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1 – 10 of over 2000
Article
Publication date: 8 August 2018

Maxi Bergel and Christian Brock

The purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of…

1989

Abstract

Purpose

The purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of service recovery.

Design/methodology/approach

Study 1 is a scenario-based experiment and Study 2 uses a critical incident technique combined with survey-based measures of switching costs, dissatisfaction responses and perceived complaint handling.

Findings

The results of these studies highlight the need to consider the different effects of switching costs. Not only do different switching costs lead to varying customer dissatisfaction responses, they also have differential moderator effects on the interrelationships between customer-perceived recovery justice and service recovery satisfaction.

Research limitations/implications

Service failure severity was an influential control variable. Future studies should investigate how the type, context and severity of service failure influence customers’ complaint behavior. Furthermore, participants had trouble differentiating between their relations toward their service provider in general and one particular employee. Hence, further research should explore the relationship between customers and frontline employees.

Practical implications

The authors encourage managers to take a closer look at the switching cost dimensions of their service industry. This may lead practitioners to promote differentiated strategies for complaint stimulation and complaint handling.

Originality/value

This is the first study to simultaneously explore all three dimensions of switching costs when examining their impact on customers’ dissatisfaction response styles as well as the moderating effects in the recovery process. In doing so, this study reveals some hitherto uncovered effects.

Details

Journal of Service Theory and Practice, vol. 28 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 18 April 2016

Dahlia El-Manstrly

The purpose of this paper is to examine the moderator effects of switching costs, classified by type (relational, procedural, and financial) and direction (positive and negative)…

6158

Abstract

Purpose

The purpose of this paper is to examine the moderator effects of switching costs, classified by type (relational, procedural, and financial) and direction (positive and negative), on the relationships between customer-perceived value, trust, and loyalty.

Design/methodology/approach

This study reports on quantitative data from a survey of two service contexts which vary in their degree of customer-employee contact and customization. In total, 360 usable questionnaires were collected, and the data were analyzed using multi-group structural equation modeling.

Findings

The results demonstrate that switching costs moderate, in different ways, the relationships between customer loyalty, trust and perceived value. Moreover, the strength of the moderator effects vary according to service type.

Research limitations/implications

This study provides new insight into understanding the moderating role of switching costs thus, reduces inconsistencies about the direction and the strength of the moderator effect of switching costs in loyalty frameworks.

Practical implications

This study helps managers choose the most effective loyalty strategy for specific service industries and perceptions of switching costs, and to look beyond their service boundaries in order to cross-fertilize strategies for handling switching costs.

Originality/value

No empirical study to date has simultaneously examined the moderator effect of switching costs classified by type and direction on the relationships between customer-perceived value, trust, and customer loyalty across two different service contexts in a single framework.

Details

Journal of Service Management, vol. 27 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 16 March 2015

Kurt Matzler, Andreas Strobl, Norbert Thurner and Johann Füller

Stabilizing business in highly competitive and volatile business-to-business (B2B) markets is a strategic imperative for many companies. In such a context, customer retention…

5377

Abstract

Purpose

Stabilizing business in highly competitive and volatile business-to-business (B2B) markets is a strategic imperative for many companies. In such a context, customer retention through the creation of switching barriers (i.e. by increasing switching costs) is a common strategy. The purpose of this paper is to develop a network of relationships among customer switching experience, customer satisfaction, perceived switching costs, and behavioral loyalty intentions.

Design/methodology/approach

Survey data were collected from 327 business customers (very small enterprises with fewer than nine employees; customers included physicians, lawyers, tax advisors, consultants, civil engineers, etc.) of an information and communications technology (ICT) company. The research model was tested using partial least square structural equation modeling.

Findings

The results show that switching experience negatively influences customer satisfaction and behavioral loyalty intention. Furthermore, the influence of customer satisfaction on behavioral loyalty intentions is partially mediated by financial and relational switching costs.

Practical implications

In saturated markets, companies often try to grow by acquiring customers from competitors. This study reveals that this strategy can backfire. The customers that can be most easily acquired may be those that are the most difficult to retain because customers experienced in switching are difficult to satisfy – and low satisfaction means lower perceived financial and relational switching costs and, in turn, lower loyalty.

Originality/value

This research contributes to theory and practice by shedding further light on the satisfaction-loyalty link by investigating the often widely neglected role of switching experience. Furthermore, the study seeks to add to the discussion of how to specify the role of switching costs: as a mediator or as a moderator.

Details

Journal of Service Management, vol. 26 no. 1
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 8 April 2014

Vania Vigolo and Fabio Cassia

The purpose of this paper is to explore loyalty and switching behavior among corporate energy customers in Italy. Thanks to the recent liberalization process, firms have now the…

707

Abstract

Purpose

The purpose of this paper is to explore loyalty and switching behavior among corporate energy customers in Italy. Thanks to the recent liberalization process, firms have now the opportunity to evaluate alternative energy providers and try to reduce their energy expenses. Nonetheless their switching rate in Italy is currently as low as 6.3 percent.

Design/methodology/approach

The study is based on a cross-sectional analysis of the switching behavior of a sample of 110 Italian small and medium firms that purchase natural gas from a middle-sized natural gas supplier.

Findings

The analysis emphasizes the role of price convenience (but not of dissatisfaction with the service provision) as a driver of the intention to switch to a new supplier. The negative impact of procedural and relational switching costs on the intention to switch emerges, as well.

Research limitations/implications

The sample size was quite limited. Moreover participants were all customers of one natural gas supplier only.

Practical implications

The findings highlight the need for gas service providers to focus on customer orientation and loyalty to stimulate customer loyalty and not just customer repurchases.

Originality/value

Whilst a few studies have explored switching behavior and loyalty among private energy customers, this study investigates this issue among corporate energy customers.

Details

The TQM Journal, vol. 26 no. 3
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 7 January 2020

Abdullah Sultan

The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry.

Abstract

Purpose

The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry.

Design/methodology/approach

Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling.

Findings

Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality.

Research limitations/implications

Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications.

Practical implications

Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting.

Originality/value

This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

Details

International Journal of Bank Marketing, vol. 38 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 13 July 2015

Chia-Ying Li

By expanding on the work of White and Yanamandram (2007), the purpose of this paper is to examine the direct and indirect influences of switching barriers on the relationship…

4473

Abstract

Purpose

By expanding on the work of White and Yanamandram (2007), the purpose of this paper is to examine the direct and indirect influences of switching barriers on the relationship between recovery satisfaction and repurchase intentions in an online auction environment.

Design/methodology/approach

Data were collected from 272 customers who had experienced online service recovery in the past six months. Partial-least squares and mediated moderation analysis are employed to test the research model.

Findings

The interrelationships among recovery satisfaction, relationship quality, and repurchase intentions are confirmed. Both lost benefit switching costs and inertia moderate the relationship between recovery satisfaction and repurchase intentions. Attractiveness of alternatives mediates the moderating effect of inertia on the relationship between recovery satisfaction and repurchase intentions.

Originality/value

Unlike previous studies, which have treated switching cost as a switching barrier, or used various components to represent switching barriers, this study incorporates switching cost, relationship quality, inertia, and attractiveness of alternatives as four switching barrier factors. This study further examines the direct and indirect effects of switching barriers on the relationship between recovery satisfaction and repurchase intentions.

Details

Journal of Service Theory and Practice, vol. 25 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 16 June 2022

Chang-Hun Lee and Hye-Rhim Kim

This study aims to develop and test a theoretical model postulating that a hotel customer’s brand attachment is reinforced by positive and negative switching barriers, which, in…

Abstract

Purpose

This study aims to develop and test a theoretical model postulating that a hotel customer’s brand attachment is reinforced by positive and negative switching barriers, which, in turn, determine customer citizenship behaviour (CCB) towards hotel brands.

Design/methodology/approach

Surveys were conducted and completed by 233 respondents in the USA who had favourite hotel brands and used these brands in the previous year. A framework was developed based on the literature, and eight hypotheses were tested using structural equation modelling.

Findings

The findings suggest that a customer’s brand attachment (brand-self connection and brand prominence) to a hotel is strengthened not only by relational benefits (positive switching barriers) but also by switching costs (negative switching barriers). Brand prominence can promote CCB, whereas the impact of brand-self connection on CCB is rather limited.

Research limitations/implications

This study highlights the importance of affirmative and passive reasons for customers to remain in a relationship with the hotel brand and how sub-dimensions of switching barriers are interrelated to predict a customer’s attitude and behaviour to the brand. By emphasising the role of customers’ hotel brand attachment, this study also ascertains that cognitive and affective bonds towards a hotel brand can be significant antecedents to their extra-role behaviours.

Originality/value

This research contributes to the hospitality literature by expanding the realm of consumer behaviour research on switching barriers, brand attachment and CCB.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 11
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 16 August 2018

Stephanie Hui-Wen Chuah, Philipp A. Rauschnabel, Ming-Lang Tseng and T. Ramayah

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…

Abstract

Purpose

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).

Design/methodology/approach

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

Findings

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.

Originality/value

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.

Article
Publication date: 1 January 2005

Serkan Aydin, Gökhan Özer and Ömer Arasil

In the GSM mobile telephony sector, the main condition for protecting the subscriber base is to win customer loyalty, a key necessity for the maintenance of a brand's life in the…

16787

Abstract

Purpose

In the GSM mobile telephony sector, the main condition for protecting the subscriber base is to win customer loyalty, a key necessity for the maintenance of a brand's life in the long term. To achieve this aim, customer satisfaction and trust must be measured and “switching costs” identified. The latter render subscribers' preference for rival operators more expensive. In this connection, this paper's aim is to measure the effects of customer satisfaction and trust on customer loyalty, and the direct and indirect effect of “switching cost” on customer loyalty.

Design/methodology/approach

The data set covered 1,662 mobile phone users in Turkey. The data were analyzed by moderated regression analysis to test the hypotheses.

Findings

The findings of this study show that the switching cost factor directly affects loyalty, and has a moderator effect on both customer satisfaction and trust. Therefore, it plays a crucial role in winning customer loyalty. In short, it is a quasi moderator. However, switching costs was measured as a unidimensional factor, but switching costs in fact contains psychological, financial and procedural sub‐dimensions. Therefore, future research might measure the sub‐dimensions of switching costs and examine their moderating effects.

Originality/value

With respect to the findings, trust has more importance than customer satisfaction in engendering loyalty, since trust contains belief in the brand, which provides positive outcomes not only in the present but also in the future. But customer satisfaction does not contain this dimension. So, the effect of trust on loyalty becomes greater than the effect of customer satisfaction. Therefore, any GSM operator who wishes to preserve its existing subscriber base should concentrate on winning its subscribers’ trust.

Details

Marketing Intelligence & Planning, vol. 23 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 15 February 2024

Kyungyeol Kim and Senyung Lee

Although the fitness switching costs scale (FSCS) was shown to have sound psychometric properties, the length of the 54-item may impose burdens on survey participants and present…

Abstract

Purpose

Although the fitness switching costs scale (FSCS) was shown to have sound psychometric properties, the length of the 54-item may impose burdens on survey participants and present methodological and analytic challenges for researchers and practitioners. Therefore, the present study shortened and validated two versions of the FSCS, namely the 33-item FSCS (FSCS-33) and the 11-item FSCS (FSCS-11).

Design/methodology/approach

In Study 1 (n = 411), the most useful items from the FSCS for the FSCS-33 and FSCS-11 were identified using item response theory (IRT). Study 2 (n = 391) and Study 3 (n = 400) assessed the psychometric properties of the FSCS-33 and FSCS-11, respectively, using partial least squares structural equation modeling.

Findings

The FSCS-33 and FSCS-11 demonstrated strong reliability and validity in assessing switching costs in fitness centers.

Originality/value

The psychometrically sound short-form scales provide researchers and practitioners with convenient and accurate means of measuring switching costs in fitness centers.

Details

International Journal of Sports Marketing and Sponsorship, vol. 25 no. 2
Type: Research Article
ISSN: 1464-6668

Keywords

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