The question, whether customer satisfaction is a reliable indicator for successful financial investment is a rather new field of study. Mainly promoted by Fornell and his associates, the question at first sight, seems to be an empirical question, i.e. a question whether customer satisfaction has anything to add to prediction accuracy of financial performance models. However, this macro-economic view on customer satisfaction is just one of two possible views, the other being the question whether individual investor’s satisfaction provides any kind of clue as to future investment decisions taken by the respective investor. Already, the smooth surface of customer satisfaction models advocated in order to show correlations between investment and satisfaction begins to get wrinkled. Further worry lines emerge, once questions like “is customer satisfaction measured in a consistent fashion?” or “is customer satisfaction unanimously defined?” are asked. This brief research paper will ask exactly these questions and it will do so for the newly emerging field of research linking financial investment and performance with customer satisfaction. Given this agenda, the structure of this paper is straightforward. First, results of a search, gathering papers that deal with customer (Investor) satisfaction and financial performance or financial investment will be reported, then the respective definitions of customer satisfaction will be scrutinized for communalities and differences. Furthermore, differences in the measurement of customer satisfaction will be reported and assessed, and finally, results of the research scrutinized in this paper will be reported before the background of the results gathered so far. A summary of results and the most important conclusions to be drawn from this research will be reported in the final chapter of this paper.
Table of Contents
1. Introduction
2. Methodology Selection of data
3. Definition of customer satisfaction
4. Measurement of customer satisfaction
5. Results
6. Conclusions
7. References
Research Objectives and Themes
The primary objective of this paper is to examine the reliability of customer satisfaction as an indicator for financial investment by scrutinizing how it is defined and measured across various studies. The paper critically evaluates whether diverse operationalizations of customer satisfaction allow for consistent results in financial performance models, specifically contrasting macro-economic perspectives with individual investor viewpoints.
- Critical analysis of customer satisfaction definitions in financial research.
- Evaluation of measurement methodologies, including the American Customer Satisfaction Index (ACSI).
- Comparison between macro-perspective and micro-perspective approaches to customer satisfaction.
- Investigation of the "garbage in – garbage out" problem in meta-analyses within this field.
- Assessment of the link between customer satisfaction and financial performance indicators.
Excerpt from the Book
3. Definition of customer satisfaction
What customer satisfaction is meant to be, for some researchers is so apparent, that it needs no mentioning at all, let alone a definition, while others are convinced that “satisfaction is an overall post-purchase evaluation” and some authors think of satisfaction in general and customer satisfaction in particular as a cognitive process. However, a brief look in the literature shows quite considerable deviations in what customer satisfaction is expected to be. Howarth and Seth define customer satisfaction as the cognitive state of being adequately or inadequately rewarded for the sacrifices one has made. In a widely used model, customer satisfaction is integrated in the confirmation/disconfirmation paradigm. According to this model, customer satisfaction is defined as the difference between customers’ expectations of a particular product or service and the actual performance of the respective product. Although being a definition that is widely shared, if not to the degree suggested by Fornell, some modification even to this definition exist. E.g., Locke modified the model by adding a third variable, i.e., the importance a service or product has for a particular customer. Consequently, customer satisfaction is the difference between expectation and performance multiplied by the importance of the product. Depending on whichever definition is deployed in a study, results will vary.
Summary of Chapters
1. Introduction: This chapter introduces the research gap regarding whether customer satisfaction is a reliable indicator for financial investment success and outlines the paper's structure.
2. Methodology Selection of data: The chapter explains the selection process of eleven representative studies for analysis and discusses the theoretical preconditions and limitations of performing a meta-analysis in this context.
3. Definition of customer satisfaction: This section reviews the diverse and often conflicting definitions of customer satisfaction found in existing literature, highlighting the lack of a unanimous consensus.
4. Measurement of customer satisfaction: This chapter examines the various ways customer satisfaction is measured, focusing on the ACSI and individual-level scales, and notes the lack of transparency regarding these operationalizations.
5. Results: The chapter synthesizes findings from the selected studies, categorized by macro-perspective (ACSI) and individual-level approaches, to assess the reported relationships between satisfaction and financial performance.
6. Conclusions: The final chapter summarizes that the lack of consistent definitions and measurement methods makes it difficult to establish a reliable link between customer satisfaction and financial performance.
7. References: This section lists all bibliographic sources utilized throughout the paper.
Keywords
Customer satisfaction, financial investment, financial performance, ACSI, meta-analysis, operationalization, consumer behavior, shareholder value, market performance, measurement, empirical study, micro-perspective, macro-perspective, investment decision, corporate reputation.
Frequently Asked Questions
What is the core subject of this research paper?
The paper investigates whether customer satisfaction can serve as a reliable indicator for successful financial investment by analyzing how it is defined and measured in academic literature.
What are the central thematic areas covered?
The key themes include the conceptual definition of satisfaction, various measurement methodologies (such as the ACSI), the impact of these on financial models, and the distinction between macro and micro perspectives.
What is the primary goal of the study?
The primary goal is to determine if the diverse ways of operationalizing customer satisfaction allow for consistent and reliable conclusions regarding its impact on investment performance.
Which scientific method does the author employ?
The author conducts a structured review and critical analysis of eleven selected studies, applying the principles of a deductive framework to test the hypothesis that definitions and measurements are too diverse to provide reliable results.
What topics are discussed in the main body?
The main body covers the selection of data, a critical review of satisfaction definitions, an assessment of measurement techniques, and a report on results categorized by macro- and individual-level approaches.
Which keywords best describe this work?
Key terms include customer satisfaction, financial performance, investment, ACSI, operationalization, and meta-analysis.
Why does the author argue that the "garbage in – garbage out" problem is relevant here?
The author argues that because studies lack a standardized definition and measurement for customer satisfaction, meta-analyses in this field risk producing results based on non-comparable data.
What specific conclusion is drawn regarding the ACSI?
The author concludes that while correlations exist, the mystery surrounding the construction and measurement of the ACSI prevents it from serving as a definitive rationale for share price movements.
- Arbeit zitieren
- Thomas Bister-Füsser (Autor:in), 2011, Customer satisfaction and investment: Can different operationalizations provide reliable results?, München, GRIN Verlag, https://www.hausarbeiten.de/document/170281
