CEO’s regulatory focus, strategic marketing decisions and customer satisfaction

Chun Lu, Soo Yeong Ewe, Ferdinand A. Gul

Research output: Chapter in Book/Report/Conference proceedingConference PaperOther

Abstract

This study drawing on regulatory focus theory examines whether CEO’s promotion and prevention focus, a personality trait, is associated with customer satisfaction, and whether marketing strategic decisions mediates this relationship. In addition, this research also examines the moderating role of CEO’s promotion focus on the relationship between customer satisfaction and firm value. Using 386 firm year observation of various industries via the Compustat database between 2001 and 2018, and Seemingly Unrelated Regression (SUR) estimations for the data analysis, we show that CEO’s promotion focus (prevention focus) is likely to increase (decrease) advertising and R&D expenditure, and subsequently increase (decrease) customer satisfaction and firm value. Furthermore, firms with higher CEO’s promotion focus may enhance the impact of customer satisfaction on firm value. This research provides new insights about the impact of CEO’s regulatory focus thus adding to the organizational behavior and customer satisfaction literature.
Original languageEnglish
Title of host publicationBritish Academy of Management (BAM) Conference 2022
PublisherBritish Academy of Management
Pages1-5
Number of pages5
Publication statusPublished - 2022
EventBritish Academy of Management Conference 2022 - The University of Manchester, Manchester, United Kingdom
Duration: 31 Aug 20222 Sept 2022

Conference

ConferenceBritish Academy of Management Conference 2022
Abbreviated titleBAM 2022
Country/TerritoryUnited Kingdom
CityManchester
Period31/08/222/09/22

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