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Satisfaction
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Satisfaction
A Behavioral Perspective on the Consumer
Second Edition
Richard L. Oliver
First published 2010 by M.E. Sharpe
Published 2015 by Routledge

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Library of Congress Cataloging-in-Publication Data
Oliver, Richard L.
Satisfaction : a behavioral perspective on the consumer / by Richard L. Oliver. — 2nd ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-7656-1770-5 (cloth : alk. paper)
1. Consumer satisfaction. 2. Consumer satisfaction—Evaluation. I. Title.
HF5415.335.O55 2009
658.8'12—dc22 2008039870
ISBN 13: 9780765617705 (hbk)

CONTENTS
List of Tables xv
List of Figures xvii
Preface xxi
1. Introduction: What Is Satisfaction? 3

Why Study Satisfaction in a Consumer Context? 4
The Consumer’s Perspective 4
The Firm’s Perspective 5
The Industry Perspective 5
The Societal Perspective 5
A Diversity of Satisfaction Definitions 6
Satisfaction: A Formal Definition 8
What About Dissatisfaction? 8
Vertical and Horizontal Distinctions 9
Vertical Distinctions 10
Horizontal Distinctions 10
Do Firms Agree on Satisfaction as a Corporate Goal? 11
Consumer Satisfaction Compared to Satisfaction in Other Domains 12
Satisfaction Compared to Related Concepts 13
A First-Time Consumer 14
Repeat Purchasing, Consumption, or Patronization 15
A Note on the “Nonprocessing” of Satisfaction 15
The Structure of This Book 16
The Essentials of the Satisfaction Response 16
Comparison Operators 18
Integrative Psychological Processes 19
Consequences of Satisfaction 21
Glossary 21
Notes 23
Bibliography 24
PART I. BASIC SATISFACTION MECHANISMS 27
2. The Performance of Attributes, Features, and Dimensions 29

Traditional Satisfaction Analysis 29
v
vi
Descriptive Statistics 30
Importance-Performance Analysis 31
Regression Analysis 33
A Fundamental Shortcoming of Performance Analysis 35
Determining and Measuring Feature Performance 36
Satisfaction Drivers Versus Choice Criteria 36
Levels of Feature Abstraction 39
What Features? 40
Consumer-Generated Lists 44
Scaling Performance 46
Feature or Attribute Importance 50
Alternative Measures of Importance for Satisfaction 52
Importance-Performance Analysis Revisited 53
Conclusion 55
Notes 55
Bibliography 57
3. Expectations and Related Comparative Standards 61

What Is an Expectation? 63
More on Varieties of Expectations and Performance Referents 64
Anticipations as Expectations: Affective Expectations 64
Expectations of What? 65
Expectation Referents Categorized by Level of Desire 66
Referents Categorized by Level of Abstraction 69
Referents Categorized by Focal Comparison Object 72
An Applied Example 73
The “Best” of the Expectation-Based Comparative Referents 74
Sources of Referents and Reasons for the Level of Abstraction 75
External Sources 76
Internal Sources 77
Measuring Expectations: How and When 79
Predictive Expectations 79
Examples of Measures 80
Measuring Ideal, Should, and Desired Expectations 81
Practical Issues in the Measurement of Multiple Standards 81
Measuring Expectations After the Fact: Retrospective Expectations 82
Updating Expectations During Consumption 83
The Function of Expectations in Satisfaction Formation 84
Expectations as Assimilation Agents 84
Expectations as Contrast Agents 86
Conclusion 86
Notes 86
Bibliography 89
4. The Expectancy Disconfirmation Model of Satisfaction 96

Discrepancy Models of Satisfaction 96
The Consumer Behavior Approach 97
vii
Shortcomings of Assimilation Versus Contrast Interpretations 98

Disconfirmation Elaborated 99
Objective Versus Subjective Disconfirmation 101
Predicting Satisfaction: Calculated or Subjective Disconfirmation? 104
Expectations and Disconfirmation as Proxies for Assimilation and Contrast 105
What Does This Imply for Managerial Strategy? 107
The Role of Confirmation 107
The Role of Extremes of Disconfirmation 109
Surprise and Disconfirmation in the Consumption Response 110
The Relative Influences of Expectation or Disconfirmation: When Would
One Dominate the Other? 112
When Expectations Dominate 112
When Disconfirmation Dominates 115
Conditions Favoring Strong Disconfirmation Effects 116
Evidence for the Expectancy Disconfirmation Model 117
Performance Influences in the Expectancy Disconfirmation Model 118
Model Variations 120
Sample Versus Individual Influences 121
Other Disconfirmable Comparative Referents 121
Conclusion 126
Notes 127
Bibliography 130
PART II. ALTERNATIVE AND SUPPLEMENTARY COMPARATIVE

OPERATORS 135
5. Need Fulfillment in a Consumer Satisfaction Context 137

Basics of Need 137
Restoration and Enhancement 137
Reinforcement 138
Needs in the Satisfaction Process 140
Two Popular Need Satisfaction Models 142
Marketing Efforts to Apply Two-Factor Theory 147
Need Gratification Theory Elaborated 148
A Consumer Perspective on Need Satisfaction Theory 148
Descriptive and Correlational Data 150
The Kano Approach to Satisfiers and Dissatisfiers 152
Practical Implications of the Need Satisfaction Perspective 155
Application Implications 155
Measurement and Analysis 155
Conclusion 158
Notes 158
Bibliography 160
6. Quality: The Object of Desire 162

Technological Referents: The Historical Approach 162
Technical Comparisons 163
viii
Consumer Perceptions of Quality 164

Quality Abstractions From the Consumer’s Perspective 165
Single-Stimulus Definitions 165
Dual-Stimulus Definitions 167
Ideals as the Quality Standard 168
Use of Excellence as the Quality Standard: SERVQUAL Revisited 169
Quality Response Functions 171
Are Importances Useful in a Quality Model? 172
Measuring Quality as an Encounter or Global Concept 173
Quality Measurement at the Encounter Level 173
Quality Measurement at the Global Level 173
Quality and Satisfaction: Similarities and Differences 175
Conceptual Differences 175
Distinguishing Short-Term and Long-Term Quality and Satisfaction Effects 178
Tests of Frameworks Linking Quality and Satisfaction 180
An “Encounter Quality Influences Satisfaction” Model 181
Satisfaction-Specific and Quality-Specific Attributes 181
The Model 182
Affective Quality: New Directions for Services 184
Conclusion 185
Notes 185
Bibliograhy 187
7. The Many Varieties of Value in the Consumption Experience 190

Axiology: The Study of Values 190
Self-Oriented Values 191
Other-Oriented Values 191
Renditions of Value as Pre- and Postconsumption Events 192
Single-Stimulus Definitions of Value in Consumption 192
Dual-Stimulus Definitions of Value in Consumption 195
Proposed and Actual Model Tests Containing Quality and Value:
What Can Be Learned? 197
Value as a Satisfaction-Like Postpurchase Comparison 198
What, Now, Is Value? 198
What, Now Is the Role of Value in Satisfaction (or Vice Versa)? 200
Measuring Consumer Values 202
What of Value in Marketing Strategy? 203
Conclusion 204
Notes 204
Bibliography 206
8. Equity: How Consumers Interpret Fairness 211

Equity: What It Is 211
A Mathematical Representation of Equity and Its Problems 212
“Positive” Inequity 214
The Effect of Differing Roles 214
The Role of Equity in Consumer Satisfaction 215
ix
Person-to-Person Comparisons 215

Person-to-Merchant Comparisons 217
Consequences of Inequity 218
Historical Versus Contemporary Interpretations of Equity Influences 218
Nonintervening Frameworks 218
Intervening Approaches 220
Additional Topics in Consumer Equity 224
Distributive Versus Procedural and Interactional Fairness 224
Does Equity Work in Parallel With Disconfirmation? 226
Equity Sensitivity: Who and How Many Are Affected? 229
Conclusion 229
Notes 230
Bibliography 232
9. Regret and Hindsight: What Might Have Been and What I Knew Would Be 237
The Comparative Nature of Regret and Hindsight 237
Hindsight and Regret Categorized by Perceived Responsibility 238
Regret 239
Sources of Referents for the Occurrence of Regret 241
Positive Regret: Clarifying Rejoicing 243
Common Alternative Negative Correlates of Regret 244
A Priori Consideration of Regret 244
Joint Operation of Regret and Disconfirmation 246
Determinants of Regret 246
Evidence for the Consequences of Regret 250
Regret as an Initiator of Self-Protection 251
Hindsight Bias 251
Moderating Conditions and Causes 252
Evidence in a Marketing Context 253
Conclusion 253
Notes 254
Bibliography 256
PART III. SATISFACTION PROCESSES AND MECHANISMS 261
10. Cognitive Dissonance: Fears of What the Future Will Bring (and a Few Hopes) 263
Decision-Making Stages 264
Four Phases of Consumption 264
Purchase Phase Stresses 266
Dissonance: The Concept 267
Causes 267
What Dissonance Is 270
How Can Consumers Stand It? 270
Dissonance: The Evidence 271
Dissonance-Inducing Factors 272
Dissonance Reduction Strategies 274
Examples of Consumer Dissonance Induction and Reduction 278
x
Proposed Relations Between Dissonance and Satisfaction 279

Beta and Gamma Phase Effects 279
Delta Phase Effects 281
Measuring Dissonance in the Satisfaction Process 281
Conclusion 283
Notes 284
Bibliography 285
11. Attribution in the Satisfaction Response: Why Did It Happen? 290

The Origins of Attribution Theory 291
Actors and Observers 291
Causes and Reasons 292
Attributions to the Person or Situation 293
Biases and “Errors of Judgment” in Attribution 293
The Weiner Framework 295
The Three Dimensions 295
Consumer Interpretations 296
Postpurchase Marketing Examples 298
Locus of Causality 298
Controllability 299
Stability 299
The Causal Basis for Attributions 300
The Role of Disconfirmation 300
The Model 302
Attribution-Dependent Affect 303
Attribution Measurement 304
Qualitative Measures 304
Standard Scales 305
Conclusion 306
Notes 307
Bibliography 309
12. Emotional Expression in the Satisfaction Response 314

Emotion and Its Origin 315
The Brain and Emotion 316
Emotion, Affect, and Mood 317
The Structure of “Universal” Emotions 318
Emotions as Discrete Affects 318
Affect as a Two-Dimensional Construct 318
Emotion as a Blend of Affects 320
Evidence for Satisfaction in Emotion Frameworks 320
Measuring Affect in Satisfaction Contexts 323
Identifying Consumption Emotions 323
Bipolar Versus Unipolar Scales in Emotion Measurement 325
Intensity Versus Frequency 325
Studies of Consumer Emotion 327
Origins of Consumer Emotion 327
xi
Emotion and Satisfaction in Consumption 327

Preconsumption Emotion Effects 329
Affects During Transient and Extended Consumption 330
Emotions as Satisfaction Outcomes 333
Cognitive Determinants of Emotion 334
Cognitive Appraisal Revisited 334
Two-Appraisal Models 335
Affects Resulting From Cognitive Appraisal 335
Where Is Satisfaction? 338
Inductive Approaches 338
Insights in the Postpurchase Literature 339
Appraisal-Based Consumption Emotions 339
The Tertiary Phase: Action Tendencies 340
Conclusion 341
Notes 342
Bibliography 345
13. The Processing of Consumption 352

A Response Mode Approach to Consumption 352
The Dilemma for Management 353
Satisfaction in a Classification Context 353
Satisfaction in an Appraisal Context Revisited 354
A Formal Appraisal Model for the Satisfaction Response 355
The Favorable Outcome Sequence 356
The Unfavorable Outcome Sequence 357
The Unexpected Outcome Sequence 358
The Success and Failure Attribution Sequences 359
Adding the Appraisal Framework to the Expectancy Disconfirmation Model 360
Satisfaction Prototypes 360
Proposed Categories of Consumption Response Orientation 364
Summary of the Model 367
A Test of the Model 367
The Study 368
Response Mode Profiles 370
Processing Profiles 371
Emotional Linkages 373
Other Proposed Satisfaction States 376
Conclusion 378
Notes 379
Bibliography 380
PART IV. SATISFACTION’S CONSEQUENCES: WHAT HAPPENS NEXT? 383
14. After Satisfaction: The Short-Run Consequences 385

What Do Consumers Do? 386
Nonresponse Following Successful Consumption 386
Nonresponse Following Unsuccessful Consumption 386
xii
A Complaint Process Model 389

Complaint Handling Within the Expectancy Disconfirmation Model 392
Indirect Evidence for the Complaining Framework 393
More Problems of Overgenerosity 395
The Case of Unknown Complaint Expectations 396
Other Consumer Responses 397
Firm Strategies: Promoting Complaints and Encouraging Compliments 397
Encouraging Complaints 397
What About Compliments? 399
Integrated Psychological Processes: Attribution, Equity, and Appraisal 399
Consumer Dissatisfaction Profiles 402
Nontheoretic Frameworks 402
The Hirschman “Exit, Voice, and Loyalty” Theoretical Framework 403
Consumer Dissatisfaction Studies Using the Hirschman Framework 404
Word of Mouth: Current Interpretations 404
Determinants 405
Company WOM Responses and Strategies 407
Measuring the Short-Term Consequences 408
Primary Postpurchase Variables 408
Secondary Satisfaction 409
Conclusion 410
Notes 410
Bibliography 415
15. Loyalty and Financial Impact: Long-Term Effects of Satisfaction 424

The Development of Loyalty: A Framework 425
Intentions and Behavior: Historical Perspective as Relating to Loyalty 428
Intention as a Proxy for Loyalty 429
Behavior as a Proxy for Loyalty 430
A Definition of Loyalty 432
The Phases of Loyalty Elaborated 433
Cognitive Loyalty 433
Affective Loyalty 433
Cognitive Loyalty 434
Action Loyalty 434
Tests of the Phases 434
Obstacles to Loyalty 436
Consumer Idiosyncrasies 436
Switching Incentives 437
Interpersonal Loyalty: Additional Effects in Services 440
Loyalty Patterns 440
Three Loyalty Categorizations 441
Loyalty Programs 442
Philosophy and Evidence 442
Excess Returns to Loyalty 444
New Perspectives on Loyalty Generation and Maintenance:
Consumption Communities 445
xiii
Dimensions of the Framework 445

Self-Isolation as a Sustainer of Loyalty 446
The Social Organization: The Village 448
Individual and Social Integration: Fully Bonded Loyalty 449
The Relation Between Satisfaction and Loyalty 450
Is Brand Loyalty an Anachronism? 452
Measuring Loyalty 453
Basic Loyalty Scales: Staying and Switching 453
The Social Support of the Community 455
The Translation of Loyalty Into Profits 455
The Big Picture: Satisfaction Matters 456
How Satisfaction Indirectly Influences Profits 457
Market Share and Shareholder Wealth 458
Conclusion 459
Notes 460
Bibliography 465
Name Index 479

Subject Index 503
About the Author 519
LIST OF TABLES
1.1 Vertical and Horizontal Views of Satisfaction 9

2.1 Choice Versus Satisfaction Influences: High-End Workstation Purchasing 38
3.1 Hypothetical Expectation Set for a Family Shopping for a New Home 73
4.1 Categories of Disconfirmation Related to Experiential States of Nature 100
4.2 Consumers With Identical Outcomes and Different Satisfactions 103
4.3 Tabular Results Cross-Classified by Expectation and Disconfirmation Levels 107
4.4 Separate Disconfirmation Effects of Benefits and Problems 122
4.5 Possible Expectancy Disconfirmation Model Outcomes 126
5.1 Sample Kano Evaluation Table 153
5.2 Hypothetical Kano Summary Table 153
6.1 Single-Stimulus Definitions of Quality 166
6.2 Conceptual Differences Between Quality and Satisfaction 176
8.1 Conceptual Differences Between Equity and Disconfirmation 227
9.1 Common Regret-Associated Negative Emotions and Their Different States 246
10.1 Purchase Decision Phases and Corresponding Elements of Uncertainty 266
11.1 Biased Attributions to Self and Other Under Different Outcome Conditions 294
11.2 The Weiner Attribution Framework 296
11.3 Typical Locus Attributions Under Success and Failure 304
12.1 The Plutchik Conical Circumplex 321
12.2 Selected Items From the Self-Report Affect Circumplex With a
Focus on Consumption 328
1 2.3 Selected Appraisal Dimensions and Emotional Labels 337
13.1 Characteristics of the Proposed Response Modes 364
13.2 Factor Analysis Findings for the Response Modes 369
13.3 Cluster Z-Score Means on the Response Mode Scales 370
13.4 Factor Analysis Findings for the Processing Modes 372
13.5 Cluster Means on the Processing Scales 373
13.6 Cluster Means on the Emotion and Satisfaction Measures 374
13.7 The Consumption Satisfaction Scale 378
14.1 Costs and Redress Returns for Three Common Warranties 391
14.2 Satisfaction Scores in the Complaining Letter Study 394
14.3 Complaint Settlement Breakeven Values 396
15.1 Multibrand Loyalty Categories 432
15.2 Loyalty Phases With Corresponding Vulnerabilities 438
15.3 Four Loyalty Strategies 446
xv
LIST OF FIGURES
1.1 Variants of “Satisfaction” 7

1.2 Domains of Satisfaction Based on Episodic Frequency 13
1.3 The Satisfaction Process 17
1.4 The Comparison Operators 19
2.1 A Satisfaction-Performance Scatterplot 31
2.2 Importance-Performance Grids Showing Interpretive Regions 32
2.3 The Common “Performance Causes Satisfaction” Model Showing
Correlated Features 34
2.4 The “Performance Dimension Causes Satisfaction” Model 34
2.5 Choice Criteria Versus Satisfaction Drivers 37
2.6 The “Rings” Model of Product and Service Attributes 41
2.7 The Dimensionality of the SERVQUAL Instrument 44
2.8 A Means-End Hierarchy for Fruit Juice 45
2.9 Distributions of Satisfaction Scores for “Poor,” “Good,” and “Excellent” Results 50
2.10 Alternative Importance-Performance Grids 53
3.1 Operation of Expectations at the Macro Level 62
3.2 Expectations According to Level of Desirability With Descriptive Ranges 68
3.3 The Oliver and Winer Expectation Framework 70
3.4 Operation of Expectations Under Adaptation 85
4.1 A Simplified Expectancy Disconfirmation Framework 105
4.2 Operation of an Indifference Zone in Expectancy Disconfirmation 108
4.3 Operation of Expectancy Disconfirmation Under Strong Expectation and
Weak Disconfirmation Effects 114
4.4 Operation of Expectancy Disconfirmation Under Weak Expectation and
Strong Disconfirmation Effects 115
4.5 The Complete Expectancy Disconfirmation With Performance Model 120
4.6 Dimension- or Attribute-Specific Operation of the Expectancy
Disconfirmation Model 125
5.1 The Reinforcements 139
5.2 Operation of Needs in Satisfaction and Motivation 141
5.3 Overlap in the Herzberg Two-Factor Framework 146
5.4 Operation of Three Need Categories on Overall Satisfaction/Dissatisfaction 150
5.5 Kano-Based Satisfaction/Dissatisfaction Indices 154
5.6 Satisfier/Dissatisfier Potentials by Product Feature: Ski Example 154
xvii
xviii LIST OF FIGURES
5.7 Likely Scatterplots Corresponding to Various Need Fulfillment

Response Functions 157
6.1 Technical Excellence Quality Comparatives 164
6.2 Relationship Between Attribute Performance and Attribute Quality Under
Three Ideal-Point Assumptions 172
6.3 Asymmetrical Reciprocal Influences Between Quality and Satisfaction at
the Encounter and Global Levels 179
6.4 An Encounter-Specific Quality and Satisfaction Model 183
7.1 Six Representations of Satisfaction and Value 199
7.2 Nomological Net of Value Concepts in Consumption 203
8.1 Two Representations of Inequity Influences 219
8.2 The Oliver and Swan Consumer Equity Findings 223
8.3 Equity Model Showing the Dimensions of Fairness 226
9.1 Comparison Operations Under Regret and Hindsight 238
9.2 Responsibility as a Moderator of Regret and Hindsight 240
9.3 Regret, Hindsight, and Associated Negative Effects on Satisfaction
(With Disconfirmation) 245
10.1 Future Apprehensions During Consumption 267
10.2 Consonance and Dissonance Structures 268
10.3 Consonance/Dissonance Structures for Complex Products 269
10.4 Operation of Dissonance Reduction Techniques 275
10.5 Operation of Dissonance in the Expectancy Disconfirmation Process 280
11.1 The Disconfirmation-Attribution Affect Sequence 303
12.1 Graphical Portrayal of Emotion Substates and Substages 316
12.2 Illustration of Brain Structures 317
12.3 The Affect Circumplex 319
12.4 Synthesis of Affect Circumplex Models Containing Satisfaction
and Dissatisfaction 322
12.5 Affects in Richins’s CES Superimposed on the Affect Circumplex 324
12.6 The Mano and Oliver Hedonic Versus Utilitarian Framework 330
12.7 The Attribute Satisfaction Model 331
12.8 An Extended Two- or Three-Appraisal Model 336
13.1 A Typical Appraisal Sequence for Satisfaction 355
13.2 General Framework of the Appraisal Model With the Favorable
Expectation Emotion Sequence 356
13.3 The Appraisal Model With the Unfavorable Expectation Emotion Sequence 358
13.4 The Appraisal Model With the Unexpected Outcome Sequence 359
13.5 The Attribution Appraisal Overlay for Success 361
13.6 The Attribution Appraisal Overlay for Failure 362
13.7 The General Consumption Processing Model 363
13.8 The Consumption Processing Reinforcements 363
13.9 Outline of the Consumption Mode Framework 368
14.1 The Complaining Decision: Economic Model 388
14.2 The Complaining Decision: Behavioral Model 389
14.3 Graphical Representation of a Consumer’s Dissatisfaction Deficit,
Redress Expectations, and Effect of the Firm’s Response on Redress Deficit 390
LIST OF FIGURES xix
14.4 The Expectancy Disconfirmation Model as Applied to Complaint Handling 392

14.5 Postsatisfaction Processes 402
15.1 The Cycle of Satisfaction-Based Loyalty 426
15.2 Six Representations of Satisfaction and Loyalty 451
15.3 Direct Effects on Profitability and Related Firm Performance Criteria by the
Components of the Satisfaction Sequence 458
PREFACE
As noted in the introduction to the first edition, an overarching purpose for writing the original and
revised editions of this book is to explore a common human quest, the satisfaction of one’s needs,
wants, or desires. In one form or another, this goal has preoccupied humankind for thousands of
years. Beginning with the necessity of mere survival to the present-day pursuit of material goods
and hedonic pleasures, individuals have judged their outcomes in life as satisfactory or not, and
institutions, organizations, and even governments have endeavored to best deliver satisfactory
outcomes to their customers and constituencies.
Unfortunately, not all have succeeded. In part, this lack of success occurs because of produc-
tion, delivery, and merchandising problems or competitive actions. Most probably, however,
organizations fail because of a lack of understanding of how consumers actually form satisfaction
judgments. In this sense, consumers may have “designed-in” dissatisfaction, an unintentional
result of use of a thought process not immediately apparent to providers of goods and services.
Thus, the goals of this new edition go beyond mere exploration. Rather, efforts will be made to
describe the satisfaction process in a manner that both promotes an understanding of this complex
phenomenon and, to the extent possible, makes this knowledge useful to those who would study
satisfaction for its many implications.
BACKGROUND
Questions about the meaning, causes, and consequences of satisfaction have intrigued the author
for over thirty-five years. I began study of the satisfaction phenomenon after teaching a consumer
behavior course in the early 1970s. At that time, the topic was not well understood: the consumer
behavior textbooks of the day did not address satisfaction to any degree, and the professional
journals contained little on the topic. This situation persisted despite the continued importance
placed on satisfaction by marketing management textbooks and readings.
Perhaps because of this lack of knowledge, consumer satisfaction researchers began in earnest
to provide the consumer behavior discipline with insights into postpurchase phenomena. This trend
began in the mid-1970s and continues in the present. Of interest is the fact that early writings on
the topic in the academic literature focused on the consumerism movement and, particularly, com-
plaining behavior. This early work tended to emphasize three themes: what caused consumers to
be dissatisfied, how dissatisfied consumers reacted (e.g., complain—or not), and what the provider
did in response to these consumer actions. These were worthy pursuits at the time, but the result
was a focus on dissatisfying product feature performances or service provider behaviors and not
necessarily the satisfying mental elements of provision. Indeed, marketers were still aligned with
a production orientation whereby high quality (as defined by the provider) was, ipso facto, satisfy-
xxi
xxii PREFACE
ing. Fortunately, as the field progressed, a more challenging set of questions emerged concerning
how and why consumers became satisfied, as opposed to what it was about the product or service
that consumers found satisfying or dissatisfying. Thus, the first purpose of this book is to expand
on an accumulated knowledge base and provide readers with a more complete discussion of what
is known of the satisfaction response and other postpurchase processes.
A second goal in writing this book and its revision is to assist the decision maker, program
evaluator, and researcher with methodological and measurement suggestions specific to post-
delivery and postconsumption environments. To this end, research approaches and measures,
many unique to the first edition of this book or subsequently published by a large contingency of
focused researchers, are provided in the hope that a broad array of marketers will benefit from a
continuing and growing knowledge base in customer satisfaction. I would be remiss, however, if
I did not acknowledge that satisfaction is no longer the ultimate goal of business. Loyalty, with
its relation to satisfaction, is now considered the penultimate pursuit (second to profit for those
organizations having monetary goals), and, as the reader will find, greatly expanded coverage of
the loyalty response is provided here.
Like the first edition, this second edition summarizes the research findings to date, speculates
on what is not yet known, and suggests where the field may be heading in the future. Also appar-
ent from the prior edition, external literatures, primarily both pure and applied psychology, are
referenced for their insight into satisfaction phenomena. The reader will discover, however, that
in the interval since publication of the earlier volume, some very significant behavioral advances
have taken place in the study of consumer satisfaction and, in particular, loyalty—resulting in
much greater proportional reliance in the current edition on material in the consumer behavior
field. Much of the credit for what is currently known extends to the authors of these efforts.
ACKNOWLEDGMENTS
In acknowledgment of these many individuals responsible for the progress made in understand-
ing consumer satisfaction and postpurchase phenomena generally, I dedicate this book. It is the
result of the author’s and other’s desires to understand the whys of consumer satisfaction and its
elusive covariate, loyalty.
Appreciation is expressed to the Owen Graduate School of Management, Vanderbilt Univer-
sity, its Walker Management Library, and to all those who assisted in providing the resources
necessary for the successful completion of this book. Because much of the work giving rise to
the underlying logic and content provided here has taken place over the nearly twenty years the
author has been in residence, the names are too numerous to cite. To these individuals, much
gratitude is expressed.
Appreciation is also expressed to the many associates at M.E. Sharpe, without whom this
second edition would not be possible. These include my Executive Editor Harry M. Briggs and
Associate Editor Elizabeth Granda.
My hope is that readers find this book “satisfying,” as this term is individually interpreted. A
more specific hope is that it be found “more than satisfying,” but I would not presume to be able
to accomplish this even in this second effort at exposition. I ask readers to assist me in this task
and I will do my best to make the next rendition even more fully satisfying.
Satisfaction
CHAPTER 1
INTRODUCTION
What Is Satisfaction?
In 1965, the Rolling Stones produced a hit song titled “Satisfaction.” The lyrics contained the
lament that, despite efforts to the contrary, the band members couldn’t “get no satisfaction” even
though they “tried and tried and tried.” Just what is this quest that the Rolling Stones popularized
with their hit? What, exactly, is that “satisfaction” that is so frustrating to attain? Even though these
questions stem from the lyrics of a popular song, they do reflect the difficulties that individuals
encounter when they “try and try and try” to get satisfaction from consumption, institutions and
governments, and relationships.
Shifting emphasis to the business side of providing satisfaction, what did Sears mean to imply
when it offered its explicit warranty in the catchy motto “Satisfaction guaranteed or your money
back”? Similarly, L.L. Bean, the formidable mail merchandiser in Freeport, Maine, offers a mod-
ern variation of this guarantee with a promise of “100% satisfaction in every way” by providing
either a replacement or refund form of restitution.
These promises and others like them raise a number of questions. Can Sears, L.L. Bean, or
any other firm guarantee satisfaction? Will a money-back guarantee provide an alternative means
of satisfying customers? Are there strategies at the firm or individual consumer levels that can
prevent dissatisfaction from occurring or that can turn dissatisfaction into satisfaction? Addressed
specifically in later chapters, these and other questions contribute to the focus of this book.
This introductory section sets the stage for the book, describing its unique behavioral focus.
In contrast to the specific approach taken here are a number of publications on “how to” satisfy
customers. Some do not necessarily address satisfaction directly, but focus on related concepts such
as value, quality, and loyalty. Others discuss specific strategies or activities that are thought to be
satisfying to consumers, as opposed to framing the activities within the consumer’s psyche.
Still other popular writings available in the marketplace attempt to describe organizational
strategies and changes that are thought to make a firm more “customer-friendly.” This movement,
sometimes described as total quality management (TQM) and quality function deployment (QFD),
has many adherents and has been institutionalized with the Malcolm Baldrige National Quality
Award and the Deming Prize. In this context, customer satisfaction is thought to be a natural out-
growth of optimal organizational design and of instilling the appropriate organizational culture,
personnel training, and customer responsiveness within employee ranks. In short, it is believed
that the attainment of satisfaction will be enhanced if these practices are followed.
As will become evident throughout this book, however, these managerial practices cannot
3
4 what is SATISFACTION?
guarantee satisfaction any more than the best efforts of a good coach can guarantee consistent
victories in sport. The reason is that, like the coach viewing the opposition across the field, man-
agement cannot see inside the heads of its constituents. Managers can only devise strategies that
they hope will work based on the best data available at the time. By adopting a behavioral focus,
however, management may be able to “see” the workings of the consumer’s mind and thus be
able to better satisfy customers.
This introduction begins by explaining satisfaction in evolutionary terms, describing how it was
first construed as simple satiation and, given the added meaning of goods and services in industri-
alized economies, how it has now taken on more modern proportions. Essentially, consumers are
now described as wanting more “satisfaction from their satisfaction” since “merely satisfying” the
consumer may no longer provide a competitive advantage. Companies must struggle in today’s
markets to define what this means in the context of their industry.
This section also discusses various definitions and views, defining the pursuit of satisfaction in
current terms as an essential human desire for fulfilling experiences in life. The discussion goes
on to distinguish satisfaction from other provisions by business and society, such as quality, and
also from other psychological responses, such as attitude and (perhaps surprisingly) loyalty and
concludes by showing how involved the psychological mechanisms underlying satisfaction are
and how the remaining chapters in the book will address these processes. A “map” in graphic
form is provided, further illustrating the structure of the book and how it unfolds the satisfaction
response. Part I of the book, which follows this introduction, will begin examination of the es-
sential components of this response.
WHY STUDY SATISFACTION IN A CONSUMER CONTEXT?
In a word, satisfaction is fundamental to the well being of individual consumers, to the profits
of firms supported through purchasing and patronization, and to the stability of economic and
political structures. All of these entities benefit from the provision and receipt of satisfying life
outcomes, particularly in the marketplace. Some reasons follow.
The Consumer’s Perspective
Satisfaction can be likened to an individual pursuit, a goal to be attained from the consumption of
products and the patronization of services. Few would disagree with the premise that consumers
want to be satisfied. Why? Here are three possible answers:
• Satisfaction itself is a desirable end-state of consumption or patronization; it is a reinforcing,

pleasurable experience.
• It obviates the need to take additional redress actions or to suffer the consequences of a bad
decision.
• It reaffirms the consumer’s decision-making prowess.
In this latter sense, a satisfactory purchase is an achievement; it signals that the consumer has
mastered the complexity of the marketplace. Of course, not all purchases are achievements, but
they are instances of reinforcement that provide stability and serenity in the consumer’s life.
Additionally, satisfaction is one of the many life outcomes that provides a means of understand-
ing the environment. In the human desire to make sense of reality, consumers can be viewed as
drawing on their highly developed processing skills to update prior information and to discover
INTRODUCTION 5
new knowledge. One way of doing so is to rely on the occurrence and nonoccurrence of events
(data) and to search for the reasons about their causes. Satisfaction (or the lack of satisfaction) is
one such event that appears almost inevitably as a consequence of purchasing and consumption.
While some purchase outcomes may be given little thought, those that are processed for the sat-
isfaction they provide bring powerful insight into the workings of the marketplace.
The Firm’s Perspective
Firms exist in capitalistic societies to make a profit. If the firm’s product were viewed as a one-time-
only purchase by consumers (e.g., novelty items such as the pet rock), if the level of performance
were not subject to regulation, and if only limited cross-communication channels were open to
consumers, then customer satisfaction would be an unimportant goal for the purely profit-oriented
firm. Few producers, however, encounter these conditions. Most find that repeat purchasing is
essential to a continued stream of profitability. Even for products with long purchase intervals
(e.g., major appliances, automobiles), satisfaction is important because of word of mouth and the
activities of numerous watchdog organizations, such as Consumers Union, that track reports of
satisfaction over time. Now becoming more available, empirical data on the influence of satisfac-
tion, quality, and other such measures are substantiating the long-held assumption that customer
satisfaction is one key to profitability. Further elaboration is presented here and in Chapter 15.
The Industry Perspective
Entire industries, including, of course, the firms making up individual industries, have long been
a subject of scrutiny for their ill or benign effects on consumers. Generally, the government has
relied on documented harm to determine the extent of consumer “satisfaction.” Many laws, such
as the Agricultural Meat Inspection Act, the Food, Drug, and Cosmetic Act, the Flammable Fab-
rics Act, the Fair Packaging and Labeling Act, and the Child Protection Act, are a result of this
process. Clearly, a consequence of consumer discontent directed at an industry is regulation and
its attendant costs. Additionally, taxation (which is ultimately borne by the consumer) is another
likely consequence, as in the raising of cigarette taxes to offset smoking-related health-care costs.
Recently, a program to monitor industry satisfaction has been implemented in a number of countries
by the University of Michigan’s National Quality Research Center via its American Customer
Satisfaction Index (ACSI);1 other world locales and governments are beginning to follow suit,
thereby making satisfaction with entire industries across countries a measurable phenomenon for
input to regulatory policy.
The Societal Perspective
Research on the quality of life suggests quite strongly that satisfied members of society demonstrate
better life outcomes, whether in health, social and mental adjustment, or finances.2 While it is dif-
ficult to distinguish the direction of effect between favorable life outcomes and perceived quality
of life, life satisfaction continues as a worthy goal for individuals in society and for governments
desirous of reinstatement by constituents.3 The previously mentioned customer satisfaction indices,
now expanded beyond products and services to public sector organizations (e.g., postal services),
is a step in the direction of monitoring broader arrays of satisfaction-inducing elements in life.
As mentioned, quality of life issues are inextricably intertwined with consumers’ (citizens’)
satisfaction with public agencies. These include all government renderings including social
security, defense, the legal system, the environment, taxation, and the like.4 The issue takes on
added complexity when the overlapping and sometimes overriding arenas of jurisdiction come
into conflict, as with federal versus states’ rights in the United States (e.g., controlled substances).
Interestingly, a number of boundary-spanning agencies and regulated industries are beginning to
recognize the wisdom of serving customers satisfactorily as the public is becoming more active
in this regard. Public utilities, regulatory agencies (e.g., the Food and Drug Administration), and
even the Internal Revenue Service are beginning to take note, and it is only a matter of time before
the quest for satisfaction becomes part of their “business” model.
A DIVERSITY OF SATISFACTION DEFINITIONS
While most people would agree with the premise that satisfaction with consumption benefits
consumers, firms, industries, and governments, few agree on what this concept called “satisfac-
tion” is. Without a sense of resolution on this issue, little reason would exist to continue with the
present discussion. Thus, it would be useful if some consensus existed on an early definition of
what a promise of “satisfaction” means.
Satisfaction is derived from the Latin satis (enough) and facere (to do or make). Thus, satisfying
products and services have the capacity to provide what is sought to the point of being “enough.” Two
related words are satiation, which loosely means enough up to the point of excess, and satiety, which
can mean a surfeit or too much of enough, as if to say that too much is necessarily undesirable. These
terms illustrate the point that satisfaction implies a filling or fulfillment, perhaps up to a threshold of
undesirable effects (e.g., overindulging, such as credit purchasing beyond one’s financial means).
As readers are no doubt aware, interpretations in the consumer domain allow for a greater
range of favorable (and unfavorable) responses than mere fulfillment. Fulfillment implies that
a satiation level is known, as in the basic needs of sustenance. However, observers of human
behavior understand that these need levels can be and frequently are exceeded in various ways.
Thus, consumer researchers have moved away from the literal meaning of satisfaction and now
pursue this concept as the consumer experiences and describes it. Later chapters will elaborate
on this concept, attempting to explain how more recent interpretations play into the consumption
experience. For the present, discussion turns to attempts in the marketing literature to define what
exactly it is that firms are supposed to do vis-à-vis their customers.
Pinning down a generally agreed-upon definition of consumer satisfaction is not as easy as it
would first appear. To illustrate, the list below shows definitions that have been proposed in the
past.5 All, incidentally, remain valid today.
• “An evaluation rendered that the [consumption] experience was at least as good as it was
supposed to be.”
• “The summary psychological state resulting when the emotion surrounding disconfirmed ex-
pectations is coupled with the consumer’s prior feelings about the consumption experience.”
• “The consumer’s response to the evaluation of the perceived discrepancy between prior ex-
pectations [or some other norm of performance] and the actual performance of the product
as perceived after its consumption.”
Note that these are not “dictionary” definitions. Rather, they are known as process definitions.
That is, they define key concepts and the mechanisms by which these concepts interact. Unlike a
dictionary entry, each of these recognizes that satisfaction is the summary-state of a psychologi-
cal process. As such, satisfaction results at the end (or the current summation) of the consumer’s
INTRODUCTION 7
Figure 1.1 Variants of “Satisfaction”
Satisfaction . . .
with the Complete Consumption Experience
Satisfaction
with Events that
Occur During Satisfaction
Consumption with Final Satisfaction
Outcomes with Level of
Waiting in line Satisfaction
Concessions or Enjoyment Received
Screen view
Seating comfort + Entertainment
Enlightenment Inadequate
Surrounding noise Adequate
Previews Excitement
Acting Emotional Excessive
Action involvement
Length, etc.
processing activities and not necessarily when product and service outcomes are immediately
observed. This permits rapid judgments of the satisfaction rendered by quickly consumed products
(e.g., a candy bar), as well as judgments of the satisfaction resulting from products with lengthy
consumption periods (e.g., a satisfying vacation, satisfaction with owning and driving one’s car,
satisfaction with a college education)—a critical distinction for service providers.
It is also possible for consumers to give interim judgments of satisfaction, as when college
students are asked how satisfied they are after the sophomore year of a four-year program. In this
case, the students judge satisfaction on the basis of what is known to date. The same psychological
process that will later determine satisfaction after graduation now generates this interim judg-
ment. One may now begin to appreciate that the satisfaction process, or the process giving rise to
satisfaction stages including choice, is also subject to satisfaction judgments.6
Figure 1.1 illustrates how interim and final stages of consumption are assessed in the context
of attendance at a movie. Initially, elements of the movie experience, shown here as “events,” are
individually judged. Generally, consumers can state how satisfying each of these events is perceived
to be. Collectively, the series of events constitutes the consumer’s movie experience so that, at the
movie’s end, overall impressions of entertainment, excitement, and so on can also be assessed for
their satisfaction potential. The resulting level of satisfaction can additionally be assessed on the
basis of how satisfying it was. This is done in terms of the expected level of satisfaction anticipated
by the consumer, a topic discussed in later sections of this book. Lastly, the entire experience,
shown as the larger inclusive rectangle, can be similarly judged as satisfactory or not.
Thus, satisfaction can be viewed in terms of singular events leading up to a consumption
outcome and as a collective impression of these events. Moreover, consumers can be satisfied or
dissatisfied with the level of satisfaction received. In fact, one might argue that today’s consum-
ers desire more “satisfaction from their satisfaction,” suggesting that current levels of consumer
satisfaction may be dissatisfying at a higher level of abstraction. This duality of meaning is one
of the intriguing aspects of satisfaction that makes definition difficult. Drawing an analogy in the
form of a paraphrase from the emotion literature: “Everyone knows what [satisfaction] is, until
asked to give a definition. Then it seems, nobody knows.”7
From the preceding discussion, one can see that a good definition of satisfaction would require that
it generalize satisfaction with individual elements of product or service delivery, final outcome satisfac-
tion, and satisfaction with satisfaction. The definitions in the preceding list are a worthy start as they
acknowledge psychological processes used by consumers in their satisfaction judgments. They fail,
however, in specifying the consumer’s summary judgment, described variously as an “evaluation,” a
“summary state,” and a “response to the evaluation.” It is as if this final judgment defies definition.
Satisfaction: A Formal Definition
In the first edition of this book and after much tribulation, I proposed a definition of satisfaction
that appeared to be sufficiently general in scope so that it would relate to the many domains of
satisfaction and, at the same time, would distinguish the concept of satisfaction from other be-
havioral responses engaged in by consumers. Others have adopted this definition to guide their
work. While no claims of exclusivity are offered, it is repeated here in the hope that others will
find it similarly helpful.
Satisfaction is the consumer’s fulfillment response. It is a judgment that a product/service

feature, or the product or service itself, provided (or is providing) a pleasurable level of
consumption-related fulfillment, including levels of under- or overfulfillment.8
Here, pleasurable implies that fulfillment gives or increases pleasure or reduces pain, as when a
problem in life is solved (to be discussed in Chapter 5). Thus, individuals can be satisfied just to
get back to normalcy or neutrality, as in the removal of an aversive state (e.g., pain relief). More-
over, fulfillment does not need to be constrained to the case of met needs. Overfulfillment can be
satisfying if it provides additional unexpected pleasure; and underfulfillment can be satisfying
if it gives greater pleasure than anticipated in a given situation (to be discussed in Chapter 4).
These examples illustrate the need to more fully understand the complexities of the satisfaction
process—how it evolves, maintains, and concludes.
Note that satisfaction has been explained with reference to fulfillment, as if this latter concept were
more basic. In like manner, the notion of fulfillment requires further elaboration. More specifically, it
implies that a goal exists, something to be met or filled. Thus, fulfillment (and satisfaction as explained
later) can be judged only with reference to a standard. The standard forms the basis for comparison.
This raises a very important point. A judgment of fulfillment and hence of satisfaction involves, at
the minimum, two stimuli—an outcome and a comparison referent. This explains why consumers
can be satisfied with the level of satisfaction received. Possible comparison referents include prior
satisfaction or other people’s satisfaction. Greater elaboration appears in Part I of this book.
Defining satisfaction in terms of pleasurable fulfillment explains types of consumption where ap-
parently nothing of tangible value is received. For example, many people find satisfaction in altruistic
“purchasing” such as donating to charity, volunteerism, and even a willingness to pay taxes. What is so
satisfying about these activities? Perhaps it is because they are undertaken to purchase altruistic satis-
faction. In terms of the definition of satisfaction presented here, altruistic satisfaction derives from the
fulfillment of a moral or ethical obligation, which gives pleasure. The reason that so many individuals find
taxation dissatisfying is that, to them, the fulfillment of this obligation is unpleasant. This illustrates the
point that the pleasurableness of the fulfillment response is essential to the definition of satisfaction.
What About Dissatisfaction?
Note that it is not necessary to provide a separate definition of dissatisfaction. One need only
substitute the word unpleasant for pleasurable in the (dis)satisfaction definition offered here.
Thus, the displeasure of underfulfillment can be (and typically is) dissatisfying. More interesting,
INTRODUCTION 9
Table 1.1
Vertical and Horizontal Views of Satisfaction
Viewpoint Antecedents Core concept Consequences

Individual: One Performance or Transaction-specific Complimenting,
transaction service encounter satisfaction complaining, word of mouth
Individual: Time Accumulated Summary satisfaction Attitude, loyalty, switching

accumulated performance history
Firm’s customers Reputation, product Average satisfaction, Share, profits

in the aggregate quality, promotion repurchase rates,
competitive ranking
Industry or Average quality, Consumer sentiment Regulation, taxation

commercial sector monopoly power
Society Product and service Psychological Tranquility, productivity,

variety, average quality well-being social progress, alienation,
consumerism
however, is that overfulfillment may be dissatisfying if it is unpleasant—as in the case of “too

much of a good thing,” as when a waitperson is too attentive to the point of annoyance. Later, in
Chapter 4, the notion of satisfaction in the face of insufficient fulfillment and dissatisfaction in
the face of adequate fulfillment will be entertained, again illustrating the necessity of including
the extent of pleasure received in the satisfaction definition.
Interestingly, dissatisfaction may also be a goal of some marketing organizations. For example,
governments may wish to demarket harmful products or behaviors by creating dissatisfaction with
their use. Additionally, it is well known among marketers of fashion or style goods that one purpose
of new products is to create dissatisfaction with the prevailing style, a common strategy of automo-
bile companies through the release of new models. In fact, Charles Kettering, the general director
of General Motors Research Laboratories in 1929, was reported to have said that the company’s
corporate mission was the “organized creation of dissatisfaction.”9 Fortunately (or unfortunately),
the principles outlined in this book are just as valid for fostering dissatisfaction (if that is the firm’s
goal) as satisfaction. The two goals are strategic mirror images, and many firms have (re)discovered
strategic methods to capitalize on this distinction. Taking cues from the fashion industry, it is now
commonplace to see makers of even mundane products (e.g., toothbrushes) redesign products fre-
quently to foster a sense of obsolescence. This issue, however, takes on political notes best served
by those who have been debating the social negative consequences of these strategies for decades.
VERTICAL AND HORIZONTAL DISTINCTIONS
In addition to the various satisfactions consumers can experience during product or service delivery,
with final consumption outcomes, and with satisfaction itself, other conceptual distinctions should
be noted at different vertical and horizontal levels. In this context, vertical implies a level of ab-
straction along micro (individual) and macro (aggregate) dimensions, while a horizontal analysis
examines the process by which antecedents or determinants cause satisfaction and the subsequent
effects of satisfaction on other consumer thoughts and actions (see Table 1.1). Unfortunately, the
term satisfaction is often used liberally to apply to the content of any of the cells in the table.
This overgeneralization contributes to the confusion regarding the meaning of satisfaction. The
following discussion is a brief attempt to clarify these vertical and horizontal levels.
Vertical Distinctions
At the micro level, the focus is on an individual consumer’s state of satisfaction based on a single
observation or transaction, sometimes called encounter or transaction-specific satisfaction. At a
higher level of abstraction, one might be interested in the consumer’s accumulated satisfaction
over many samplings (occurrences) of the same experience. Going to a favorite restaurant is an
example of this phenomenon. Sometimes, accumulated satisfaction is referred to as “long-term,”
“overall,” “global,” or “summary” satisfaction.10 At a still higher level, interest would shift to
the aggregated experiences of a firm’s consumers for the net effect of these experiences on the
firm. This has been referred to as “microeconomic” satisfaction and is thought to be related to
the firm’s profitability. At a still higher level of aggregation, one might investigate the aggregate
experiences of consumers in a given industry or sector (e.g., products, retail services, government)
where levels of satisfaction as well as aggregate causes of satisfaction might be found. Lastly,
at the highest level of abstraction, the accumulated, aggregated experiences of consumers in a
given social system (society or culture), the fourth reason for studying satisfaction, can be studied.
This level speaks to a culture’s well being and survivability and is related to the level of health,
productivity, and consumer alienation in the social system.
The purpose of this book is not to discuss satisfaction at all of these levels. Rather, analysis
will be largely restricted to the two consumer judgments of transaction-specific and summary
satisfaction, although Chapter 15 provides some discussion of aggregate satisfaction effects on
a firm’s profitability. Surely efforts to satisfy individual consumers will have cumulative effects
on the firm’s outcomes. Beyond that, study of satisfaction as an aggregate industry or societal
phenomenon is outside the present focus. Interested readers are referred to publications such as
Social Indicators Research, a journal that focuses on this latter level of aggregation.
Horizontal Distinctions
At the horizontal level of analysis, interest is focused on the behavioral sequence leading up to
and resulting from satisfaction. In effect, this is the process of satisfaction as it unfolds for an
individual consumer or for a firm or government. In studying satisfaction from this perspective, a
particular need arises for distinguishing satisfaction from seemingly identical concepts. This need
stems from the ubiquitous use of a number of terms (to be discussed) that are used as proxies for
satisfaction. While these proxies may be sufficient in a specific situation, these concepts are not
satisfaction and do not operate in the same manner within the consumer mind-set.
Examples include product or service performance, its manifestation of excellence more com-
monly known as quality, and the still more complicated concept of value, which contains an
implicit consideration of price. Other related psychological concepts include attitude, dissonance,
and regret. In the emotion literature, concepts such as happiness, good feelings, and mood are
found. And in still other literatures, the absence of complaints, loyalty, and repeat purchasing are
used as if they were one and the same with satisfaction.
As seen in Table 1.1, confusion extends to the macro levels of firm and societal satisfaction,
where some consequences noted earlier are shown. Here, there is no one satisfaction judgment of
the firm’s product mix or of society’s offerings. Rather, aggregate manifestations of satisfaction
INTRODUCTION 11
such as repeat purchasing rates and mental health data may be more operational. This is not to say
that the individuals forming the aggregate do not harbor satisfaction judgments; rather, managers
of firms and government officials typically see individual behaviors through aggregate statistics
provided by market research firms, consumer testing organizations, and government reports.
Do Firms Agree on Satisfaction as a Corporate Goal?
This wide variation in the interpretation of the concept of satisfaction has led to a great diversity of
intended success standards for firms as described in their mission statements. A reasonable question
concerns the lack of unanimity of opinion that satisfaction be a goal or even the ultimate goal of
firms. Historically, satisfaction was thought to be the goal as firms transitioned from a production
orientation to the era of the marketing concept. Now, customer retention and its psychological
equivalent of loyalty may have superseded satisfaction, and it is the intent of this book to chronicle
the emergence of loyalty and even to suggest a correspondence between satisfaction and loyalty.
At this point, a review of the evidence is in order.
Two recent sources were used to inform this section.11 The first is a compilation of the mission
statements of 101 companies. The second is a content analysis of the annual reports of 76 com-
panies in four industries. This diversity of these two approaches and information sources gives
some perspective on the complexity of satisfaction focus and nonfocus in firms. Also included
are other related goals, such as loyalty, where available.
The mission statement analysis (based on the author’s reading where multiple goals were
tabulated) found both traditional and contemporary goals among the top four statements with
approximately thirty occurrences of the first (traditional) and twenty of the remaining three
(contemporary). The first of the four was quality or excellence, the next two were the provision
of value and superior service, the fourth, somewhat surprisingly was meeting and/or exceeding
expectations. Apparently companies are beginning to capitalize on this central satisfaction concept
in their dealings with customers.
Also surprising, albeit in a more reserved sense, was that satisfaction (or satisfying) was
mentioned only about ten times, with fairness citations close behind. Rounding out the list were
the goals of fulfilling needs and, most curiously, loyalty, mentioned only three times. Since the
analysis was based on 101 companies, this implies that many used only operational descriptors
(“to be the best” was common). Mission statements are not routinely revised; many of these had
been constructed in times past. One can conclude, however, that there is scant agreement on what
it is that the firm’s mission seeks to accomplish.
In the analysis of company reports within four industries (household/personal and food products,
banking and restaurant services), satisfaction was the central concept studied. No explicit men-
tion of satisfaction was made in 25 percent of both the product and service categories. However,
satisfaction was implied (e.g., delight, meeting needs) in 65 percent and 40 percent of the com-
pany categories respectively. In the remaining cases, either qualitative or quantitative satisfaction
measurement was mentioned with only a small fraction reporting actual numbers (e.g., 9 or 10
on a 10-point scale). It was noted that satisfaction was largely subservient to more financially
based measures.
Of interest is that both retention and loyalty were analyzed along with the financial measures.
Retention was not mentioned in any of the product company reports and was referred to in less
than 20 percent of the service company reports. Loyalty, in similar fashion, was mentioned in
less than 10 percent of company reports and less than 15 percent of the service reports. This is
consistent with the very low ranking of loyalty in the mission statements.
What is the takeaway of these methodologically distinct studies? It appears that satisfaction
remains secondary to the traditional criteria of quality, value, and service, and that company re-
ports are shareholder-driven with bottom-line (financial) results of greatest interest. Perhaps this
is so because the links between satisfaction and profits (and especially loyalty and profits) are not
well understood or appreciated. Thus, there is much to be gained from further study of satisfac-
tion, and the goal of this book does not deviate to any degree from that in the previous edition.
Much remains to be understood and implemented within firms. The last chapter on loyalty will
make this point more strongly as loyalty will remain the ultimate goal of the firm with regard to
its customers after satisfaction is more fully pursued.
CONSUMER SATISFACTION COMPARED TO SATISFACTION IN

OTHER DOMAINS
As noted in the discussion of the vertical dimension of satisfaction, individual episodes of

satisfaction can accumulate into summary or long-term states. This phenomenon provides
the underlying basis for relating satisfaction across its many domains. For example, is the
psychological process for satisfaction with a movie the same as it is for a dishwasher, a retire-
ment home, a sports event, a vacation, a new car, and medical care? Granted, the facets used
to infer satisfaction in each of these areas will be markedly different, but do the psychologi-
cal mechanisms vary? A definitive answer awaits empirical testing, but my understanding of
research findings across these domains points to the conclusion that the processes leading to
the satisfaction response are essentially isomorphic. They differ only in the degree of episodic
integration or “blending” (see Figure 1.2).
As shown in the figure, various human experiences are categorized in five approximations of
customer contact. Each is further divided into simple and complex experiences. Simple experi-
ences are those having few facets or dimensions, such as the purchase of a soft drink. Complex
situations, such as a hospital stay, have many facets requiring separate integration mechanisms,
discussed more fully in Chapter 2. Regardless of whether the consumption experience is simple
or complex, consumer reactions can be based on a single unique encounter, on continual ongoing
encounters, or on any frequency of contact between these two extremes.
Unique encounters stand out in isolation. In this case, satisfaction assessment is based on
this one event. Repetitive episodes of a discretionary nature can be assessed either individually
or over a longer time period, such as when a consumer goes to a particular movie theater only
when a desirable movie is being shown. Some consumers may evaluate each movie experience
separately because idiosyncratic elements (e.g., the movie itself, the crowd) may be more salient
than the invariant characteristics of the theater (e.g., the location, concessions, seating). Other
consumers, however, will assess the theater as an integrated experience, such as when it is their
“favorite movie house” regardless of the nature of the film.
At a higher level of episodic blending, regular repetitive experiences will be evaluated. A
favorite weekly TV series supplies a familiar example. Generally, consumers will view the series
as an integrated whole and not as individual episodes. While it is true that each episode can be
evaluated separately, consumers are known to take a liking or disliking to the series in general
regardless of its weekly content. Job satisfaction is another frequently researched domain of a
repetitive nature, although some would classify it in the following category.
At the next level of integration are continuing episodes with occasional lapses. Satisfac-
tion with one’s residence is an example; the lapses occur when one is away from home. Here,
individual events (a leaking roof) are generally insignificant or fleeting relative to the holistic
INTRODUCTION 13
Figure 1.2 Domains of Satisfaction Based on Episodic Frequency
Discretionary Scheduled
Unique Repetitive Repetitive Continual Constant
Episodes Episodes Episodes Episodes Experiences
Simple: Simple: Simple: Simple: Simple:
Unrepeated trials Favorite indulgences Everyday staples Weather Air quality
Travel experiences TV viewing Weekly TV viewing Household utilities Prevailing law
Novelties Games Mail delivery Home furnishings
Repairs Public transportation
Exercise (aerobics)
Complex: Complex: Complex: Complex: Complex:

Medical emergency Fine restaurant Job Home Health
Birth of child Local travel Education Marriage Well-being
Dream vacation Recreation area Weekly night out Family Life
Olympics Shopping mall Grocery shopping Community Spirituality
IRS Audit Sporting events Driving (various) Government
Episodic Blending
nature of “consumption” for this category. Other representative experiences include a person’s
community and government. In this latter example, laws and regulations are ever present. The
lapses are akin to “not thinking about it.” In this sense, some would put government in the next
category.
Last are those events that are constantly experienced. Life and health satisfaction are two
examples. While there will be ups and downs, life is a continuous blend of all its facets. In
fact, life satisfaction is frequently measured as a combination of most of the major domains
(e.g., job, marriage) preceding it in Figure 1.2. Consistent with the definition of satisfaction
presented here, life satisfaction can be modeled as the degree to which a person’s wants in life
are fulfilled.12
All these examples illustrate the common theme that satisfaction is the degree of fulfillment
provided by experiences in life, regardless of how frequently they are encountered. More frequent
encounters simply provide aggregate fulfillment. At the limit, experiences blend together until
fulfillment can be gauged only against broad, general goals or desires.
Because of the structural similarities in the satisfaction response across domains, examples
will be freely drawn from among them when it is appropriate to do so. For now, discussion turns
to greater elaboration of the horizontal dimension of satisfaction as shown in Table 1.1.
SATISFACTION COMPARED TO RELATED CONCEPTS
One of the goals of this chapter and of this book is to disentangle the confusion of terms surround-
ing the concept of satisfaction by pursuing it as a central concept in a myriad of responses that
consumers might make to consumption events. Instead of a detailed discussion of the differences
among these concepts here, a glossary has been provided at the end of this introductory chapter,
defining a number of common terms used in place of satisfaction, as mentioned in the previous
section. This glossary may help to eliminate some early misgivings about what satisfaction is
and what it is not. Additionally, the following vignettes of likely purchase scenarios will serve to
position each term within this cluster of associated responses.
A First-Time Consumer
Imagine a consumer with no experience in buying a particular product. Having an interest in its
purchase, the consumer might read advertisements and consumer guides to acquire information.
This information, usually regarding benefits (and some drawbacks) that the product will deliver,
provides the consumer with expectations about the product’s likely performance. Moreover, the
consumer may have specific needs that the product should fulfill.
Because a number of suitable alternatives are available, this consumer must choose among
them—a difficult choice because the alternatives often have mutually exclusive, but desirable
features. Thus, choosing one alternative requires that the consumer forgo the unique features
of the others. This creates two problems. First, the consumer may anticipate regret if the cho-
sen alternative does not work out as well as others might have. Second, until the consumer has
consumed, used, or sufficiently sampled the product’s performance (as in driving a car over a
period of time), an apprehension or tension, known more commonly as dissonance, will exist
over whether the choice was best. States of dissonance are very likely for products having great
financial outlays (purchase of a home), personal significance (choice of a college or whether to go
to college), or which require lengthy prepossession or usage periods (mail-order, custom-designed
articles, pre-planned vacations). Concurrent with the apprehensions comprising dissonance, the
consumer may also relish anticipation of ownership or usage of the product. Such anticipations
are now becoming widely known as motivators of purchase. Although more will be said about
this in Chapter 3, it is sufficient to say that pleasant anticipations may be more satisfying than
actual usage of the consumable itself.
Once the product is used and its performance evident, the consumer is now in a position to
compare actual performance with expectations, needs, or other standards, resulting in an expec-
tation-performance discrepancy. For example, the consumer may have expected an automobile
to deliver thirty miles per gallon and finds that, under the best of conditions, the mileage only
reaches twenty-five. The discrepancy is a (negative) five miles per gallon. This comparison, which
results in a better-than-expected, same-as-expected, or worse-than-expected summary judgment,
is referred to as disconfirmation. Additionally, the consumer may be able to make a judgment of
perceived quality—how the product compares against standards of excellence for the product
class, and a judgment of value—quality received relative to the outlays, frequently measured as
cost or price of the product.
Consumers often think about why consumption outcomes occurred in the manner that they did.
When consumers generate reasons or assign responsibility for purchase outcomes, this process is
referred to as attribution, as in “to what do I attribute this outcome?” Based on these attribution
judgments, consumers may experience certain emotions—specific human affects resulting from,
for example, blame or gratitude. Emotions resulting from attributions could be anger, directed at
the manufacturer for producing a defective product; guilt, or a feeling of self-blame for making a
bad decision; or delight over the choice of an exceptionally or surprisingly good product.
Without explicit reference to expectations or standards of excellence, the consumer might just
observe product or service performance and evaluate it on purely functional dimensions. That is,
does the product do what it is supposed to do and is this good or bad? In this sense, performance
goodness is an implicit comparative standard, frequently referred to as an attitude. This evaluation
might be of the nature of a success or failure or of degrees of success. This primary evaluation
is likely to result in a more basic and less complex primary affect, such as simple pleasure or
displeasure over the purchase.
The net result of all these possible postpurchase responses is satisfaction—the degree to which
INTRODUCTION 15
the product provided pleasurable levels of fulfillment. Dissatisfaction would result if the level of
fulfillment (probably unfulfillment or underfulfillment) were unpleasant. Note that satisfaction
is a summary judgment of all these processes or at least those used by a particular consumer. It
is not simply performance processing or disconfirmation processing or even emotion states such
as happiness. More specifically, it contains components of judgment (e.g., cognition) and affect
(e.g., emotion).
Repeat Purchasing, Consumption, or Patronization
Having purchased a product previously, the consumer has more than likely developed an attitude
toward it. As suggested previously, an attitude is a fairly stable liking or disliking toward the
product based on prior experience (e.g., previous satisfaction). It is also possible that an attitude
can develop based on prior information without experience, as when consumers develop biases
for or against brands based on their image (or the manufacturer’s reputation) in the marketplace.
This attitude now forms the basis for the consumer’s expectation in the next product encounter. It
is also likely that the attitude is tied fairly strongly to the consumer’s intention to repurchase the
product or repatronize the service in the future. Additionally, the consumer’s attitude may be closely
linked in tone to the consumer’s general perception of the quality of the good or service.13
At this point, the consumer may be fairly insensitive to a single shortfall in product performance.
In fact, the consumer may endure several shortfalls, particularly if they are easily attributed to
external causes such as fate or random chance. This consumer would be described as possessing
brand or service loyalty and would also be expected to have a deeply held commitment to continue
buying the brand in the future. Consumers in this frame of mind may remain loyal despite repeated
performance failures—up to a point.
Loyalty in the face of repeated failures represents an extreme response. The average consumer
may require only a few failures before discontinuing use of the brand. The first of the performance
failures would be manifest as negative disconfirmation—a shortfall in performance when com-
pared to expectations. Initially there might be disappointment and then dissatisfaction. The level
of dissatisfaction would act on the prior attitude, revising it downward, and with it, intention to
repurchase. Finally, purchasing would cease or would shift to another brand.
A Note on the “Nonprocessing” of Satisfaction
The scenarios in the previous section assume that the consumer harbors certain types of thoughts
and feelings in responding to products and services. Could it be that a subset of consumers is so
uninvolved in the performance of a particular product that they do not assess performance unless
the product becomes dysfunctional and creates harm? Introspection on the reader’s part would
probably bring specific product categories and experiences to mind. For example, common utili-
ties, including water and natural gas and even the postal service, may fit this situation for many
consumers.
Rather than focus on the percentage of consumers who do not evaluate consumption, it would be
helpful to understand why (and when) they do not. Specifically, consider the possibility that some
consumers do not evaluate consumption outcomes because of their low or passive involvement
with the product or service. Here, low involvement denotes a disinterest in predecision product
knowledge and postdecision consequences, while passive involvement denotes a disinterest in
processing the consequences; predecision processing may, in fact, have been high. This latter situ-
ation of the lack of involvement within passive processing will receive some attention here.14
Thus, in various sections of the book and more specifically in Chapter 13, the “behavior” of
nonprocessing will be examined. This does not imply that uninvolved consumers will have no
satisfaction; rather, their satisfaction (or dissatisfaction) may be latent or passive. For example,
satisfaction with the provision of electricity is not normally processed beyond its obvious avail-
ability. Power outages are required to get the consumer’s attention. This state of nature contains
information for the marketer, however, and requires study. As will be discussed, nonprocessing
consumers (“I never think about this product”) do report levels of satisfaction that can be compared
to other consumer segments with greater degrees of product interest.
THE STRUCTURE OF THIS BOOK
To address the issues raised in this introductory chapter, this book has been structured as shown in
Figure 1.3. The chapters, portrayed as rectangles of various sizes, are positioned roughly accord-
ing to the time line (shown as a gray outline arrow) leading up to and following the satisfaction
response. The present chapter, which describes the meaning of satisfaction, is located in the second
column from the right. As satisfaction is the core concept addressed by this book, all topics to its
left are viewed as antecedents, while those to the right are consequences.
Generally, the chapters follow a roughly similar pattern. Each opens with an introductory
example or examples. Next, either a historical view of the focal chapter concept is presented or
a theoretical framework is outlined. The reader will find that some have been more fully devel-
oped since the first edition while others have been out of favor, so to speak. Depending on this
developmental evolution, findings from empirical studies of the concept, demonstrating its links
to satisfaction, follow, as do studies unique to the consumer domain. Measurement suggestions
appear in the later sections of the chapters unless they are necessary for illustrative reasons earlier
in the discussion. Managerial implications may appear throughout the chapters as concepts are
brought into focus, but are usually reserved for later sections. Lastly, the chapters conclude with
speculative suggestions for future work in the content area where appropriate and with links to
later chapters in the book. Readers who seek information on specific topics, such as measurement,
may wish to skim the early chapter sections and jump instead to issues of greater relevance to
their field.
The Essentials of the Satisfaction Response
Part I, which includes Chapters 2, 3, and 4, discusses the immediate causes of satisfaction, first,
according to current practice and, second, according to emerging theory and leading-edge practice.
Chapter 2 acknowledges the current (and historic) attention paid to physical (tangible) features
of products and specific actions of service providers to satisfy consumers. In discussing this tra-
ditional approach, the inadequacies of attribute performance analysis, particularly as currently
practiced, will be noted. These inadequacies highlight the need to develop a greater appreciation
of the consumer’s thought process. Essentially, product features have no meaning to consumers
unless they are interpreted within a mental framework. This chapter also explores the meaning of
importance within satisfaction. It makes the infrequently understood point that what is important
in purchasing a product is not necessarily what is important in forming judgments of satisfaction
or dissatisfaction. Importance as a momentary shortfall and not a requirement is also discussed.
The two remaining chapters of Part I move much beyond a product feature or product develop-
ment standpoint and discuss the psychological events, as interpretations of physical events, which
shape satisfaction responses. Specifically, Chapter 3 provides the background for the expectancy
INTRODUCTION 17
Figure 1.3 The Satisfaction Process
Product/Service Post-Purchase
Delivery “Satisfaction Delivery” “Delivery”
Ch. 2: Ch. 1: Chs. 3–8: Ch. 10: Ch. 11: Introduction: Ch. 13: Short-
Expectations Performance Comparisons Attributions Affects Satisfaction Term Effects
Ch. 3: Dis-
confirmation
Ch. 4: Needs
Ch. 5: Quality
Ch. 12: Cons.
Ch. 6: Va lue Processing
Ch. 7: Equity
Ch. 14: Long-
Ch. 8: Regret Term Effects
Ch. 9: Cognitive Dissonance
disconfirmation model of satisfaction by establishing the role of expectations or standards by which

later performance comparison processes are formed. The case is made that, without a standard of
comparison, satisfaction as a consumption response cannot occur. For example, in the case of need
fulfillment (elaborated more fully in Chapter 5), the consumer’s present experienced deficit is the
baseline standard. This chapter on expectations explores not only the various levels of comparison,
such as ideal and predicted levels, but also a number of factors that influence these standards. The
content of this chapter necessarily precedes that of Chapter 2 (performance) in time, but follows
it in the book outline (see Figure 1.3). This is so because the role of pre-existing performance
standards in the satisfaction judgment was not acknowledged and operationalized in satisfaction
measurement until the study of satisfaction emerged from its performance roots.
Chapter 4, one of the six discussing comparison operations, describes the origins, development,
and current status of the expectancy disconfirmation model of consumer satisfaction, now the
dominant theoretical paradigm in many satisfaction fields. Expectancy disconfirmation involves a
comparison of performance observations to expectations and a subsequent judgment of the degree
of discrepancy (disconfirmation). Evidence in support of this paradigm, or variations thereof, is
now very compelling, and industry is now making greater use of its principles, particularly in
advertising and promotion. The somewhat complex process is discussed in detail and apparent
anomalies in its operation are explained. Different types of disconfirmation are presented and their
implications suggested. A new addition to this chapter includes a discussion of delight, a (positive)
comparison to the latent standard of normalcy. Having surprise as a central component, delight
has also been adopted by business as a promotional vehicle.
Chapter 4 completes Part I of the book, but coexists with Chapters 5 through 9 as comparison
operations in Figure 1.3. This is necessary to demonstrate the dual role of expectancy operations.
At the same time that disconfirmation completes the sequence of “expectation formation → per-
formance → comparison of performance to expectation,” it is also one of the other comparison
operations that may occur within the satisfaction response. Each of these other comparisons also
has standards that exist prior to consumption (e.g., needs, excellence, fairness), but the consumer
satisfaction literature has not elaborated on these mechanisms to the same extent that it has on
disconfirmation.
Comparison Operators
Part II of the book is devoted to these alternative comparison operations, as illustrated in Figure 1.4.
The first of these is expectancy disconfirmation, as noted, and the last is shown as a noncomparison.
Known in the literature as “unappraised cognition,” this last operation acknowledges the possibility
that performance can affect satisfaction directly if no comparison operators are considered.
Beginning with Chapter 5, the oldest of the comparison operations, known in many fields as
need fulfillment, is discussed from both a historical and current perspective. Generally, it will
be suggested that product and service needs are frequently discovered with the identification of
critical attributes emerging from traditional pilot study techniques discussed in Chapter 2. While
the possibility of discovering relevant needs through critical attributes analysis is likely, it is not
necessarily so. Insights from earlier work in the needs area are highlighted, suggesting that present-
day researchers may benefit from a reintroduction to basic need concepts. Generally, higher-order
consumer goals, which exist at the pinnacle of many need hierarchies and are sometimes referred
to as values (a term subject to multiple interpretations, as Chapter 7 will discuss), are generally
overlooked in satisfaction studies, but nonetheless provide a basis for understanding the underlying
reasons for all consumption activities. Also discussed in Chapter 5 is the Japanese Kano model,
used in quality control strategies and named after its contributor, Noriaki Kano. Because it shows
considerable correspondence to the need fulfillment model, it is discussed here rather than in the
next chapter on quality.
Chapters 6 and 7 discuss two judgments of a comparative nature, both of which are steeped
in the history of consumer response. The first, previously defined as a comparison to engineer-
ing standards and now more generally considered as a comparison to the consumer’s excellence
standards, is the judgment of quality. The definition of quality is undergoing revision, particularly
within the services field, where objective “engineering” standards are not easily applied. The present
discussion defines quality as a comparison to consumer ideals and explores a number of comparison
operations suggested in the literature. The role of quality within the expectancy disconfirmation
process is also elaborated. Chapter 7 continues this tradition with a discussion of value, previously
thought of as a comparison of benefits to costs. In addition to its meaning within a goal hierarchy
(discussed in Chapter 5), value takes on additional import as an experiential consumption outcome
based on interpretation along intrinsic/extrinsic and proactive/reactive dimensions. Of necessity,
this will require greater levels of analysis including attribution, discussed in Chapter 11.
Equity/inequity and fairness are often discussed but little understood concepts in consumer
transactions. Chapter 8 elaborates on consumer inequity and how it differs from job or workplace
inequity, where much of the original research was performed. Generally, the notion of a fair
exchange or “fair deal” is explored and found to be different from equity explanations in other
disciplines. Equity notions such as fairness and “equitable unfairness” are discussed as antecedents
of consumer satisfaction and are distinguished from the disconfirmation response. Additionally,
the targets of various equity operations are elaborated, including comparisons to the outcomes
of other buyers, the outcomes of salespeople, and the outcomes of dealers and firms (e.g., price
and profit).
Chapter 9, the last chapter in this section, discusses regret or “buyer’s remorse.” Regret—the
comparison of what is to what might have been—lacked development in the consumer satisfac-
tion literature until recently. Much greater interest has been shown in the consumption area since
INTRODUCTION 19
Figure 1.4 The Comparison Operators
Comparison Resulting
Operator Cognition
Expectations Expectancy
Disconfirmation
Need
Needs
Fulfillment
Product/Service Performanc e
Satisfaction/Dissatisfaction
Excellence Quality
(Ideals)
Sacrifice Value
Equity/
Fairness Inequity
Events that
Might Have Been Regret
Unappraised
Nothing
Cognition
the first edition of this book, and this literature will provide a more developed basis for further
applications to consumption. A related concept, referred to as hindsight bias, is also discussed and
its implications for consumer satisfaction noted.
Integrative Psychological Processes
Part III, the next major section of the book, describes the manner in which consumers come to
translate the antecedent states discussed in Parts I and II into satisfaction judgments. Moving
beyond mere description, this section elaborates on the psychological mechanisms, particularly
with regard to high-level mental operations, that result in the states causing satisfaction judgments.
These processes, although less observable than those discussed previously, are essential to an
understanding of the satisfaction process.
Chapter 10 returns to the original notion of cognitive dissonance as a precursor of satisfaction
or dissatisfaction. This perspective, one of the earliest topics studied in post-Freudian psychology,
provided consumer researchers with early insights into the satisfaction process. It continues to be
a currently under researched topic—needlessly so. The concept is just as viable as ever for three
reasons. First, dissonance exists as an apprehension in the prepurchase phase of consumption along
with other prepurchase cognitions such as expectations. Second, it continues as a force after con-
sumption as it acts both to create tension if not resolved and to reduce tension if resolved. Lastly,
it can continue into prolonged consumption experiences (e.g., owning and driving an automobile),
as long as future performance is anticipated. This duration of effect is why cognitive dissonance
is shown as an elongated influence in Figure 1.3. Of interest is the fact that it can be viewed as an
integral process incorporating regret and attribution elements, discussed next.
In Chapter 11, individuals’ attribution processes are described whereby consumers select and
assign apparent reasons or causes for the outcomes of consumption. Using a commonly accepted
attribution framework, the various causes can be described as having dimensions based on the
causal entity (e.g., consumer, product, dealer), whether or not the cause is likely to recur (i.e.,
stability), and whether or not the cause is controllable (by the consumer or others). Although these
attribution judgments do not affect satisfaction directly, the attribution process is critical to the
entire satisfaction sequence. For example, attribution is triggered by disconfirmation (as in “why
did this negative discrepancy between my expectations and performance happen?”), and various
attributions (e.g., a manufacturing defect) are known to cause certain emotional responses (e.g.,
anger). The importance of understanding attribution in satisfaction is stressed and its role in me-
diating performance assessments is explained.
Chapter 12 describes one of the later and potentially most important developments in satisfaction
research, the role of consumer emotion or “affect.” The chapter begins by describing the different
forms of affect and examines a number of representations of affect in the psychology literature.
Here, the concept of cognitive appraisal is introduced to explain how specific emotions occur with
some regularity after different outcomes in life are assessed (appraised) for their effect on the
individual. Later, the content of this very broad area will be limited to the context of satisfaction
judgments in order to determine where satisfaction is located within the affect representations.
Recent models of satisfaction that include affect will be discussed in order to estimate what part
of satisfaction is affective and what part is cognitive.
The last chapter in this section (Chapter 13) brings everything together into an integrative
framework. The central focus of this chapter is on the author’s Consumption Processing Model
of satisfaction, which explains that satisfaction cannot be assumed to be one thing, but rather
involves various modes of “satisfaction responding.” That is, consumers may (and do) mean
different things when they proclaim that they are “satisfied” within different contexts and situa-
tions. Essentially consumers can opt to engage in nonprocessing, whereby they become passive
acceptors of consumption outcomes. Beyond this, each successive stage of involvement brings to
bear greater processing of the various concepts described in this book until the complete model of
consumption processing is accessed. In this “full” model, consumers are described as processing
every determinant of satisfaction, including expectations, performance, disconfirmation, equity,
attribution, and affect. Of course, few consumers would be expected to do this, and a methodology
is described to determine the composition of a firm’s customer base in terms of the percentage
of those who use disconfirmation, those who use equity, and so on. Unique to this chapter is an
appraisal-affect model of satisfaction that suggests direct links between various states of expec-
tancy disconfirmation and the appearance of specific affects.
Figure 1.3 shows an intentional parallel and/or overlap between the processing of consumption,
direct performance influences (represented by the extension of the performance rectangle), and
future performance apprehensions with the content of the attribution and affect chapters. This is
meant to imply that processing states, performance, and apprehensions can have independent ef-
fects on satisfaction operating in parallel with attribution and affect, issues that will be discussed
later in this book.
Note also, that the sequence of antecedents leading up to satisfaction is labeled with two
headings. The expectation and performance categories represent what will be called “product/
INTRODUCTION 21
service delivery” as this is what the consumer brings to the purchase and observes. In contrast,
the remaining categories are referred to as “satisfaction delivery” as these processes determine
the satisfaction response within the consumer’s mind. Thus, product/service delivery is a physical
process while satisfaction delivery is a psychological process.
Consequences of Satisfaction
Lastly, Part IV discusses two sets of satisfaction consequences, those that occur shortly after sat-
isfaction or dissatisfaction is experienced and those that develop over time. Chapter 14 addresses
the short-term consequences of both satisfaction (complimenting, positive word of mouth) and,
perhaps more important for management, dissatisfaction (complaining, negative word of mouth,
third-party action, subterfuge). Work on these topics actually predates many of the writings on the
psychology of satisfaction. One goal of this chapter is to show how the prior chapters, particularly
those in Part II, can be useful in understanding consumer responses to dissatisfaction. For example,
a complaint-handling model based on expectancy disconfirmation principles is introduced. An
extended discussion of word of mouth or “buzz” is new to this chapter.
The final chapter discusses satisfaction in the context of longer-term consequences. As opposed
to the temporal process driving satisfaction within one consumer’s postpurchase decision, dis-
cussed in the previous chapter, Chapter 15 elaborates satisfaction changes over multiple purchase
decisions. Here, the effects of satisfaction on later satisfaction, on attitude-like structures, and
on loyalty are discussed. Although readings on these phenomena are becoming commonplace,
data attesting to these influence sequences are not abundant and permit only a limited, albeit
reasonable set of conclusions. A loyalty sequence presented in this chapter, culminating with
a stage referred to as action loyalty, is augmented by further work integrating the proposed
loyalty stages with the presence or absence of a social network or “community” supporting
the degree of loyalty held by any one consumer. Early data attesting to this stage-by-support
representation are discussed.
Finally, the indirect effect of satisfaction on the firm’s profits is discussed, based on recent
findings. Previously, researchers could only hypothesize a correspondence between these concepts
because available data at the time were inconclusive. After the aforementioned customer satisfaction
indexes were examined, however, specific results are now known. The data show wide support for
the supposition that satisfaction results in excess profit returns to the firm that excels among and
against its competition. These data, however, do not speak directly to loyalty effects. Mention is
made of loyalty programs, although their influence is equivocal. This topic, which continues to
be less than fully understood, is of extreme importance to management. The answer, as will be
suggested, lies in better measurement of “true” consumer loyalty.
GLOSSARY
Affect (primary affect). Generally, a valenced (i.e., positive or negative) feeling of a nonthinking nature,
although it may be caused by specific thoughts. This category of affective response, which has been
variously described as containing moods, feelings, emotions, and attitudes (the latter involving cogni-
tive thought), presents a major definitional problem to the behavioral community. In consumer behavior,
affective response is generally taken to subsume only emotion, and it is this latter a perspective that is
taken here. A primary affect in a consumer is a fairly nonspecific positive or negative feeling state most
typically represented by labels such as happiness or sadness, pleasure or displeasure, as a result of initial
observations of product performance.
Appraisal. An evaluation of the significance or worth of an event to oneself, especially to one’s well being.
Attitude. A relatively stable affect-like judgment that a product (or object) has desirable or undesirable prop-
erties. The judgment takes the form of a liking or disliking, and is based on many separate evaluations
of product features that are combined using various heuristics. Whereas affect can exist as pure feeling,
attitudes are thought to result from deliberate processing of product- or service-related information. Al-
though not discussed here in detail, it is possible for attitudes to be conditioned in a noncognitive manner
such as when advertising depicts a product in a universally pleasant environment.
Attributes. Product or service features or dimensions, including benefits and drawbacks.
Attribution. An inference about what caused observed events (a causal agent) either as a specific reason
(e.g., poor quality construction) or as a dimension (e.g., internal to the consumer versus an external entity
such as the manufacturer). If one were to ask “why did this outcome occur?” or “to what do I attribute
this outcome?” the answer would represent an attribution.
Brand equity. See equity.
Brand loyalty. See loyalty.
Cognition. Thought and reason involving the conscious retrieval and processing of information.
Contentment. A placid state of acceptance whereby “more” or “better” is not currently relevant (although it is
in the realm of the feasible). It is a low-arousal manifestation of satisfaction, but is not “satisfaction.”
Delight. An extreme expression of positive affect resulting from surprisingly good performance. Currently
thought to be a stated expression of very high satisfaction, delight is a high-arousal manifestation of
satisfaction, but is not “satisfaction.”
Disappointment. A mild expression of negative affect resulting from performance below rather high expecta-
tions so that the summary judgment is positive, but less so than it would have been had expectations been
met. Not to be confused with dissatisfaction, which is a negative summary judgment.
Disconfirmation (expectancy disconfirmation). Technically, the result of a comparison between what was
expected and what was observed. In current satisfaction theory, it more commonly refers to the psycho-
logical interpretation of an expectation-performance discrepancy. Consumers would describe this concept
in terms of the performance of a product or service being better or worse than expected.
Dissatisfaction. The negative satisfaction state, when the consumer’s level of fulfillment is unpleasant.
Dissonance (cognitive dissonance). A state of psychological discomfort, tension, or anxiety brought about
by uncertainty over the outcomes of a decision; an apprehension. Usually a postchoice and preusage
condition, but may exist during consumption of events that are prolonged over a period of time (e.g., a
vacation) so that future performance is as yet unknown.
Emotions. Valenced reactions to events, agents, or objects resulting in both somatic and mental changes in
disposition, depending on the level of arousal involved. Emotions are more spontaneous and less deliber-
ate than attitudes. Certain basic emotions such as anger and joy are thought to have biological origins,
while others require additional cognitive processing, such as when joy attributed to the actions of others
results in gratitude. Clusters of emotions with the same polarity are frequently referred to as positive or
negative affects (but see the preceding definition of affect).
Equity (inequity). As discussed here, fairness. The degree to which the proportionate input-to-outcome
ratio of one entity compares to that of another. Equity assumes comparative equality whereas inequity
occurs when these ratios are disparate, either in a positive sense (favoring the actor—“preference”)
or in a negative sense (disadvantaging the actor). Not to be confused with brand equity, which is the
economic value accruing to a manufacturer from the worth of its marque in accounting or market
valuation terms. Behavioral brand equity can be represented by perceptions of loyalty, quality, and
recognition.
Evaluation (primary evaluation). As used here, an initial judgment of an outcome based on its facilitation
or frustration of the consumer’s goals, usually in the form of a valenced reaction such as good or bad
performance. Not to be confused with satisfaction, which is the summary fulfillment judgment by the
consumer.
Expectancy disconfirmation. See disconfirmation.
Expectation. A prediction, sometimes stated as a probability or likelihood, of attribute or product perfor-
mance at a specific performance level. Includes anticipations, which may be positive (e.g., hope), and
apprehensions, which are usually negative (e.g., fear or dread).
Expectation-performance discrepancy. An objective or calculated (usually subtractive) difference between
expectation levels and performance levels, sometimes referred to as a gap. Not to be confused with the
more psychological “better/worse than” disconfirmation concept, although when coupled with emotional
tone or labeling, it may precede “true” disconfirmation.
INTRODUCTION 23
Happiness. A generally positive affective state, less enduring and extreme than delight, but more arousing
and outwardly visible than mere contentment. Recent thinking distinguishes eudaimonia, an ongoing
state of blissful experience, from hedonic enjoyment resulting from a more specific pleasure state. Both
can be considered manifestations of happiness.
Hindsight. A reconstructed mental state of understanding concerning an event after the fact. In psychology,
a counterfactual or remembrance not in accord with historical accuracy.
Intention. A stated likelihood to engage in a behavior.
Involvement. A focused orientation toward specific products and services of a more intense nature, consist-
ing of greater prepurchase behavior (e.g., search), greater attention to the act of consumption, and greater
processing of consumption outcomes. Low levels of involvement are akin to disinterest.
Loyalty (brand loyalty). A deeply held psychological commitment to repurchase a product or repatronize
a service in the future despite obstacles or disincentives to achieve the consumption goal. Not to be con-
fused with repeat purchasing, which may involve constrained or happenstance (e.g., random) repetitive
behavior.
Need. A requirement to fulfill a goal. May be innate (e.g., physiological) or learned.
Performance (performance level). The perceived amount of product or service attribute outcome or overall
outcome delivered and/or received, usually reported on an objective scale bounded by good and bad levels
of performance (e.g., courteous/discourteous service, terrific/terrible product).
Primary affect. See affect.
Quality. A judgment of performance excellence; thus, a judgment against a standard of excellence. Although
frequently confused with satisfaction, recent theory and evidence suggest the concepts are separate and
distinct. Like attitude, quality judgments can be made in the absence of consumption behavior.
Regret. A judgment of perceived loss, sometimes referred to as an opportunity cost, due to “what might have
been” had the consumer purchased a forgone alternative. Anticipated regret is a predecision, probabilistic
expectation of the regret outcome, having the capacity to thwart the decision altogether.
Satiation. Technically, the terminal state of full or complete satisfaction. Its opposite, insatiation, implies
that this state has not been or cannot be attained.
Satisfaction (dissatisfaction). As discussed here, the consumer’s fulfillment response, the degree to which
the level of fulfillment is pleasant or unpleasant.
Valence. Polarity; the positivity or negativity of a state of nature.
Value. Normally, a judgment comparing what was received (e.g., hedonic or utilitarian performance) to the
acquisition costs (e.g., financial, psychological, or physical effort). A frequently used example is a com-
parison of the quality received to the price of a good or service. Also, as used here, a high (or ultimate)
level of achievement in a consumption goal hierarchy; alternatively, any of a number of states of nature
constituting the raisons d’être of consumption.
NOTES
1. Anderson and Fornell, “Foundations of the American Customer Satisfaction Index”; Cassel and Eklöf,
“Modelling Customer Satisfaction and Loyalty on Aggregate Levels”; Johnson et al., “Evolution and Future of
National Customer Satisfaction Index Models”; Johnson, Herrmann, and Gustafsson, “Comparing Customer
Satisfaction across Industries and Countries.”
2. Di Tella, MacCulloch, and Oswald, “Macroeconomics of Happiness”; Helliwell, “How’s Life?”; Lance
and Sloan, “Relationships between Overall and Life Facet Satisfaction”; Layard, Happiness.
3. Later, the distinction between quality of life or “happiness with life” and satisfaction will be elaborated,
particularly in Chapter 5. Brief mention is made in the Glossary to this chapter.
4. Dagger and Sweeney, “Effect of Service Evaluations on Behavioral Intentions and Quality of Life”;
Myers and Lacey, “Consumer Satisfaction, Performance and Accountability in the Public Sector”; Younis,
“Customers’ Expectations of Public Sector Services.”
5. These are attributed, respectively, to Hunt, “CS/D: Overview and Future Directions,” p. 459; Oliver,
“Measurement and Evaluation of Satisfaction Processes in Retail Settings,” p. 27; and Tse and Wilton,
“Models of Consumer Satisfaction Formation,” p. 204.
6. Bolton, “Dynamic Model of the Duration of the Customer’s Relationship with a Continuous Service
Provider”; Heitman, Lehmann, and Herrmann, “Choice Goal Attainment and Decision and Consumption
Satisfaction”; Tse, Nicosia, and Wilton, “Consumer Satisfaction as a Process”; Wright, “Satisfaction with
Home Ownership”; Zhang and Fitzsimons, “Choice-Process Satisfaction.”
7. Fehr and Russell, “Concept of Emotion Viewed from a Prototype Perspective,” p. 464.
8. Oliver, Satisfaction, p. 13 (italics in original).
9. This oft-cited quote can be found in Rifkin, End of Work, p. 20. However, although Kettering does say
that consumers “must accept this reasonable dissatisfaction with what [they] have and buy the new thing,
or accept hard times” (p. 79) and other like statements, the phrase as quoted does not appear in his original
article, “Keep the Consumer Dissatisfied.”
10. See Bitner and Hubbert, “Encounter Satisfaction Versus Overall Satisfaction Versus Quality”; and
Jones and Suh, “Transaction-specific Satisfaction and Overall Satisfaction.”
11. Abrahams, 101 Mission Statements from Top Companies; Jones, “Content Analysis of Customer
Satisfaction in Annual Reports.” Readers may also be interested in Morgan, Anderson, and Mittal, “Under-
standing Firms’ Customer Satisfaction Information Usage.”
12. Lance, Mallard, and Michalos, “Tests of the Causal Directions of Global-Life Facet Satisfaction
Relationships.”
13. Note, however, that attitude is not satisfaction and exists within a separate cognitive schema. Although
the attitude literature is referenced in this book from time to time, readers will find it more fully accessed
elsewhere. See Eagly and Chaiken, Psychology of Attitudes; Oskamp and Schultz, Attitudes and Opinions.
14. See Babin, Griffin, and Babin, “Effect of Motivation to Process on Consumers’ Satisfaction Reactions.”
BIBLIOGRAPHY
Abrahams, Jeffrey. 101 Mission Statements from Top Companies. Berkeley, CA: Ten Speed Press, 2007.
Anderson, Eugene W. “Cross-Category Variation in Customer Satisfaction and Retention.” Marketing Letters
5, no. 1 (January 1994): 19–30.
———, and Claes Fornell. “Foundations of the American Customer Satisfaction Index.” Total Quality
Management 11, no. 7 (September 2000): S869–S882.
Babin, Barry J., Mitch Griffin, and Laurie Babin. “The Effect of Motivation to Process on Consumers’ Sat-
isfaction Reactions.” In Advances in Consumer Research, ed. Chris T. Allen and Deborah Roedder John,
21: 406–411. Provo, UT: Association for Consumer Research, 1994.
Bitner, Mary Jo, and Amy R. Hubbert. “Encounter Satisfaction versus Overall Satisfaction versus Quality:
The Customer’s Voice.” In Service Quality: New Directions in Theory and Practice, ed. Roland T. Rust,
and Richard L. Oliver, 72–94. Thousand Oaks, CA: Sage, 1994.
Bolton, Ruth N. “A Dynamic Model of the Duration of the Customer’s Relationship with a Continuous
Service Provider: The Role of Satisfaction.” Marketing Science 17, no. 1 (1998): 45–65.
Cassel, Claes, and Jan A. Eklöf. “Modelling Customer Satisfaction and Loyalty on Aggregate Levels: Experience
from the ECSI Pilot Study.” Total Quality Management 12, nos. 7 & 8 (December 2001): 834–841.
Dagger, Tracey S., and Jillian C. Sweeney. “The Effect of Service Evaluations on Behavioral Intentions and
Quality of Life.” Journal of Service Research 9, no. 1 (August 2006): 3–18.
Di Tella Rafael, Robert J. MacCulloch, and Andrew J. Oswald. “The Macroeconomics of Happiness.” Review
of Economics and Statistics 85, no. 4 (November 2003): 809–827.
Eagly, Alice H., and Shelly Chaiken. The Psychology of Attitudes. Fort Worth, TX: Harcourt Brace Jovanovich,
1993.
Fehr, Beverley, and James A. Russell. “Concept of Emotion Viewed from a Prototype Perspective.” Journal
of Experimental Psychology: General 113, no. 3 (September 1984): 464–486.
Gardial, Sarah Fisher, Daniel J. Flint, and Robert B. Woodruff. “Trigger Events: Exploring the Relationships
Between Critical Events and Consumers’ Evaluations, Standards, Emotions, Values and Behavior.” Journal
of Consumer Satisfaction, Dissatisfaction and Complaining Behavior 9 (1996): 35–51.
Heitman, Mark, Donald R. Lehmann, and Andreas Herrmann. “Choice Goal Attainment and Decision and
Consumption Satisfaction.” Journal of Marketing Research 44, no. 2 (May 2007): 234–250.
Helliwell, John F. “How’s Life? Combining Individual and National Variables to Explain Subjective Well-
Being.” Economic Modeling 20, no. 2 (March 2003): 331–360.
Hunt, H. Keith. “CS/D—Overview and Future Research Directions.” In Conceptualization and Measurement
of Consumer Satisfaction and Dissatisfaction, ed. H. Keith Hunt, 455–488. Cambridge, MA: Marketing
Science Institute, 1977.
Johnson, Michael D., Anders Gustafsson, Tor Wallin Andreassen, Line Lervik, and Jaesung Cha. “The Evo-
lution and Future of National Customer Satisfaction Index Models.” Journal of Economic Psychology
22, no. 2 (April 2001): 217–245.
INTRODUCTION 25
———, Andreas Herrmann, and Anders Gustafsson. “Comparing Customer Satisfaction across Industries
and Countries.” Journal of Economic Psychology 23, no. 6 (December 2002): 749–769.
Jones, Michael A. “A Content Analysis of Customer Satisfaction in Annual Reports.” Journal of Consumer
Satisfaction, Dissatisfaction and Complaining Behavior 19 (2006): 59–75.
———, and Jaebeom Suh. “Transaction-specific Satisfaction and Overall Satisfaction: An Empirical Analy-
sis.” Journal of Services Marketing 14, no. 2 (2000): 147–159.
Kettering, Charles F. “Keep the Consumer Dissatisfied.” Nation’s Business 17, no. 1 (January 1929): 30–31,
79.
Lance, Charles E., Alison G. Mallard, and Alex C. Michalos. “Tests of the Causal Directions of Global-Life
Facet Satisfaction Relationships.” Social Indicators Research 34, no. 1 (January 1995): 69–92.
———, and Christopher E. Sloan. “Relationships between Overall and Life Facet Satisfaction: A Multitrait-
Multimethod (MTMM) Study.” Social Indicators Research 30, no. 1 (September 1993): 1–15.
Layard, Richard. Happiness: Lessons from a New Science. New York: Penguin, 2005.
Morgan, Neil A., Eugene W. Anderson, and Vikas Mittal. “Understanding Firms’ Customer Satisfaction
Information Usage.” Journal of Marketing 69, no. 3 (July 2005): 131–151.
Myers, Ronald, and Robert Lacey. “Consumer Satisfaction, Performance and Accountability in the Public
Sector.” International Review of Administrative Sciences 62, no. 3 (September 1996): 331–350.
Oliver, Richard L. “Measurement and Evaluation of Satisfaction Processes in Retail Settings.” Journal of
Retailing 57, no. 3 (Fall 1981): 25–48.
———. Satisfaction: A Behavioral Perspective on the Consumer. New York: McGraw-Hill, 1997.
Oskamp, Stuart, and P. Wesley Schultz. Attitudes and Opinions. 3rd ed. Mahwah, NJ: Lawrence Erlbaum,
2005.
Rifkin, Jeremy. The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market
Era. New York: G.P. Putnam’s Sons, 1995.
Tse, David K., Franco M. Nicosia, and Peter C. Wilton. “Consumer Satisfaction as a Process.” Psychology
& Marketing 7, no. 3 (Fall 1990): 177–193.
———, and Peter C. Wilton. “Models of Consumer Satisfaction Formation: An Extension.” Journal of
Marketing Research 25, no. 2 (May 1988): 204–212.
Wright, Newell D. “Satisfaction with Home Ownership: An Evolutionary Process.” Journal of Consumer
Satisfaction, Dissatisfaction and Complaining Behavior 9 (1996): 178–189.
Yi, Youjae. “A Critical Review of Consumer Satisfaction.” In Review of Marketing 1990, ed. Valarie A.
Zeithaml, 68–123. Chicago: American Marketing Association, 1990.
Younis, Talib. “Customers’ Expectations of Public Sector Services.” Total Quality Management 8, no. 4
(August 1997): 115–129.
Zhang, Shi, and Gavan J. Fitzsimons. “Choice-Process Satisfaction: The Influence of Attribute Alignability
and Option Limitation.” Organizational Behavior and Human Decision Processes 77, no. 3 (March
1999): 192–214.
PART I
BASIC SATISFACTION MECHANISMS
This section of the book, consisting of three chapters, explains the essential building blocks of the
satisfaction response. Although consumers initially process expectations as a starting point for satis-
faction judgments, the section begins with a discussion of product and service performance because
performance measurement remains the approach most commonly taken in satisfaction surveys.
Chapter 2 begins by discussing performance assessment from a historical perspective, explain-
ing why it is so fully entrenched in satisfaction measurement, and then elaborates on the different
forms of performance scales. Some scale formats are judged as more appropriate than others if
satisfaction measurement and prediction are the researcher’s goal. The argument is then made that
performance is an incomplete proxy for satisfaction because it omits consideration of other key
elements of the satisfaction response, referred to as “black box” concepts. Without a comparative
referent, such as a consumer’s expectation set for the product or service, actual performance is
arguably a sterile benchmark, at least conceptually. Reasons are given for this conclusion, although
an attempt is made to show how a performance-only survey can yield insight if that is all that the
researcher is able to measure.
A central argument of this chapter is that performance “importance,” although widely mea-
sured, may have less information value than many suspect. A number of arguments are given for
this assertion. The chapter is especially critical of the use of “importance-performance” analysis
whereby satisfaction is inferred without the actual measurement of the satisfaction construct. The
technique is not inherently flawed; it is the methodology most used to tease out satisfaction impli-
cations that is suspect. With the addition of even the simplest of satisfaction measures, however,
a modification of this technique can increase its validity.
In an attempt to more fully elaborate the psychology behind customer satisfaction, Chapter 3
discusses expectations at both the macro and micro levels and how they have come to be known
as a key ingredient in the satisfaction response. The definition of expectations, their sources, the
measurement of expectations (when and how), and their role in the satisfaction response are given
detailed coverage. Additionally, this chapter provides somewhat intricate explanation regarding
levels of expectation (e.g., ideal, deserved, predicted) and how one would use multiple standards
in practice, as well as the author’s expectation framework based on the holding of active/passive,
knowable/unknowable, and probability/uncertainty dimensions.
New to the current edition is an elaboration of anticipation and the role of various forms of
anticipation (anticipated satisfaction and even anticipation of evaluating satisfaction) in the final
satisfaction judgment. It is argued that expectations (of satisfaction) may perform a very important
function in preconsumption processing, as affecting postpurchase response, in addition to their
traditional role as performance comparators.
The last topic of this section, expectancy disconfirmation, is introduced in Chapter 4. Currently
the most popular and robust paradigm for explaining satisfaction, the expectancy disconfirmation
model has found application in many satisfaction research domains (e.g., consumer, life, patient,
marital). The chapter begins by describing the background of the disconfirmation concept and
then explains the necessity for treating it as a conceptually distinct variable apart from expectation
27
28 BASIC SATISFACTION MECHANISMS
and performance. A simple thought experiment illustrates how performance can fail as a satisfac-
tion substitute when two consumers receive identical performance, yet respond to these identical
situations in a diametrically opposite manner. An understanding of the role of disconfirmation is
shown to fully explain this anomaly. Appropriate measurement of the disconfirmation concept is
discussed as are research findings showing representative support for its role in predicting satis-
faction later in the chapter.
Chapter 4 also discusses a “gap” model whereby arithmetic differences between expectations
and performance are used as proxies for disconfirmation; offers an extended exposition of the
role of surprise in the disconfirmation response and how it contributes to form delight, new to
this edition; and explains the dual interplay of delight and disconfirmation in satisfaction and re-
patronage intention. Different performance-based comparators, including the distinction between
benefits and problems, individual dimensions, and information “performance” (e.g., marketing
communication effects) versus product performance are introduced as alternatives to the mostly
attribute performance-based model.
A central component of this chapter is the operation of the expectancy disconfirmation model
illustrated via two examples, one of dominating expectation effects and one of dominating dis-
confirmation effects. These examples allow the reader to address some common misconceptions
in the popular press, including the belief that exceeding expectations will universally guarantee
satisfaction. The chapter concludes with discussion of how consumers may selectively use com-
binations of performance, expectations, and disconfirmation in forming satisfaction judgments,
and studies from the literature demonstrating these various combinations are provided.
CHAPTER 2
THE PERFORMANCE OF ATTRIBUTES,

FEATURES, AND DIMENSIONS
“Less filling, tastes great,” “Melts in your mouth, not in your hands,” “Gets the red out,” “For
virtually spotless dishes,” “Tastes as good as it smells,” “The most accurate watch in the world,”
“Keeps babies drier,” “Cuts grease quicker,” “Locks in freshness,” “Nothing protects food better,”
“Softens your hands while you do the dishes,” “Gives you ‘sex appeal’,” “Personalized service
that comes to your home,” “Kills bad breath, but doesn’t taste mediciney,” “Gets your whole wash
clean,” “Helps stop the greasies,” “Kills bugs dead.”1
The advertising slogans in the preceding paragraph illustrate the marketing fascination with
product (or service) performance. This attention to performance is not surprising since consumers
do buy products to “do something” (e.g., “kill bugs”) and to do it better than the alternatives (e.g.,
“the most accurate watch”). For this reason, measurement of product performance has dominated
satisfaction surveys for some time. In focusing only on performance, however, researchers have
assumed a direct link from product attribute performance to satisfaction, a linkage that will be
questioned here and elsewhere in this book.
This chapter has a number of related goals: to show different perspectives of measuring per-
formance, to show how current practice has and has not related performance to satisfaction, and
to suggest the limitations of a performance-only approach. Later chapters will elaborate on how
one might begin to move beyond these limitations.
TRADITIONAL SATISFACTION ANALYSIS
In an all-too-familiar research scenario, much of satisfaction research is conducted according to

the following format: A list of key product or service features is generated which, it is hoped,
contains an exhaustive set of factors thought to cause satisfaction and dissatisfaction. In a fairly
direct manner, consumers are asked to rate the importance of these features and to retrospectively
rate the product or service on the degree to which each of the features was delivered.2 At the same
time, the consumer may be asked to rate the product on an overall basis. This overall score, which
may or may not be a measure of satisfaction, is used to represent the consumer’s mental summary
state of experience with the product. It becomes the standard against which the feature ratings
are compared. An assumption of this technique is that those features which are most aligned with
the overall score across consumers (high feature scores corresponding to satisfaction, low feature
scores to dissatisfaction) are those that have the greatest impact on satisfaction.
Despite the ubiquity of this method, a number of problems are inherent in its implementation.
First, the list of features cannot be exhaustive for all consumers. Survey length restrictions and the
29
30 BASIC SATISFACTION MECHANISMS
inability to adequately sample the full population of consumers, particularly in the pretest stages
of survey construction, are likely to cause the researcher to overlook some critical elements of the
purchase that will therefore not be represented in the feature list. These will show up as “noise” in
the researcher’s analysis, preventing a complete understanding of the causes of satisfaction or dis-
satisfaction. In part, this problem can be addressed by using the proper level of feature abstraction
when the attribute list is prepared (to be discussed). Another problem, also discussed, concerns
the relevance of features at different stages of decision-making.
Second, the questioning of feature importance is typically made without qualification, as in
“Please rate the following on their importance (to you).” A reasonable question, then, is: Important
for what? Often the importance question is qualified in terms of “buying this product.” However,
if the research goal is an understanding of consumer satisfaction, then importance in product
choice is an inappropriate context; rather, the concern should center on importance in delivering
satisfaction. This example illustrates the relevancy issue at different stages of decision-making
noted in the previous paragraph. Later in this chapter, a number of other issues will be discussed
on the matter of importance.
Third, the summary measure collected in the survey is frequently not satisfaction. Rather, it
could be a liking or disliking, a judgment of goodness or badness, a quality scale of the poor-
fair-good-excellent (pfge—or “fudge”) variety, a “will you shop here again?” measure, or any of
the “sound-alike” terms discussed in the Introduction (Chapter 1). In the worst-case scenario, no
summary measure is used at all; instead, an additive sum of the feature scales is constructed to
represent the consumer’s overall judgment. The researcher is then put in the tenuous position of
using individual equally weighted features to predict their summation. The point here is that if
the researcher is interested in predicting satisfaction, then the feature measures should relate to
satisfying and dissatisfying properties of products and, as a minimum, an overall satisfaction scale
should be included in the survey. If an attitude, quality, or other purchase criterion is of interest, then
attitude-specific or quality- or value-specific measures (see Chapters 6 and 7) should be used.
Descriptive Statistics
At the next phase of the typical satisfaction study, an initial analysis of feature performance data
may be performed with the calculation of descriptive statistics (e.g., averages, distributions of
replies); often the analysis stops at this point. If historical data are available, the new data can be
compared to historical averages, and then a determination can be made regarding trends and whether
or not the current averages are acceptable to the firm. This latter step is known as benchmarking,
a procedure used to not only compare the same critical levels (e.g., satisfaction) over time, but
also to different measures or metrics of satisfaction at the same point in time, to compare steps
in the satisfaction delivery process against established criteria, and to compare satisfaction levels
with those of competitors.3
Descriptive data, when not properly analyzed, introduce a fourth problem, if it is assumed that
high scores on performance ratings mean that these features are “key” in providing satisfaction.
In fact, high scores mean little in the analysis unless they are compared to the overall satisfaction
score (and competitors’ scores, if available) through a correlation analysis. If the researcher were
to plot each respondent’s attribute performance rating on the x (horizontal) axis and satisfaction
score on the y (vertical) axis of an xy graph, resulting in a configuration of points commonly called
a scatterplot, the relationship between performance and satisfaction would be observed (see Figure
2.1). Note that performance, the causal agent, is on the x axis and satisfaction, the effect, is on the
y axis. This particular labeling is by convention as researchers are typically concerned with how
THE PERFORMANCE OF ATTRIBUTES, FEATURES, AND DIMENSIONS 31
Figure 2.1 A Satisfaction-Performance Scatterplot
the effect varies with given values of the cause—performance in the present case. When neither
variable is “causal,” the axis orientation is not important.
The relation in Figure 2.1 can be summarized statistically through calculation of the correlation
coefficient, available in most spreadsheet and statistical packages. The strength of this coefficient
assesses whether the feature performance scores and the overall measure of satisfaction covary,
that is, move in the same direction so that individuals with high (low) feature scores tend to also
provide high (low) satisfaction scores. This type of relationship is approximated by the dashed
line (also called a regression line) in the scatterplot. At this point, the researcher can assume that
the intersection of the midpoint of the performance-based horizontal axis with the regression line
breaks the vertical axis into satisfaction and dissatisfaction regions. This, however, is merely a
function of the descriptors used for satisfaction and performance scaling in the analysis and is not
necessarily accurate. Inspection of the scale midpoints is required to draw conclusions.
Importance-Performance Analysis
Frequently the satisfaction issue is sidestepped through an importance-performance (IP) analysis.

In the classic IP analysis, each attribute is rated by the consumer on an importance scale (e.g., not
important = 1, very important = 5) and on performance (e.g., poor = 1, excellent = 5).4 The arith-
metic averages or means for each attribute are then calculated over respondents for both importance
and performance. This results in an attribute-specific importance mean and an attribute-specific
performance mean for every attribute used in the study. Interestingly, neither overall performance
nor satisfaction is used! Thus the popularity of this technique may arise from instances where
researchers have omitted or were unable to collect an overall measure.
The importance and performance means for each attribute are then plotted on an xy graph. Typi-

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Published 2015 by Routledge

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright © 2010 Taylor & Francis. All rights reserved.

No part of this book may be reprinted or reproduced or utilised in any form or by

Product or corporate names may be trademarks or registered trademarks, and

Library of Congress Cataloging-in-Publication Data

ISBN 13: 9780765617705 (hbk)

1. Introduction: What Is Satisfaction? 3

PART I. BASIC SATISFACTION MECHANISMS 27

2. The Performance of Attributes, Features, and Dimensions 29

3. Expectations and Related Comparative Standards 61

4. The Expectancy Disconfirmation Model of Satisfaction 96

Shortcomings of Assimilation Versus Contrast Interpretations 98

PART II. ALTERNATIVE AND SUPPLEMENTARY COMPARATIVE

5. Need Fulfillment in a Consumer Satisfaction Context 137

6. Quality: The Object of Desire 162

Consumer Perceptions of Quality 164

7. The Many Varieties of Value in the Consumption Experience 190

8. Equity: How Consumers Interpret Fairness 211

Person-to-Person Comparisons 215

PART III. SATISFACTION PROCESSES AND MECHANISMS 261

Proposed Relations Between Dissonance and Satisfaction 279

11. Attribution in the Satisfaction Response: Why Did It Happen? 290

12. Emotional Expression in the Satisfaction Response 314

Emotion and Satisfaction in Consumption 327

13. The Processing of Consumption 352

PART IV. SATISFACTION’S CONSEQUENCES: WHAT HAPPENS NEXT? 383

14. After Satisfaction: The Short-Run Consequences 385

A Complaint Process Model 389

15. Loyalty and Financial Impact: Long-Term Effects of Satisfaction 424

Dimensions of the Framework 445

Name Index 479

1.1 Vertical and Horizontal Views of Satisfaction 9

1.1 Variants of “Satisfaction” 7

5.7 Likely Scatterplots Corresponding to Various Need Fulfillment

14.4 The Expectancy Disconfirmation Model as Applied to Complaint Handling 392

WHY STUDY SATISFACTION IN A CONSUMER CONTEXT?

The Consumer’s Perspective

• Satisfaction itself is a desirable end-state of consumption or patronization; it is a reinforcing,

The Firm’s Perspective

The Industry Perspective

The Societal Perspective

A DIVERSITY OF SATISFACTION DEFINITIONS

Figure 1.1 Variants of “Satisfaction”

Satisfaction: A Formal Definition

Satisfaction is the consumer’s fulfillment response. It is a judgment that a product/service

What About Dissatisfaction?

Vertical and Horizontal Views of Satisfaction

Viewpoint Antecedents Core concept Consequences

Individual: Time Accumulated Summary satisfaction Attitude, loyalty, switching

Firm’s customers Reputation, product Average satisfaction, Share, profits

Industry or Average quality, Consumer sentiment Regulation, taxation

Society Product and service Psychological Tranquility, productivity,

however, is that overfulfillment may be dissatisfying if it is unpleasant—as in the case of “too

VERTICAL AND HORIZONTAL DISTINCTIONS

Do Firms Agree on Satisfaction as a Corporate Goal?

CONSUMER SATISFACTION COMPARED TO SATISFACTION IN