Journal of the Academy of Marketing Science

, Volume 40, Issue 3, pp 480–508

Is customer satisfaction a relevant metric for financial analysts?

  • Paul-Valentin Ngobo
  • Jean-François Casta
  • Olivier Ramond
Original Empirical Research

DOI: 10.1007/s11747-010-0242-1

Cite this article as:
Ngobo, PV., Casta, JF. & Ramond, O. J. of the Acad. Mark. Sci. (2012) 40: 480. doi:10.1007/s11747-010-0242-1


This study examines the effects of customer satisfaction on analysts' earnings forecast errors. Based on a sample of analysts following companies measured by the American Customer Satisfaction Index (ACSI), we find that customer satisfaction reduces earnings forecast errors. However, analysts respond to changes in customer satisfaction but not to the ACSI metric per se. Furthermore, the effects of customer satisfaction are asymmetric; for example, analysts are more willing to use good news (i.e. an increase in customer satisfaction information) than bad news (i.e. a decrease in satisfaction). Similarly, customer satisfaction reduces negative deviation more than positive deviation of the analysts' forecasts from actual earnings. Furthermore, the effects of customer satisfaction depend upon the base level of satisfaction that the firm has achieved. Finally, the effects of customer satisfaction on analysts' forecast errors differ across firms with volatile satisfaction scores and those with stable satisfaction scores. We discuss the implications of our results for marketers and participants in financial markets.


Customer satisfaction EPS forecast errors Value relevance ACSI GMM dynamic models 

Copyright information

© Academy of Marketing Science 2011

Authors and Affiliations

  • Paul-Valentin Ngobo
    • 1
  • Jean-François Casta
    • 2
  • Olivier Ramond
    • 3
  1. 1.Institut d’Administration des Entreprises, Laboratoire Orléans de Gestion (LOG), Faculté de DroitEconomie et GestionOrléans Cedex 2France
  2. 2.Université Paris-DauphineDRM-Finance, Place du Général du Lattre de TassignyParisFrance
  3. 3.Université Paris-DauphineDRM-Finance, Place du Maréchal de Lattre de TassignyParisFrance

Personalised recommendations