Effect of Customer Satisfaction on Organizational Profitability, Using an Organization in the Food and Beverage Industry

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Date

2013-03-15

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Publisher

International Journal of Management Sciences

Abstract

This study examines the effect of customer satisfaction on organizational profitability of a reputable food and beverage industry in Nigeria. More so, to determine the relationship between customer satisfaction and organizational profitability. Primary and secondary data were used for this study. The primary data was collected with the aid of questionnaires while the secondary data was collected from the selected organization periodicals and journals. The data collected was analyzed using descriptive and inferential statistical tools. The descriptive tools include tables and percentages while the inferential tools include regression analysis and analysis of variance (ANOVA). The findings from the study show the R2 values of 0.612 which revealed that customer satisfaction independently explain 61.2% of the variation in organizational profitability. The f-statistics of 12.307 of the organization revealed that the model is statistically significant at 0.05 significant level. The study concludes that the satisfaction of customers leads to more profitability. More so, there is a positive relationship between customer satisfaction and organizational profitability

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Keywords

Customer satisfaction, business organization, profitability, target market

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