For virtually all firms, the means of generating shareholder value comes by having customers consistently come back. The measurement of customer satisfaction and repurchase intention is therefore critical to managers and researchers. Unfortunately, recent research studying the effect that 1)...

One of the most controversial findings in Morgan and Rego (2006) was that two widely advocated loyalty metrics, “Net Promoter” and “Number of Recommendations,” have little or no value in predicting the financial outcomes of firms. We argue that neither measure was actually examined and...

Does customer satisfaction really lead to increased firm value? Traditionally, most financial valuation models do not include customer-related metrics such as customer satisfaction in the process. Studies in marketing, on the other hand, have consistently found that customer satisfaction...