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Customer Satisfaction, Competition, and Firm Performance: An Empirical Investigation

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  • Daniel H. Simon
  • Miguel I. Gómez

Abstract

We conduct two empirical studies to test two hypotheses: (1) rivals' customer satisfaction increases a firm's own customer satisfaction; and (2) rivals' customer satisfaction reduces a firm's sales. Study One uses a panel dataset of annual store‐level customer satisfaction data from a supermarket chain for the periods 1998–2001. Study Two considers a range of industries by using a panel dataset of brand‐level customer satisfaction ratings from the American Customer Satisfaction Index spanning the periods 1994–2003. Results from both studies provide support for our hypotheses. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Daniel H. Simon & Miguel I. Gómez, 2014. "Customer Satisfaction, Competition, and Firm Performance: An Empirical Investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(6), pages 371-386, September.
    • Handle: RePEc:wly:mgtdec:v:35:y:2014:i:6:p:371-386
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    Cited by:

    1. Nimnual Visedsun & Kanitsorn Terdpaopong, 2021. "The Effects of the Strategy and Goal on Business Performance as Mediated by Management Accounting Systems," Economies, MDPI, vol. 9(4), pages 1-17, October.
    2. Samadhiya, Ashutosh & Agrawal, Rajat, 2022. "Developing a handloom through d.schools design thinking approach," Technology in Society, Elsevier, vol. 71(C).
    3. Ya. Katkova I. & Я. Каткова И., 2017. "Критерии Маркетинговой Результативности Интернет-Магазинов В России // Criteria Of Marketing Effectiveness Of Online Stores In Russia," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 21(3), pages 257-263.
    4. Chaolin Yang & Liang Guo & Sean X. Zhou, 2022. "Customer Satisfaction, Advertising Competition, and Platform Performance," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1576-1594, April.
    5. Yahua Bi & Sooyoung Choi & Insin Kim, 2020. "Visitors’ Motives for Attending a Healthy Food Exhibition," IJERPH, MDPI, vol. 17(8), pages 1-14, April.

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