The inclusion of competitor information in the three-factor theory of customer satisfaction

Abstract

PurposeThe three-factor theory of customer satisfaction suggests that product attributes may have an asymmetric effect on customer satisfaction. Although this relationship has been demonstrated in many different settings, the main drawback of previous research is the lack of information about competitors. This study aims to propose asymmetric impact competitor analysis (AICA) for addressing this shortcoming.Design/methodology/approachThe proposed method is conducted by using both impact asymmetry index and relative performance value of each product attribute. While the former is derived by penalty-reward contrast analysis, the latter is obtained by the comparison of the focal company’s performance with competitor’s performance.FindingsThe paper shows the application of AICA by using data belonging to two competing hotels. Results offered different strategies for each hotel attribute.Originality/valueAICA considers both asymmetric effects of attributes on customer satisfaction and competitor information related to same attributes. The proposed method also suggests the strategies for each attribute depending on the quadrant it is located.