Consumer Satisfaction And Stock Price Behavior: A Case Of Diminishing Returns

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Samuel Keene
Judith A. Laux


Customer Satisfaction, ACSI, Diminishing Marginal Returns


This study investigates stock price behavior of firms with differing levels of customer satisfaction as measured by American Customer Satisfaction Index (ACSI) scores.  Using a fixed effects regression approach, it looks at the association between stock price changes and ACSI scores, total assets, total liabilities, and total revenues for sixty-four firms over a three-year period and discovers a marked difference between stock price changes for high- and low-scoring companies, indicating possible decreasing marginal returns for investments in customer satisfaction.


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