Table of Contents
Economics Research International
Volume 2010, Article ID 202014, 5 pages
http://dx.doi.org/10.1155/2010/202014
Research Article

Customer Satisfaction and the Consumption Function

1China Europe International Business School, 699 Hongfeng Road, Pudong, Shanghai 201206, China
2Lee Shau Kee School of Business and Administration, The Open University of Hong Kong, 30 Good Shepherd Street, Homantin, Kowloon, Hong Kong

Received 23 February 2010; Accepted 17 June 2010

Academic Editor: Russell Smyth

Copyright © 2010 Bala Ramasamy and Matthew Yeung. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper evaluates the extent to which the American Customer Satisfaction Index (ACSI) acts as a determining variable of the US consumption function. Results show that the ACSI is a significant self-predictor of personal consumption expenditure, as well as a potent policy variable even when income and wealth are controlled for.