Methodology

SAS Index™ Model

A prerequisite for direct comparison with the ACSI and EPSI, involves the use of the partial least squares model as the analysis tool. The results are processed by the Stockholm School of Economics to follow this protocol. The thinking behind this model is illustrated in the diagram below.

In essence, customer satisfaction is a function of expectations and the quality of service as reflected in the actual execution of the service, the level of customisation offered and the reliability of the service (i.e. how trouble free the service is). Customer satisfaction is also affected by the perceived value of the offering. Whether or not there was a need to complain, combined with customer satisfaction will ultimately drive customer loyalty.

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