Customer Satisfaction, Competition, and Firm Performance: An Empirical Investigation

Daniel H. Simon and Miguel Gomez

Managerial and Decision Economics, 2014, vol. 35, issue 6, 371-386

Abstract: We conduct two empirical studies to test two hypotheses: (1) rivals' customer satisfaction increases a firm's own customer satisfaction; and (2) rivals' customer satisfaction reduces a firm's sales. Study One uses a panel dataset of annual store‐level customer satisfaction data from a supermarket chain for the periods 1998–2001. Study Two considers a range of industries by using a panel dataset of brand‐level customer satisfaction ratings from the American Customer Satisfaction Index spanning the periods 1994–2003. Results from both studies provide support for our hypotheses. Copyright © 2013 John Wiley & Sons, Ltd.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:35:y:2014:i:6:p:371-386

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