Customer satisfaction and price tolerance

Eugene W. Anderson

Research output: Contribution to journalArticlepeer-review

189 Scopus citations


This study investigates the association between customer satisfaction and willingness-to-pay or price tolerance. The goal is not only to determine whether the association between customer satisfaction and price tolerance is positive or negative but also to gauge the degree of association. The Swedish Customer Satisfaction Barometer provides the data. The empirical analysis indicates a negative association between the level of customer satisfaction provided by the firm and the degree of price tolerance exhibited by its customers. However, a positive association is found between year-to-year changes in the levels of customer satisfaction and price tolerance.

Original languageEnglish (US)
Pages (from-to)265-274
Number of pages10
JournalMarketing Letters
Issue number3
StatePublished - 1996
Externally publishedYes


  • Customer satisfaction
  • Industrial organization
  • Price sensitivity

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing


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