Impact of employee job satisfaction and commitment on customer perceived value

Purpose: The purpose of this paper is to analyse the impact of employee job satisfaction and affective commitment as perceived by customers on customer perceived value, more specifically its benefits dimensions. Design/methodology/approach: A total of 652 panellists from a large Canadian polling firm self-administer a web-based questionnaire. To measure customer perceived value, a formative index is used which contributes to topical literature through a unique methodology. Hypotheses are tested using a structural equation model. Findings: An analysis of the direct, indirect and total effects confirms the unique positive impact of employee job satisfaction and affective commitment, as perceived by customers, on the emotional, social, relationship and epistemic benefits, as well as on the formative index of customer perceived value. Practical implications: Customer perceptions of employee attitudes (job satisfaction and affective commitment) represent a unique opportunity for banks to differentiate their value proposition in a hypercompetitive market. Originality/value: This study is the first to consider customer perceptions of employee job satisfaction and affective commitment in relation to a formative index of customer perceived value and its related benefits dimensions.