The link between customer satisfaction and price sensitivity: An investigation of retailing industry in Taiwan

Investigation of Link between Customer Satisfaction and Customers Price Sensitivity

“…Tohmatsu believes that retailing industry is the main index for economic development of countries. Some studies have investigated the relationship between customer's satisfaction and price sensitivity in markets but in many developing countries, relationship between price and satisfaction is common especially in retailing systems (Low et al, 2013). In many previous studies, customer's satisfaction has been investigated in general form but the present research deals with both economic and social satisfaction.…”

“…It refers to functional aspects of and economic consequences of a purchase which includes product attractiveness and quality, satisfaction with cost and so on (Low et al, 2013). Economic satisfaction or satisfaction with product is a popular subject of study.…”

“…It includes positive and friendly service attitudes, service processes, respect and politeness of salespeople and so on (Low et al, 2013). Customer satisfaction has two dimensions in marketing literature; transactional dimension (economic), and relational dimension (social).…”

“…If customer satisfaction is high, he or she tends to pay more money. In other words, his or her sensitivity to price will decrease and vice versa (Low et al, 2013).…”

The Customer Satisfaction Research of 7-ELEVEn Stores in Hong Kong

“…That economic satisfaction is negatively associated with price sensitivity. However, social satisfaction is positively related to price sensitivity, especially for female customers and customers with high patronage frequency [10]. Personal interaction quality has a stronger influence on customer satisfaction.…”