Abstract

The service profit chain presents managers a unique opportunity to improve levels of employee and customer satisfaction, profitably. However despite its adoption by managers, tests of the service profit chain have largely been limited to case research and empirical studies of specific links and components. Although researchers have made progress towards understanding the chain, rounds of verification and elaboration must follow theory building. This paper reports the results of an empirical study examining the service profit chain in its entirety based on a research instrument designed specifically for the task at hand. Drawing on a large sample containing customer perceptions, employee points of view and financial figures, our structural equation modeling demonstrates that validity of a managerial model, represented by the service profit chain. This labor of replication and extension bears meaningful fruit. Specifically, each fundamental link of the chain holds under rigorous scrutiny and in the hypothesized direction. Relevant to managers and the academia alike, our findings indicate that fostering employee satisfaction throughout the organization leads to increased customer satisfaction and loyalty, and ultimately, to augmented levels of profitability.

Keyword

service profit chain ;  empirical research ;  replication ;  financial services

Abstract

This study examines empirically the relative importance of various dimensions of e-service quality, (namely website quality, order fulfillment/delivery and customer service) on customer satisfaction in the context of electronic retailing. The study sample contains data from 116 electronic retailers. The results show that order fulfillment/delivery has the strongest impact on customer satisfaction, followed by customer service. Surprisingly, website quality has no major impact on satisfaction. Also, similar to website quality, price (treated as a control variable in our analysis) plays no significant role either. The findings have important implications for e-tailers interested in improving the quality of their service.

Keyword

e-tailing ;  e-service ;  service quality ;  logistics ;  empirical research

Abstract

CEIBS, Asia's leading business school, has developed the Future Leaders' Boot Camp to transform emerging managers into leaders who can confidently embrace their roles as major players in today's increasingly complex business environment. The Boot Camp will provide an intensive learning experience to young and ambitious managers who are seeking career advancement and broader responsibilities. More information here: http://www.ceibs.edu/execed/index/108458.shtml

Keyword