Abstract:

In this article, a theoretical framework has been developed that specifies how customer satisfaction affects revenues which reflect, timing, and risk of future cash flows as well. It is contend that progress in fields such as quality, employee satisfaction and customer satisfaction, and innovation actually serve as an investment in firm distinctive assets that are actually not completely captured in prevailing accounting measures. It is studied that nonfinancial index of contribution in intangible assets are indicators of prospective financial performance and returns than the classical accounting measures, and should complement financial dimension in subjective accounting scheme. The analysis is based upon secondary data that includes longitudinal American Customer Satisfaction Index, financial statements of food manufacturing companies, association has been researched between customer satisfaction and revenues of food manufacturing companies. The revenue emphasis is exemplified in programs designed to introduce and modify products and services to exceed customer expectations, to retain consumers, and improve sales to already retained customers. Useful insights are provided in this study for food manufacturing industry and their policy makers for developing effective and competitive strategies. The methodological and managerial implications are also discussed in the light of literature.