Linking of Customer Satisfaction with Shareholders’ value: A Review

Firms that do better than their competitors in terms of satisfying customers, generate superior return at lower risk. Satisfied customers are more loyal, less sensitive to price movements. The aim of this study is to examine the impact of customer satisfaction on shareholders’ value creation. Customer satisfaction involves behavior of customers that typically relate to purchase or consumption of product or services. Theoretically, managers wish for a balanced performance on both the dimensions viz. marketing and finance as both the dimensions are reciprocal in nature. Customer satisfaction increases future cash flows and reduces their variability and thereby the shareholders’ wealth gets maximized in the long run. With this backdrop, the present study identifies the linkage existing between customer satisfactions with shareholders’ value maximization by taking into consideration the available literature in this regard.