TY - JOUR AU - Onyeaso, Godwin AU - Adalikwu, Chris PY - 2008/03/15 Y2 - 2024/03/28 TI - An Empirical Test of Customer Retention-Perceived Quality Link: Strategic Management Implications JF - Journal of Business Strategies JA - J Bus Strategies VL - 25 IS - 1 SE - Research Articles DO - 10.54155/jbs.25.1.53-71 UR - https://jbs-ojs-shsu.tdl.org/jbs/article/view/141 SP - 53-71 AB - <p>This paper employed times series econometric methods to test the theoretically-grounded link between customer retention and customer perceived quality.<br>The results suggest that customer retention and quality have a stable positive link<br>binding them together, which allows them to move together in the same direction<br>over time. Importantly, empirical evidence of long term Granger-type causality<br>running from quality to retention, was found in support of this positive link<br>Finally, customers' perception of quality yesterday has a positive impact on their<br>level of retention today. It suggests that customers' memories of quality linger<br>on beyond the current period to positively impact customer retention levels in<br>the future. In this sense, quality is an intangible strategic asset in which service<br>managers should invest their capital.</p> ER -