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Two Essays on Customer Satisfaction and Loyalty
Dissertation   Open access

Two Essays on Customer Satisfaction and Loyalty

Sang Hee Kim
University of Iowa
Doctor of Philosophy (PhD), University of Iowa
Spring 2024
DOI: 10.25820/etd.007402
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Abstract

This study contains two essays exploring dimensions of customer satisfaction and loyalty, areas that, despite decades of scholarly attention, still present under-researched questions. The first essay investigates how customer satisfaction formation varies across different industries. It reveals that satisfaction evaluations are influenced significantly by industry, with absolute measure of satisfaction generally prevailing. Particularly in service industries, customers are inclined to compare their experience to expectations. Additionally, even in monopolistic industries, customers generate an internal benchmark. The second essay explores the causal relationships between customer satisfaction and repurchase behavior, distinguishing between true loyalty and spurious loyalty influenced by inertia. The unique circumstances of the COVID-19 pandemic provide a natural experiment setting to separate the effects of loyalty from inertia, by eliminating inertial behavior. Together, these essays enhance understanding of how customer satisfaction metrics are formulated and their critical role in predicting repurchase behaviors, thereby filling significant gaps in the existing literature on marketing research.
Customer behavior metrics Customer loyalty Customer satisfaction Inertia Retention

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