Satisfaction This page intentionally left blank Satisfaction A Behavioral Perspective on the Consumer Second Edition Richard L. Oliver First published 2010 by M.E. Sharpe Published 2015 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN 711 Third Avenue, New York, NY 10017, USA Routledge is an imprint of the Taylor & Francis Group, an informa busin ess Copyright © 2010 Taylor & Francis. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publisher s. Notices No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwi se, or from any use of operation of any methods, products, instructions or ide as contained in the material herein . Practitioners and researchers must always rely on their own experience a nd knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they shou ld be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibilit y. Product or corporate names may be trademarks or registered trademarks, an d are used only for identification and explanation without intent to infring e. 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