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Chapter 1
It's “Oh My God!” Bad
Satisfaction ≠ Market Share

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The empirical association between a firm's market share and the (mean) satisfaction of its customers is not positive Not a single company with a market share above 30 percent could be said to have high customer satisfaction. All firms with higher levels of satisfaction also had lower market shares.43

– Professor Claes Fornell regarding his examination of the Swedish Customer Satisfaction Index

Most managers believe that higher satisfaction and NPS levels are associated with higher market share levels. CEOs and boards of directors are so convinced of this that it has become quite common to base employees' compensation in part on achieving targeted customer satisfaction levels.


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43

Fornell, Claes. “The Quality of Economic Output: Empirical Generalizations about Its Distribution and Relationship to Market Share.” Marketing Science 14, no. 3 (supplement, 1995): G203–G211.

The Wallet Allocation Rule

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