Marketing Letters

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

Customer satisfaction and price tolerance

  • Eugene W. Anderson


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 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Anderson, Eugene W. (1994). “Cross-Category Variation in Customer Satisfaction and Retention.” Marketing Letters 5(1) (January), 19–30.Google Scholar
  2. Anderson, Eugene W. (1995). “Word-of-Mouth as a Consequence of Customer Satisfaction.” Working Paper, National Quality Research Center, Michigan Business School.Google Scholar
  3. Anderson, Eugene W., and ClaesFornell. (1993). “A Customer Satisfaction Research Prospectus.” In Richard L.Oliver and Roland T.Rust (Eds.), Service Quality: New Directions in Theory and Practice (pp. 239–266). Newbury Park, CA: Sage.Google Scholar
  4. Anderson, Eugene W., ClaesFornell, and Donald R.Lehmann. (1994). “Customer Satisfaction, Market Share, and Profitability.” Journal of Marketing 56 (July), 53–66.Google Scholar
  5. Bass, Frank M. (1993). “The Future of Research in Marketing: Marketing Science.” Journal of Marketing Research 30(1) (February), 1–6.Google Scholar
  6. Fornell, Claes. (1992). “A National Customer Satisfaction Barometer: The Swedish Experience.” Journal of Marketing (January), 1–21.Google Scholar
  7. Johnson, Michael D., Eugene W.Anderson, and ClaesFornell. (1995). “Rational and Adaptive Expectations in a Customer Satisfaction Framework.” Journal of Consumer Research 21 (March), 695–707.Google Scholar
  8. Johnson, Michael D., and ClaesFornell. (1991). “A Framework for Comparing Customer Satisfaction Across Individuals and Product Categories.” Journal of Economic Psychology 12(2), 267–286.Google Scholar
  9. Maddala, George S. (1977). Econometrics. New York: McGraw-Hill.Google Scholar
  10. Marshall, Alfred. (1980). Principles of Economics. London: McMillan.Google Scholar
  11. Morrison, Donald G. (1979). “Purchase Intentions and Purchase Behavior.” Journal of Marketing 43 (Spring), 65–74.Google Scholar
  12. Oliver, Richard L. (1980). “A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions.” Journal of Marketing Research 17 (November), 460–469.Google Scholar
  13. Olson, Jerry C., and Jacob Jacoby. (1971). “A Construct Validity Study of Brand Loyalty.” Proceedings of the 79th American Psychological Association Conference (pp. 657–658).Google Scholar
  14. Pessemier, Edgar A. (1959). “A New Way to Determine Buying Decisions.” Journal of Marketing 24 (October), 41–46.Google Scholar
  15. Wikstrom, Sloveig. (1983). “Another Look at Consumer Dissatisfaction as a Measure of Market Performance.” Journal of Consumer Policy 6, 19–35.Google Scholar

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

Personalised recommendations