We formulate a theoretical model in which we postulate that if customers' behavior is perceived as not optimal, customers will adjust this behavior based on their current satisfaction and payment equity. Furthermore, customers will also include new experiences. In our empirical study we particularly investigate customer referrals and the amount of services purchased. Our results show positive effects of current satisfaction and payment equity on referrals, while also changes in satisfaction and payment equity affect customer referrals. With respect to the amount of services purchased, our estimation results reveal a positive significant effect of only changes in satisfaction.

Additional Metadata
Keywords customer relationships, dynamic modeling, preference updating, satisfaction
JEL Statistical Decision Theory; Operations Research (jel C44), Business Administration and Business Economics; Marketing; Accounting (jel M), Marketing (jel M31)
Persistent URL dx.doi.org/1016093819299, hdl.handle.net/1765/11498
Series ERIM Top-Core Articles
Journal Marketing Letters: a journal of research in marketing
Verhoef, P.C, Franses, Ph.H.B.F, & Donkers, A.C.D. (2002). Changing Perceptions and Changing Behavior in Customer Relationships. Marketing Letters: a journal of research in marketing, 121–134. doi:1016093819299