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

Simon Daniel H. | Zendy; Gómez Miguel I. | Zendy

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

Author(s) -

Simon Daniel H.,

Gómez Miguel I.

Publication year - 2014

Publication title -

managerial and decision economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.288

H-Index - 51

eISSN - 1099-1468

pISSN - 0143-6570

DOI - 10.1002/mde.2629

Subject(s) - customer satisfaction , business , competition (biology) , customer equity , marketing , customer delight , empirical research , customer retention , panel data , test (biology) , econometrics , service quality , economics , statistics , mathematics , service (business) , ecology , paleontology , biology

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.

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