Economic Topics
Brand Promotion planning
The contribution of managerial ability on customer satisfaction: an empirical investigation
Time:2022-01-20 16:30

Thanh Ngoa , Shirley Maia , Judy Siguawa and Surendranath Joryb 

a Finance, East Carolina University, Greenville, SC, USA; b Southampton Business School, University of Southampton, Southampton, United Kingdom of Great Britain and Northern Ireland



The study empirically examines the effects of managerial ability on customer satisfaction, as well as the role of firm-level and industry level moderators on the relationship. The effect of customer satisfaction on firm value is also investigated. Managerial ability is assessed as the residual remaining after accounting for the effects of seven key financial variables, while customer satisfaction is derived from the ACSI panel data. The results demonstrate that managerial ability positively affects ex-post customer satisfaction, indicating that more capable managers are better able to satisfy their customers. In turn, customer satisfaction directly influences firm value, as measured by Tobin’s q. In terms of moderators, non-service firms more strongly regulate the managerial ability customer satisfaction link; advertising expenditure and competitive intensity have insignificant roles to play.


Keywords: Customer satisfaction; managerial ability; firm value; marketing-finance interface; theory of self-determination


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