Make or break: a simple non-compensatory customer satisfaction model
Keith Chrzan and Michael Kemery
Maritz Research
Background
Manufacturers and service providers commonly measure the satisfaction of their customers – not unreasonably, they believe that increases in customer loyalty, positive word-of-mouth and revenues from repeat business will result from improved customer satisfaction. In addition to linking satisfaction measures to these business outcomes, managers put customer satisfaction data to a variety of uses. For example, organisations may hold managers to account by tying compensation to specific numerical goals, thus making customer satisfaction results a report card on managerial performance. Managers...