---
_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. Journal of Retailing.
2012;88(3):356-366.'
apa: 'Evanschitzky, H., Wangenheim, F. v, & Wünderlich, N. (2012). Perils of
Managing the Service Profit Chain: The Role of Time Lags and Feedback Loops. Journal
of Retailing, 88(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.”
Journal of Retailing 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.,” Journal
of Retailing, 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.” Journal of Retailing, 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'
...