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Customer satisfaction and consumer expenditure in selected European countries

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  • Yeung, Matthew C.H.
  • Ramasamy, Bala
  • Chen, Junsong
  • Paliwoda, Stan

Abstract

The relationship between customer satisfaction and company performance has been extensively researched at both the consumer and firm levels. However, little is known about the impact of customer satisfaction at the economy-wide level, especially in Europe. This study aims to link customer satisfaction to personal consumption expenditure using panel data collected from 1999 to 2011 and covering nine European countries. Our findings suggest a significant relationship between customer satisfaction and consumer expenditure in these countries. In addition, economic structure, culture, political economy and socio-economic factors have been examined to understand the impact of cross-country differences on this relationship. The results reflect the importance of satisfied consumers on the economy as a whole; thus, efforts at boosting customer satisfaction should become a national agenda.

Suggested Citation

  • Yeung, Matthew C.H. & Ramasamy, Bala & Chen, Junsong & Paliwoda, Stan, 2013. "Customer satisfaction and consumer expenditure in selected European countries," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 406-416.
    • Handle: RePEc:eee:ijrema:v:30:y:2013:i:4:p:406-416
    DOI: 10.1016/j.ijresmar.2013.06.001
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    2. Nyarku Kwamena Minta & Oduro Stephen, 2017. "Importance-Performance Matrix Analysis (IPMA) of Service Quality and Customer Satisfaction in the Ghanaian Banking Industry," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 532-550, July.
    3. de Haan, Evert & Verhoef, Peter C. & Wiesel, Thorsten, 2015. "The predictive ability of different customer feedback metrics for retention," International Journal of Research in Marketing, Elsevier, vol. 32(2), pages 195-206.
    4. Marnik G. Dekimpe & Barbara Deleersnyder, 2018. "Business cycle research in marketing: a review and research agenda," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 31-58, January.
    5. Hamid Baghestani & Paul Williams, 2017. "Does customer satisfaction have directional predictability for U.S. discretionary spending?," Applied Economics, Taylor & Francis Journals, vol. 49(54), pages 5504-5511, November.

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