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The Effect of Buyers' Perceptions of Environmental Uncertainty on Satisfaction and Loyalty

This original research explores the influence of environmental factors on organizational buyer's satisfaction with service providers. Using survey data from a cross-section of organizational buyers in a structural equation model, empirical support is found for the interrelationships between perceptions of the environment and satisfaction with as well as loyalty to the service provider. Uncertainty about both the internal and external environment creates ambiguity for purchasers of services. Buyers cope with the external uncertainty by increasing their search for additional alternatives. An increase in internal uncertainty decreases positive evaluations of service performance. Each relationship directly affects satisfaction and loyalty.