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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.