Abstract
This study investigated the expenditure strategy for customer satisfaction and financial performance. It also examined the dynamic effect of marketing costs spent to promote customer satisfaction and CRM on business performance in a service company using a multivariate latent growth model(LGM). The major findings are summarized as follows. First, the degree all variable’s change that stay out longer as time passes is significant. Second, the slope factor of LGM identified a positive influence on each of the following relationships: between the investment strategy and K-BPI, between the investment strategy and ROA, and between the investment strategy and K-BPI. Third, CRM was not a significant mediating variable between investment strategy for customer satisfaction and business performance of service companies. Furthermore, first and second period’s investment have a positive effect on the t period’s customer satisfaction index. This study showed the dynamic effects of Customer Satisfaction Investment and Customer Relationship Management on Business Performance in a Service Company. From a managerial perspective, this study revealed that service companies needed to investigate the improvement of business performance on CRM.
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