TY - JOUR
T1 - Putting service relations to the test
T2 - how can negative consumer reactions of price increases be reduced?
AU - Woisetschläger, David M.
AU - Evanschitzky, Heiner
AU - Holzmüller, Hartmut H.
PY - 2008
Y1 - 2008
N2 - Price increases seem to be an adequate way to improve the earnings of companies. This fact becomes especially crucial because of increased price competition in many markets. Price increases might lead to negative customer reactions, such as a lower perceived utility or a lower loyalty intention. Therefore, the question for managers remains how prices can be increased without losing customers. Results of our experimental study suggest that customers of energy suppliers rate the perceived utility of the offer relatively better when the price increase is combined with an additional modification of the product or accompanied by a new service. It becomes clear that intensifying service relations can offset the negative effects of price increases.
AB - Price increases seem to be an adequate way to improve the earnings of companies. This fact becomes especially crucial because of increased price competition in many markets. Price increases might lead to negative customer reactions, such as a lower perceived utility or a lower loyalty intention. Therefore, the question for managers remains how prices can be increased without losing customers. Results of our experimental study suggest that customers of energy suppliers rate the perceived utility of the offer relatively better when the price increase is combined with an additional modification of the product or accompanied by a new service. It becomes clear that intensifying service relations can offset the negative effects of price increases.
KW - pricing
KW - service relationships
KW - price increase
KW - consumer reactions
KW - experimental research
UR - http://www.scopus.com/inward/record.url?scp=67649194999&partnerID=8YFLogxK
UR - http://www.tandfonline.com/10.1080/15332660802508315
U2 - 10.1080/15332660802508315
DO - 10.1080/15332660802508315
M3 - Article
VL - 7
SP - 377
EP - 390
JO - Journal of Relationship Marketing
JF - Journal of Relationship Marketing
SN - 1533-2667
IS - 4
ER -