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Equity theory seeks to explain the method whereby consumers perceive fairness in a market exchange. Consumers form perceptions of their inputs (search, decision, making money, etc.) and outputs into a particular exchange. Equity Theory maintains that people seek a balance between there efforts and rewards and the rewards that others receive for their efforts...

Organisations often think the way to measure customer satisfaction is to examine the number of customer complaints. The problems with this method is that it is reactive, it only responds, if at all, after the event and it does not really measure satisfaction only dissatisfaction.

Some important factors that help us understand and determine how satisfied or dissatisfied consumers are include: the disconfirmation theory, attribution theory, and equity theory...

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