Non-Normal Simultaneous Regression Models for Customer Linkage Analysis
38 Pages Posted: 18 Nov 2006 Last revised: 19 Feb 2008
Date Written: November 1, 2007
Abstract
Simultaneous systems of equations with non-normal errors are developed to study the relationship between customer and employee satisfaction. Customers interact with many employees, and employees serve many customers, such that a one-to-one mapping between customers and employees is not possible. Analysis proceeds by relating, or linking, distribution percentiles among variables. Such analysis is commonly encountered in marketing when data are from independently collected samples. We demonstrate our model in the context of retail banking, where drivers of customer and employee satisfaction are shown to be percentile-dependent.
Keywords: Employee-customer relationship, services marketing
JEL Classification: C11, C42, M31
Suggested Citation: Suggested Citation
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