Understanding the link between customer feedback metrics and firm performance

Gomaa Agag, Baseer Ali Durrani, Yasser Moustafa Shehawy, Majed Alharthi, Hawazen Alamoudi, Sherif El-Halaby, Ahmed Hassanein and Ziad H. Abdelmoety

Journal of Retailing and Consumer Services, 2023, vol. 73, issue C

Abstract: Practitioners utilise customer feedback metrics (CFM's) to monitor business performance. However, the influence of CFM's on firm performance has been ignored. Thus, this paper aims to examine the effects of CFM's on firm performance. Our study collected data about CFM's, marketing efforts, and financial performance over the period 2005–2020 from American Customer Satisfaction Index. The present study used a multiple regression panel analysis to investigate the influence of different CFMs (i.e., SAT, Top-2-Box, NPS proportion, NPS value, and CES) on firm performance (i.e., gross margin, sales growth, and Tobin's Q), moderating by operating environment factors (i.e., munificence, power, and dynamism). Our results revealed that Top-2-box is the best predictor CFM's to compare firms in online booking, hotels, and online shopping industries, while consumer satisfaction is the best predictor for electronic and fixed telecom industries. CES is the best CFM's to compare companies in restaurants industries. Moreover, NPS is the best metric to compare different companies in holiday parks industries. The results provide considerable managerial implications for effective use of resources regarding investing in most suitable CFM's to enhance firm performance.

Keywords: Consumer feedback metrics; Net promoter scores; Consumer satisfaction; Customer effort score; Marketing efforts; Financial performance (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000486

DOI: 10.1016/j.jretconser.2023.103301

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