Changing Perceptions and Changing Behavior in Customer Relationships

27 Pages Posted: 26 Aug 2006

See all articles by Peter C. Verhoef

Peter C. Verhoef

University of Groningen - Department of Marketing & Marketing Research

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Bas Donkers

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM); Tinbergen Institute

Date Written: 13 2001 6,

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.

Keywords: dynamic modeling, satisfaction, customer relationships, preference updating

JEL Classification: M, M31, C44

Suggested Citation

Verhoef, Peter C. and Franses, Philip Hans and Donkers, Bas, Changing Perceptions and Changing Behavior in Customer Relationships (13 2001 6,). ERIM Report Series Reference No. ERS-2001-31-MKT. Available at SSRN: https://ssrn.com/abstract=370890

Peter C. Verhoef (Contact Author)

University of Groningen - Department of Marketing & Marketing Research ( email )

Netherlands

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

Bas Donkers

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
Rotterdam, NL 3000 DR
Netherlands
+31 10 408 2411 (Phone)
+31 10 408 9169 (Fax)

HOME PAGE: http://people.few.eur.nl/donkers/

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 2411 (Phone)
+31 10 408 9169 (Fax)

HOME PAGE: http://people.few.eur.nl/donkers/

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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