How economic growth affects customer satisfaction

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

Changes in customer satisfaction are usually linked to a firm's performance in satisfying its clients or to developments within its direct competitive environment. In order to correctly interpret such changes in corporate consumer surveys, managers should also account formacroeconomic influences on customer satisfaction. Using data from national consumer barometers in Germany, South Korea, Sweden, and the United States, this study reveals that economic growth positively affects customer satisfaction. Based on correlation analysis andGranger tests, these results challenge recent studies claiming that, conversely, there is a unidirectional impact of customer satisfaction on economic growth. With more comprehensive data from Germany, structural equation modeling shows that economic growth drives customer satisfaction via the expansion of the average consumer's budget and via an increasing perceived value of offerings. The effect is stronger in high-tech industries, industries with rapid innovation cycles, and industries with fierce price competition.

Original languageEnglish
Pages (from-to)531-544
Number of pages14
JournalAsia Pacific Management Review
Volume13
Issue number2
Publication statusPublished - 2008 Jan 1
Externally publishedYes

Fingerprint

Economic growth
Customer satisfaction
Industry
Germany
Managers
High-tech industry
Price competition
Structural equation modeling
Firm performance
Competitive environment
Correlation analysis
Sweden
Consumer survey
Innovation
South Korea
Perceived value

Keywords

  • Customer satisfaction
  • Economic growth
  • National consumer barometer
  • Perceived value

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Cite this

How economic growth affects customer satisfaction. / Frank, Bjoern Christian; Enkawa, Takao.

In: Asia Pacific Management Review, Vol. 13, No. 2, 01.01.2008, p. 531-544.

Research output: Contribution to journalArticle

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