The cumulative effect of satisfaction with discrete transactions on share of wallet

Journal of Service Management

Volumn 25, Issue 3, 2014, Pages 310-333

  Keiningham, Timothy L ^a   Aksoy, Lerzan ^b   Malthouse, Edward C ^c   Lariviere, Bart ^d   Buoye, Alexander ^a  

^a Ipsos   (United States)

^b FORDHAM UNIVERSITY   (United States)

^c NORTHWESTERN UNIVERSITY   (United States)

^d GHENT UNIVERSITY   (Belgium)

Author keywords

Consumer behavior; Longitudinal data; Loyalty; Satisfaction; Service encounters; Share of wallet

Indexed keywords

EID: 84902522463     PISSN: 17575818     EISSN: None     Source Type: Journal    
DOI: 10.1108/JOSM-08-2012-0163     Document Type: Article

References (98)

1. Adams, J.S. (1965), "Inequity in social exchange" in Berkowitz, L. (Ed.), Advances in Experimental Social Psychology, Vol. 2, Academic Press, New York, NY, pp. 267-299.
2. Aksoy, L., Keiningham, T.L., Oliver, R.L. (2014), "Loyalty: its many sources and variations" in Rust, R. and Huang, H. (Eds.), Handbook of Service Marketing Research, Edward Elgar Publishing, Cheltenham, pp. 37-51.
3. Anderson, E.W., Mittal, V. (2000), "Strengthening the satisfaction-profit chain" in Journal of Service Research, Vol. 3, No. 2, pp. 107-120.
4. Anderson, E.W., Fornell, C., Lehmann, D.R. (1994), "Customer satisfaction, market share, and profitability: findings from Sweden" in Journal of Marketing, Vol. 58, No. 3, pp. 53-66.
5. Baddeley, A. (2012), "Working memory: theories, models, and controversies" in Annual Review of Psychology, Vol. 63, pp. 1-29.
6. Bell, D.E. (1985), "Disappointment in decision making under uncertainty" in Operations Research, Vol. 33, No. 1, pp. 1-27.
7. Bergkvist, L., Rossiter, J.R. (2007), "The predictive validity of multiple-item versus single-item measures of the same constructs" in Journal of Marketing Research, Vol. 44, No. 2, pp. 175-184.
8. Bitner, M., Hubbert, A.R. (1994), "Encounter satisfaction versus overall satisfaction versus quality" in Rust, R.T. and Oliver, R.L. (Eds.), Service Quality: New Directions in Theory and Practice, Sage Publications, New York, NY, pp. 72-94.
9. Blattberg, R., Malthouse, E.C., Neslin, S. (2009), "Lifetime value: empirical generalizations and some conceptual questions" in Journal of Interactive Marketing, Vol. 23, No. 2, pp. 157-168.
10. Blaug, M. (1996), Economic Theory in Retrospect, Cambridge University Press, Cambridge, 5th ed.
11. Bloemer, J.M., Kasper, H.D., Lemmink, J. (1990), "The relationship between overall dealer satisfaction, satisfaction with the attributes of dealer service, intended dealer loyalty and intended brand loyalty: a Dutch automobile case" in Journal of Satisfaction, Dissatisfaction and Complaining Behavior, Vol. 3, pp. 42-47.
12. Bolton, R.N. (1998), "A dynamic model of the duration of the customer's relationship with a continuous service provider: the role of satisfaction" in Marketing Science, Vol. 17, No. 1, pp. 45-65.
13. Bolton, R.N., Lemon, K.N. (1999), "A dynamic model of customer's usage of services: usage as an antecedent and consequence of satisfaction" in Journal of Marketing Research, Vol. 36, No. 2, pp. 171-186.
14. Boulding, W., Kalra, A., Staelin, R., Zeithaml, V.A. (1993), "A dynamic process model of service quality" in Journal of Marketing Research, Vol. 30, No. 1, pp. 7-27.
15. Bower, G.H., Gilligan, S.G. (1979), "Remembering information related to one's self" in Journal of Research in Personality, Vol. 13, No. 4, pp. 420-432.
16. Bowman, D., Narayandas, D. (2004), "Linking customer management effort to customer profitability in business markets" in Journal of Marketing Research, Vol. 41, No. 4, pp. 433-447.
17. Bowman, D., Farleyn, J.U., Schmittlein, D.C. (2000), "Cross-national empirical generalization in business services buying behavior" in Journal of International Business Studies, Vol. 31, No. 4, pp. 667-686.
18. Brodie, D.A., Murdock, B.B. (1977), "Effects of presentation time on nominal and functional serial position curves in free recall" in Journal of Verbal Learning and Verbal Behavior, Vol. 16, No. 2, pp. 185-200.
19. Brody, R.P., Cunningham, S.M. (1968), "Personality variables and the consumer decision process" in Journal of Marketing Research, Vol. 5, No. 1, pp. 50-57.
20. Cooil, B., Keiningham, T.L., Aksoy, L., Hsu, M. (2007), "A longitudinal analysis of customer satisfaction and share of wallet: investigating the moderating effect of customer characteristics" in Journal of Marketing, Vol. 71, No. 1, pp. 67-83.
21. Crosby, L.A., Stephens, N. (1987), "Effects of relationship marketing on satisfaction, retention, and prices in the life insurance industry" in Journal of Marketing Research, Vol. 24, No. 4, pp. 404-411.
22. Cunningham, R.M. (1956), "Brand loyalty: what, where, how much?" in Harvard Business Review, Vol. 34, No. 1, pp. 116-128.
23. Cunningham, R.M. (1961), "Customer loyalty to store and brand" in Harvard Business Review, Vol. 39, No. 6, pp. 127-139.
24. Davelaar, E.J., Goshen-Gottstein, Y., Ashkenazi, A., Haarmann, H.J., Usher, M. (2005), "The demise of short-term memory revisited: empirical and computational investigations of recency effects" in Psychological Review, Vol. 112, No. 1, pp. 3-42.
25. Drolet, A.L., Morrison, D.G. (2001), "Do we really need multiple-item measures in service research?" in Journal of Service Research, Vol. 3, No. 3, pp. 196-204.
26. Feigenbaum, E.A., Simon, H.A. (1962), "A theory of the serial position effect" in British Journal of Psychology, Vol. 53, No. 3, pp. 307-320.
27. Feinberg, R.A., Kim, I., Hokama, L., de Ruyter, K., Keen, C. (2000), "Operational determinants of caller satisfaction in the call center" in International Journal of Service Industry Management, Vol. 11, No. 2, pp. 131-141.
28. Fletcher, G.P. (1993), Loyalty: An Essay on the Morality of Relationships, Oxford University Press, New York, NY.
29. Fornell, C. (1992), "A national customer satisfaction barometer: the Swedish experience" in Journal of Marketing, Vol. 56, No. 1, pp. 6-21.
30. Fornell, C., Rust, R.T., Dekimpe, M.G. (2010), "The effect of customer satisfaction on consumer spending growth" in Journal of Marketing Research, Vol. 47, No. 1, pp. 28-35.
31. Fornell, C., Johnson, M.D., Anderson, E.A., Cha, J., Bryant, B.E. (1996), "The American customer satisfaction index: nature, purpose, and findings" in Journal of Marketing, Vol. 60, No. 4, pp. 7-18.
32. Freud, S. (1899/1900/1994), The Interpretation of Dreams (Die Traumdeutung), Modern Library/Random House, New York, NY.
33. Glady, N., Croux, C. (2009), "Predicting customer wallet without survey data" in Journal of Service Research, Vol. 11, No. 3, pp. 219-231.
34. Gossen, H.H. (1854), Die Entwicklung der Gesetze des menschlichen Verkehrs und der daraus fließenden Regeln für menschliches Handeln.
35. Gupta, S., Lehmann, D.R. (2005), Managing Customers as Assets, Pearson Education (Wharton School Publishing), Upper Saddle River, NJ.
36. Gutek, B.A. (1978), "Strategies for studying client satisfaction" in Journal of Social Issues, Vol. 34, No. 4, pp. 44-56.
37. Hanssens, D.M., Parsons, L.J., Schultz, R.L. (1998), Market Response Models: Econometric and Time Series Analysis, Kluwer Academic Publishers, Boston, MA.
38. Headey, B., Wearing, A. (1989), "Personality, life events, and subjective well-being: toward a dynamic equilibrium model" in Journal of Personality and Social Psychology, Vol. 57, No. 4, pp. 731-739.
39. Hirschman, A.O. (1970), Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States, Harvard University Press, Cambridge, MA.
40. Holmes, D.S. (1970), "Differential change in affective intensity and the forgetting of unpleasant personal experiences" in Journal of Personality and Social Psychology, Vol. 15, No. 3, pp. 234-239.
41. Homans, G.C. (1961), Social Behavior, Harcourt Brace and World, New York, NY.
42. Homburg, C., Koschate, N., Hoyer, W.D. (2005), "Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay" in Journal of Marketing, Vol. 69, No. 2, pp. 84-96.
43. Inman, J.J., Dyer, J.S., Jia, J. (1997), "A generalized utility model of disappointment and regret effects on post-choice valuation" in Marketing Science, Vol. 16, No. 2, pp. 97-111.
44. Ipsos Loyalty (2010), "Internal data on company/industry norms and practices".
45. Ito, T.A., Larsen, J.T., Smith, N.K., Cacioppo, J.T. (1998), "Negative information weighs more heavily on the brain: the negativity bias in evaluative categorizations" in Journal of Personality and Social Psychology, Vol. 75, No. 4, pp. 887-900.
46. Johnson, M.D., Anderson, E.W., Fornell, C. (1995), "Rational and adaptive performance expectations in a customer satisfaction framework" in Journal of Consumer Research, Vol. 21, No. 4, pp. 695-707.
47. Jones, M.A., Suh, J. (2000), "Transaction-specific satisfaction and overall satisfaction: an empirical analysis" in Journal of Services Marketing, Vol. 14, No. 2, pp. 147-159.
48. Jones, T.O., Sasser Jr, W.E. (1995), "Why satisfied customers defect" in Harvard Business Review, Vol. 73, No. 6, pp. 88-99.
49. Kano, N. (1997), "Upsizing the organization by attractive quality creation" in Hromi, J.D. (Ed.), The Best on Quality, American Society for Quality, Milwaukee, WI, pp. 60-72.
50. Keiningham, T.L., Vavra, T.G. (2001), The Customer Delight Principle, McGraw Hill, Chicago, IL.
51. Keiningham, T.L., Aksoy, L., Bejou, D. (2006), "Approaches to the measurement and management of customer value" in Journal of Relationship Marketing, Vol. 5, Nos 2/3, pp. 37-54.
52. Keiningham, T.L., Aksoy, L., Williams, L. (2009), Why Loyalty Matters, BenBella Books, Dallas, TX.
53. Keiningham, T.L., Perkins-Munn, T., Evans, H. (2003), "The impact of customer satisfaction on share of wallet in a business-to-business environment" in Journal of Service Research, Vol. 6, No. 1, pp. 37-50.
54. Keiningham, T.L., Aksoy, L., Buoye, A., Cooil, B. (2011), "Customer loyalty isn't enough. Grow your share of wallet" in Harvard Business Review, Vol. 89, No. 10, pp. 29-31.
55. Koyck, L.M. (1954), Distributed Lags and Investment Analysis, North-Holland, Amsterdam.
56. Kumar, V. (2008), Managing Customers for Profit, Pearson Education (Prentice Hall), Upper Saddle River, NJ.
57. Loomes, G., Sudgen, R. (1986), "Disappointment and dynamic consistency in choice under uncertainty" in Review of Economic Studies, Vol. 53, No. 2, pp. 271-282.
58. Malthouse, E. (2013), Segmentation and Lifetime Value Models Using SAS, SAS Publishing, Cary, NC.
59. Malthouse, E., Raman, K. (2013), "The geometric law of annual halving" in Journal of Interactive Marketing, Vol. 27, No. 1, pp. 28-35.
60. Matlin, M.W., Stang, D. (1978), The Pollyanna Principle, Schenkman, Cambridge, MA.
61. Menon, G., Raghubir, P. (2003), "Ease-of-retrieval as an automatic input in judgments: a mere-accessibility framework?" in Journal of Consumer Research, Vol. 30, No. 2, pp. 230-243.
62. Mittal, V., Baldasare, P.M. (1996), "Impact analysis and the asymmetric influence of attribute performance on patient satisfaction" in Journal of Health Care Marketing, Vol. 16, No. 3, pp. 24-31.
63. Mittal, V., Kamakura, W. (2001), "Satisfaction, repurchase intent and repurchase behavior: investigating the moderating effect of customer characteristics" in Journal of Marketing Research, Vol. 38, No. 1, pp. 131-142.
64. Mittal, V., Kumar, P., Tsiros, M. (1999), "Attribute-level performance, satisfaction, and behavioral intentions over time: a consumption-system approach" in Journal of Marketing, Vol. 63, No. 2, pp. 88-101.
65. Mittal, V., Ross Jr, W.T., Baldasare, P.M. (1998), "The asymmetric impact of negative and positive attribute-level performance on overall satisfaction and repurchase intentions" in Journal of Marketing, Vol. 62, No. 1, pp. 33-47.
66. Montgomery, D.B., Silk, A.J. (1972), "Estimating dynamic effects of market communications expenditures" in Management Science, Vol. 18, No. 10, pp. B-485-B-501.
67. Murdock, B.B. Jr (1962), "The serial position effect of free recall" in Journal of Experimental Psychology, Vol. 64, No. 5, pp. 482-488.
68. Naik, P.A., Raman, K. (2003), "Understanding the impact of synergy in multimedia communications" in Journal of Marketing Research, Vol. 40, No. 4, pp. 375-388.
69. Oliver, R.L. (1977), "Effect of expectations and disconfirmation on postexposure product evaluations" in Journal of Applied Psychology, Vol. 62, No. 4, pp. 246-250.
70. Oliver, R.L. (1980), "A cognitive model of the antecedents and consequences of satisfaction decisions" in Journal of Marketing Research, Vol. 17, No. 40, pp. 460-469.
71. Oliver, R.L. (1993), "Cognitive, affective, and attribute bases of the satisfaction response" in Journal of Consumer Research, Vol. 20, No. 3, pp. 418-430.
72. Oliver, R.L. (1997), Satisfaction: A Behavioral Perspective on the Consumer, McGraw-Hill Irwin, New York, NY.
73. Oliver, R.L. (1999), "Whence consumer loyalty?" in Journal of Marketing, Vol. 63, No. 4, pp. 33-44.
74. Oliver, R.L. (2010), Satisfaction: A Behavioral Perspective on the Consumer, M.E. Sharpe, Armonk, NY, 2nd ed.
75. Oliver, R.L., Rust, R.T., Varki, S. (1997), "Customer delight: foundations, findings and managerial insight" in Journal of Retailing, Vol. 73, No. 3, pp. 311-336.
76. Olsen, L.L., Johnson, M.D. (2003), "Service equity, satisfaction, and loyalty: from transaction-specific to cumulative evaluations" in Journal of Service Research, Vol. 5, No. 3, pp. 184-195.
77. Parasuraman, A., Zeithaml, V.A., Berry, L.L. (1994), "Alternative scales for measuring service quality: a comparative assessment based on psychometric and diagnostic criteria" in Journal of Retailing, Vol. 70, No. 3, pp. 201-230.
78. Pratto, F., John, O.P. (1991), "Automatic vigilance: the attention-grabbing power of negative social information" in Journal of Personality and Social Psychology, Vol. 61, No. 3, pp. 380-391.
79. Pullman, M., McGuire, K., Cleveland, C. (2005), "Let me count the words: quantifying open-ended interactions with guests" in Cornell Hotel and Restaurant Administration Quarterly, Vol. 46, No. 3, pp. 323-343.
80. Robinson, J.A. (1980), "Affect and retrieval of personal memories" in Motivation and Emotion, Vol. 4, No. 2, pp. 149-174.
81. Royce, J. (1908/1995), The Philosophy of Loyalty, Vanderbilt University Press, Nashville, TN.
82. Rust, R.T., Oliver, R.L. (2000), "Should we delight the customer?" in Journal of the Academy of Marketing Science, Vol. 28, No. 1, pp. 86-94.
83. Rust, R.T., Zahorik, A.J., Keiningham, T.L. (1996), Service Marketing, HarperCollins, New York, NY.
84. Schwarz, N., Bless, H., Strack, F., Klumpp, G., Rittenauer-Schatka, H., Simons, A. (1991), "Ease of retrieval as information: another look at the availability heuristic" in Journal of Personality and Social Psychology, Vol. 61, No. 2, pp. 195-202.
85. Sen, A., Srivastava, M. (1990), Regression Analysis: Theory, Methods, and Applications, Springer-Verlag New York Inc., New York, NY.
86. Suh, E., Diener, E., Fujita, F. (1996), "Events and subjective well-being: only recent events matter" in Journal of Personality and Social Psychology, Vol. 70, No. 5, pp. 1091-1102.
87. Taylor, S.E. (1991), "Asymmetrical effects of positive and negative events: the mobilization-minimization hypothesis" in Psychological Bulletin, Vol. 110, No. 1, pp. 67-85.
88. Teas, R.K. (1993), "Expectations, performance evaluation, and customer perceptions of quality" in Journal of Marketing, Vol. 57, No. 4, pp. 18-34.
89. Tellis, G.J. (1988), "Advertising exposure, loyalty, and brand purchase: a two-stage model of choice" in Journal of Marketing Research, Vol. 25, No. 2, pp. 134-144.
90. Van Doorn, J., Verhoef, P.C. (2008), "Critical incidents and the impact of satisfaction on customer share" in Journal of Marketing, Vol. 72, No. 4, pp. 123-142.
91. Van Vugt, M., Hart, C.M. (2004), "Social identity as social glue: the origins of group loyalty" in Journal of Personality and Social Psychology, Vol. 86, No. 4, pp. 585-598.
92. Vargo, S.L., Lusch, R.F. (2004), "Evolving to a new dominant logic for marketing" in Journal of Marketing, Vol. 68, No. 1, pp. 1-17.
93. Vavra, T.G. (2002), Customer Satisfaction Measurement Simplified: A Step-by-Step Guide for ISO 9001:2000 Certification, ASQ Quality Press, Milwaukee, WI.
94. Verhoef, P.C., Antonides, G., de Hoog, A.N. (2004), "Service as a sequence of events: the importance of peak experiences" in Journal of Service Research, Vol. 7, No. 1, pp. 53-64.
95. Wagenaar, W.A. (1986), "My memory: a study of autobiographical memory over six years" in Cognitive Psychology, Vol. 18, No. 2, pp. 225-252.
96. Walker, W.R., Vogl, R.J., Thompson, C.P. (1997), "Autobiographical memory: unpleasantness fades faster than pleasantness over time" in Applied Cognitive Psychology, Vol. 11, No. 5, pp. 399-413.
97. Wind, Y. (1970), "Industrial source loyalty" in Journal of Marketing Research, Vol. 7, No. 4, pp. 450-457.
98. Zeithaml, V.A., Bolton, R., Deighton, J., Keiningham, T.L., Lemon, K., Petersen, J.A. (2006), "Forward-looking customer focus: can firms have adaptive foresight?" in Journal of Service Research, Vol. 9, No. 2, pp. 168-183.