The Impact of customer satisfaction on expected utility: a multi-stage choice experiment

In recent years there has been disenchantment with the performance and relevance of customer satisfaction models in applied business contexts. An expected utility framework overcomes many of the weaknesses and provides a possible relevant solution. This paper applies a designed stated choice experiment to broadband services using a three-stage approach. The first stage sets product expectations and determines choices. The second stage introduces a product experience for one of the alternatives while the third stage asks respondents for a post experience choice between competing alternatives. The impact of expectations, performance and disconfirmation and satisfaction on future choices is estimated using a contingency tables and a binary logit model and contrasted with pre-experience choices. Overall, the actual performance of the broadband service is important in determining satisfaction with the service which in turn influences brand choice.