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

Author

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  • Miguel Ignacio Gomez

    (Cornell University, Food and Nutrition Policy Program)

  • Edward W. McLaughlin

    (Cornell University)

  • Dick Wittink

    (Yale University, School of Management)

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

  • Miguel Ignacio Gomez & Edward W. McLaughlin & Dick Wittink, 2003. "Do Changes in Customer Satisfaction Lead to Changes in Sales Performance in Food Retailing?," Yale School of Management Working Papers ysm363, Yale School of Management.
    • Handle: RePEc:ysm:somwrk:ysm363
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    Cited by:

    1. 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.
    2. 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.

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