Customer Satisfaction and Shareholder Value

In this article, the authors develop a theoretical framework that specifies how customer satisfaction affects future customer behavior and, in turn, the level, timing, and risk of future cash flows. Empirically, they find a positive association between customer satisfaction and shareholder value. They also find significant variation in the association across industries and firms.

[1]  J. Tobin.  A General Equilibrium Approach to Monetary Theory , 1969 .

[2]  E. Fama.  EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* , 1970 .

[3]  C. F. Phillips.  Industrial Market Structure and Economic Performance , 1971 .

[4]  B. Gale,et al.  Market Share and Rate of Return , 1972 .

[5]  Richard Schmalensee,et al.  Using the H-Index of Concentration with Published Data , 1977 .

[6]  R. Oliver.  A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions , 1980 .

[7]  E. Lindenberg,et al.  Tobin's q Ratio and Industrial Organization , 1981 .

[8]  W. Bearden,et al.  Selected Determinants of Consumer Satisfaction and Complaint Reports , 1983 .

[9]  W. G. Marshall,et al.  Tobin's q and the Structure-Performance Relationship: Reply , 1984 .

[10]  Mark Hirschey,et al.  Market Structure and Market Value , 1985 .

[11]  D. Aaker,et al.  Is Market Share all that It's Cracked up to Be? , 1985 .

[12]  A. Rappaport,et al.  Creating shareholder value : the new standard for business performance , 1986 .

[13]  W. G. Shepherd,et al.  Tobin's q and the Structure-Performance Relationship: Comment , 1986 .

[14]  S. Bowles.  The Production Process in a Competitive Economy: Reply , 1986 .

[15]  Cynthia A. Montgomery,et al.  Diversification, Ricardian rents, and Tobin's q , 1988 .

[16]  Liam Fahey,et al.  Valuing Market Strategies , 1988 .

[17]  H. McFarland.  Evaluating q as an Alternative to the Rate of Return in Measuring Profitability , 1988 .

[18]  Bronwyn H Hall,et al.  The R&D Master File Documentation , 1988 .

[19]  R. Jacobson.  Distinguishing among Competing Theories of the Market Share Effect , 1988 .

[20]  J. E. Swan,et al.  Consumer perceptions of interpersonal equity and satisfaction in transactions: A field survey approach. , 1989 .

[21]  R. Wensley,et al.  Must finance and strategy clash? , 1989, Harvard business review.

[22]  P. Varadarajan,et al.  Strategic Adaptability and Firm Performance: A Market-Contingent Perspective , 1989 .

[23]  William Boulding,et al.  Commentary on Unobservable Effects and Business Performance: Do Fixed Effects Matter? , 1990 .

[24]  R. Jacobson.  Unobservable Effects and Business Performance , 1990 .

[25]  R. D. Buzzell.  Commentary on Unobservable Effects and Business Performance , 1990 .

[26]  Bernard J. Jaworski,et al.  Market Orientation: The Construct, Research Propositions, and Managerial Implications , 1990 .

[27]  Vijay Mahajan,et al.  New Product Diffusion Models in Marketing: A Review and Directions for Research: , 1990 .

[28]  R. Jacobson.  Unobservable Effects and Business Performance: Reply to the Comments of Boulding and Buzzell , 1990 .

[29]  C. Fornell,et al.  A Framework for Comparing Customer Satisfaction across Individuals and Product Categories , 1991 .

[30]  Ruth N. Bolton,et al.  A Multistage Model of Customers' Assessments of Service Quality and Value , 1991 .

[31]  R. Rumelt.  How much does industry matter , 1991 .

[32]  M. Bergen,et al.  Agency Relationships in Marketing: A Review of the Implications and Applications of Agency and Related Theories , 1992 .

[33]  G. Erickson,et al.  Gaining comparative advantage through discretionary expenditures: the returns to R&D and advertising , 1992 .

[34]  Anil Menon,et al.  A Model of Marketing Knowledge use within Firms , 1992 .

[35]  C. Fornell.  A National Customer Satisfaction Barometer: The Swedish Experience: , 1992 .

[36]  E. Anderson,et al.  The Antecedents and Consequences of Customer Satisfaction for Firms , 1993 .

[37]  V. Zeithaml,et al.  A Dynamic Process Model of Service Quality: From Expectations to Behavioral Intentions , 1993 .

[38]  R. Rust,et al.  Customer satisfaction, customer retention, and market share , 1993 .

[39]  Richard Staelin,et al.  A Look on the Cost Side: Market Share and the Competitive Environment , 1993 .

[40]  P. Rajan Varadarajan,et al.  An Analysis of the Market Share-Profitability Relationship , 1993 .

[41]  P. Rajan Varadarajan,et al.  Standardization versus Adaptation of International Marketing Strategy: An Empirical Investigation , 1993 .

[42]  R. Rust,et al.  Return on Quality: Measuring the Financial Impact of Your Company's Quest for Quality , 1993 .

[43]  Mary W. Sullivan,et al.  The Measurement and Determinants of Brand Equity: A Financial Approach , 1993 .

[44]  R. Rust,et al.  Return on Quality (ROQ): Making Service Quality Financially Accountable , 1995 .

[45]  John C. Narver,et al.  Does Competitive Environment Moderate the Market Orientation-Performance Relationship? , 1994 .

[46]  Stephen W. Pruitt,et al.  A Simple Approximation of Tobin's Q , 1994 .

[47]  Ruth N. Bolton,et al.  A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction , 1994 .

[48]  René M. Stulz,et al.  Tobin's q, Corporate Diversification, and Firm Performance , 1993, Journal of Political Economy.

[49]  C. Fornell,et al.  Customer Satisfaction, Market Share, and Profitability: Findings from Sweden , 1994 .

[50]  Richard Staelin,et al.  Identifying Generalizable Effects of Strategic Actions on Firm Performance: The Case of Demand-Side Returns to R&D Spending , 1995 .

[51]  Dominique M. Hanssens,et al.  The Persistence of Marketing Effects on Sales , 1995 .

[52]  C. Fornell.  The Quality of Economic Output: Empirical Generalizations About Its Distribution and Relationship to Market Share , 1995 .

[53]  E. Ofek,et al.  Investor Valuation of the Abandonment Option , 1995 .

[54]  E. Anderson.  Customer satisfaction and price tolerance , 1996 .

[55]  John G. Lynch,et al.  Advertising effects on consumer welfare: Prices paid and liking for brands selected , 1996 .

[56]  C. Fornell,et al.  The American Customer Satisfaction Index: Nature, Purpose, and Findings , 1996 .

[57]  E. Fama.  Market Efficiency, Long-Term Returns, and Behavioral Finance , 1997 .

[58]  Wilbur G. Lewellen,et al.  On the measurement of Tobin's q , 1997 .

[59]  R. Rust,et al.  Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services , 1997 .

[60]  E. Anderson.  Customer Satisfaction and Word of Mouth , 1998 .

[61]  Tasadduq A. Shervani,et al.  Market-Based Assets and Shareholder Value: A Framework for Analysis , 1998 .

[62]  D. Larcker,et al.  Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction , 1998 .

[63]  Mark E. Parry,et al.  Market share and ROI: Observing the effect of unobserved variables , 1999 .

[64]  Sundar G. Bharadwaj,et al.  Information Technology Effects on Firm Performance as Measured by Tobin's q , 1999 .

[65]  Tasadduq A. Shervani,et al.  Marketing, Business Processes, and Shareholder Value: An Organizationally Embedded View of Marketing Activities and the Discipline of Marketing , 1999 .

[66]  P. K. Kannan,et al.  Implications of loyalty program membership and service experiences for customer retention and value , 2000 .

[67]  V. Zeithaml.  Service quality, profitability, and the economic worth of customers: What we know and what we need to learn , 2000 .

[68]  John C. Haughey.  The Loyalty Effect , 1997, Business Ethics Quarterly.

[69]  Philip Hans Franses,et al.  The impact of satisfaction and payment equity on cross-buying: A dynamic model for a multi-service provider , 2001 .

[70]  V. Mittal,et al.  Satisfaction, Repurchase Intent, and Repurchase Behavior: Investigating the Moderating Effect of Customer Characteristics , 2001 .

[71]  M. Dekimpe,et al.  The Market Valuation of Internet Channel Additions , 2002 .

[72]  Rajdeep Grewal,et al.  Strategic Responses to New Technologies and Their Impact on Firm Performance , 2004, Journal of Marketing.

[73]  C. Fornell,et al.  Why Do Customer Relationship Management Applications Affect Customer Satisfaction? , 2005 .

[74]  Lopo L. Rego,et al.  Customer Satisfaction, Cash Flow, and Shareholder Value , 2005 .

[75]  C. Moorman,et al.  Strategic Firm Commitments and Rewards for Customer Relationship Management in Online Retailing , 2005 .

[76]  I. M. João,et al.  A Critical Review of Customer Satisfaction Measurement in Tourism Industry , 2006 .

[77]  Forrest V. Morgeson,et al.  Customer Satisfaction and Stock Prices: High Returns, Low Risk: , 2006 .

[78]  R. Srinivasan,et al.  Dual Distribution and Intangible Firm Value: Franchising in Restaurant Chains , 2006 .