The effect of customer dissatisfaction on store repurchase intentions: a little goes a long way

Abstract

Abstract Prospect theory is a theory of asymmetry which argues that dissatisfaction has a much greater negative effect than satisfaction's positive effect. This theory is tested in a controlled experiment, which shows that satisfying and dissatisfying experiences do not affect return intentions equally. In their effect on store return intentions, the negative effect of a dissatisfying shopping experience was found to be about twice as great as that of a satisfying experience. These results have significant impact on retailing practice. Keywords: Prospect theorycustomer satisfactioncustomer expectations