The service-profit chain (Heskett et al., 1997) was developed
from an analysis of service organizations with the aim of linking
operational resource investments to marketing, operational, and
financial outcomes. The service-profit chain combines three
distinct, but closely related streams of research: the cycle of
employee capability, the customer quality/value equation, and the cycle of customer loyalty. The cycle of employee capability takes
a human resource perspective on the relationships between
employee satisfaction, turnover, and productivity. The quality/
value equation describes how customers perceive and assess
service offerings. The cycle of customer loyalty examines the effect
that customer satisfaction has on customer loyalty and how they
both play a vital role in determining financial outcomes (Loveman,
1998; Loveman and Heskett, 1999).