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The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study

Roger Hallowell (Harvard Business School, Boston, MA, USA)

International Journal of Service Industry Management

ISSN: 0956-4233

Article publication date: 1 October 1996

Abstract

Presents the findings of a study performed on data from a large bank’s retail‐banking operations. Illustrates the relationship of customer satisfaction to customer loyalty, and customer loyalty to profitability, using multiple measures of satisfaction, loyalty, and profitability. An estimate of the effects of increased customer satisfaction on profitability (assuming hypothesized causality) suggests that attainable increases in satisfaction could dramatically improve profitability.

Keywords

Citation

Hallowell, R. (1996), "The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study", International Journal of Service Industry Management, Vol. 7 No. 4, pp. 27-42. https://doi.org/10.1108/09564239610129931

Publisher

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MCB UP Ltd

Copyright © 1996, MCB UP Limited