---
_id: '5716'
abstract:
- lang: eng
  text: The tendency of managers to focus on short-term results rather than on sustained
    company success is of particular importance to retail marketing managers, because
    marketing activities involve expenditures which may only pay off in the longer
    term. To address the issue of myopic management, our study shows how the complexity
    of the service profit chain (SPC) can cause managers to make suboptimal decisions.
    Hence, our paper departs from past research by recognizing that understanding
    the temporal interplay between operational investments, employee satisfaction,
    customer satisfaction, and operating profit is essential to achieving sustained
    success. In particular, we intend to improve understanding of the functioning
    of the SPC with respect to time lags and feedback loops. Results of our large-scale
    longitudinal study set in a multi-outlet retail chain reveal time-lag effects
    between operational investments and employee satisfaction, as well as between
    customer satisfaction and performance. These findings, along with evidence of
    a negative interaction effect of employee satisfaction on the relationship between
    current performance and future investments, show the substantial risk of mismanaging
    the SPC. We identify specific situations in which the dynamic approach leads to
    superior marketing investment decisions, when compared to the conventional static
    view of the SCP. These insights provide valuable managerial guidance for effectively
    managing the SPC over time.
article_type: original
author:
- first_name: Heiner
  full_name: Evanschitzky, Heiner
  last_name: Evanschitzky
- first_name: Florian v
  full_name: Wangenheim, Florian v
  last_name: Wangenheim
- first_name: Nancy
  full_name: Wünderlich, Nancy
  id: '36392'
  last_name: Wünderlich
citation:
  ama: 'Evanschitzky H, Wangenheim F v, Wünderlich N. Perils of Managing the Service
    Profit Chain: The Role of Time Lags and Feedback Loops. <i>Journal of Retailing</i>.
    2012;88(3):356-366.'
  apa: 'Evanschitzky, H., Wangenheim, F. v, &#38; Wünderlich, N. (2012). Perils of
    Managing the Service Profit Chain: The Role of Time Lags and Feedback Loops. <i>Journal
    of Retailing</i>, <i>88</i>(3), 356–366.'
  bibtex: '@article{Evanschitzky_Wangenheim_Wünderlich_2012, title={Perils of Managing
    the Service Profit Chain: The Role of Time Lags and Feedback Loops.}, volume={88},
    number={3}, journal={Journal of Retailing}, publisher={Elsevier}, author={Evanschitzky,
    Heiner and Wangenheim, Florian v and Wünderlich, Nancy}, year={2012}, pages={356–366}
    }'
  chicago: 'Evanschitzky, Heiner, Florian v Wangenheim, and Nancy Wünderlich. “Perils
    of Managing the Service Profit Chain: The Role of Time Lags and Feedback Loops.”
    <i>Journal of Retailing</i> 88, no. 3 (2012): 356–66.'
  ieee: 'H. Evanschitzky, F. v Wangenheim, and N. Wünderlich, “Perils of Managing
    the Service Profit Chain: The Role of Time Lags and Feedback Loops.,” <i>Journal
    of Retailing</i>, vol. 88, no. 3, pp. 356–366, 2012.'
  mla: 'Evanschitzky, Heiner, et al. “Perils of Managing the Service Profit Chain:
    The Role of Time Lags and Feedback Loops.” <i>Journal of Retailing</i>, vol. 88,
    no. 3, Elsevier, 2012, pp. 356–66.'
  short: H. Evanschitzky, F. v Wangenheim, N. Wünderlich, Journal of Retailing 88
    (2012) 356–366.
date_created: 2018-11-16T09:37:06Z
date_updated: 2022-01-06T07:02:37Z
department:
- _id: '181'
intvolume: '        88'
issue: '3'
keyword:
- Employee satisfaction
- Customer satisfaction
- Performance
- Service profit chain
- Feedback loops
- Time lags
- Myopic marketing management
language:
- iso: eng
page: 356-366
publication: Journal of Retailing
publication_status: published
publisher: Elsevier
status: public
title: 'Perils of Managing the Service Profit Chain: The Role of Time Lags and Feedback
  Loops.'
type: journal_article
user_id: '37741'
volume: 88
year: '2012'
...