Although methods for latent variable modeling that allow a joint analysis of measurement and theory have become popular, they are not without difficulties. As these difficulties have become more apparent, several researchers have recently called for a “two-step approach†to latent...

As more nations add customer satisfaction—as a measure of quality of economic output—to what they presently collect about the economy, it becomes increasingly important to understand the role of customer satisfaction and its relationship to other economic measures. In an attempt to...

This article addresses management process issues for forming cooperative ventures with an increased likelihood of subsequent success. Based on Roos (1989) the cooperative venture formation process is conceptualized in terms of three theoretical constructs: the extent of sufficient "internal...

An economic theory of habit formation through consumption learning is developed to explain order differences in relative sales promotion expenditures among brands. The theory applies to consumer brands in equilibrium markets, where consumer information from sources other than advertising, sales...

A model of customer complaint management is developed in terms of defensive marketing strategy. Based on an explicit microfoundation, firms' incentives to manage complaints are analyzed. In the context of a monopoly and homogeneous oligopoly, we discuss the optimal levels of customer...

There is widespread belief that firms should pursue superiority in both customer satisfaction and productivity. However, there is reason to believe these two goals are not always compatible. If a firm improves productivity by “downsizing,” it may achieve an increase in productivity in the...

According to Jacobson and Mizik [Jacobson, R., N. Mizik. 2009. The financial markets and customer satisfaction: Reexamining possible financial market mispricing of customer satisfaction. (5) 810–819], excess stock portfolio returns for firms with strong customer satisfaction are small and...