The Effects of Advertising Spending on Satisfaction: A Comparison Study of Bank and Supermarket Industries

Abstract

This study proposes a framework explaining customer satisfaction responses in the banking and supermarket industries. The proposed model is grounded in the traditional B2C link, but also explicitly incorporates advertising spending and perceived quality into the theoretical framework. The hypothesized model was analyzed using partial least square (PLS) regression. The study results partially support the linkage of advertising spending to perceived quality, but also show that the advertising spending and customer orientation link is closely related to customer satisfaction through perceived quality in the supermarket industry. Interestingly, the relationship between perceived quality and satisfaction is not significant in the banking industry, indicating that the prior evidence may have to be reconsidered.