• Business
  • Published 2012

Customer Anger and Incentives for Quality Provision

@inproceedings{Heyes2012CustomerAA,
  title={Customer Anger and Incentives for Quality Provision},
  author={Anthony G. Heyes and Sandeep Kapur},
  year={2012}
}
Emotions are a significant determinant of consumer behaviour. A customer may get angry if he feels that he is being treated unfairly by his supplier and that anger may make him more likely to switch to an alternative provider. We model the strategic interaction between firms that choose quality levels and anger-prone customers who pick their supplier based on their expectations of suppliers' quality. Strategic interaction can allow for multiple equilibria including some in which no firm invests… CONTINUE READING

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