Using Big Data Analytics," Information Systems Frontiers, Springer, vol. 25(4), pages 1351-1374, August.
    8. Guofang Huang & K. Sudhir, 2021. "The Causal Effect of Service Satisfaction on Customer Loyalty," Management Science, INFORMS, vol. 67(1), pages 317-341, January.
    9. Guofang Huang & K. Sudhir, 2019. "The Causal Effect of Service Satisfaction on Customer Loyalty," Cowles Foundation Discussion Papers 2177, Cowles Foundation for Research in Economics, Yale University.
    10. Joachim Büschken & Ulf Böckenholt & Thomas Otter & Daniel Stengel, 2022. "Better Information From Survey Data: Filtering Out State Dependence Using Eye-Tracking Data," Psychometrika, Springer;The Psychometric Society, vol. 87(2), pages 620-665, June.

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