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Measuring Customer Satisfaction and Customer Loyalty

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Handbook of Market Research

Abstract

Measuring customer satisfaction and customer loyalty represents a key challenge for firms. In response, researchers and practitioners have developed a plethora of options on how to assess these phenomena. However, existing measurement approaches differ substantially with regard to their complexity, sophistication, and information quality. Furthermore, guidance is scarce on how firms can leverage and combine these approaches to implement a state-of-the-art satisfaction and loyalty measurement system. This chapter attempts to address this vacancy. The authors first define and conceptualize customer satisfaction and customer loyalty. Next, the authors provide an overview of the different operationalization and measurement approaches that companies face when designing a customer satisfaction and loyalty measurement system. The authors also discuss some of the common modeling challenges associated with measuring loyalty, namely, dealing with self-selection bias. Finally, the authors project what the future holds in this area.

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Authors and Affiliations

  1. McCombs School of Business, The University of Texas, Austin, TX, USA

    Sebastian Hohenberg

  2. Cox School of Business, Southern Methodist University, Dallas, TX, USA

    Wayne Taylor

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  1. Sebastian Hohenberg
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Correspondence to Sebastian Hohenberg .

Editor information

Editors and Affiliations

  1. Department of Business-to-Business Marketing, Sales, and Pricing, University of Mannheim, Mannheim, Germany

    Christian Homburg

  2. Department of Marketing & Sales Research Group, Karlsruhe Institute of Technology (KIT), Karlsruhe, Germany

    Martin Klarmann

  3. Marketing & Sales Department, University of Mannheim, Mannheim, Germany

    Arnd Vomberg

Section Editor information

  1. University of Mannheim, Mannheim, Germany

    Christian Homburg

  2. Karlsruhe Institute of Technology, Karlsruhe, Germany

    Martin Klarmann

  3. University of Groningen, Groningen, The Netherlands

    Arnd Vomberg

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Hohenberg, S., Taylor, W. (2022). Measuring Customer Satisfaction and Customer Loyalty. In: Homburg, C., Klarmann, M., Vomberg, A. (eds) Handbook of Market Research. Springer, Cham. https://doi.org/10.1007/978-3-319-57413-4_30

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