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Net promoter score, growth, and profitability of transportation companies

Author

Listed:
  • Korneta Piotr

    (Faculty of Management, Warsaw University of Technology, Warsaw, Poland)

Abstract

Introduced in 2003, net promoter score (NPS) very quickly gained popularity, as a customer loyalty measure, among companies and a part of researchers, due to its simplicity, the ease of interpretation, low costs of calculation, and, overall, its assumed impact on future growth and profitability. In due course of literature review, it was identified that not all researchers endorsed NPS, rejecting its presumed impact on growth and its superiority over other loyalty measures. This study aims therefore to verify the influence of NPS on the growth and profitability of Polish transportation companies. This objective is achieved with the use of Spearman correlation ranks and linear regression. The findings of this study reject the proclaimed relationship between NPS and growth; hence, in that matter, the results are aligned to criticism presented in literature. The study, however, confirmed a positive and statistically significant relationship between NPS and profitability. Accordingly, the study recommends Polish transportation companies to include NPS in a portfolio of metrics, however, not as a stand-alone diagnostic tool.

Suggested Citation

  • Korneta Piotr, 2018. "Net promoter score, growth, and profitability of transportation companies," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(2), pages 136-148, June.
    • Handle: RePEc:vrs:ijomae:v:54:y:2018:i:2:p:136-148:n:5
    DOI: 10.2478/ijme-2018-0013
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    References listed on IDEAS

    as
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    4. Stewart Pearson, 1996. "Building Brands Directly," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-13771-8, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    net promoter score (NPS); customer loyalty; customer satisfaction; performance measurement; transportation;
    All these keywords.

    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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