Search results

This paper presents an analysis of price and service quality effects through customer satisfaction on customer loyalty and recommendations in a business‐to‐business setting of mortgage credit. The research question is examined based on returned questionnaires from the largest companies in Denmark. An initial study applying LISREL does not support a full model including the five‐factor structure of the SERVPERF model. The further LISREL analysis however gives statistical evidence of a recursive model that explains willingness to recommend by customer loyalty and customer satisfaction, customer loyalty by customer satisfaction and customer satisfaction by price, assurance and reliability.

Neither market orientation nor the possible link to performance is easily achieved and in various countries companies may organize differently to cope with the information‐processing and customer‐responding challenges. Nationwide surveys in banks in Denmark, Finland, Norway, and Sweden indicate that a path to performance involves innovations such as “supported empowerment” though there are differences in the antecedents of market orientation. Thus the most distinct Scandinavian ways to improvements may be found in Sweden. Especially Swedish banks and to a lesser extent Finnish banks are upfront in their use of “the technology of customer‐focusing”. Nevertheless, the overall analyses based on rigorous structural equation modeling lead to the estimation of a model reflecting causal relationships which seem to be independent of nationality.