We formulate a theoretical model in which we postulate that if a 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)
Publisher Erasmus Research Institute of Management
Persistent URL hdl.handle.net/1765/96
Series ERIM Report Series Research in Management
Rights Copyright 2001, P.C. Verhoef, P.H.B.F. Franses, B. Donkers, This report in the ERIM Report Series Research in Management is intended as a means to communicate the results of recent research to academic colleagues and other interested parties. All reports are considered as preliminary and subject to possibly major revisions. This applies equally to opinions expressed, theories developed, and data used. Therefore, comments and suggestions are welcome and should be directed to the authors.
Citation
Verhoef, P.C, Franses, Ph.H.B.F, & Donkers, A.C.D. (2001). Changing Perceptions and Changing Behavior in Customer Relationships (No. ERS-2001-31-MKT). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/96