Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay

Homburg, Christian; Koschate, Nicole; Hoyer, Wayne D.

doi:10.1509/jmkg.69.2.84.60760

Cited by 888 publications

(634 citation statements)

References 87 publications

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“…Similarly, Cooil et al, 2007; suggested that the increased income could also be caused to a supplier obtaining an increased portion of satisfied customer's wallet. Homburg et al, (2005) also found that increased cash flows can be attributed through sensitivity of lower price among pleased customers who are willing to pay more. Moreover, the acquisition of additional customers leads to increase revenue.…”

Section: Customer Satisfaction and Financial Performancementioning

confidence: 95%

Relationship between Customer Satisfaction and Business Performance: A Case Study of Lloyds Bank UK

Neupane

2014

Int J Soc Sci Mgt

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Purpose: The main purpose of this research is to examine the relationship between customer satisfaction and business performance in Lloyds Bank UK. Moreover, it also examines the extent of customer satisfaction and the business performance of Lloyds Bank through examining various factors of customer satisfaction and business performance respectively. Design/Methodology: The necessary data were collected from the customers and employees through structured questionnaires from 16 branches of Lloyds Bank United Kingdom. The sample of 250 customers and 80 management level employees are considered in this research. The collected data were analysed through correlation, regression, arithmetic mean and standard deviation through SPSS 20. Main Findings: The mean score of every variable is more than 3 out of 5 and mean score of overall customer satisfaction is 3.89 (77.8% satisfaction) indicates that there is high level of customer satisfaction in Lloyds Bank. Similarly, mean score of overall business performance is 3.73 (75%) shows a high level of business performance. The Pearson's coefficient of correlation between overall customer satisfaction and business performance is r = 0.343 indicated that they are positively correlated. But, regression analysis shows that customer satisfaction has not significant effect on business performance as P = 0.139 and β = 0.343. Thus, it shows that customer satisfaction has week positive relationship with business performance. Value: This research refines and reinforces the body of knowledge and understanding about customer satisfaction and organisational performance. These findings may be useful to the organisation for future planning to enhance customer satisfaction and to increase business performance. The instruments may have practical implications for examining customer satisfaction and business performance in any other business organisations. Limitations: This research was conducted through cross sectional approach and limited sample of 250 customers and 80 employees from 16 branches in the main cities of the UK. So, the findings are limited to a bank in the main cities and so it can be tested through large sample test.

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Section: Customer Satisfaction and Financial Performancementioning

confidence: 95%

Relationship between Customer Satisfaction and Business Performance: A Case Study of Lloyds Bank UK

Neupane

2014

Int J Soc Sci Mgt

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“…That is, when customers have a higher perceived value in relation to the cost of the product, they are willing to pay a relatively expensive price [72]. In addition, willingness to pay more has a major effect on the enhancement of sales and revenues, so it has been studied in diverse fields [5,73,74]. …”

Section: Willingness To Pay Morementioning

confidence: 99%

An Investigation of Passengers’ Psychological Benefits from Green Brands in an Environmentally Friendly Airline Context: The Moderating Role of Gender

2017

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Abstract:In recent years, as natural environmental problems have become more serious, environmentally friendly airlines have been attracting attention from many practitioners and scholars. The purpose of this study was to apply the concept of psychological benefits of green brands in an environmentally friendly airline context. Based on the theoretical relationships between the conceptual constructs, a model was developed and then evaluated using data collected from 322 airline passengers in Korea. The results indicated that the three sub-dimensions of psychological benefits of green brands (i.e. warm glow, self-expressive benefits and nature experiences) help to enhance the overall image of an environmentally friendly airline. Furthermore, the overall image plays an important role in the formation of three outcome variables: intentions to use, word-of-mouth intentions and willingness to pay more. Lastly, gender moderates the relationship between overall image and intentions to use.

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“…In today's growing service economy, it is essential for service providers in both the private and public sectors to understand the important roles that creativity, empathy, and implicit knowledge play in service coproduction in order to meet the demand for highly customized, expertise-dependent service experiences (Spohrer et al 2007). These factors are even more linked to the business basis for strong service design when considering the notion that there is a strong relationship between customer satisfaction and "willingness to pay" (Homburg et al 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

Performing Service Design Experiments Using Ethnomethodology and Theatre-Based Reenactment: A Swiss Ski Resort Case Study

2012

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A service experience corresponds to a social process whose "production" involves both a provider and a client. This production process that leads to a problem resolution does not follow a linear sequence, as in the case of industrialized organizations. Through ethnomethodology, we are able to "tangibilize" the social codes and systems of beliefs that drive the service experience. Then, through scriptwriting and role plays, we redesign, safeguard (risk management), price, and test the new service. After three years of applying this approach in our service lab, hundreds of students have been introduced to the process of ethnomethodology and have designed their own services. To illustrate the approach, we present in this paper a service design that we have implemented for the tourist information service of Crans-Montana, Switzerland.

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Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay

Cited by 888 publications

References 87 publications

Relationship between Customer Satisfaction and Business Performance: A Case Study of Lloyds Bank UK

Relationship between Customer Satisfaction and Business Performance: A Case Study of Lloyds Bank UK

An Investigation of Passengers’ Psychological Benefits from Green Brands in an Environmentally Friendly Airline Context: The Moderating Role of Gender

Performing Service Design Experiments Using Ethnomethodology and Theatre-Based Reenactment: A Swiss Ski Resort Case Study

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