We develop and test a model that investigates how differencesin customer characteristics affect (1) satisfactionthresholds, (2) response bias, and (3) nonlinearity in thesatisfaction-retention relationship. Results show that customerswith different characteristics have systematically differentthresholds and response biases. As such, Uie extent towhich their satisfaction ratings transits into repurchasebehavior varies systematically. We also fmd that the linkbetween satisfaction and repurchase behavior is highly nonlinear,though the nonlinearity does not vary on the basis ofconsumer characteristics. Finally, the functional form underlyingthe satisf^tion-behavior link is markedly differentfrom the satisfaction-intention link. This is important formanages and researchers alike, who need to make a choicebetween repurchase intent and behavior for the dependentvariable.
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