Year: 2024
Type: article
Abstract: This study examines the change in customer satisfaction and the value relevance of customer satisfaction during COVID-19. The COVID-19 pandemic is an unprecedented experience and has caused difficulties for all areas of businesses. Customer relations are one of the biggest paradigm shifts of this period. Companies have placed great importance on customer relations, and customer relations are a critical factor in corporate sustainability. It is very important for firms to retain their customers in the market, create a potential demand, and, thus, increase the firm value. However, prior studies have provided mixed results on whether companies financially benefit from customer relations. Employing the value relevance model, we find that the customer satisfaction score has increased during the pandemic but that the value relevance of customer satisfaction has declined during the pandemic. Together, we interpret the results as indicating new customer satisfaction trends, especially reduction trends. The results are robust even after controlling endogeneity and outliers. This study has several implications for practitioners and academia regarding the new trends in the value relevance of customer satisfaction.
Source: Sustainability
DOI: 10.3390/su16188090
Authors: Ha-Yeon Park, Cheong-Kyu Park
Institutions: Catholic Kwandong University, Dongguk University
Language: English
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,728
Funder: Dongguk University
Award: G2289458842
OpenAlex ID: W4402577138