HOMBURG - RELATIONSHIP BETWEEN SATISFACTION AND WILLINGNESS TO PAY

Question 1

HYPOTHESIS 1

Answer 1

Willingness to pay increases with customer satisfaction

-> based on equity theory - consumer try to equalize input and output

Question 2

HYPOTHESIS 2

Answer 2

Relationship between CS and WTP follows an inverse S-shape function
= flat in the middle & steep with high magnitude in the beginning & end
-> based on disappointment theory
= high positive & negative disconfirmation are much more emotionally charged
= high disappointment or elation = low/high WTP

Question 3

HYPOTHESIS 2ALT

Answer 3

Relationship between CS & WTP follows an S-shaped function
= curve is steep in the middle and flat at the extremes
-> based on the prospect theory
= judgement of satisfaction is dependent on reference point
= satisfaction above the reference point -> gain
= satisfaction below the reference point -> loss

Question 4

HYPOTHESIS 3

Answer 4

The relationship between CS & WTP get stronger when moving from transaction-specific to cumulative.
-> attitude certainty moderates the relationship
= repeated experiences bring validation of judgement

Question 5

MANAGERIAL IMPLICATIONS

Answer 5

• companies may charge a premium price if they have a high level of customer satisfaction
• high level of CS give sales reps a stronger position to negotiate prices with clients
• aiming for high levels of CS (results in high costs most likely)
  = only for highly valued customers and accept a lower level for less valued customers