Organisational Perception of Customer Satisfaction: Theories and Evidence

Abstract

Do managers in service organisations believe that the struggle matters more than the triumph? This paper proposes a model of organisational perception of customer satisfaction which posits that, given a lack of first-hand information on customer responses, organisations tend to adopt a process-based approach of evaluating the level of satisfaction of their customers. This evaluation process depends not on the assessment of actual outcomes such as sales revenue and customer complaints, but instead on the organisational efforts involved in satisfying the needs of customers. The propositions are tested by surveying 150 e-banking service providers and the data supports the hypotheses.

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