What You Don't Know About Customer-Perceived Quality: The Role of Customer Expectation Distributions

We show that some of the most common beliefs about customer-perceived quality are wrong. For example, 1) it is not necessary to exceed customer expectations to increase preference, 2) receiving an expected level of bad service does not reduce preference, 3) rational customers may rationally choose an option with lower expected quality, even if all non-quality attributes are equal, and 4) paying more attention to loyal, experienced customers can...