Consumer Satisfaction and Profitability: A Dynamic Panel Data Analysis

Alan K.M. Au, Matthew C.H. Yeung

Abstract


This paper uses panel data estimations to examine the link between customer satisfaction and profitability. In so doing it controls for the existence of firm-specific effects which may impact on overall performance and thus gives a more rigorous estimate of the relationship between these two variables. The use of a dynamic estimation also provides important insights into issues relating to causality.


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DOI: https://doi.org/10.5430/jbar.v2n2p54

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Journal of Business Administration Research

ISSN 1927-9507 (Print)      ISSN 1927-9515  (Online)

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