Does employee satisfaction influence customer satisfaction? Assessing coffee shops through the service profit chain model

Abstract

Abstract This study examines the interrelations between service climate, organizational identification, employee job satisfaction, and customer perceived value and satisfaction. To achieve this, we apply the service profit chain model to South Korea’s coffee shop industry. Data were collected from 263 employees and 973 customers in Daegu. The hypotheses were tested by conducting a path analysis to investigate the relationship between the variables. Organizational identification and job satisfaction were found to be positively correlated with each other. Additionally, job satisfaction was correlated with customer perceived value, which, in turn, was correlated with customer satisfaction. The findings suggest that a good work environment and service-related training can create a positive service climate for employees, which can subsequently improve customer satisfaction. This study is unique in its application of the service profit chain model on the coffee shop industry in Korea.