TY - JOUR

T1 - Customer satisfaction index and financial performance: a European cross country study

AU - Golovkova, Anastasia

AU - Eklof, Jan

AU - Malova, Aleksandra

AU - Podkorytova, Olga

N1 - Golovkova, A., Eklof, J., Malova, A. and Podkorytova, O. (2019), "Customer satisfaction index and financial performance: a European cross country study", International Journal of Bank Marketing, Vol. 37 No. 2, pp. 479-491. https://doi.org/10.1108/IJBM-10-2017-0210

PY - 2019

Y1 - 2019

N2 - Purpose: The purpose of this paper is to examine the relationship between customer satisfaction measured as Extended Performance Satisfaction Index (EPSI) and the financial performance of the banking sector for seven European countries over the period 2004–2014. Design/methodology/approach: Using panel models, this study finds a significant positive influence of EPSI on banking financial performance at the country level. Findings: Findings suggest that the value of the customer satisfaction index is important in explaining the financial performance of the banking industry at the aggregative country level. The customer satisfaction index measured as EPSI has a strong positive influence on the financial performance of the banking industry for the various North European countries studied. It was shown that EPSI has a positive influence on both total assets and total equity, with a higher relative influence and stronger significance on the total assets of the banking sector than on total equity. Originality/value: The study contributes to understanding the importance of measuring and maintaining customer satisfaction as a profitability driver in the banking industry, providing new cross-country evidence. It also contributes to the literature focussing on a group of countries that have not previously been studied.

AB - Purpose: The purpose of this paper is to examine the relationship between customer satisfaction measured as Extended Performance Satisfaction Index (EPSI) and the financial performance of the banking sector for seven European countries over the period 2004–2014. Design/methodology/approach: Using panel models, this study finds a significant positive influence of EPSI on banking financial performance at the country level. Findings: Findings suggest that the value of the customer satisfaction index is important in explaining the financial performance of the banking industry at the aggregative country level. The customer satisfaction index measured as EPSI has a strong positive influence on the financial performance of the banking industry for the various North European countries studied. It was shown that EPSI has a positive influence on both total assets and total equity, with a higher relative influence and stronger significance on the total assets of the banking sector than on total equity. Originality/value: The study contributes to understanding the importance of measuring and maintaining customer satisfaction as a profitability driver in the banking industry, providing new cross-country evidence. It also contributes to the literature focussing on a group of countries that have not previously been studied.

KW - Cross-country analysis

KW - Customer satisfaction index

KW - Financial performance forecasting

KW - Intangible measures

KW - BANK

KW - CORPORATE SOCIAL-RESPONSIBILITY

KW - MARKET SHARE

KW - SERVICE QUALITY

KW - RETURNS

KW - SHAREHOLDER VALUE

KW - LOYALTY

KW - IMPACT

KW - BUSINESS PERFORMANCE

KW - FIRM PERFORMANCE

UR - http://www.scopus.com/inward/record.url?scp=85061772805&partnerID=8YFLogxK

U2 - 10.1108/IJBM-10-2017-0210

DO - 10.1108/IJBM-10-2017-0210

M3 - Article

AN - SCOPUS:85061772805

VL - 37

SP - 479

EP - 491

JO - International Journal of Bank Marketing

JF - International Journal of Bank Marketing

SN - 0265-2323

IS - 2

ER -