The chain of effects from customer satisfaction to customer profitability

Keiningham, Timothy L.; Aksoy, Lerzan; Komarova, Yuliya; Nejad, Mohammad Behrouzian

doi:10.4337/9781781004982.00019

Cited by 4 publications

(4 citation statements)

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“…A similar finding was reported by Dawi et al, who found a significant association between service quality, customer satisfaction, and behavioral intentions to pay for services [61]. In another study, Keiningham et al argued that higher customer satisfaction does not always mean higher financial performance and described the association between the two variables as being complex [62]. According to Homburg, Koschate, and Hoyer, analyzing the variables that can mediate the relationship is essential to understand this association, as customers who pay more will result in a higher profitability [60].…”

Section: Service Quality and Intention To Pay Moresupporting

confidence: 78%

Tourist Behavior in the Cruise Industry Post-COVID-19: An Examination of Service Quality, Corporate Image, and Intentions to Pay and Revisit

Alonazi,

Hassan,

Abdelmoaty

et al. 2023

Sustainability

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The COVID-19 outbreak has had detrimental consequences on the cruise industry due to the suspension of commercial cruise trips, and these effects remain apparent in Saudi Arabia. The offered service quality (SQ) in the post-COVID-19 era seems to be a critical element for improving customer experiences and satisfaction, enhancing destination attractiveness, increasing revenue, and maintaining repeat business. The current study aimed to assess the impact of service quality on tourists’ satisfaction and corporate image as well as the intention to pay for cruise trips and revisit the destination among 315 tourists in Saudi Arabia. Service quality was measured using five subscales of the SERVQUAL scale, including reliability, tangibles, responsiveness, assurance, and empathy. Tourists’ satisfaction was significantly influenced by four domains of SQ, whereas the intention to pay more, intention to revisit the destination, and corporate image were significantly predicted by ≤3 domains of SQ. The study’s findings can help the cruise industry to improve its offerings and create more personalized and engaging experiences that meet the changing needs of customers in the recovery period after the COVID-19 outbreak.

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Section: Service Quality and Intention To Pay Moresupporting

confidence: 78%

Tourist Behavior in the Cruise Industry Post-COVID-19: An Examination of Service Quality, Corporate Image, and Intentions to Pay and Revisit

Alonazi,

Hassan,

Abdelmoaty

et al. 2023

Sustainability

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“…This study explored which pricing plan would be preferable for customers, among the $30, $45, $60, and over $60 price ranges. Generally, price and customer satisfaction are closely linked to each other, leading to higher customer satisfaction with a lower-price offer (Keiningham et al, 2014). This general idea was supported in this study with the finding that the preference for lower price ranges with $30 (utility=119.59), $45 (utility=44.61), $60 (utility=-67.51), and over $60 (utility=-96.69) in the descending order.…”

Section: Price Attributesupporting

confidence: 72%

Curation subscription box services: Implications for the pet industry

Jeong,

Yang,

Kim

et al. 2024

Journal of Retailing and Consumer Services

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“…We could expect that customer orientation is ultimately contributing to CRM success through increasing SOW (as reflected in Hypothesis 1c., Dorsch et al 1998: 132), also noting the anticipated positive SOWprofitability link (e.g. Garland 2004;Larivière 2008;Mittal et al 2001;Keiningham et al 2015a), and building on the observed relationship between customer orientation and profitability (e.g. Narver et al 1990).…”

Section: Customer Orientationmentioning

confidence: 97%

“…repurchasing) and business performance (e.g. profitability) i s widely supported (e.g., Keränen et al 2013;Keiningham et al 2015a). More specifically, on the basis of previous theoretical frameworks and empirical evidence, more recent work proposes that SOW be substituted in place of intentions in the chain of effects from customer satisfaction to customer profitability, such that the chain is expected to go from satisfaction to SOW to revenue to profit (Anderson et al 2000;Mittal et al 2001;Keiningham et al 2015a: 269, Figure 11.2.).…”

Section: Behavioral Loyalty and Profitabilitymentioning

confidence: 99%

Do customer perceptions of innovation matter in industrial markets?

Steiner¹,

Brandhoff²

2018

Proceedings

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Perceptual customer constructs can be central to leverage market intelligence for optimizing customer relationships. The purpose of this paper is to contribute to our understanding of the relationship between perceptual customer metrics that relate to relationship quality (i.e., customer orientation, customer satisfaction, attitudinal loyalty, customer influence on supplier innovation) and behavioral outcomes (i.e., customer account profitability, share of wallet). The paper integrates stated and revealed preference data from a multinational mechanical engineering firm and its global customer base. Results from latent class analysis and fractional logistic regressions highlight both the role of customer perception heterogeneity, and that of nonlinearities between perceptual constructs and behavioral metrics, for targeting behavioural outcomes. They also suggest that attitudinal loyalty and customer satisfaction are highly relevant aspects of relationship quality with respect to share of wallet. However, fractional logistic regression results also indicate that customer perceptions of the supplier's product innovativeness, and perceptions of customer influence on supplier innovation, are likely not relevant aspects of relationship quality.

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The chain of effects from customer satisfaction to customer profitability

Cited by 4 publications

References 0 publications

Tourist Behavior in the Cruise Industry Post-COVID-19: An Examination of Service Quality, Corporate Image, and Intentions to Pay and Revisit

Tourist Behavior in the Cruise Industry Post-COVID-19: An Examination of Service Quality, Corporate Image, and Intentions to Pay and Revisit

Curation subscription box services: Implications for the pet industry

Do customer perceptions of innovation matter in industrial markets?

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