The influence of customer satisfaction on customer price behavior: literature review and identification of research gaps

Abstract

Because price is a key element in the profit equation of every firm, it is essential to analyze the mechanisms of customer price behavior (CPB) and its determinants. The concept of customer satisfaction (CS) as one of these determinants has frequently been analyzed in the recent academic literature on marketing and pricing. This paper aims to analyze current studies on the influence of CS on CPB to provide an overview of the current state of research. Based on this literature review, this study can identify research gaps that can serve as avenues for future research. Hence, this article contributes to the existing literature by identifying four essential research gaps. First, future research must consider that in the course of satisfying consumption experiences, the customer typically pays a certain price. On the one hand this price can serve as an anchor for the customer’s future price behavior; on the other hand this price can be used by a company to evaluate such future price behavior. Furthermore, future studies must differentiate between transaction-specific and cumulative views of CS. Second, future research should distinguish between the influence of CS and the effect of customer delight on CPB. Third, the study of the effects of CS on constructs that are also important in behavioral pricing, such as price acquisition, price processing and price knowledge, has been neglected in existing research. Fourth, future research should consider further moderators of the relationship between CS and CPB. Closing these gaps would make an important contribution to marketing research and practice.