Weathering the crash: Do customer-company relationships pay off during economic crises?

Unlabelled: Do stronger relationships with customers (customer-company relationships [CCR]) help firms better weather economic crises? To answer this question, we examine firm performance during the stock market crashes associated with the two most severe economic crises of the last 15 years-the protracted Great Recession crisis (2008-2009) and the shorter but extreme COVID-19 pandemic crisis (2020). Juxtaposing the predominant expected utility theory perspective with observed deviations in investor behavior during crises, we find that both pre-crash firm-level customer satisfaction and customer loyalty are positively associated with abnormal stock returns and lower idiosyncratic risk during a market crash, while pre-crash firm-level customer complaint rate negatively affects abnormal stock returns and increases idiosyncratic risk. On average, we find that one standard deviation higher CCR is associated with between $0.

The American Customer Satisfaction Index (ACSI): A sample dataset and description.

This article provides a sample of survey data collected by the American Customer Satisfaction Index (ACSI). Using online sampling and stratified interviewing techniques of actual customers of predominantly large market-share ("large cap") companies, the ACSI annually collects data from some 400,000 consumers residing across the United States for more than 400 companies within about 50 consumer industries. For this article and the data depository, consumers' perceptions of their experiences with individual companies included within four consumer industries as defined and measured by ACSI - processed food, commercial airlines, Internet service providers, and commercial banks - are included in the dataset.