J 2023

Relationship Between Customer Expectations and Financial Performance of Food Industry Businesses in a Customer Satisfaction Model

SUCHÁNEK, Petr and Mária KRÁLOVÁ

Basic information

Original name

Relationship Between Customer Expectations and Financial Performance of Food Industry Businesses in a Customer Satisfaction Model

Authors

SUCHÁNEK, Petr (203 Czech Republic, guarantor) and Mária KRÁLOVÁ (203 Czech Republic, belonging to the institution)

Edition

Economic and Business Review, 2023, 1580-0466

Other information

Language

English

Type of outcome

Article in a journal

Field of Study

50204 Business and management

Country of publisher

Slovenia

Confidentiality degree

is not subject to a state or trade secret

References:

URL

Organization unit

AMBIS University

DOI

https://doi.org/10.15458/2335-4216.1320

Keywords in English

customer expectations;customer satisfaction;food industry;financial performance;ROA

Tags

RIV_2023

Tags

International impact, Reviewed
Changed: 3/4/2024 17:07, Ing. Kateřina Lendrová

Abstract

In the original language

Research on customer satisfaction in repeat purchases shows that the relationship between customer expectations and customer satisfaction can be inverse to what is commonly reported. This also has an impact on the financial performance of an enterprise, which is therefore directly influenced by customer expectations. The goal of this paper is to determine whether customer satisfaction affects customer expectations and whether these expectations have a direct impact on the financial performance of an enterprise. The variables representing factors of customer satisfaction, including customer expectations, are measured using a customer survey. Business financial performance (BFP) was measured using the ROA, ROE, and Asset Turnover indicators. The model was created using Structural Equation Modelling. The research confirmed a positive direct effect of customer expectations on BFP (specifically ROA). Customer satisfaction impacted financial performance indirectly via customer expectations in two years. This suggests that the influence of customer expectations on BFP is long-term in nature, although this effect is rather weak. As customers make repeat purchases, customer expectations change. These changes reflect relationships primarily with customer satisfaction and loyalty and BFP. Customer satisfaction is shown to influence customer expectations, which in turn influence BFP. Therefore, it is advisable to focus on (raising) customer expectations in repeat purchases if the businesses want to achieve higher financial performance.
Displayed: 8/10/2025 22:50