Customer satisfaction index and financial performance: a European cross country study
International Journal of Bank Marketing
ISSN: 0265-2323
Article publication date: 20 February 2019
Issue publication date: 18 March 2019
Abstract
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.
Keywords
Citation
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
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited