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Empirical Evidence for the Relation between Customer Satisfaction and Business Performance

Author

Listed:
  • van der Wiele, A.
  • Boselie, J.P.P.E.F.
  • Hesselink, M.

Abstract

This paper focuses on the analysis of empirical data on customer satisfaction and the relationship with hard organisational performance data. The organisation is a Flexcompany with its headquarters in The Netherlands, but also operating in other countries in Europe. The empirical data on customer satisfaction and business performances stem from 1998 and 1999. Based on the empirical data it can be concluded that it is possible to find evidence for the hypothesis that there is a positive relationship between customer satisfaction and organisational performance indicators, although the relationship is not very strong. Various factors might influence the timelag between a change in customer satisfaction and an expected effect in sales, margin, or other output indicators. However, the analyses do give answers to questions related to the quality dimensions as underlying factors behind the items in the customer satisfaction questionnaire and some indications for the changing behaviour of the customer in relation to his perception.

Suggested Citation

  • van der Wiele, A. & Boselie, J.P.P.E.F. & Hesselink, M., 2001. "Empirical Evidence for the Relation between Customer Satisfaction and Business Performance," ERIM Report Series Research in Management ERS-2001-32-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:97
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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.
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    Cited by:

    1. Ernest Tweneboah-Koduah & Augustine Yuty Duweh Farley, 2015. "Relationship between Customer Satisfaction and Customer Loyalty in the Retail Banking Sector of Ghana," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(1), pages 249-249, December.
    2. Azevedo, Susana & Cudney, Elizabeth A. & Grilo, António & Carvalho, Helena & Cruz-Machado, V., 2012. "The influence of eco-innovation supply chain practices on business eco-efficiency," MPRA Paper 42704, University Library of Munich, Germany.
    3. Carretta, Alessandro & Farina, Vincenzo & Fiordelisi, Franco & Schwizer, Paola, 2006. "Corporate culture and shareholder value in banking industry," MPRA Paper 8304, University Library of Munich, Germany.
    4. Carsten Horn & Markus Rudolf, 2011. "Service quality in the private banking business," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 25(2), pages 173-195, June.
    5. Roberta Minazzi, 2010. "Hotel Classification Systems: A Comparison of International Case Studies," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 4(4), pages 64-86, December.

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    More about this item

    Keywords

    business performance improvement; customer behaviour; customer satisfaction;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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