SSE/EFI Working Paper Series in Business Administration
No 1999:1:
Customer Satisfaction and Links to Customer Profitability: An Empirical Examination of the Association between Attitudes and Behavior
Magnus Söderlund ()
and Mats Vilgon ()
Abstract: This paper explores links between customer satisfaction,
repurchase intentions, purchase behavior, and customer profitability with
empirical data on attitudes, behavior, and profitability at the customer
level of analysis. Purchase behavior and profitability data, derived from
the accounting system of a firm, are matched with the responses of the
firm's customers to survey questions distributed prior to the behavior and
profitability outcomes. The analysis reveals a strong link between customer
behavior and customer profitability, while modest links exist between
repurchase intentions and subsequent behavior. Only a weak and
non-significant direct link can be observed between customer satisfaction
and customer profitability. This paper, then, questions customer
satisfaction's commonly assumed role as a proxy for profitability.
Keywords: Customer satisfaction; customer profitability; (follow links to similar papers)
22 pages, January 15, 1999
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