D 2014

Revisiting the Satisfaction-Profit Chain: The Case of Food Industry

POKORA, Jindřich

Basic information

Original name

Revisiting the Satisfaction-Profit Chain: The Case of Food Industry

Authors

POKORA, Jindřich (203 Czech Republic, guarantor, belonging to the institution)

Edition

Sofia, Bulgaria, SGEM Conference on Political Sciences, Law, Finance, Economics and Tourism - Conference Proceedings Volume III - Economics and Tourism, p. 503-510, 8 pp. 2014

Publisher

SGEM International Multidisciplinary Scientific Conferences on Social Sciences and Arts

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50600 5.6 Political science

Country of publisher

Bulgaria

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

printed version "print"

RIV identification code

RIV/00216224:14560/14:00076433

Organization unit

Faculty of Economics and Administration

ISBN

978-619-7105-27-8

ISSN

DOI

Keywords in English

satisfaction-profit chain; customer satisfaction; customer retention; profitability; food industry

Tags

International impact, Reviewed
Změněno: 13/9/2014 12:58, Ing. Jindřich Pokora

Abstract

V originále

Increase in food quality leading to higher customer satisfaction is not a straightforward objective of the firm whenever an increase in quality is related to an increase in costs. The purpose of this paper is to determine whether providing high quality food products generally yields higher profit for the firm than pursuing the opposite, when university students are the consumers. This paper approaches the relationship between customer satisfaction and firm profitability from the perspective of the satisfaction-profit chain, which here consists of the following measures: quality and value perceived by customers, customer satisfaction, word of mouth, intent to repurchase, and firm profitability. The research focuses on one-year financial data of 80 food-manufacturing firms in the Czech Republic together with 60 to 160 customer responses to products of each firm. Findings based on correlation analysis, where the Pearson product-moment correlation coefficient and the distance correlation are calculated, show a positive relationship between perceived product quality, customer satisfaction, word of mouth, and intent to repurchase. The regression method of ordinary least squares shows intent to repurchase positively linked to firm profitability measured by return on assets considering liquidity and size of the firm as control variables. The method of ordinary least squares further implies that smaller firms tend to be more profitable, when the size is measured by the volume of assets.

Links

MUNI/A/0799/2013, interní kód MU
Name: Řízení kvality a konkurenceschopnost podniku
Investor: Masaryk University, Category A