Business Performance as a Relationship Between Models of Customer Satisfaction and Financial Performance

The goal of this paper is to connect models of customer satisfaction and financial performance into a single aggregate model of business performance. The contribution of this paper lies in the increased complexity of assessing business performance, which results from connecting the model of customer satisfaction with the model of financial performance. The model of customer satisfaction is constructed based on customer expectations, which differs from the standard approach. The model is constructed based on a questionnaire survey of customers of select businesses. The financial performance of the same businesses was assessed based on publicly available data, which were used as inputs into ratio indicators. Afterward, financial performance was assessed using two methods (TOPSIS and Altman’s Z -score). The results show that the model of customer satisfaction helps us better understand financial performance when incorporating customer expectations. This financial performance was measured using the aggregate model of financial performance, composed of select financial indicators. The magnitude of the effect is greater than if financial performance is measured using standalone ratio indicators.