The topic for this paper is the link between customer satisfaction and business performance, which makes it possible to use customer satisfaction measures as basis for creating business excellence. First, the paper presents microeconomic models for the relationship between customer satisfaction, customer loyalty and performance, and optimal customer satisfaction is characterized which will help management choose the right quality parameters for improvement. Second, the paper describes empirical evidence that customer satisfaction measures, based on a modelling approach, have impact on economic performance.
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The First International Conference on Performance Measurement, Centre for Business Performance, University of Cambridge, Judge Institute of Management Studies, 1998. In: Performance measurement - theory and practice / Ed.by Andy D.Neely and