The Effect of Marketing Efficiency, Brand Equity and Customer Satisfaction on Firm Performance an Econometric Model and Data Envelopment Aproach
THE EFFECT OF MARKETING EFFICIENCY, BRAND EQUITY AND
CUSTOMER SATISFACTION ON FIRM PERFORMANCE
AN ECONOMETRIC MODEL AND DATA ENVELOPMENT APROACH
Luis Fernando Angulo
Autonomous University of Barcelona, Business Economics Department
08193 Bellaterra (Cerdanyola del Vallès), Barcelona, Spain
Tel. +34 93 581 1209, Fax +34 93 581 2555
Email: LuisFernando.Angulo@uab.es
ABSTRACT
This research focuses its attention to support empirically and not separately the impact of marketing activities, brand equity and customer satisfaction on firm performance. In addition, this study intends to fill the gap of marketing efficiency effect on long-term profits. Through methodology of three stages, two by econometric models and one using data envelopment analysis, the authors provide empirical evidence for the marketing link to firm value. Firstly, the results in the first stage confirm the impact of marketing assets on short-term performance. Secondly, the marketing efficiency shows that there are firms that have better abilities to maximize results in terms of marketing activities. Finally, some future research lines were considered.
Keywords: Advertising, Brand Equity, Customer Satisfaction, Data Envelopment
Analysis, Marketing Efficiency, Marketing Impact, Firm Value.
1
PROBLEM STATEMENT AND PURPOSE
Nowadays, Marketing has to face some situations that the new business environment brings with it. One of them is related to the evolution of business atmosphere from
Marshall Economy labelled as bulk-processing (Arthur 1996) to the Positive Feedback
Economy known as the increasing returns (Arthur 1989, 1990, 1999) as well as the knowledge-processing. In addition, the second situation is linked to the operational and business unit level that Marketing take up in the organization (Ambler 2000). The last situation is connected not only with the increasing expectative of the board to get shortterm profits but also with the rising relevance of the
CUSTOMER SATISFACTION ON FIRM PERFORMANCE
AN ECONOMETRIC MODEL AND DATA ENVELOPMENT APROACH
Luis Fernando Angulo
Autonomous University of Barcelona, Business Economics Department
08193 Bellaterra (Cerdanyola del Vallès), Barcelona, Spain
Tel. +34 93 581 1209, Fax +34 93 581 2555
Email: LuisFernando.Angulo@uab.es
ABSTRACT
This research focuses its attention to support empirically and not separately the impact of marketing activities, brand equity and customer satisfaction on firm performance. In addition, this study intends to fill the gap of marketing efficiency effect on long-term profits. Through methodology of three stages, two by econometric models and one using data envelopment analysis, the authors provide empirical evidence for the marketing link to firm value. Firstly, the results in the first stage confirm the impact of marketing assets on short-term performance. Secondly, the marketing efficiency shows that there are firms that have better abilities to maximize results in terms of marketing activities. Finally, some future research lines were considered.
Keywords: Advertising, Brand Equity, Customer Satisfaction, Data Envelopment
Analysis, Marketing Efficiency, Marketing Impact, Firm Value.
1
PROBLEM STATEMENT AND PURPOSE
Nowadays, Marketing has to face some situations that the new business environment brings with it. One of them is related to the evolution of business atmosphere from
Marshall Economy labelled as bulk-processing (Arthur 1996) to the Positive Feedback
Economy known as the increasing returns (Arthur 1989, 1990, 1999) as well as the knowledge-processing. In addition, the second situation is linked to the operational and business unit level that Marketing take up in the organization (Ambler 2000). The last situation is connected not only with the increasing expectative of the board to get shortterm profits but also with the rising relevance of the
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