The service climate‐firm performance chain: The role of customer retention

This study examines the role of customer retention as a mediator in the service climate–firm performance chain. Using a predictive design that involves data collected from 1,500 automotive service stores from 12,518 employees and approximately 30,000 customers, a model linking service climate (a concern for employees and customers), customer satisfaction, customer retention, and firm performance was tested. Notably, the results support the overall model and the hypothesized mediating effect of customer retention regarding the relationship between customer satisfaction and firm performance. © 2011 Wiley Periodicals, Inc.