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Marketing Letters

, Volume 7, Issue 3, pp 265–274 | Cite as

Customer satisfaction and price tolerance

  • Eugene W. Anderson
Article

Abstract

This study investigates the association between customer satisfaction and willingness-to-pay or price tolerance. The goal is not only to determine whether the association between customer satisfaction and price tolerance is positive or negative but also to gauge the degree of association. The Swedish Customer Satisfaction Barometer provides the data. The empirical analysis indicates a negative association between the level of customer satisfaction provided by the firm and the degree of price tolerance exhibited by its customers. However, a positive association is found between year-to-year changes in the levels of customer satisfaction and price tolerance.

Key words

customer satisfaction price sensitivity industrial organization 

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Eugene W. Anderson
    • 1
  1. 1.National Quality Research Center, School of Business AdministrationThe University of MichiganAnn ArborUSA

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