Return on satisfaction: Is customer satisfaction really profitable?

The relationship between customer satisfaction and corporation performance is one of the most important research focuses of management scholars. Many researches have explored their positive correlation, but there is no research on the internal mechanism of this influence process yet. In this article, we develop a theoretical framework that specifies how customer satisfaction affects corporation performance and then estimate the model by GMM method. Empirically, we find a positive association between the two variables and we also explain this association by profitable ability and operational ability.