WORKING PAPER SERIES ON RESEARCH IN RELATIONSHIP MANAGEMENT Effects of Personal Values on Customer Satisfaction: An Empirical Test of the Value Percept Disparity Model and the Value Disconfirmation Model

In this paper we elaborate on two specific processes that relate personal values to satisfaction with (financial) services. These processes are reflected in the value percept model and value disconfirmation model. We generalize both models into a new value disparity-disconfirmation model. This model provides testable conditions to evaluate and compare the validity of the value percept disparity model and the value disconfirmation model. We specify our model in terms of several hierarchical linear models and assess the empirical fit of these models with data on 18 bank branches. The results of our study support the value disconfirmation model. Furthermore, the external dimension of personal values has a larger impact on satisfaction than the internal dimension. This indicates that differentiation between personal values is important in the assessment of their impact on satisfaction. Further theoretical and managerial implications of our study are discussed.