when one can envision a debate between marketing and finance
about whether earnings or customer satisfaction belongs among
the risk factors in asset pricing models. Empirically, they are
correlated; therefore, one mitigates the effect of the other. But
which one should be mitigated? What comes first, earnings or
customer satisfaction? We are not aware of research suggesting
that earnings per se cause customer satisfaction, but there is
ample evidence pointing in the other direction.
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