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Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us

Author

Listed:
  • Vikas Mittal

    (Rice University)

  • Kyuhong Han

    (Korea University)

  • Carly Frennea

    (Nike Inc.)

  • Markus Blut

    (Durham University)

  • Muzeeb Shaik

    (Indiana University)

  • Narendra Bosukonda

    (Texas A&M University)

  • Shrihari Sridhar

    (Texas A&M University)

Abstract

The authors synthesize research on the relationship of customer satisfaction with customer- and firm-level outcomes using a meta-analysis based on 535 correlations from 245 articles representing a combined sample size of 1,160,982. The results show a positive association of customer satisfaction with customer-level outcomes (retention, WOM, spending, and price) and firm-level outcomes (product-market, accounting, and financial-market performance). A moderator analysis shows the association varies due to many contextual factors and measurement characteristics. The results have important theoretical and managerial implications.

Suggested Citation

  • Vikas Mittal & Kyuhong Han & Carly Frennea & Markus Blut & Muzeeb Shaik & Narendra Bosukonda & Shrihari Sridhar, 2023. "Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us," Marketing Letters, Springer, vol. 34(2), pages 171-187, June.
    • Handle: RePEc:kap:mktlet:v:34:y:2023:i:2:d:10.1007_s11002-023-09671-w
    DOI: 10.1007/s11002-023-09671-w
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    References listed on IDEAS

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    1. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    2. Eugene W. Anderson & Claes Fornell & Roland T. Rust, 1997. "Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services," Marketing Science, INFORMS, vol. 16(2), pages 129-145.
    3. Robert Jacobson & Natalie Mizik, 2009. "The Financial Markets and Customer Satisfaction: Reexamining Possible Financial Market Mispricing of Customer Satisfaction," Marketing Science, INFORMS, vol. 28(5), pages 810-819, 09-10.
    4. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    5. Ashley S. Otto & David M. Szymanski & Rajan Varadarajan, 2020. "Customer satisfaction and firm performance: insights from over a quarter century of empirical research," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 543-564, May.
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    Cited by:

    1. Ibrahim Mohamed Ibrahim Elassal & Ricardo David Hernandez-Rojas & Luz Arelis Moreno Quispe, 2023. "Loyalty to World Heritage Cities: A Case Study of the Historic Ibn Ṭūlūn Mosque in Cairo (Egypt)," Sustainability, MDPI, vol. 15(17), pages 1-16, September.
    2. Ha-Yeon Park & Cheong-Kyu Park, 2024. "The Impact of COVID-19 on the Value Relevance of Customer Satisfaction," Sustainability, MDPI, vol. 16(18), pages 1-16, September.
    3. Ganna V Demydyuk & Mats Carlbäck, 2024. "Balancing short-term gains and long-term success in lodging: The role of customer satisfaction and price in hotel profitability model," Tourism Economics, , vol. 30(4), pages 844-875, June.

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