IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v73y2023ics0969698923000486.html
   My bibliography  Save this article

Understanding the link between customer feedback metrics and firm performance

Author

Listed:
  • Agag, Gomaa
  • Durrani, Baseer Ali
  • Shehawy, Yasser Moustafa
  • Alharthi, Majed
  • Alamoudi, Hawazen
  • El-Halaby, Sherif
  • Hassanein, Ahmed
  • Abdelmoety, Ziad H.

Abstract

Practitioners utilise customer feedback metrics (CFM's) to monitor business performance. However, the influence of CFM's on firm performance has been ignored. Thus, this paper aims to examine the effects of CFM's on firm performance. Our study collected data about CFM's, marketing efforts, and financial performance over the period 2005–2020 from American Customer Satisfaction Index. The present study used a multiple regression panel analysis to investigate the influence of different CFMs (i.e., SAT, Top-2-Box, NPS proportion, NPS value, and CES) on firm performance (i.e., gross margin, sales growth, and Tobin's Q), moderating by operating environment factors (i.e., munificence, power, and dynamism). Our results revealed that Top-2-box is the best predictor CFM's to compare firms in online booking, hotels, and online shopping industries, while consumer satisfaction is the best predictor for electronic and fixed telecom industries. CES is the best CFM's to compare companies in restaurants industries. Moreover, NPS is the best metric to compare different companies in holiday parks industries. The results provide considerable managerial implications for effective use of resources regarding investing in most suitable CFM's to enhance firm performance.

Suggested Citation

  • Agag, Gomaa & Durrani, Baseer Ali & Shehawy, Yasser Moustafa & Alharthi, Majed & Alamoudi, Hawazen & El-Halaby, Sherif & Hassanein, Ahmed & Abdelmoety, Ziad H., 2023. "Understanding the link between customer feedback metrics and firm performance," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000486
    DOI: 10.1016/j.jretconser.2023.103301
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698923000486
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2023.103301?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Abdelmoety, Ziad Hassan & Aboul-Dahab, Sameh & Agag, Gomaa, 2022. "A cross cultural investigation of retailers commitment to CSR and customer citizenship behaviour: The role of ethical standard and value relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    2. Hult, G. Tomas M. & Sharma, Pratyush Nidhi & Morgeson, Forrest V. & Zhang, Yufei, 2019. "Antecedents and Consequences of Customer Satisfaction: Do They Differ Across Online and Offline Purchases?," Journal of Retailing, Elsevier, vol. 95(1), pages 10-23.
    3. J. Andrew Petersen & V. Kumar & Yolanda Polo & F. Javier Sese, 2018. "Unlocking the power of marketing: understanding the links between customer mindset metrics, behavior, and profitability," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 813-836, September.
    4. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    5. Chew Ging Lee & Shi-Min How, 2019. "Long-run causality between customer satisfaction and financial performance: the case of Marriott," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(14), pages 1653-1658, August.
    6. Claes Fornell & Birger Wernerfelt, 1988. "A Model for Customer Complaint Management," Marketing Science, INFORMS, vol. 7(3), pages 287-298.
    7. Youssef, Mayada Abd El-Aziz & Eid, Riyad & Agag, Gomaa, 2022. "Cross-national differences in big data analytics adoption in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    8. Ryu, Sann & Park, JungKun, 2020. "The effects of benefit-driven commitment on usage of social media for shopping and positive word-of-mouth," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    9. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    10. Jang, Sungha & Liu, Tian & Kang, Ji Hye & Yang, Huichen, 2018. "Understanding important hotel attributes from the consumer perspective over time," Australasian marketing journal, Elsevier, vol. 26(1), pages 23-30.
    11. Eger, Ludvík & MiÄ Ã­k, Michal, 2017. "Customer-oriented communication in retail and Net Promoter Score," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 142-149.
    12. Elisabetta Raguseo & Claudio Vitari, 2018. "Investments in big data analytics and firm performance: an empirical investigation of direct and mediating effects," International Journal of Production Research, Taylor & Francis Journals, vol. 56(15), pages 5206-5221, August.
    13. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    14. Sandra Streukens & Ko de Ruyter, 2004. "Reconsidering Nonlinearity and Asymmetry in Customer Satisfaction and Loyalty Models: An Empirical Study in Three Retail Service Settings," Marketing Letters, Springer, vol. 15(2_3), pages 99-111, July.
    15. van Doorn, Jenny & Leeflang, Peter S.H. & Tijs, Marleen, 2013. "Satisfaction as a predictor of future performance: A replication," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 314-318.
    16. Ji, Chunli & Prentice, Catherine, 2021. "Linking transaction-specific satisfaction and customer loyalty – The case of casino resorts," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    17. Selim, Hassan & Eid, Riyad & Agag, Gomaa & Shehawy, Yasser Moustafa, 2022. "Cross-national differences in travelers’ continuance of knowledge sharing in online travel communities," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    18. Mansour Alyahya & Meqbel Aliedan & Gomaa Agag & Ziad H. Abdelmoety, 2023. "The Antecedents of Hotels’ Green Creativity: The Role of Green HRM, Environmentally Specific Servant Leadership, and Psychological Green Climate," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
    19. Baehre, Sven & O'Dwyer, Michele & O'Malley, Lisa & Story, Vicky M, 2022. "Customer mindset metrics: A systematic evaluation of the net promoter score (NPS) vs. alternative calculation methods," Journal of Business Research, Elsevier, vol. 149(C), pages 353-362.
    20. Carole Donada & Caroline Mothe & Gwenaëlle Nogatchewsky & Gisele Campos Ribeiro, 2019. "The Respective Effects of Virtues and Inter-organizational Management Control Systems on Relationship Quality and Performance: Virtues Win," Journal of Business Ethics, Springer, vol. 154(1), pages 211-228, January.
    21. Mecredy, Philip & Wright, Malcolm J. & Feetham, Pamela, 2018. "Are promoters valuable customers? An application of the net promoter scale to predict future customer spend," Australasian marketing journal, Elsevier, vol. 26(1), pages 3-9.
    22. Raassens, N. & Haans, Hans, 2017. "NPS and online WOM investigating the relationship between customers’ promoter scores and eWOM behavior," Other publications TiSEM 931e7761-7c6e-40ee-8976-2, Tilburg University, School of Economics and Management.
    23. Theodoulidis, Babis & Diaz, David & Crotto, Federica & Rancati, Elisa, 2017. "Exploring corporate social responsibility and financial performance through stakeholder theory in the tourism industries," Tourism Management, Elsevier, vol. 62(C), pages 173-188.
    24. 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.
    25. Shamah, Rania A.M. & Mason, Michela C. & Moretti, Andrea & Raggiotto, Francesco, 2018. "Investigating the antecedents of African fast food customers' loyalty: A self-congruity perspective," Journal of Business Research, Elsevier, vol. 86(C), pages 446-456.
    26. Yi, Ho-Taek & Yeo, ChanKoo & Amenuvor, Fortune Edem & Boateng, Henry, 2021. "Examining the relationship between customer bonding, customer participation, and customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    27. Goić, Marcel & Levenier, Camilo & Montoya, Ricardo, 2021. "Drivers of customer satisfaction in the grocery retail industry: A longitudinal analysis across store formats," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    28. Tran, Mai Dong & Nguyen, Phong Nguyen, 2020. "The impact of passion on sales performance: Is negotiation a missing link?," Australasian marketing journal, Elsevier, vol. 28(3), pages 124-133.
    29. Wang, Zhan & Kim, Hyun Gon, 2017. "Can Social Media Marketing Improve Customer Relationship Capabilities and Firm Performance? Dynamic Capability Perspective," Journal of Interactive Marketing, Elsevier, vol. 39(C), pages 15-26.
    30. Stewart, David W., 2009. "Marketing accountability: Linking marketing actions to financial results," Journal of Business Research, Elsevier, vol. 62(6), pages 636-643, June.
    31. Tueanrat, Yanika & Papagiannidis, Savvas & Alamanos, Eleftherios, 2021. "A conceptual framework of the antecedents of customer journey satisfaction in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    32. Agag, Gomaa & Aboul-Dahab, Sameh & Shehawy, Yasser Moustafa & Alamoudi, Hawazen O. & Alharthi, Majed D. & Hassan Abdelmoety, Ziad, 2022. "Impacts of COVID-19 on the post-pandemic behaviour: The role of mortality threats and religiosity," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    33. Gomaa Agag, 2019. "E-commerce Ethics and Its Impact on Buyer Repurchase Intentions and Loyalty: An Empirical Study of Small and Medium Egyptian Businesses," Journal of Business Ethics, Springer, vol. 154(2), pages 389-410, January.
    34. Aboul-Dahab, Sameh & Agag, Gomaa & Hassan Abdelmoety, Ziad, 2021. "Examining the influence of cultural and ethical ideology on consumers’ perceptions about the ethics of online retailers and its effects on their loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    35. Shokouhyar, Sajjad & Shokoohyar, Sina & Safari, Sepehr, 2020. "Research on the influence of after-sales service quality factors on customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    36. Blessing, Gerald & Natter, Martin, 2019. "Do Mystery Shoppers Really Predict Customer Satisfaction and Sales Performance?," Journal of Retailing, Elsevier, vol. 95(3), pages 47-62.
    37. Quach, Sara & Septianto, Felix & Thaichon, Park & Chiew, Tung Moi, 2021. "Mixed emotional appeal enhances positive word-of-mouth: The moderating role of narrative person," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    38. Richard Owen, 2019. "Net Promoter Score and Its Successful Application," Management for Professionals, in: Kartikeya Kompella (ed.), Marketing Wisdom, pages 17-29, Springer.
    39. Kim, Woohyoung & Kim, Hyun & Hwang, Jinsoo, 2020. "Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    40. Dominique M. Hanssens & Koen H. Pauwels & Shuba Srinivasan & Marc Vanhuele & Gokhan Yildirim, 2014. "Consumer Attitude Metrics for Guiding Marketing Mix Decisions," Marketing Science, INFORMS, vol. 33(4), pages 534-550, July.
    41. Ling Peng & Geng Cui & Yuho Chung & Chunyu Li, 2019. "A multi-facet item response theory approach to improve customer satisfaction using online product ratings," Journal of the Academy of Marketing Science, Springer, vol. 47(5), pages 960-976, September.
    42. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad H., 2023. "A cross-cultural investigation of the relationship between eco-innovation and customers boycott behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    43. Lee, Wei-Long & Liu, Chih-Hsing & Tseng, Tzu-Wen, 2022. "The multiple effects of service innovation and quality on transitional and electronic word-of-mouth in predicting customer behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    44. Park, Sangwon & Nicolau, Juan L., 2019. "Image effect on customer-centric measures of performance," Annals of Tourism Research, Elsevier, vol. 76(C), pages 226-238.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aminjonova, Gulrukhsor & Khasanova, Dilfuzakhon, 2024. "How Perceived CSR Drives Customer Value Co-Creation in E-Commerce: Examining the Moderating Effect of Gender and the Mediating Effect of Satisfaction," SocArXiv 69cdm, Center for Open Science.
    2. Shehawy, Yasser Moustafa & Agag, Gomaa & Alamoudi, Hawazen O. & Alharthi, Majed D. & Brown, Abraham & Labben, Thouraya Gherissi & Abdelmoety, Ziad H., 2024. "Cross-national differences in consumers’ willingness to pay (WTP) more for green hotels," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    3. Agag, Gomaa & Shehawy, Yasser Moustafa & Almoraish, Ahmed & Eid, Riyad & Chaib Lababdi, Houyem & Gherissi Labben, Thouraya & Abdo, Said Shabban, 2024. "Understanding the relationship between marketing analytics, customer agility, and customer satisfaction: A longitudinal perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    4. Agag, Gomaa & Ali Durrani, Baseer & Hassan Abdelmoety, Ziad & Mostafa Daher, Maya & Eid, Riyad, 2024. "Understanding the link between net promoter score and e-WOM behaviour on social media: The role of national culture," Journal of Business Research, Elsevier, vol. 170(C).
    5. Alghamdi, OmarA. & Agag, Gomaa, 2024. "Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    6. Agag, Gomaa & Eid, Riyad & Chaib Lababdi, Houyem & Abdelwahab, Mohamed & Aboul-Dahab, Sameh & Abdo, Said Shabban, 2024. "Understanding the impact of national culture differences on customers’ online social shopping behaviours," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    7. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad H., 2023. "Understanding the factors affecting consumers’ behaviour when purchasing refurbished products: A chaordic perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    8. Zhang, Jian & Eid, Riyad & Agag, Gomaa & Chen, Chunxiao & Fu, Ruibing, 2024. "Exploring the link between entrepreneurial passion and SMEs retailers’ performance: The role of exploration and exploitation under different cultural contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agag, Gomaa & Ali Durrani, Baseer & Hassan Abdelmoety, Ziad & Mostafa Daher, Maya & Eid, Riyad, 2024. "Understanding the link between net promoter score and e-WOM behaviour on social media: The role of national culture," Journal of Business Research, Elsevier, vol. 170(C).
    2. Selim, Hassan & Eid, Riyad & Agag, Gomaa & Shehawy, Yasser Moustafa, 2022. "Cross-national differences in travelers’ continuance of knowledge sharing in online travel communities," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    3. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad H., 2023. "Understanding the factors affecting consumers’ behaviour when purchasing refurbished products: A chaordic perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Sven Baehre & Michele O’Dwyer & Lisa O’Malley & Nick Lee, 2022. "The use of Net Promoter Score (NPS) to predict sales growth: insights from an empirical investigation," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 67-84, January.
    5. Alghamdi, OmarA. & Agag, Gomaa, 2024. "Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    6. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad H., 2023. "A cross-cultural investigation of the relationship between eco-innovation and customers boycott behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    7. Alboqami, Hassan, 2023. "Trust me, I'm an influencer! - Causal recipes for customer trust in artificial intelligence influencers in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    8. Zhang, Jian & Eid, Riyad & Agag, Gomaa & Chen, Chunxiao & Fu, Ruibing, 2024. "Exploring the link between entrepreneurial passion and SMEs retailers’ performance: The role of exploration and exploitation under different cultural contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    9. Agag, Gomaa & Shehawy, Yasser Moustafa & Almoraish, Ahmed & Eid, Riyad & Chaib Lababdi, Houyem & Gherissi Labben, Thouraya & Abdo, Said Shabban, 2024. "Understanding the relationship between marketing analytics, customer agility, and customer satisfaction: A longitudinal perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    10. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad Hassan & Daher, Maya Mostafa, 2023. "A sustainable step forward: Understanding factors affecting customers’ behaviour to purchase remanufactured products," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    11. Agag, Gomaa & Eid, Riyad & Chaib Lababdi, Houyem & Abdelwahab, Mohamed & Aboul-Dahab, Sameh & Abdo, Said Shabban, 2024. "Understanding the impact of national culture differences on customers’ online social shopping behaviours," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    12. J. Andrew Petersen & V. Kumar & Yolanda Polo & F. Javier Sese, 2018. "Unlocking the power of marketing: understanding the links between customer mindset metrics, behavior, and profitability," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 813-836, September.
    13. Alzaidi, Maram Saeed & Agag, Gomaa, 2022. "The role of trust and privacy concerns in using social media for e-retail services: The moderating role of COVID-19," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    14. Laradi, Sofiane & Alrawad, Mahmaod & Lutfi, Abdalwali & Agag, Gomaa, 2024. "Understanding factors affecting social commerce purchase behavior: A longitudinal perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    15. 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.
    16. Baehre, Sven & O'Dwyer, Michele & O'Malley, Lisa & Story, Vicky M, 2022. "Customer mindset metrics: A systematic evaluation of the net promoter score (NPS) vs. alternative calculation methods," Journal of Business Research, Elsevier, vol. 149(C), pages 353-362.
    17. Agag, Gomaa & Aboul-Dahab, Sameh & Shehawy, Yasser Moustafa & Alamoudi, Hawazen O. & Alharthi, Majed D. & Hassan Abdelmoety, Ziad, 2022. "Impacts of COVID-19 on the post-pandemic behaviour: The role of mortality threats and religiosity," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    18. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    19. Mecredy, Philip & Wright, Malcolm J. & Feetham, Pamela, 2018. "Are promoters valuable customers? An application of the net promoter scale to predict future customer spend," Australasian marketing journal, Elsevier, vol. 26(1), pages 3-9.
    20. Raassens, N. & Haans, Hans, 2017. "NPS and online WOM investigating the relationship between customers’ promoter scores and eWOM behavior," Other publications TiSEM 931e7761-7c6e-40ee-8976-2, Tilburg University, School of Economics and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.