Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63(3), 1013-1021 | DOI: 10.11118/actaun201563031013

Effect of Customer Satisfaction on Company Performance

Petr Suchánek1, Maria Králová2
1 Department of Corporate Economy, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno, Czech Republic
2 Department of Applied Mathematics and Computer Science, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno, Czech Republic

The subject of this article is customer satisfaction and its impact on company performance through satisfaction with its products, including a comparison with the competition. Research was conducted in search of factors which affect customer satisfaction on the one hand and the performance of the company on the other hand. We constructed a model explaining what specific factors (affecting customer satisfaction) have an impact on the performance of a company. This model can help management to better run the business and achieve higher performance. The article is based on research that focused on companies in the food industry in Czech Republic and on their customers. First, we found the financial performance of surveyed companies (based on indicators ROA, ROE and assets turnover) and on this basis they have been divided on companies efficient and inefficient. Furthermore factors were identified (based on previous research of authors) that have an impact on customer satisfaction (among these factors include product quality, customer requirements for product, comparison with competitive products, etc.). With the use of non-parametric statistical methods, logistic regression and discriminant analysis was analyzed, what factors affecting customer satisfaction also affect business performance.

Keywords: customer satisfaction, product quality, company performance
Grants and funding:

This paper is published as part of specific research entitled Quality Management and Enterprise Competitiveness (MUNI/A/0799/2013).

Prepublished online: June 28, 2015; Published: August 1, 2015  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Suchánek, P., & Králová, M. (2015). Effect of Customer Satisfaction on Company Performance. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(3), 1013-1021. doi: 10.11118/actaun201563031013
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. AL-HAWARI, M., WARD, T. 2006. The effect of automated service quality on Australian banks' financial performance and the mediating role of customer satisfaction. Marketing Intelligence & Planning, 24(2): 127-147. DOI: 10.1108/02634500610653991 Go to original source...
    2. ANDERSON, E. W. et al. 1994. Customer Satisfaction, Market Share, and Profitability: Findings from Sweden. Journal of Marketing, 58(3): 53-66. DOI: 10.2307/1252310 Go to original source...
    3. ANDERSON, E. W., MITTAL, V. 2000. Strengthening the satisfaction-profit chain. Journal of service research, 3(2): 107-120. DOI: 10.1177/109467050032001 Go to original source...
    4. ANDERSON, E. W. et al. 2004. Customer Satisfaction and Shareholder Value. Journal of Marketing, 68(4): 172-185. DOI: 10.1509/jmkg.68.4.172.42723 Go to original source...
    5. COOIL, B. et al. 2007. A longitudinal analysis of customer satisfaction and share of wallet: investigating the moderating effect of customer characteristics. Journal of Marketing, 71(1): 67-83. DOI: 10.1509/jmkg.71.1.67 Go to original source...
    6. CROSBY, P. B. 1979. Quality is free: The art of making quality certain. 1st edition. New York: McGraw Hill Custom Publishing.
    7. FORNELL, C. et al. 1996. The American customer satisfaction index: nature, purpose, and findings. The Journal of Marketing, 60(4): 7-18. DOI: 10.2307/1251898 Go to original source...
    8. GU, Z., GAO, J. 2006. Financial Competitiveness of Macau in Comparison with Other Gaming Destinations. UNLV Gaming Research and Review Journal, 10(2): 1-12.
    9. HABIB, A. 2006. Disaggregated earnings and prediction of future profitability: evidence from industrial groups in Japan. Review of Accounting and Finance, 5(4): 355-369. DOI: 10.1108/14757700610712435 Go to original source...
    10. JAMAL, A., NASER, K. 2003. Factors influencing customer satisfaction in the retail banking sector in Pakistan. International Journal of Commerce & Management, 13(2): 29-53. DOI: 10.1108/eb047465 Go to original source...
    11. KURONEN, M., TAKALA, J. 2013. Measuring and Developing Customer Satisfaction with the Balanced Critical Factor Index Method. In: Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management. ToKnowPress, S4_236-244. Go to original source...
    12. MATZLER, K. et al. 2004. The asymmetric relationship between attribute-level performance and overall customer satisfaction: a reconsideration of the importance-performance analysis. Industrial Marketing Management, 33(4): 271-277. DOI: 10.1016/S0019-8501(03)00055-5 Go to original source...
    13. PARASURAMAN, A. et al. 1985. A conceptual model of service quality and its implications for future research. The Journal of Marketing, 49(4): 41-50. DOI: 10.2307/1251430 Go to original source...
    14. PORTER, M. E. 2008. The five competitive forces that shape strategy. Harvard business review, 86(1): 25-40.
    15. PRAGUE STOCK EXCHANGE. 2013. Yearbook 2013. [on-line]. Available at: www: http://ftp.pse.cz/Statist.dta/Year/fb2013.pdf. [Cited by 10. 7. 2014]
    16. RICHARD, P. J. et al. 2009. Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management, 35(3): 718-804. DOI: 10.1177/0149206308330560 Go to original source...
    17. SELNES, F. 1993. An examination of the effect of product performance on brand reputation, satisfaction and loyalty. European Journal of marketing, 27(9): 19-35. DOI: 10.1108/03090569310043179 Go to original source...
    18. SUCHÁNEK, P., ©PALEK, J. 2007. Financial Measuring of the Czech Republic Companies Competitiveness. The Business Review, Cambridge, 9(1): 78-85.
    19. ZEITHAML, V. A. 1988. Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52(3): 2-22. DOI: 10.2307/1251446 Go to original source...
    20. ZEITHAML, V. A. 2000. Service quality, profitability, and the economic worth of customers: what we know and what we need to learn. Journal of the Academy of Marketing Science, 28(1): 67-85. DOI: 10.1177/0092070300281007 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content