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Do Changes in Customer Satisfaction Lead to Changes in Sales Performance in Food Retailing?

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  • Gomez, Miguel I.
  • McLaughlin, Edward W.
  • Wittink, Dick R.

Abstract

We measure the links between store attribute perceptions and customer satisfaction, and between customer satisfaction and sales performance, in the food retail sector. Our data set consists of six waves of customer satisfaction and sales information for about 250 stores over the period 1998- 2001 for a publicly held supermarket company. We construct a statistical model to address nonlinearities and asymmetries in the satisfaction-sales performance links, and we illustrate how food retailers can affect store revenues by managing customer satisfaction. Contributions of our study include the analysis of behavioral consequences of customer satisfaction in the food retail sector, the measurement of complexities of the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can use such results for customer satisfaction policies.

Suggested Citation

  • Gomez, Miguel I. & McLaughlin, Edward W. & Wittink, Dick R., 2003. "Do Changes in Customer Satisfaction Lead to Changes in Sales Performance in Food Retailing?," Working Papers 127195, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127195
    DOI: 10.22004/ag.econ.127195
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    References listed on IDEAS

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    1. Bernhardt, Kenneth L. & Donthu, Naveen & Kennett, Pamela A., 2000. "A Longitudinal Analysis of Satisfaction and Profitability," Journal of Business Research, Elsevier, vol. 47(2), pages 161-171, February.
    2. 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.
    3. Andreas Soteriou & Stavros A. Zenios, 1999. "Operations, Quality, and Profitability in the Provision of Banking Services," Management Science, INFORMS, vol. 45(9), pages 1221-1238, September.
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    Cited by:

    1. Dennis Campbell & Srikant M. Datar & Tatiana Sandino, 2008. "Organizational Design and Control across Multiple Markets: The Case of Franchising in the Convenience Store Industry," Harvard Business School Working Papers 08-091, Harvard Business School.
    2. Akpinar, Goksel & Gul, Mevlut & Gulcan, Sinem, 2011. "An Assessment of Consumer Satisfaction for Food Retail Chains: A Case Study from Turkey," 2011 International European Forum, February 14-18, 2011, Innsbruck-Igls, Austria 121995, International European Forum on System Dynamics and Innovation in Food Networks.

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    Keywords

    Consumer/Household Economics;

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