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Article
Publication date: 1 February 2004

Tiffany S. Perkins‐Munn and Y. Theodore Chen

The ultimate goal of streamlining solutions for project management is to optimize the performance of the team. Automating business processes and integrating customized business…

1655

Abstract

The ultimate goal of streamlining solutions for project management is to optimize the performance of the team. Automating business processes and integrating customized business solutions can not only increase productivity but also profitability. However, very few project‐ or service‐oriented organizations efficiently manage their processes. The authors describe an easily replicable online process that resulted in improved management and efficiency for one company.

Details

Journal of Business Strategy, vol. 25 no. 1
Type: Research Article
ISSN: 0275-6668

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Article
Publication date: 1 April 2005

Timothy L. Keiningham, Tiffany Perkins‐Munn, Lerzan Aksoy and Demitry Estrin

Many researches have proposed a virtuous chain of effects from improved customer satisfaction to profits. In particular, satisfaction is thought to improve share‐of‐spending…

10424

Abstract

Purpose

Many researches have proposed a virtuous chain of effects from improved customer satisfaction to profits. In particular, satisfaction is thought to improve share‐of‐spending, which in turn leads to higher customer revenue and customer profitability. This paper aims to examine these proposed linkages using data from the institutional securities industry.

Design/methodology/approach

The data used in the analyses were collected as part of an ongoing telephone satisfaction survey of 81 clients of an institutional securities firm across two continents (North America and Europe). Mediation analysis was used to test the hypothesized effects.

Findings

Customer revenue was found to correlate negatively with customer profitability for unprofitable customers, and positively for profitable customers.

Research limitations/implications

One of the limitations of this research is that it tests the propositions within a single industry. Future research should attempt to replicate these findings in other contexts.

Practical implications

A simplistic focus on improving customer satisfaction for all customers in order to improve share‐of‐wallet and customer revenue does not seem to represent the best management approach to maximize overall firm profitability. In fact, it could actually result in a negative return on investment. Therefore, customers should first be segmented by their profitability to the firm before expending resources to improve customer satisfaction and share‐of‐wallet.

Originality/value

The results of this paper challenge the conventional belief that customer satisfaction should lead to customer retention in turn, resulting in customer revenue and ultimately customer profitability. The findings indicate that this may not always be true.

Details

Managing Service Quality: An International Journal, vol. 15 no. 2
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 1 September 2006

Timothy L. Keiningham, Lerzan Aksoy, Bruce Cooil, Kenneth Peterson and Terry G. Vavra

The purpose of this research is to examine changes in, and consistency of customer and employee satisfaction for asymmetry with regard to sales changes for a large US specialty…

4188

Abstract

Purpose

The purpose of this research is to examine changes in, and consistency of customer and employee satisfaction for asymmetry with regard to sales changes for a large US specialty goods retailer.

Design/methodology/approach

The data came from a 125 store US specialty goods retailer. Customer and employee data represent surveys administered by the firm in 2000 and 2001. Over 34,000 customer questionnaires and 3,900+ employee questionnaires were collected for the study. Pearson correlations and CHAID analyses were used to test the hypotheses.

Findings

For satisfaction (employee and customer) to impact changes in sales, perceived performance standards on some dimensions must be consistently delivered and changes in satisfaction levels must cross attribute‐specific threshold levels.

Research limitations/implications

As the data comes from a single retailer, it is not possible to conclusively generalize these findings to all other retailers, or to other industries.

Practical implications

For managers, the typical reliance on simple mean employee or customer satisfaction scores or indexes is unlikely to adequately explain changes in sales. Managers must achieve satisfaction levels on those attributes where consistent performance is linked to sales. Additionally, given the threshold nature of the relationship, it is critical that managers be certain that efforts designed to improve satisfaction do so in sufficient force so as to reach levels that correspond with increasing sales.

Originality/value

While the literature has shown asymmetry in the relationship between customer satisfaction and customer behavior, to date no research has examined possible asymmetry in employee satisfaction data and business performance. Furthermore, analyses of asymmetry in customer satisfaction data have largely focused on cross‐sectional data and individual‐level customer data (as opposed to business performance indicators). Understanding the asymmetric nature of the examined relationships should result in better allocation and use of marketing resources.

Details

Managing Service Quality: An International Journal, vol. 16 no. 5
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 20 January 2012

Mamoun N. Akroush

The purpose of this research is to examine an empirical model of marketing strategy and shareholder value through customer satisfaction and financial performance by using a…

3697

Abstract

Purpose

The purpose of this research is to examine an empirical model of marketing strategy and shareholder value through customer satisfaction and financial performance by using a value‐based marketing approach on organisations listed in Amman Stock Exchange Market operating in Jordan.

Design/methodology/approach

A quantitative methodology was employed through conducting two surveys targeting Jordanian organisations' marketing managers and their customers as well as utilising hard measures for financial performance and shareholder value data analysis. A total of 218 marketing managers were involved in the managers' survey and 1,200 customers were involved in the customers' satisfaction survey. A series of exploratory and confirmatory factor analyses were used to assess the research constructs dimensions, unidimensionality, validity and composite reliability. Structural path model analysis was also used to test the hypothesised research model.

Findings

The empirical results indicate that external and internal marketing orientations (IMOs) exerted a positive and significant effect on marketing strategy components, namely: product, price, promotion and distribution strategies. Marketing strategy components exerted a positive and significant effect on customer satisfaction. The findings also indicate that product and price strategies are the strongest drivers of customer satisfaction. Customer satisfaction has a positive and significant effect on financial performance. More importantly, financial performance has a strong positive contribution to shareholder value measured by market value added and earning per share.

Originality/value

This is the first empirical research paper that has investigated a model of marketing strategy and shareholder value through customer satisfaction and financial performance especially in developing countries, e.g. Jordan. This research offered executives and marketing directors empirical evidence on drivers of shareholder value maximisation and how to enhance marketing's strategic influence on strategic decisions which were not available to them before.

Details

Competitiveness Review: An International Business Journal, vol. 22 no. 1
Type: Research Article
ISSN: 1059-5422

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