The link between customer satisfaction and price sensitivity: An investigation of retailing industry in Taiwan

Wen-Shinn Low, Jeng-Da Lee and Soo-May Cheng

Journal of Retailing and Consumer Services, 2013, vol. 20, issue 1, 1-10

Abstract: Are customers less likely to seek bargains once they are satisfied with a product and service? This study examines the relationship between customer satisfaction and price sensitivity. Specifically, satisfaction is divided into economic satisfaction derived from tangible products and social satisfaction provided by service encounters. This survey of 248 retailer–consumer dyads shows that economic satisfaction is negatively associated with price sensitivity. However, social satisfaction is positively related with price sensitivity, especially for female customers and customers with high patronage frequency. Interpersonal relationships emphasized in the Chinese collectivist societies tend to influence customers' price sensitivity. These findings have many implications for researchers and practitioners in the retail sector.

Keywords: Customer satisfaction; Price sensitivity; Retailing industry; Dyadic sampling (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:20:y:2013:i:1:p:1-10

DOI: 10.1016/j.jretconser.2012.06.011

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