Tuesday November 28 NYC QWAFAFEW Event – Last Meeting of 2017
Direct Link: https://newyork.qwafafew.org/event/nov28/
5:30- 6:10 Registration, Networking, and Refreshments
6:10 – 6:15 Chapter Business – Mike Carty, Chapter President
6:15 – 6:55 – “A Research Study – Stock Returns on Customer Satisfaction Do Beat the Market: Gauging the Effect of a Marketing Intangible” – Dr. Forrest V. Morgeson III, Director of Research and Global CSI Manager and Kevin Quigg, Chief Strategist, ACSI Funds
A debate about whether firms with superior customer satisfaction earn superior stock returns has been persistent in the literature. Using 15 years of audited returns, the authors find convincing empirical evidence that stock returns on customer satisfaction do beat the market. The recorded cumulative returns were 518% over the years studied (2000–2014), compared with a 31% increase for the S&P 500. Similar results using back-tested instead of real returns were found in the United Kingdom. The effect of customer satisfaction on stock price is, at least in part, channeled through earnings surprises. Consistent with theory, customer satisfaction has an effect on earnings themselves. In addition, the authors examine the effect of stock returns from earnings on stock returns from customer satisfaction. If earnings returns are included among the risk factors in the asset pricing model, the earnings variable partially mitigates the returns on customer satisfaction. Because of the long time series, it is also possible to examine time periods when customer satisfaction returns were below market. The reversal of the general trend largely resulted from short-term market idiosyncrasies with little or no support from fundamentals. Such irregularities have been infrequent and eventually self-correcting. The authors provide reasons why irregularities may occur from time to time.
6:55 – 7:10 Refreshment and Networking Break
7:10 – 7:55 – “Smart Beta Meets Big Data” – Rick Davis, President & CEO, Consumer Metrics Institute
Peter Lynch used consumer focus groups and the concept of “brand loyalty” as a key equity selection criteria while managing the Magellan Fund at Fidelity Investments from 1977 to 1990. During that time the average annual return experienced by Magellan’s shareholders was over 29%.
This presentation will explore ways to adapt Peter’s idea for the 21st Century by leveraging “Big Data” into history’s largest and most timely “brand loyalty” focus group.
Venue: Bourbon Street Bar and Grill, 346 W 46th Street, between 8th and 9th Avenues, New York, NY 10036
http://www.bourbonny.com/contact accessible 42nd Street, Port Authority (A, C, E lines)
To learn more about QWAFAFEW: visit http://qwafafew.org/
Forrest Morgeson is responsible for managing ACSI’s academic research and statistical analysis, as well as its international licensing program and global custom research projects. Morgeson’s areas of expertise include citizen satisfaction with government services, cross-national citizen and consumer satisfaction, and the financial impact of customer satisfaction in the private sector. His research has been published in leading peer-reviewed marketing and business administration journals. Morgeson’s book entitledCitizen Satisfaction: Improving Government Performance, Efficiency, and Citizen Trust was released in 2014. Morgeson has consulted with dozens of government agencies and multiple corporations on both citizen and consumer satisfaction, and has delivered lectures and presentations in more than 30 countries around the world.
Kevin is responsible for expanding the footprint and awareness of ACSI Funds’ proprietary strategies to allow investors to access the previously unexploited investment factor of customer satisfaction. Mr. Quigg has previously headed SPDR ETF’s Global Sales Strategy, Global Capital Markets, and Institutional ETF Sales Groups, where he was responsible for working with market participants in the primary and secondary markets in the Americas, Europe, Asia, and Australia. Prior to joining SPDR ETFs, he was a Business Development Officer responsible for exchange traded product sales for Barclays Global Investors. Mr. Quigg is a frequent guest in many media outlets including CNN, CNBC, Wall Street Journal, and Yahoo Finance among others. Mr. Quigg is a graduate of the College of the Holy Cross. He holds his FINRA series 6,7,24 and 63 licenses.