Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.

Most of the previous research on price changes has focused on price decreases. This article investigates the effects of price increases at an individual level. The authors argue that customers’ reactions to price increases (i.e., re-purchase intentions) are strongly driven by two factors: the magnitude of the price increase and the perceived fairness of the motive for the price increase. In this context, the authors examine the role of customer satisfaction in influencing the impact of these two variables on repurchase intentions after a price increase. Their findings reveal that as satisfaction increases, the negative impact of the magnitude of a price increase is weakened. Furthermore, the results suggest that satisfaction moderates the impact of perceived motive fairness. The authors also find that the level of satisfaction can influence the valence of the perceived motives in response to a price increase.

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Despite the strong recognition that customer satisfaction should be viewed from a dynamic perspective, little is known about how the satisfaction judgment develops over time. Therefore, this study provides a dynamic analysis of the simultaneous influence of cognition and affect in the satisfaction formation process. The results of an experimental study based on a real consumption experience indicate that the impact of cognition on the satisfaction evaluation increases and the influence of affect decreases over time. Moreover, these effects are attenuated with inconsistent performance experiences. Finally, the study shows that the variance in customer satisfaction jointly explained by cognition and affect increases as experience accumulates.

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