#5265. The complex firm financial effects of customer satisfaction improvements

August 2026publication date
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Journal’s subject area:
Marketing;
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Abstract:
It has been widely assumed that increases in customer satisfaction have continuous financial benefits for firms. However, recent meta-analysis results and anecdotal evidence suggest substantial variability in satisfaction-performance effects. We propose and investigate three explanations for this variability: (1) changing trade-offs of financial benefits vis-?-vis costs along the satisfaction continuum, (2) varying stickiness of benefits and costs over time, and (3) contextual effects related to a firms marketing strategic situation. For our empirical investigation, we used customer satisfaction scores and financial data for around 100 U.S. firms over a 15-year period.
Keywords:
Adverse and nonlinear financial effects; Capital investments; Customer equity value; Customer satisfaction; Marketing strategic context; Temporal effects

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