Through the Looking Glass: An Agency Theoretic Foundation for the Satisfaction Mirror

Abstract

An analysis is presented of the satisfaction mirror - the positive but atheoretical correlation between customer satisfaction and staff/job satisfaction - using agency theory in order to better understand the underlying mechanics of the mirror. The front-line service provider is identified as being the agent in two separate but related principal-agent dyads: the first with the customer, the second with the employing organization. This role in two simultaneous dyads, with one conditional on the other, both provides direction for strengthening the satisfaction mirror and also places upper limits on its potential strength.