Open AccessIs Customer Satisfaction Driving Revenue A Longitudinal Analysis With Evidence From The Banking Industry
Author(s) -
Gerhard Winkler,
Markus S. Schwaiger
Publication year - 2011
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v2i1.2844
Subject(s) - customer satisfaction , revenue , scrutiny , business , marketing , banking industry , intuition , customer equity , customer retention , industrial organization , finance , psychology , service quality , law , service (business) , cognitive science , political science
The connection between customer satisfaction and the financial performance of companies has been under academic scrutiny for quite some time. Evidence regarding the long term impact of customer satisfaction is however relatively scarce. Furthermore, research has so far often neglected potential industry idiosyncrasies in estimating the consequences of changes in customer satisfaction. We provide an insight into the overall long run impact of customer satisfaction on operating revenues based on a longitudinal dataset for the Austrian retail banking industry. Our results corroborate the intuition of a positive long run effect of satisfaction on revenues. We can show, that a time lag of 1,5 years has to elapse for satisfaction to have a positive impact on sales.