How Complementarity and Substitution Alter the Customer Satisfaction—Repurchase Link

Customer satisfaction is universally acknowledged as a key driver of customer repurchase behavior, but recent evidence suggests that satisfaction has no effect on repurchase under certain circumstances. In this study, the authors develop a framework for understanding the complex relationships among satisfaction, moderating variables, and repurchase. They propose that the satisfaction—repurchase link is subject to complementary and substitute effects and present satiation and inertia as key theoretical mechanisms that explain and predict those effects. In weak-satiation purchase categories, complementary effects are more likely, which suggests that managers should invest in customer satisfaction and complementary initiatives simultaneously. In strong-satiation purchase categories, substitute effects are more likely, which suggests that managers should invest in either customer satisfaction or substitute initiatives. An empirical test combining survey and longitudinal purchase data from two categories—fashion apparel and automobile service—provides a remarkable degree of support for the propositions. The findings offer new theoretical insights and substantive guidance for managers to effectively allocate resources to initiatives that complement or substitute for customer satisfaction.