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Changing Perceptions and Changing Behavior in Customer Relationships

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Author Info
Verhoef, P.C.
Franses, Ph.H.B.F.
Donkers, A.C.D. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

We formulate a theoretical model in which we postulate that if a customers' behavior is perceived as not optimal, customers will adjust this behavior based on their current satisfaction and payment equity. Furthermore, customers will also include new experiences. In our empirical study we particularly investigate customer referrals and the amount of services purchased. Our results show positive effects of current satisfaction and payment equity on referrals, while also changes in satisfaction and payment equity affect customer referrals. With respect to the amount of services purchased, our estimation results reveal a positive significant effect of only changes in satisfaction.

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File URL: http://hdl.handle.net/1765/96
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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2001-31-MKT Revision_Date: 2009-11-06.

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Date of creation: 13 Jun 2001
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Handle: RePEc:dgr:eureri:200191

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Related research
Keywords: dynamic modeling; satisfaction; customer relationships; preference updating;

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