Upward Product Line Extensions : The Longitudinal Interplay of Objective Service Performance, Overall Perceived Quality, and Purchase Amount

This study utilizes unique field data from a major quick-service restaurant chain to investigate the longitudinal interplay of objective service performance, perceived service quality, and actual purchase amount in the context of an upward product line extension. Results indicate that objective service performance is a key driver of perceived service quality of an upward product line extension and that the longer the time elapsed between subsequent purchases, the lower the effect of perceived service quality on the subsequent purchase amount. Both theoretical and managerial implications of these findings are outlined