RESUMEN
Do stronger relationships with customers (customer-company relationships [CCR]) help firms better weather economic crises? To answer this question, we examine firm performance during the stock market crashes associated with the two most severe economic crises of the last 15 years-the protracted Great Recession crisis (2008-2009) and the shorter but extreme COVID-19 pandemic crisis (2020). Juxtaposing the predominant expected utility theory perspective with observed deviations in investor behavior during crises, we find that both pre-crash firm-level customer satisfaction and customer loyalty are positively associated with abnormal stock returns and lower idiosyncratic risk during a market crash, while pre-crash firm-level customer complaint rate negatively affects abnormal stock returns and increases idiosyncratic risk. On average, we find that one standard deviation higher CCR is associated with between $0.9 billion and $2.4 billion in market capitalization on an annualized basis. Importantly, we find that these effects are weaker for firms with higher market share during the COVID-19 crash, but not during the Great Recession crash. These results are found to be robust to a variety of alternate model specifications, time periods, sub-samples, accounting for firm strategies during the crises, and endogeneity corrections. When compared to relevant non-crash periods, we also find that such effects are equally strong during the Great Recession crash and even stronger during the COVID-19 pandemic crash. Contributing to both the marketing-finance interface literature and the nascent literature on marketing during economic crises, implications from these findings are provided for researchers, marketing theory, and managers. Supplementary information: The online version contains supplementary material available at 10.1007/s11747-023-00947-1.
RESUMEN
This article provides a sample of survey data collected by the American Customer Satisfaction Index (ACSI). Using online sampling and stratified interviewing techniques of actual customers of predominantly large market-share ("large cap") companies, the ACSI annually collects data from some 400,000 consumers residing across the United States for more than 400 companies within about 50 consumer industries. For this article and the data depository, consumers' perceptions of their experiences with individual companies included within four consumer industries as defined and measured by ACSI - processed food, commercial airlines, Internet service providers, and commercial banks - are included in the dataset. These industries were chosen to represent and illustrate a cross-section of data from differentiated sectors, not because they are representative of the larger economy or larger ACSI dataset per se. The survey items reflect a diverse array of customers' perceptions regarding prior expectations, perceived quality, perceived value, customer satisfaction, complaint behavior, and customer loyalty. These are also the core latent factors modeled in the so-called ACSI model since 1994. The ACSI model is continuously analyzed using a proprietary and patented Partial Least Squares structural equation modeling approach (PLS-SEM). Detailed firm- or brand-level results from the ACSI data are used by individual companies for strategic organizational decision-making and in the aggregate to forecast trends in the U.S. national economy. ACSI data have been analyzed in thousands of peer-reviewed academic and practitioner journal articles.