The Role of Customer Satisfaction in Retailing Resource Allocation Models

This article summarizes some recent research that explores the role of customer satisfaction in the fortunes of retailers. The goal of the research was to layout precisely (mathematically) how productivity, cost and demand are impacted when a retailer changes labor and/or capital expenditures, and consequently the amount of customer satisfaction produced. In what follows, we describe and explain the results of this research and depict major results graphically