Answer :
The statement is true. The Service-Profit Chain theory confirms a direct connection between excellent service experiences, customer loyalty, and a company's profitability and growth.
The Service-Profit Chain theory does establish the direct link between superior service experiences and customer loyalty to profit and growth.
This management concept illustrates how companies can leverage investment in employee satisfaction, empowerment, and general service quality to improve customer satisfaction, which in turn leads to increased customer loyalty, higher revenue, and eventually, increased profits.
It understands the importance of long-term relationships over the transactional profits, and emphasizes that not all customers require the same level of service or will contribute equally to the profits.
