The Interplay between Cumulative Customer Satisfaction and Brand Value : Its Effect on Cash Flow, ROI and Tobin's Q

This research focuses its attention to empirically investigate the interplay between cumulative customer satisfaction and brand value as well as its effect over firms' performance. As literature review suggests, both cumulative customer satisfaction and brand value have been probed as regards the isolated impact of each of them on financial performance. Nevertheless, when both of them put together into action, there is no empirical evidence which support such interplay effect. Theoretically speaking, both cumulative customer satisfaction and brand value play a strategic role in marketing. Based on resource based view, marketing paradigm approach, market-based assets perspective and operational management; we found a theoretical link between them. The link have been called marketing efficiency, i.e. the ability of firms to maximize both cumulative customer satisfaction and brand value, better than competitors, under the same amount of marketing expenditures. In that sense, we provide empirical evidence through modelling marketing efficiency using data envelopment analysis and researching the effect of such interplay applying three stages least square regression. The results demonstrate that marketing efficiency has a positive direct effect on cash flow and ROI, and positive indirect effect, through cash flow, on Tobin's Q