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Consumer Insights. Market Innovation.

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Companies across a wide range of industries focus on improving customer satisfaction as a way of increasing loyalty. Still, there is evidence to show that increasing customer satisfaction does not always result in increases in repurchase. So if your company happens to be in one of those situations you could be wasting money trying to improve customer satisfaction - money that could be usefully spent on something else. What defines "those situations" where the relationship between customer satisfaction and repurchase is sketchy? In a recent issue of the Journal of Marketing, three academic researchers Glenn Voss, Andrea Godfrey and Kathleen Seiders, propose that the kind of product category (luxury or necessity) plays a crucial role in this relationship along with customer, relationship and market characteristics.

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