 Empirical evidence of the stock market's (mis)pricing of customer satisfactionDon O'Sullivan, Mark C. Hutchinson and Vincent O'Connell International Journal of Research in Marketing, 2009, vol. 26, issue 2, 154-161 Abstract: Recent portfolio studies provide conflicting evidence on whether the stock market (mis)prices the value of customer satisfaction, as measured by the American Customer Satisfaction Index (ACSI), and whether ACSI-based trading strategies provide market-beating returns. The current research aims to shed new light on these issues. We reexamine two ACSI-based trading strategies considered in prior research. Applying a methodology that deals with three interlinking issues, risk adjustment, abnormal returns estimation and portfolio aggregation, we find that the trading strategies do not provide compelling evidence that the market mis-prices the value of customer satisfaction. Our study contributes to the current debate on the (mis)pricing of customer satisfaction by demonstrating the application of a framework within which the robustness of observed anomalies can be more fully assessed. Keywords: Customer satisfaction; Firm value; Mis-pricing; Risk (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:26:y:2009:i:2:p:154-161 DOI: 10.1016/j.ijresmar.2008.08.004 Access Statistics for this article International Journal of Research in Marketing is currently edited by Roland Rust More articles in International Journal of Research in Marketing from Elsevier |
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