Logo: to the web site of Uppsala University

Purpose

The purpose of this study is to examine crisis effects on customer satisfaction and underlying drivers by adding a new set of data to previous research. The core questions are: are the findings from Hallencreutz and Parmler (2019, 2021) sustained or can new customer demands, needs, expectations and behaviours be traced in the wake of the ongoing crisis?

Design/methodology/approach

A first study covering 2005–2017 was completed in 2018, published online in 2019 and in print in 2021 (Hallencreutz and Parmler, 2021). This new study adds the years 2018–2023 to the data set and reuses the partial least squares (PLS) approach to structural equation models, also known as PLS path modelling.

Findings

This additional study sustains the results from the initial study (Hallencreutz and Parmler, 2019, 2021). The variable product quality has been substituted by service quality as one of the most crucial drivers for customer satisfaction together with brand image, and the current state of permacrisis has not changed that.

Research limitations/implications

The study is built on Swedish data from the EPSI Rating Initiative (Eklöf and Westlund 2002) covering customer perceptions in banking, insurance (life and non-life), telco (mobile operators, broadband and Pay-tv) and energy (trade, distribution and heating) over the years 2005–2023.

Practical implications

The study emphasizes the importance of understanding how customer satisfaction drivers evolve over time in different industries and societal sectors, especially during crises. This additional study sustains the paradigm shift in the studied industries – product quality has been substituted by service quality as one of the most crucial drivers for customer satisfaction, and the current state of economic downturn has not changed that.

Social implications

Society will have to learn to live with political and economic instability and unpredictability for the foreseeable future. To recognize the increasing value deriving from firms’ intangible assets while providing flawless deliveries seems to be a way forward in troublesome times. This is also a catalyst for existing societal trends: the necessary reforms to master sustainable transformations will require an ongoing adaptation process, with both winners and losers across continents.

Originality/value

The world has coped with a global pandemic, and Europe is currently experiencing a humanitarian, political and economic crises caused by a war in Ukraine. This extended period of global instability and insecurity could be called a permacrisis (Collins dictionary, 2022). This study offers a unique quantitative analysis built on Swedish data from EPSI Rating initiative.

In today's volatile market economies, economic and social benefits of the competition must be evaluated from various financial and non-financial aspects. Among these aspects, Customer satisfaction measurements are recognised as the non-financial performance indicator that is the most widespread. A high level of customer satisfaction is argued to lead to stronger company image, protection of current market share, increased customer loyalty, decreased customer complaints and strengthened financial performance. Thus, understanding the drivers behind how customer satisfaction evolves over time is therefore crucial. This paper presents a longitudinal quantitative study based on customer perception data from the Swedish market research consultancy Svenskt Kvalitetsindex AB. A PLS-SEM analysis is performed to unravel how important latent variables drive customer satisfaction over time. Study findings indicate that it has been a paradigm shift during the last decade - product quality is substituted by service quality as one of the most crucial drivers for customer satisfaction throughout industries and societal sectors. The study findings suggest a need for new principles, practices and tools to enhance internal customer centricity and strengthen satisfaction and loyalty.