Relationship Between Customer Expectations and Financial Performance of Food Industry Businesses in a Customer Satisfaction Model

Research on customer satisfaction in repeat purchases shows that the relationship between customer expectations and customer satisfaction can be inverse to what is commonly reported. This also has an impact on the nancial performance of an enterprise, which is therefore directly in uenced by customer expectations. The goal of this paper is to determine whether customer satisfaction affects customer expectations and whether these expectations have a direct impact on the nancial performance of an enterprise. The variables representing factors of customer satisfaction, including customer expectations, are measured using a customer survey. Business nancial performance (BFP) was measured using the ROA, ROE, and Asset Turnover indicators. The model was created using Structural Equation Modelling. The research con rmed a positive direct effect of customer expectations on BFP (speci cally ROA). Customer satisfaction impacted nancial performance indirectly via customer expectations in two years. This suggests that the in uence of customer expectations on BFP is long-term in nature, although this effect is rather weak. As customers make repeat purchases, customer expectations change. These changes re ect relationships primarily with customer satisfaction and loyalty and BFP. Customer satisfaction is shown to in uence customer expectations, which in turn in uence BFP. Therefore, it is advisable to focus on (raising) customer expectations in repeat purchases if the businesses want to achieve higher nancial performance.