DISSERTATION ABSTRACT
Incorporating Regret in a Multiple
Reference-Point Model for Conceptualizing Satisfaction and Predicting
Termination in an Exchange Relationship
This dissertation
provides a conceptualization of the satisfaction construct that is broader and
more consistent with the customer satisfaction literature. This new
conceptualization of satisfaction is applied in a marketing channels setting
and it includes the notion of regret from the Behavioral Decision literature as
another component of affective consequences in decision making. This notion of
regret represents the difference between what a particular outcome is and what
this outcome could have been. Therefore, by building on the
expectation-disconfirmation model of customer satisfaction, a new model is
presented which incorporates both performance-based satisfaction and regret as
the two affective consequences of relational satisfaction. This model is unique
because it incorporates two reference points, one for calculating performance-based
satisfaction and another for calculating regret.
In addition, this
dissertation investigates the case where there are more than two alternatives
in the choice set. This is very important since most real-life situations
involve multiple alternatives. Since regret is based on the difference between what
is and what could have been, only one of the foregone alternatives
will serve as a reference point in calculating regret.
This dissertation
consists of two studies. The first study examines the case where there are only
two choice alternatives. By manipulating the type of disconfirmation
experienced (positive versus negative) and the level of performance of the
foregone alternative compared to the chosen alternative (better versus worse),
a 2x2 between subjects factorial design was constructed. The study consisted of
94 MBA students that served as subjects. The results support the hypotheses
proposed in this dissertation. Thus, regret is an important variable in
measuring the affective consequence of an exchange relationship and it is
influenced by the comparison between the chosen and the foregone alternative.
In addition, regret plays an important and significant role in decisions that
affect the future of interorganizational exchange relationships. The second
study replicates the first and, in addition, examines the case where there are
more than two alternatives in the choice set. The study consisted of 137 MBA
and EMBA students that served as subjects. The results support the hypotheses
proposed in this dissertation. In addition, when the choice set is comprised of
more than two alternatives people tend to select as a reference point the
foregone alternative that neutralizes the level of regret experienced.
Several theoretical
and managerial implications follow from the results of this dissertation. These
include: 1) the introduction of another variable in measuring the level of
satisfaction derived from an exchange relationship, 2) the development of a
multiple reference-point model to measure relational satisfaction, 3) an
understanding of the selection of a reference point in managerial decision
making, 4) directing managerial interest to another factor influencing the
evaluation stage, 5) delineating ways for more effective management of the choice
set of a business or a channel partner, and 6) creating an interest for
managers to take a more proactive role during the choice of the selection of
the reference point by their partner firm.