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The Quality of Economic Output: Empirical Generalizations About Its Distribution and Relationship to Market Share

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  • Claes Fornell

    (The University of Michigan)

Abstract

As more nations add customer satisfaction—as a measure of quality of economic output—to what they presently collect about the economy, it becomes increasingly important to understand the role of customer satisfaction and its relationship to other economic measures. In an attempt to contribute to such an understanding, this paper presents two empirical generalizations about customer satisfaction. First, the distribution of customer satisfaction is negatively skewed. It is suggested that negative skewness is a condition for a free market. Second, the association between market share and customer satisfaction is not positive (and often negative) in cross sectional analysis. While challenging to firms that pursue both market share goals and increased customer satisfaction, the finding is consistent with fundamental economic theory and the strategy literature.

Suggested Citation

  • Claes Fornell, 1995. "The Quality of Economic Output: Empirical Generalizations About Its Distribution and Relationship to Market Share," Marketing Science, INFORMS, vol. 14(3_supplem), pages 203-211.
    • Handle: RePEc:inm:ormksc:v:14:y:1995:i:3_supplement:p:g203-g211
    DOI: 10.1287/mksc.14.3.G203
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    Cited by:

    1. Keshav Raj Bhatta & Bhanu Pratap Durgapal, 2016. "Service Quality Perceptions and Customer Satisfaction in Nepalese Banking Sector," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 7(1), pages 17-23, January.
    2. Sharp, Byron & Dawes, John & Victory, Kirsten, 2024. "The market-based assets theory of brand competition," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    4. Kirca, Ahmet H. & Randhawa, Praneet & Talay, M. Berk & Akdeniz, M. Billur, 2020. "The interactive effects of product and brand portfolio strategies on brand performance: Longitudinal evidence from the U.S. automotive industry," International Journal of Research in Marketing, Elsevier, vol. 37(2), pages 421-439.
    5. Nagengast, Liane & Evanschitzky, Heiner & Blut, Markus & Rudolph, Thomas, 2014. "New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link," Journal of Retailing, Elsevier, vol. 90(3), pages 408-427.
    6. Clement, Michel & Wu, Steven & Fischer, Marc, 2014. "Empirical generalizations of demand and supply dynamics for movies," International Journal of Research in Marketing, Elsevier, vol. 31(2), pages 207-223.
    7. Debanjan Mitra & Peter N. Golder, 2006. "How Does Objective Quality Affect Perceived Quality? Short-Term Effects, Long-Term Effects, and Asymmetries," Marketing Science, INFORMS, vol. 25(3), pages 230-247, 05-06.
    8. 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.
    9. de Ruyter, Ko & Wetzels, Martin, 1998. "On the complex nature of patient evaluations of general practice service," Journal of Economic Psychology, Elsevier, vol. 19(5), pages 565-590, October.
    10. 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.
    11. Oyner, Olga K. & Sukhorukove, Olga, 2013. "Using CLV concept for marketing budgets allocation," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 6(2), pages 91-106.
    12. Jan U. Becker & Sönke Albers, 2016. "The limits of analyzing service quality data in public transport," Transportation, Springer, vol. 43(5), pages 823-842, September.
    13. Cron, William L. & Gilly, Mary C. & Graham, John L. & Slocum Jr., John W., 2009. "Gender differences in the pricing of professional services: Implications for income and customer relationships," Organizational Behavior and Human Decision Processes, Elsevier, vol. 109(1), pages 93-105, May.
    14. López Caro, Cristina María & Fernández Aguirre, María Carmen & Mariel Chladkova, Petr, 2002. "Índices de Satisfacción del Consumidor: una aplicación de Modelos de Ecuaciones Estructurales a la Industria Automovilística Española," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    15. Noor Ul Hadi & Nadia Aslam & Amir Gulzar, 2019. "Sustainable Service Quality and Customer Loyalty: The Role of Customer Satisfaction and Switching Costs in the Pakistan Cellphone Industry," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    16. Zanna Aa & Josée Bloemer & Jörg Henseler, 2015. "Using customer contact centres as relationship marketing instruments," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 185-208, June.
    17. Ovidiu-Ioan Moisescu & Oana-Adriana Gică, 2020. "The Impact of Environmental and Social Responsibility on Customer Loyalty: A Multigroup Analysis among Generations X and Y," IJERPH, MDPI, vol. 17(18), pages 1-21, September.
    18. Ovidiu-Ioan Moisescu & Oana-Adriana Gică & Mihaela-Corina Dorobanțu, 2021. "Exploring the Drivers of Visitor Loyalty in the Context of Outdoor Adventure Parks: The Case of Arsenal Park in Romania," IJERPH, MDPI, vol. 18(19), pages 1-20, September.
    19. Grigoroudis, E. & Siskos, Y., 2004. "A survey of customer satisfaction barometers: Some results from the transportation-communications sector," European Journal of Operational Research, Elsevier, vol. 152(2), pages 334-353, January.
    20. Grappi, Silvia & Montanari, Fabrizio, 2011. "The role of social identification and hedonism in affecting tourist re-patronizing behaviours: The case of an Italian festival," Tourism Management, Elsevier, vol. 32(5), pages 1128-1140.

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