Demographics and Customer Satisfaction: A Multi-Category Study
Keywords:
Customer Satisfaction, Demographics, Older Consumers, GenderAbstract
Customer satisfaction is a key metric for many organisations, and is considered to be vital for business success. Therefore, understanding how and why satisfaction scores vary across customers is vital knowledge for firms and researchers. This study examines the impact of three commonly used demographic variables, namely gender, age and income on customer satisfaction scores. Understanding the relationship between demographic variables and satisfaction scores will help firms understand which customer types are inherently easier or harder to satisfy. Drawing on theories relating to social roles, expectation-disconfirmation and loss aversion, the study formulates and tests a series of hypotheses as to how these three demographic factors will be associated with higher or lower customer satisfaction scores, and how differences between demographic groups in satisfaction scores are related to the firm’s overall satisfaction level. The study employs data from ten categories in the UK. Building on past work, the study finds that a larger proportion of women than men report they are satisfied with brands or service providers; a slightly smaller proportion of high-income than low or medium-income consumers report they are satisfied, and that a larger proportion of older than younger consumers report they are satisfied. The study also finds that the comparatively lower levels of satisfaction among high-income earners compared to low earners is even more apparent for poor performing firms. The findings will be informative to customer satisfaction scholars, and to service managers seeking an enhanced understanding of their satisfaction performance overall, and among different customer groups.
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