Prioritisation of the determinants of customer satisfaction: A simultaneous equation approach in ordinal endogenous set-up

摘要

The determination and ordering of the influencers of customer satisfaction are of paramount interest in various service industries. The theory of logistic regression may be exploited to relate customer satisfaction usually measured in an ordinal scale with possible covariates, measured in metrical, ordinal or binary scales. However, some of the confounders are themselves determined by other covariates under study. This necessitates the use of a simultaneous equation with ordinal endogenous variables. We propose one such approach and demonstrate its efficacy with a real life example.