Assessing the Effects of Post-Purchase Dissatisfaction and Complaining Behavior on Profitability: A Monte Carlo Simulation


  • Jeffrey G. Blodgett North Carolina A&T State University
  • Haitao Li Troy University, Montgomery


The authors present a Monte Carlo simulation demonstrating the effect of post-purchase dissatisfaction and complaining behavior on profitability. Although it is widely believed that improvements in complaint management can increase profits, empirical evidence is lacking. Based on pre-specified probabilities of complaint behaviors, and inputs regarding different outcomes (specifically justice, repatronage, and word-of-mouth), a simulation model is developed. The model allows one to estimate the opportunity costs of post-purchase dissatisfaction and complaint behavior. "What if" analyses are also conducted in order to estimate the impact of changes in complaint management and recovery outcomes on profitability.



— Updated on 2022-02-09


  • 2022-02-09 (2)
  • (1)

Most read articles by the same author(s)