Customer satisfaction index and financial performance: a European cross country study

2019 ◽  
Vol 37 (2) ◽  
pp. 479-491 ◽  
Author(s):  
Anastasia Golovkova ◽  
Jan Eklof ◽  
Aleksandra Malova ◽  
Olga Podkorytova
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Banking Sector ◽  
Banking Industry ◽  
Positive Influence ◽  
Content Type ◽  
Satisfaction Index ◽  
Customer Satisfaction Index ◽  
Country Level ◽  
Cross Country

Purpose The purpose of this paper is to examine the relationship between customer satisfaction measured as Extended Performance Satisfaction Index (EPSI) and the financial performance of the banking sector for seven European countries over the period 2004–2014. Design/methodology/approach Using panel models, this study finds a significant positive influence of EPSI on banking financial performance at the country level. Findings Findings suggest that the value of the customer satisfaction index is important in explaining the financial performance of the banking industry at the aggregative country level. The customer satisfaction index measured as EPSI has a strong positive influence on the financial performance of the banking industry for the various North European countries studied. It was shown that EPSI has a positive influence on both total assets and total equity, with a higher relative influence and stronger significance on the total assets of the banking sector than on total equity. Originality/value The study contributes to understanding the importance of measuring and maintaining customer satisfaction as a profitability driver in the banking industry, providing new cross-country evidence. It also contributes to the literature focussing on a group of countries that have not previously been studied.

How an organization's ethical climate contributes to customer satisfaction and financial performance

2014 ◽  
Vol 17 (1) ◽  
pp. 85-106 ◽  
Author(s):  
Hyoung Koo Moon ◽  
Byoung Kwon Choi
Keyword(s):  
Customer Satisfaction ◽  
South Korea ◽  
Financial Performance ◽  
Ethical Climate ◽  
Organizational Innovation ◽  
Developed Countries ◽  
Positive Influence ◽  
Content Type ◽  
Climate Influences ◽  
The Individual

Purpose – Researchers in the field of business ethics have posited that an organization's ethical climate can benefit for employees as well as organizations. However, most of the prior research has been conducted at the level of the individual, not organization. Thus, the purpose of this paper is to examine how an organization's ethical climate has a positive influence on two its performance indicators – customer satisfaction and financial performance – with a perspective of organizational innovation. Design/methodology/approach – The data were collected from 29 subsidiaries of a conglomerate in South Korea. Hypotheses were tested using the partial least squares (PLS). Findings – The result showed that an organization's ethical climate was positively related to customer satisfaction as well as financial performance, and this relationship was mediated by perceived organizational innovation. Additionally, the positive influence of an ethical climate on employees’ perceived organizational innovation was mediated by their organizational commitment and the climate for innovation. Originality/value – With a focus on innovation, the study explained how an organization's ethical climate influences customer satisfaction and financial performance. Furthermore, as was the case in studies conducted in other developed countries, the results derived from South Korea sample demonstrated that an ethical climate is critical for organizational performances in developing countries.

An application of European Customer Satisfaction Index (ECSI) in business to business (B2B) context

2015 ◽  
Vol 30 (1) ◽  
pp. 17-31 ◽  
Author(s):  
Mohammad Hossein Askariazad ◽  
Nazila Babakhani
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Corporate Image ◽  
Equation Modeling ◽  
Content Type ◽  
Satisfaction Index ◽  
Customer Satisfaction Index ◽  
Complaint Handling ◽  
Proposed Model ◽  
Business To Business

Purpose – This paper aims to examine the most important antecedents of customer loyalty in business-to-business (B2B) context using European Customer Satisfaction Index (ECSI) model. Design/methodology/approach – A questionnaire is designed consisting of measures of customer loyalty gathered mainly from previous related studies. A survey of business customers in construction and mining equipment industry in Iran is conducted, and a total of 90 responses are obtained. The collected data are analyzed according to the structural equation modeling technique using partial least square path modeling software. Findings – The ECSI model shows sufficient explanatory power in explaining loyalty in the B2B context. Adding trust to the original model leads to a better explanation of loyalty in the proposed model. In this model, corporate image is the main route to predict loyalty, while satisfaction, complaint handling and trust also are important. Although there is no direct effect of perceived quality, perceived value and expectation on loyalty, their total impact is considerable which is mediated through satisfaction. Research limitations/implications – The research should be expanded to other B2B sectors to validate its findings in different industries. Future research can also assess the impact of moderating variables. Originality/value – Most previous customer loyalty models concern business-to-consumer (B2C) rather than the B2B context. Moreover, research examining the suitability of the ECSI model in B2B is scarce. This paper addresses these shortcomings by examining a holistic customer loyalty model which incorporates some overlooked constructs as corporate image, expectation and complaint handling from the ECSI model. The proposed model, also adds trust which is not incorporated in national indices despite its importance in predicting loyalty.

Bank service quality: perception of customers in the Greater Accra Region of Ghana in the post banking sector reforms era

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Emmanuel Tetteh ◽  
Chrisopher Boachie
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Influence ◽  
Content Type ◽  
Fierce Competition ◽  
Greater Accra Region ◽  
Significant Positive Influence

PurposeIn the wake of fierce competition that has ensued among banks to get a share of the depositors' funds after the banking sector reforms in 2017, this study attempts to investigate bank service quality and its influence on customer satisfaction and customer loyalty in the Greater Accra Region of Ghana.Design/methodology/approachUsing a sample of 753 respondents (bank customers), the study employs the structural equation modelling (SEM) using Smart-PLS to test the nature of relationships between service quality, customer satisfaction and customer loyalty using the SERVQUAL model.FindingsThe findings show that, with the exception of assurance, the remaining four antecedents of service quality, namely reliability, responsiveness, empathy and tangibility had significant positive influence on customer satisfaction. The results also show a significant positive influence of customer satisfaction on customer loyalty, implying that more satisfied customers in Ghana tend to become more loyal to their banks.Practical implicationsFor policy purposes, the authors recommend that banks should invest in improving service quality to drive customer satisfaction, loyalty and ultimately firm performance. The satisfied customer is a reliable source of bank viability and survival.Originality/valueTo the best of the knowledge of the authors, this is the first time a study on bank service quality has been done involving the management of banks in Ghana. This ensures the reliability of results. The findings of this study enhance knowledge of the positive relationship between service quality, customer satisfaction and loyalty using a modified SERVQUAL model.

scholarly journals Market structure and performance of Malaysian banking industry

2016 ◽  
Vol 14 (2) ◽  
pp. 158-177 ◽  
Author(s):  
Rossazana Ab-Rahim ◽  
Sheen Nie Chiang
Keyword(s):  
Financial Performance ◽  
Market Structure ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Least Squares Method ◽  
Efficient Frontier ◽  
Market Concentration ◽  
Content Type ◽  
Net Interest Margin

Purpose The main purpose of this paper is to examine the relationship between the market structure and financial performance of Malaysian commercial banks over the period of 2000 to 2011 by testing the structure-conduct-performance (SCP) and efficient-structure (ESH) hypotheses. Design/methodology/approach Data envelopment analysis (DEA) is employed to measure the efficiency of banks, while concentration ratio is used to assess the market structure of Malaysian banks. Next, utilizing the least squares method, both variables – market structure and efficiency of banks – among other explanatory variables (market share, operating expenses, loans ratio and size of banks) are regressed upon the dependent variable, namely financial performance of banks represented by return on asset (ROA), return on equity (ROE) and net interest margin (NIMTA). Findings The concentration of Malaysian banking industry is at a declining trend; structurally speaking, Malaysian banks are more competitive due to less market concentration. In terms of efficiency, the DEA results reveal that Malaysian banks are operating below their capacity at 40 per cent of efficiency. Thus, Malaysian banks could reduce their utilization of inputs by 60 per cent to operate on the efficient frontier. Next, the results offer support to ESH, which implies that market concentration and banking efficiency determines the profitability performance of Malaysian commercial banks. Originality/value Past studies on Malaysian banking sector had tended to focus either on measuring the performance or assessing the market structure of banks. Thus, this study attempts to fill the gap in the literature by testing the nexus between the market structure and the performance of banks.

Assessing customer satisfaction and loyalty in the retail sector

2017 ◽  
Vol 34 (9) ◽  
pp. 1508-1529 ◽  
Author(s):  
Ana Rita Biscaia ◽  
Maria J. Rosa ◽  
Patrícia Moura e Sá ◽  
Cláudia S. Sarrico
Keyword(s):  
Customer Satisfaction ◽  
Customer Service ◽  
Retail Store ◽  
Model Parameters ◽  
Retail Sector ◽  
Content Type ◽  
Satisfaction Index ◽  
Customer Satisfaction Index ◽  
The Relationship ◽  
Customer Satisfaction And Loyalty

Purpose The effects of customer satisfaction on loyalty have been widely discussed by the academic community. Although the results of the studies reported in the literature are often contradictory, the existence of a relationship between satisfaction and loyalty is acknowledged, despite the influence of moderators and constraints of various kinds. The purpose of this paper is to discuss this relationship in the specific context of the retail sector, since this sector presents major challenges in terms of competition, and efforts placed on customer satisfaction and loyalty are more evident. Design/methodology/approach A survey based on the European Customer Satisfaction Index (ECSI) model was applied to a retail store in Portugal. This model has its roots in Switzerland, where in 1989, Claes Fornell developed a new complementary method for measuring the overall quality of companies’ output, through the calculation of an aggregated customer satisfaction index. The proposed model is based on a set of causal relationships established between a set of constructs. The ultimate goal is to calculate both satisfaction and loyalty indexes as well as to estimate the relationship between both constructs. Structural equation modelling, based on a partial least squares (PLS) estimation methodology, is the statistical technique used to estimate the model parameters, as well as to compare the aggregated indexes. PLS is based on the principles of linear regression and combines multiple regression aspects with factor analysis, in order to estimate a series of interrelated relationships. Findings The results confirm a positive influence of satisfaction on customers’ loyalty to the retail store. The study also shows the importance of the image construct, due to its strong direct effects on satisfaction, which makes it essential for influencing the loyalty index, both directly and indirectly. The impact of the image construct is also evident on the expectations, as the latter has shown a considerable direct effect on perceived quality. Research limitations/implications The study is based on a single case study of a Portuguese sports retail store. In future it would be interesting to study a representative sample of the whole retail sector. Practical implications The study is useful for the specific retail store where it was undertaken to help it devise better customer service, in order to increase satisfaction and loyalty. It is also useful for the entire network of stores for that retailer and other retail chains. Social implications The systematic application of customer surveys to whole sectors of the economy would improve competition, customer service and, ultimately, contribute to development and economic growth. Originality/value The ECSI has been applied to various industry sectors in different countries, including Portugal. It has never been used in the context of the Portuguese retail sector and it adds to the discussion on the relationship between satisfaction and loyalty, which is a pertinent topic of interest for researchers in quality management.

Exploring the attitude towards the adoption of a sustainable diet: a cross-country comparison

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tommaso Pucci ◽  
Elena Casprini ◽  
Giovanni Sogari ◽  
Lorenzo Zanni
Keyword(s):  
Structural Equation ◽  
Ad Hoc ◽  
Positive Influence ◽  
Equation Model ◽  
Sustainable Food ◽  
Content Type ◽  
Country Level ◽  
Country Comparison ◽  
Sustainable Diet ◽  
Cross Country

PurposeUnderstanding the determinants that influence consumers' attitude to adopt sustainable diets represents an important area of research to promote sustainable food consumption. The aim of this study is to investigate how (1) the individual openness to new foods (ONFs), (2) the involvement in food trends (IFTs) and (3) the social media use (SMU) can potentially impact the attitude towards the adoption of a sustainable diet (ATSD).Design/methodology/approachThe authors conducted a structured survey in eight countries: Italy, Germany, Poland, USA, Brazil, Japan, Korea and China. The final sample of 5,501 individuals was analysed applying a structural equation model.FindingsThe main results show that attitude towards the ATSD is influenced differently by the antecedents investigated in each country. In particular, the ONF positively influences the ATSD only in Italy, USA and Germany. IFT positively influences the ATSD only in Italy, Poland and USA, while negatively in Germany. SMU has a positive influence on the ATSD only in Japan, USA and Germany, while a negative one in Brazil and Korea.Originality/valueThis study presents a cross-country comparison about the antecedents of attitude towards the ATSD, thus providing evidence for the need of ad hoc marketing strategies by companies and policies by institutions at single country level.

Examining the relationships among service features, customer loyalty and switching barriers in the Greek banking sector

2017 ◽  
Vol 9 (3/4) ◽  
pp. 425-440 ◽  
Author(s):  
Eleni Koutsothanassi ◽  
Nancy Bouranta ◽  
Evangelos Psomas
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Conceptual Framework ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Banking Industry ◽  
Content Type ◽  
Switching Barriers ◽  
The Relationship

Purpose The aim of this paper is to present and empirically validate a conceptual framework that explores the links between the two service features (physical and interactive) and their impact on customer loyalty. It also introduces and investigates the potential intervening role of a single personality dimension (neuroticism) in the relationship between service features and customer loyalty. In addition, examining whether the customer’s switching barriers affect customer loyalty is also an aim of the present study. Design/methodology/approach A structured questionnaire was used to collect data from a sample of 224 customers in the banking industry in Greece. The respondents were picked using simple random sampling. Exploratory and confirmatory factor analyses were used to validate the latent factors of the proposed conceptual framework, whereas their relationships were examined through linear regression analyses. Findings The empirical data verify that physical and interactive features of service quality have a significant impact on customer loyalty. The study also concludes that customer neuroticism has an intervening effect on the relationship between service features and customer loyalty. In addition, switching barriers such as confidence benefits, special treatment benefits, switching costs and availability and attentiveness of alternatives affect a bank’s customer loyalty. Practical implications This perspective could improve managerial understanding of the service-quality/customer-loyalty relationship and lead to more focused decisions. During the period of economic Greek crisis, the customers’ learning and understanding, the immediate response to their needs and expectations, the provision of customer services in accordance with their personality type and the establishment a long and effective relationship with them may have an important impact not only on success but also mainly on bank survival. Originality/value Previous studies have shown the positive and significant relationship between customer satisfaction and loyalty in the banking industry, but this study extends the literature of consumer behavior theory by examining the distinct role that the physical and interactive service features play in the formation of customer loyalty. While it is known the role of personality in customer satisfaction has not been analyzed sufficiently the effect of neuroticism in the evolution of the above relationship. The present study tries to fill the bibliographic gap focusing on the Greek banking sector in the period of economic crisis.

scholarly journals Validation and improvement of the European Customer Satisfaction Index for the Spanish wine sector

2018 ◽  
Vol 30 (2) ◽  
pp. 133-152 ◽  
Author(s):  
Miguel Pérez Ajami ◽  
Luis Navarro Elola ◽  
Jesús Pastor
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Design Methodology ◽  
Influential Factors ◽  
Equation Modeling ◽  
Total Quality ◽  
Content Type ◽  
Satisfaction Index ◽  
Customer Satisfaction Index ◽  
Wine Sector

Purpose A study of the Spanish wine sector, in this case specifically the Designation of Origin (DO) Somontano, requires validation of the European Customer Satisfaction Index (ECSI), which also needs to be improved and adapted to obtain more information on customer satisfaction. The paper aims to discuss this issue. Design/methodology/approach In this paper the ECSI model was applied, based on structural equation modeling (SEM) using the partial least squares. Findings An empirical analysis shows that the importance of customers’ expectations and perceived quality are the most influential factors in achieving satisfaction. Also highlighted in the new model is the linkage between service and product qualities in a unique variable, total quality. Originality/value In addition to validating the ECSI model for DO Somontano, a new innovative implementation was developed and tested to improve the calculation of satisfaction.

Analysis of the Importance Degree and Performance of Internet Service Providers in Makassar City

2019 ◽  
Vol 10 (2) ◽  
pp. 168-177
Author(s):  
Haerdiansyah Syahnur ◽  
Jafar Basalamah
Keyword(s):  
Customer Satisfaction ◽  
Gap Analysis ◽  
Service Providers ◽  
Customer Management ◽  
Quadrant Analysis ◽  
Internet Service Providers ◽  
Internet Service ◽  
Actual Performance ◽  
Satisfaction Index ◽  
Customer Satisfaction Index

This study aimed to analyze the customer experience seen from the level of actual performance and the level of importance of services provided by internet service providers PT. XYZ in Makassar City. Variables and attributes issued by TM Forum GB 912 consisting of Customer Management, Fulfillment, Assurance, and Billing, are used to analyze the performance provided by customer service in the field. The analysis technique will be carried out using the Importance Performance Analysis and Customer Satisfaction Index consisting of quadrant analysis and gap analysis used to investigate customer satisfaction and identify variables whose performance is deemed to need improvement. Data were collected using a platform-based questionnaire application from 100 respondents selected using random sampling techniques. The results showed that customers were satisfied with the performance and quality of services provided. The customer satisfaction index value obtained by CSI analysis shows a value of 82.006%. In conclusion, that the Fulfillment variable is a service variable that is considered the most important customer and requires improvement because its performance is still relatively low. While the variables considered good and need to be maintained are the Billing variable. Other service variables are sorted based on priority of improvement in a row, namely Fulfillment, Customer Management, and Assurance.

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