Service–profit chain

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The service–profit chain is the central concept in a theory of business management which links employee satisfaction to customer loyalty and profitability. It was proposed in an article in the Harvard Business Review in 1994 by James L. Heskett, Thomas Jones, Gary Loveman, W. Earl Sasser, and Leonard Schlesinger,[1] and was later the subject of a book, The Service Profit Chain – How Leading Companies Link Profit and Growth To Loyalty, Satisfaction and Value, published in 1997 by three of the same authors.[2]

The service–profit theory has been examined in relation to banking,[3] business-to-business markets,[4], other industries,[5] and the type of product being marketed.[6]

See also[edit]


  1. ^ James L. Heskett, Thomas Jones, Gary Loveman, W. Earl Sasser, Leonard Schlesinger "Putting the Service Profit Chain to Work", Harvard Business Review, (March–April 1994) 164-174
  2. ^ James L. Heskett, W. Earl Sasser, Leonard Schlesinger The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction, and Value. New York: The Free Press, 1997.
  3. ^ Wagner Kamakura, Vikas Mittal, Fernando de Rosa, & Jose Afonso Mazzon (2002). "Assessing the Service-Profit Chain". Marketing Science, 21(3), Summer, 294-317.
  4. ^ Bowman, Douglas, and Das Narayandas. "Linking customer management effort to customer profitability in business markets." Journal of Marketing Research 41.4 (2004): 433-447.
  5. ^ Eugene W. Anderson and Vikas Mittal (2000). "Strengthening the Satisfaction-Profit Chain", Journal of Service Research, 3(2), November, 107-120.
  6. ^ Pallas, Florian and Mittal, Vikas and Groening, Christopher, Allocation of Resources to Customer Satisfaction and Delight Based on Utilitarian and Hedonic Benefits (2014). Journal of Research in Marketing, Vol. 2 (1), 106-112.