"The service-profit chain is a relic of the 1990's and is of questionable relevance today". Discussion

"The service-profit chain is a relic of the 1990
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Running head: Critique of the service-profit chain Name Name of instructor Date Introduction The service-profit chain was developed by Heskett et al. and it seeks to establish a link between two components of the business environment. On one hand, there is customer satisfaction and business profitability while on the other; there is productivity, loyalty and employee satisfaction.


Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers (1997, p. 18) Whereas the proponents of the service-profit chain claim that relationships can be drawn directly between how loyalty through customer satisfaction can lead to profits, the opponents advocate for other theories and argue that in the 21st century, there are many other factors that are considered when seeking to be profitable. Additionally, there are claims that the theories that advance the service-profit chain are just that: theoretical. There has been no conclusive method of mining data that can be used to precisely reflect how the satisfaction of customers leads to the profiteering of a business. This paper seeks to establish whether the service-profit chain is still viable in recent times or it is just a relic that was developed in the 90s when the conditions were not as turbulent as they are in the business environment today. This paper will present conclusive arguments for and against the service-profit chain drawn from a wide range of scholarly articles in order to make a conclusive argument. ...
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