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Profitability considerations lead service providers to terminate service contracts with low-value customers. However, customers targeted by service contract terminations often take revenge through negative word-of-mouth (NWOM). Presently, it is unclear how service contract termination initiatives prevent this harmful side effect. The purpose of this study is to compare the effectiveness of common service contract termination initiatives for reducing NWOM of customers whose service contracts are being cancelled. The study results provide guidance for minimizing the downside of service contract termination.

This study distinguishes between service contract termination initiatives common in practice (preannouncement, explanation, financial compensation, apology and support in finding an alternative provider). Drawing on a multi-industry survey of 245 customers who have experienced service contract terminations in real life, the authors estimate regression models to link perceived service contract termination initiatives to NWOM.

All else equal, only preannouncement and support in finding an alternative are effective to reduce NWOM. This study also shows that the right choice of service contract termination initiatives depends on the context of the termination. Making a preannouncement, offering an explanation and providing support in finding an alternative are more effective in reducing NWOM when these actions are aligned with the contextual factors of relationship duration and competitive intensity.

This study shows that service contract termination needs to address several aspects of the service termination experience. The key implication for future research is that it matters in terms of NWOM how service contract terminations are performed.

This research identifies the service contract termination initiatives that are most effective to reduce NWOM after service contract termination in general and under consideration of the moderating roles of relationship duration and competitive intensity.

While most related studies have considered customer responses to the cancellation of other customers’ contracts, this study contributes to the scarce literature on the undesirable customer responses (such as NWOM) to the termination of their own contract. To the best of the authors’ knowledge, it is the first study in this emerging stream of research that accounts for the effects of process- and outcome-oriented contract termination initiatives on NWOM. To the best of the authors’ knowledge, it is also the first study to account for moderators of the effect of contract termination initiatives on NWOM, namely, relationship duration and competitive intensity.

The purpose of this paper is to propose a dedication-constraint-temptation (DCT) model to study the factors influencing customers’ loyalty to mobile data service (MDS) providers. The DCT model explicitly explores the important yet overlooked role of alternative attractiveness (the temptation-based mechanism) as a mediator and the boundary condition of their interrelationships (e.g. relationship length). The model also integrates new and established antecedents of customer-based brand equity (C-BBE) (the dedication-based mechanism) and switching barriers (the constraint-based mechanism).

The proposed model is tested using partial least squares–structural equation modeling with a sample of 331 MDS users.

The results indicate that C-BBE has an indirect effect on customer loyalty (via alternative attractiveness) in both relationship groups (shorter- vs longer-term). However, the indirect effect of switching barriers on customer loyalty only exists in longer established relationships. The results from multi-group analysis reveal that the effect of switching barriers on alternative attractiveness significantly differs across groups. In addition, customer value anticipation and procedural switching costs appear to be the most salient antecedents of C-BBE and switching barriers for both groups.

This study makes an incremental contribution by incorporating the temptation-based mechanism as a mediator and relationship length as a moderator into the dedication-constraint model. This study also extends the information systems and brand management literatures by demonstrating the strategic importance of customer value anticipation in the information and communication technology brand equity-building.

To investigate the determinants of behavioural brand loyalty amongst dissatisfied customers in the business‐to‐business (B2B) services sector.

A qualitative study was conducted, with 28 personal interviews undertaken with managers who are involved in the choice of service providers. The respondents belonged to 24 organisations located in Australia. Template analysis and eyeballing were techniques used to analyse the data collected.

Assessment of the reasons why dissatisfied customers stayed with the service providers resulted in six categories. The categories were found to be, in order of decreasing frequency, impact of alternative providers, switching costs (18), others (17), inertia (14), investment in relationships (13), and service recovery (13). The results not only confirmed factors found in the literature, but also uncovered 11 other factors.

The sample size, whilst appropriate for qualitative research, should be considered adequate only for exploratory analysis and a further quantitative study is needed to validate the study.

This study is important for those firms who have many prospective switchers because it is important to understand why these customers stay, and to what extent such firms can discourage such customers from leaving in both positive and negative ways. For those service firms that are attempting to attract these prospective switchers, an understanding of why they do not switch is important, as it will enable them to develop strategies to overcome these switching barriers and gain market share.

This research is the first study to investigate in a single model a range of barriers to switching in a B2B services context. The results that confirmed categories found in the literature also discovered 11 other factors not evident in the extant literature.

Service captivity is described as the experience of constrained choice whereby a consumer has no power and feels unable to exit a service relationship. This study aims to explore how positive service experiences can contribute to service captivity in the alternative financial services (AFS) sector for consumers experiencing financial vulnerability.

A total of 31 interviews were undertaken with Australian consumers of payday loans and/or consumer leases.

The authors reveal a typology of consumers based on their financial vulnerability and their experience with AFS providers. Then they present three themes relating to how the marketing practices of these providers create a positive service experience, and, in doing so, can contribute to service captivity for consumers experiencing financial vulnerability.

The benefits derived from positive service experiences, including accessible solutions, self-esteem, and a sense of control over their financial situation, contribute to the service captivity of some consumers, rendering alternative avenues less attractive.

AFS providers must ensure a socially responsible approach to their marketing practices to minimize potentially harmful outcomes for consumers. However, a systems-level approach is needed to tackle the wider issue of financial precarity. Policymakers need to address the marketplace gaps, regulatory frameworks and social welfare policies that contribute to both vulnerability and captivity.

This research extends the understanding of service captivity by demonstrating how positive service experiences can perpetuate this situation. Further, specific solutions are proposed at each level of the service system to address service captivity in the AFS sector.

The demand for Airbnb is at a peak in Malaysia with 137% of yearly growth. As such, it is indeed important to understand what makes tourists to switch to Airbnb. However, little has been known about this issue in the existing literature. Considering this, the present study aims to shed some light on the factors that drive tourists to switch to Airbnb. More specifically, the objectives of this study are to examine the direct effects of price unfairness and alternative attractiveness on psychological engagement, and to examine the direct effect as well as the mediating effect of psychological engagement towards tourists’ switching intention in the context of Malaysian Airbnb.

By considering the attribution theory, this study developed and tested a framework to examine tourists’ switching intentions. A Web-based survey was designed to collect the data which yielded 162 complete and usable responses. Structural equation modelling, more particularly, partial least squares (SmartPLS, version 3) technique was used to analyze the data.

The results revealed that price unfairness negatively affects psychological engagement, which in turn negatively affects tourists’ switching intention. However, no significant relationship was found between alternative attractiveness and psychological engagement. Additionally, psychological engagement mediated the relationship between “price unfairness and tourists’ switching intention”, but not between “alternative attractiveness and tourists’ switching intention.”

It is expected that the findings of this study will enable the hoteliers to better understand the impact of perceived unfairness, alternative attractiveness and psychological engagement in provoking tourists to switch to Airbnb services. It eventually will assist them in improving their offerings and services accordingly.

The discussion on Airbnb is quite new in the tourism literature. This study is among the pioneers to highlight the switching intention towards Airbnb in the Malaysian market. Guided by the attribution theory, this study developed and tested comparatively new linkages. More specifically, no prior study has considered psychological engagement as the antecedent of the switching intention which this study attempted to address. Additionally, this is a prior study that examines the mediating effect of psychological engagement between price unfairness, alternative attractiveness and switching intention.

The purpose of this paper is to describe interpretive and compliance issues arising under the Labor Department's interim final regulations under the statutory exemption for the provision of services provided by Section 408(b)(2) of ERISA, which will become effective on January 1, 2012.

The paper analyzes the published interim final regulations and considers significant comments filed in response to the proposed regulations.

Effective January 1, 2012, covered service providers who rely on the statutory exemption for the provision of services provided by Section 408(b)(2) must begin complying with the interim final amendments to the regulations under Section 408(b)(2) (the “Regulation”). Among other changes, the Regulation will require service providers to provide additional disclosures of direct and indirect compensation and to identify whether they expect that they will be providing services as a fiduciary or as a registered investment adviser. The primary purpose of the Regulation is to assist plan sponsors in evaluating service provider relationships, including total compensation that will be received by the service provider and conflicts of interests to which the service provider may be subject. The Regulation will apply to both new and existing service provider arrangements on January 1, 2012. Failure to comply with the Regulation may result in the assessment of excise taxes under Section 4975 of the Internal Revenue Code unless other exemptive relief is available. Service provider arrangements may be eligible for exemptive relief under certain other statutory and administrative exemptions.

The paper describes possible compliance issues that may arise under the Regulation and identifies and evaluates interpretive and compliance issues that have been noted since the proposed amendments were published.

The purpose of this paper is to assess the degree to which auctioning the right to provide universal service is a viable option in developed countries with high teledensity and near ubiquitous fixed line and mobile networks. The paper also aims to provide signposts on the types of issues regulators need to consider and resolve when designing auctioning mechanisms for the competitive provision of universal service.

The paper examines the nature and scope of universal service, the approaches that have been used to identify the costs of universal service provision and the difficulties in using an auction process to allocate the right to provide universal service in countries with near ubiquitous network infrastructure. Australia is used as a case study on the difficulties of using auctions to encourage new entry in universal service areas served by a powerful incumbent. The paper also examines the types of issues regulators need to resolve when designing auction mechanisms for universal service provision.

The paper concludes that for developed countries, it is unclear whether the use of auctions for the provision of universal service will have the desired effect of ensuring a market‐based approach to service provision. This is because the risks associated with becoming an alternative universal service provider are likely to outweigh the benefits of doing so. Further, the risks faced by an alternative universal service provider are not borne by the incumbent operator thus further increasing the disincentive to bid for the right to provide universal service. The paper also concludes that the practical design of the universal service rights and obligations which will be attached to a winning bidder's license conditions is an extremely important mechanism by which some of the risks to potential universal service providers can be overcome.

The paper stimulates thinking about whether universal service auctions are a viable means of providing universal service in developed countries. In presenting empirical evidence of the difficulties in using auctions to introduce competition in universal service provision, the paper may provide valuable input to the regulatory proceedings associated with introducing universal service contestability arrangements that are currently being conducted in various countries.

The purpose of this paper is to go beyond satisfaction as an indicator of customer loyalty and propose a holistic model of service switching in a mobile internet setting. The model, which reflects both barriers and inducements of switching, is developed based on the “mooring” and “pull” concepts in the migration literature.

Focusing on Generation Y mobile internet subscribers, the study analyzed a total of 417 usable questionnaire responses. Partial least squares structural equation modeling was used to test the research model.

The results show that first, satisfaction and switching barriers (i.e. a focal firm’s marketing innovation initiatives, switching costs, inertia, and local network effects) are positively related to customer loyalty; second, switching barriers have a stronger influence on customer loyalty compared with satisfaction; third, switching inducements (i.e. competitors’ marketing innovation initiatives, alternative attractiveness, variety-seeking tendencies, and consumers’ susceptibility to social reference group influence) is negatively related to customer loyalty and the relationship is weaker when perceived switching barriers are high.

This study empirically validates multidimensional scales of switching barriers and inducements from a more nuanced perspective, and specifies them as reflective-formative type II models. This study is among the first to use opposing dimensions to measure switching barriers and its counterpart. Hence, it illustrates how the two contrasting mechanisms can coexist in the minds of mobile internet subscribers.

The purpose of this paper is to model the effect of alternative products in motivating consumers’ e-service switching behavior in the context of the social network game (SNG) industry. In particular, the effects of both alternative attractiveness and change experience on switching behavior are quantified.

With the aid of a leading e-service provider in China, 220,000 questionnaires were distributed to the players of a SNG. Valid responses from potential switching users are included in the data analysis. Structural equation modeling technique is utilized to test the research framework.

The study found that alternative attractiveness negatively affects both the perceived service quality and individual users’ satisfaction with their current SNG. Additionally, alternative attractiveness has a strong and positive impact on both switching intention and behavior. The results show that users’ satisfaction and perceptions on service quality deteriorate significantly when faced with the presence of attractive SNG alternatives. The effect is stronger for the customers used to switching.

The study is among the first to introduce cognitive dissonance theory to explain e-service switching behavior. A number of new hypotheses are proposed, tested and supported. The results of the study illustrate the use of cognitive dissonance as an alternative perspective of understanding users’ switching behavior in a real-world free-choice situation.

Government organizations often store large amounts of data and need to choose effective data governance service to achieve digital government. This paper aims to propose a novel multi-attribute group decision-making (MAGDM) method with multigranular uncertain linguistic variables for the selection of data governance service provider.

This paper presents a MAGDM method based on multigranular uncertain linguistic variables and minimum adjustment consensus. First, a novel transformation function is proposed to unify the multigranular uncertain linguistic variables. Then, the weights of the criteria are determined by building a linear programming model with positive and negative ideal solutions. To obtain the consensus opinion, a minimum adjustment consensus model with multigranular uncertain linguistic variables is established. Furthermore, the consensus opinion is aggregated to obtain the best data governance service provider. Finally, the proposed method is demonstrated by the application of the selection of data governance service provider.

The proposed consensus model with minimum adjustments could facilitate the consensus building and obtain a higher group consensus, while traditional consensus methods often need multiple rounds of modifications. Due to different backgrounds and professional fields, decision-makers (DMs) often provide multigranular uncertain linguistic variables. The proposed transformation function based on the positive ideal solution could help DMs understand each other and facilitate the interactions among DMs.

The minimum adjustment consensus-based MAGDM method with multigranular uncertain linguistic variables is proposed to achieve the group consensus. The application of the proposed method in the selection of data governance service provider is also investigated.