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Quality of consulting services and consulting fees

Author

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  • Momparler, Alexandre
  • Carmona, Pedro
  • Lassala, Carlos

Abstract

This study explores whether consulting service clients' degree of satisfaction can explain differences in consulting service fees to the same clients. By monitoring factors having a relationship with consulting fees as well as consulting service quality attributes, this study notes that client satisfaction with consulting team positively and strongly affects consulting fees. A dimension of consulting client satisfaction, which is not a consulting service quality attribute, is the factor that better explains consulting service pricing. This satisfaction dimension may allow consultants to charge higher fees through higher leverage while setting prices during contracting process. Clients' satisfaction with consulting firms appears to be unimportant in the consulting service market. Results emphasize that individuals' participation in consulting processes is essential for consulting firms to be able to single out their consulting services.

Suggested Citation

  • Momparler, Alexandre & Carmona, Pedro & Lassala, Carlos, 2015. "Quality of consulting services and consulting fees," Journal of Business Research, Elsevier, vol. 68(7), pages 1458-1462.
  • Handle: RePEc:eee:jbrese:v:68:y:2015:i:7:p:1458-1462
    DOI: 10.1016/j.jbusres.2015.01.033
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    References listed on IDEAS

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    1. David Hay & Robert Knechel & Vivian Li, 2006. "Non‐audit Services and Auditor Independence: New Zealand Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(5‐6), pages 715-734, June.
    2. Rick Antle & Elizabeth Gordon & Ganapathi Narayanamoorthy & Ling Zhou, 2006. "The joint determination of audit fees, non-audit fees, and abnormal accruals," Review of Quantitative Finance and Accounting, Springer, vol. 27(3), pages 235-266, November.
    3. Roses, Luís Kalb & Hoppen, Norberto & Henrique, Jorge Luiz, 2009. "Management of perceptions of information technology service quality," Journal of Business Research, Elsevier, vol. 62(9), pages 876-882, September.
    4. Schein, Edgar H., 1997. "The concept of client from a process consultation perspective : a guide for change agents," Working papers WP 3946-97., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Rick Antle & Elizabeth Gordon & Ganapathi Narayanamoorthy & Ling Zhou, 2002. "The Joint Determination of Audit Fees, Non-Audit Fees, and Abnormal Accruals," Yale School of Management Working Papers amz2502, Yale School of Management, revised 02 May 2006.
    6. Michael Firth, 2002. "Auditor-Provided Consultancy Services and their Associations with Audit Fees and Audit Opinions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(5&6), pages 661-693.
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    Cited by:

    1. repec:spr:svcbiz:v:11:y:2017:i:3:d:10.1007_s11628-016-0315-4 is not listed on IDEAS
    2. repec:eee:jbrese:v:89:y:2018:i:c:p:345-350 is not listed on IDEAS
    3. repec:eee:jbrese:v:98:y:2019:i:c:p:352-365 is not listed on IDEAS
    4. repec:gam:jsusta:v:10:y:2018:i:11:p:4122-:d:181796 is not listed on IDEAS
    5. Lassala, Carlos & Carmona, Pedro & Momparler, Alexandre, 2016. "Alternative paths to high consulting fees: A fuzzy-set analysis," Journal of Business Research, Elsevier, vol. 69(4), pages 1367-1371.

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