The Service-profit Chain: An Empirical Analysis in the Hotel Industry

Lars Grønholdt, Anne Martensen

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This paper examines the links between employee attitudes, customer loyalty and company profitability. From a conceptual point of view, this employee-customer-profit chain, also known as the service-profit chain, is well founded and generally accepted. But for many companies, it seems difficult to demonstrate such links, and several issues must be addressed to uncover the links. To investigate these links empirically, a hotel chain provided data matching employee and customer measures with measures of profitability. We have successfully employed a modeling approach, and the paper reports empirical evidence of the employee-customer-profit chain. As it is possible to estimate the links, we have demonstrated their effect on company profitability. The research findings provide a better understanding of the service-profit chain and may help practitioners in improving company financial performance.
Original languageEnglish
Title of host publicationProceedings of the 15th International Conference Marketing Trends 2016 Madrid
EditorsJean-Claude Andreani, Umberto Collesei
Number of pages11
Place of PublicationParis-Venice
PublisherMarketing Trends Association
Publication date2016
ISBN (Electronic)9782953281127
Publication statusPublished - 2016
EventThe 15th International Marketing Trends Conference - Isola di San Servolo, Venice, Italy
Duration: 21 Jan 201623 Jan 2016
Conference number: 15


ConferenceThe 15th International Marketing Trends Conference
LocationIsola di San Servolo
Internet address


  • Service-profit chain
  • Employee attitudes
  • Customer loyalty
  • Company financial performance

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