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

Author

Listed:
  • 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.

Suggested Citation

  • Daniel H. Simon & Jed DeVaro, 2006. "Do the best companies to work for provide better customer satisfaction?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 667-683.
    • Handle: RePEc:wly:mgtdec:v:27:y:2006:i:8:p:667-683
    DOI: 10.1002/mde.1303
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    References listed on IDEAS

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    1. Greg Filbeck & Dianna Preece, 2003. ""Fortune's" Best 100 Companies to Work for in America: Do They Work for Shareholders?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(5-6), pages 771-797.
    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. Greg Filbeck & Dianna Preece, 2003. "Fortune’s Best 100 Companies to Work for in America: Do They Work for Shareholders?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(5‐6), pages 771-797, June.
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    Cited by:

    1. 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, vol. 61(9), pages 959-967, September.
    2. Chun-Hung (Hugo) Tang & Ji-Eun Lee, 2014. "Employee satisfaction and long-run shareholder returns," The Service Industries Journal, Taylor & Francis Journals, vol. 34(14), pages 1167-1183, October.
    3. Ahmed, Muhammad Bilal & Wasey, Ejaz & Jhanndir, Saif Ullah, 2012. "Impact Of Employee Motivation On Customer Satisfaction: Study Of Airline Industry In Pakistan," MPRA Paper 70758, University Library of Munich, Germany.
    4. Vichet Sum, 2013. "Employee Benefits And Stock Returns: A Look At Health Care Benefits," Accounting & Taxation, The Institute for Business and Finance Research, vol. 5(1), pages 1-8.
    5. Dorota Korenkiewicz & Wolfgang Maennig, 2023. "Women on a Corporate Board of Directors and Consumer Satisfaction," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3904-3928, December.
    6. Edmans, Alex, 2011. "Does the stock market fully value intangibles? Employee satisfaction and equity prices," Journal of Financial Economics, Elsevier, vol. 101(3), pages 621-640, September.
    7. 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., vol. 30(1), pages 27-41.
    8. 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, vol. 52(4), pages 387-398, July.
    9. Sabu V.G. & Manoj M., 2020. "The Effect of Employee Desire and Employee Engagement on Organizational Performance: Evidence from ICT Sector in Kerala, India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(4), pages 500-518, November.
    10. Bao, May Xiaoyan & Cheng, Xiaoyan & Smith, David, 2020. "A path analysis investigation of the relationships between CEO pay ratios and firm performance mediated by employee satisfaction," Advances in accounting, Elsevier, vol. 48(C).

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