The Empirical Testing Of The Relationships Between Customer Satisfaction, Loyalty, And The Financial Performance Based On The Service Profit Chain Model

In 1990s, the world economy was developing under a high speed. Lots of famous organizations began to realize that the groups, especially the service organizations, should focus on how to satisfy the needs of the internal employees and the needs of external customers. In 1994, James Heskett and his colleagues, professors of Harvard Business College, proposed the Service Profit Chain Model under the analysis of many successful organizations. The Model integrated the result of many subjects, including Marketing and Human Resources, etc. It offers an effective model to the service organizations to lead the company link profit and growth through using the limited resources properly, reconstructing the working process, and the constructing of the core capability of the company. The Service Profit Chain Model includes three dimensions, organization, employee, and customer. There are some relationships between them. It has been proved that the Model is operationalized.This study examining the relationships between the last two components of the service profit chain model, i.e. customer satisfaction, customer loyalty, and the financial performance, based on the whole model in one Chain Pharmacy in Qin Dao, which is one of the service organizations in our country. Through our work, we empirically tested parts of the relationships between the service profit chain model, in order to support the theory, and provide the service organizations in our country with a new effective management tool. On the other hand, our method can be adapted by some service groups when they want to measure some related indexes.There are three chapters in this paper.Chapter1: Literature Review...