Journal of the Academy of Marketing Science

, Volume 42, Issue 2, pp 119–136 | Cite as

Do institutional investors pay attention to customer satisfaction and why?

  • Xueming LuoEmail author
  • Ran Zhang
  • Weining Zhang
  • Jaakko Aspara
Original Empirical Research


Extant marketing, accounting, and finance research has neglected to examine the relevance of customer satisfaction information for institutional investors, despite their potential importance. This study develops and supports a framework suggesting that firms with positive changes in customer satisfaction are more attractive to transient institutional investors than to non-transient institutional investors. We also find that the impact of customer satisfaction on transient institutional investor holdings is contingent upon firm intangible asset intensity, product-market demand uncertainty, and financial market volatility. In addition, transient institutional investor holdings at least partially mediate the effects of changes in customer satisfaction on firm abnormal return and idiosyncratic risk. Thus, transient institutional investor investments represent a mechanism through which customer satisfaction affects firm value.


Customer satisfaction Investor community Institutional investor holding Intangibles Marketing-finance interface 



We appreciate financial support from National Natural Science Foundation of China (Approval No. 71273013, 70802003, and 71132004), the support from China Ministry of Education Social Science and Humanities Research Planning Foundation (Approval No. 12YJA630186), and from Guanghua Leadership Institute (Approval #12-14). Aspara is grateful for research grants from Nasdaq OMX Nordic Foundation and Finnish Funding Agency for Technology and Innovation.


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Copyright information

© Academy of Marketing Science 2013

Authors and Affiliations

  • Xueming Luo
    • 1
    Email author
  • Ran Zhang
    • 2
  • Weining Zhang
    • 3
  • Jaakko Aspara
    • 4
  1. 1.University of Texas at ArlingtonArlingtonUSA
  2. 2.Guanghua School of ManagementPeking UniversityBeijingChina
  3. 3.Cheung Kong Graduate School of BusinessBeijingChina
  4. 4.Aalto University School of BusinessHelsinkiFinland

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