Dimensions of price satisfaction: a replication and extension

Purpose – The purpose of this study is to replicate and extend the findings of Matzler et al. 's recent paper on the dimensionality of price satisfaction. Furthermore, a test is performed to ascertain whether the relationship between satisfaction with the individual price dimensions and overall satisfaction is symmetric or asymmetric, as the three‐factor theory of customer satisfaction suggests. Design/methodology/approach – Based on a random sample of 406 bank customers, the impact of five price dimensions (price‐quality ratio, price fairness, price transparency, price reliability, and relative price) on overall satisfaction is tested using structural equation modeling with Partial Least Squares (PLS). The asymmetric relationship is tested using regression analysis with dummy variables. Findings – The results confirm Matzler et al. 's findings and show that price satisfaction can be conceptualized as a multidimensional construct and that the five price dimensions have a strong and significant impact on overall satisfaction. Furthermore, it is shown that the relationship between satisfaction of individual price dimensions and overall price satisfaction can be asymmetric, indicating that the three‐factor theory of customer satisfaction is applicable also to price satisfaction. Research limitations/implications – The study replicates previous findings and supports the multi‐dimensional nature of price satisfaction and shows that the three‐factor theory of customer satisfaction applies also to price satisfaction. Practical implications – The measurement of price satisfaction at the level of individual price dimensions and the assessment of asymmetric relationships provides managers with more precise data in order to take the right measures to increase satisfaction. Originality/value – This paper confirms previous findings on the dimensionality of price satisfaction in a random sample of bank customers using structural equation modeling with PLS. Hence, it provides strong empirical support for Matzler et al. 's findings.