The Relationship between Customer Satisfaction and
Repurchase Behavior in Online Shopping
Environments
An empirical analysis of online product reviews in the undergarment market
Table of contents
✓ Relevance page 3
✓ Research questions page 4
✓ Conceptual model page 5
✓ Methodology page 6-7
✓ Results page 8
✓ Discussion page 9
✓ Managerial implications page 10
Relevance
“Happy customers tell 3 friends about their experiences with a company, while angry customers tell about their experiences to 3000 people” (Chatterjee, 2001)
• Provides insights into the effect of customer satisfaction, measured through online product reviews, on repurchase behavior
• Adresses the question whether the reasons for being (dis)satisfied with a product alter the effect of customer satisfaction on repurchase behavior
Research questions
What is the influence of customer satisfaction, measured through online product
reviews, on the repurchase behavior of the customer who wrote a review in an online
shopping environment?
Do the antecedents of customer satisfaction have an influence on the determined
relationship between customer satisfaction and customer repurchase behavior?
Conceptual model
• Hedonic
Methodology (1)
Repurchase dummy ~
Rating + Sentiment score + Category dummies
Sentiment
Score ProductRating
Discussion (1)
Overall effect
• Difference in level satisfaction level represented by textual part and rating (Overall satisfaction <-> product part-based satisfaction)
• Incentive could cause inaccurate measures • Mismeasurement
Categorized effect
Managerial implications
• Carefully evaluate customers’ satisfaction levels
• Online product rating can influence repurchase behavior Should be taken serious!
• Make no distinction between satisfaction levels based on different categories
Advise:
Limitations & Future Research
Specific market / specific time
Investigate in a broad panel of representative markets, with different sample profiles or
volumes and in different countries
Short time-window
Collect data over longer period
Possibility of translation errors
Use different sentiment dictionary
Subjective self-built dictionary
Inevitable limitation
Sentiment analysis at word level