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Does Aggregate Buyer Satisfaction affect Household Consumption Growth?

Author

Listed:
  • Claes Fornell
  • Paul Damien
  • Marcin Kacperczyk
  • Michel Wedel

Abstract

This study finds that measures of the University of Michigan’s American Customer Satisfaction Index are related to Personal Consumption Growth, controlling for typical predictors that are commonly included in the Index of Leading Indicators. In assessing the relationship, this study uses a Bayesian mean-variance regression that addresses problems of small sample sizes and non-normal distributions by considering both parameter and distributional uncertainty in a semi-parametric framework. Importantly, this paper introduces a new psychometric measure to assess consumer satisfaction; variants of this measure are gaining acceptance in the private and public sectors in Scandinavia, China, Japan, Korea, the United States and in other countries.

Suggested Citation

  • Claes Fornell & Paul Damien & Marcin Kacperczyk & Michel Wedel, 2018. "Does Aggregate Buyer Satisfaction affect Household Consumption Growth?," DOCFRADIS Working Papers 1802, Catedra Fundación Ramón Areces de Distribución Comercial, revised Jun 2018.
    • Handle: RePEc:ovr:docfra:1802
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Customer satisfaction; Personal consumption growth;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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