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Article
Publication date: 2 August 2011

Goitom Tesfom and Nancy J. Birch

The purpose of this paper is to examine whether switching barriers in the retail banking industry affect different age groups differently.

Abstract

Purpose

The purpose of this paper is to examine whether switching barriers in the retail banking industry affect different age groups differently.

Design/methodology/approach

Questionnaires were administered to 188 bank customers of different age groups, measuring their perception of variables related to relational benefits, switching costs, availability and attractiveness of alternatives, service recovery and retention.

Findings

Results from independent two‐sample t‐tests and logistic regression support all five hypotheses, confirming that young and older bank customers differ significantly in their perception of switching barriers: relational benefits, switching costs, availability and attractiveness of alternatives, service recovery and the duration of time they intend to end their relationship with their banks.

Research limitations/implications

This study was conducted among employees of two higher education institutions. Thus, further research needs to test the research results in a diverse population.

Practical implications

Since younger customers are more likely to change their banks easily, if retail banks want to retain younger customers they need to offer more meaningful incentives to younger customers than they offer to older customers. In terms of practice the findings in this research highlight the need for managers to design different switching barrier packages for each customer age group.

Originality/value

Researchers in the past have found a close association between customer age and bank product usage and have shown that switching barriers play an important role in binding the customer to the service organization. However this research not only validates the switching barrier variables that affect different age groups differently but also elevates the role of age in banks switching barrier design.

Details

Journal of Services Marketing, vol. 25 no. 5
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 18 June 2010

Fredy Valenzuela

The purpose of this paper is to uncover the dimensions that form the construct of switching barriers for retail banking customers in the Chilean banking industry.

Abstract

Purpose

The purpose of this paper is to uncover the dimensions that form the construct of switching barriers for retail banking customers in the Chilean banking industry.

Design/methodology/approach

The investigation was divided into three stages: Stage 1: literature and existing research review, Stage 2: qualitative focused interviews, and Stage 3: survey including pre‐test, pilot survey, and main survey.

Findings

The research results uncovered the existence of a five‐factor structure measuring switching barriers. Three factors were associated with positive or more reward‐based switching barriers (organizational credibility, value congruency, and relational value) and two factors accounted for negative or punitive switching barriers (difficulties of switching and lack of attractive alternatives). The study also showed that Chilean customers perceive banks as using more punitive switching barriers rather than rewarding ones.

Originality/value

The study attempts to validate the findings of past research in the case of South America.

Details

Management Research Review, vol. 33 no. 7
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 1 October 2003

Chatura Ranaweera and Jaideep Prabhu

Adopts a holistic approach that examines the combined effects of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting…

Abstract

Adopts a holistic approach that examines the combined effects of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. Argues that such an approach helps uncover hitherto neglected effects on retention and, in the process, unveils more cost effective ways of retaining customers. Drawing on this framework develops several hypotheses regarding the main and interaction effects of customer satisfaction, trust and switching barriers on retention. Tests these hypotheses on data from a large‐scale mail survey of fixed line telephone users in the UK, finding that both customer satisfaction and trust have strong positive effects on customer retention. Contrary to some assertions in the literature, however, finds that the effect of trust on retention is weaker than that of satisfaction. Nevertheless, the interaction between trust and satisfaction also has a significant effect on retention, indicating that building both customer satisfaction and trust is a superior strategy to a focus on satisfaction alone. Qualitative evidence from the survey offers further support for this finding. Even a “satisfying” service recovery process might be inadequate to prevent loss of trust, with significant implications for future consumer behaviour. Finally, the results show that switching barriers have both a significant positive effect on customer retention as well as a moderating effect on the relationship between satisfaction and retention. While service providers may be able to retain even dissatisfied customers who perceive high switching barriers, argues that ideally, firms should aim at a combined strategy that makes switching barriers act as a complement to satisfaction.

Details

International Journal of Service Industry Management, vol. 14 no. 4
Type: Research Article
ISSN: 0956-4233

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Article
Publication date: 8 May 2017

Stephanie Hui-Wen Chuah, Philipp A. Rauschnabel, Malliga Marimuthu, Ramayah Thurasamy and Bang Nguyen

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Journal of Service Theory and Practice, vol. 27 no. 3
Type: Research Article
ISSN: 2055-6225

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Article
Publication date: 31 August 2021

Peter Sin Howe Tan, Yuen Onn Choong and I-Chi Chen

The aim of this paper is to explore the relationship between perception of service quality, student satisfaction, switching barriers on behavioural intentions among…

Abstract

Purpose

The aim of this paper is to explore the relationship between perception of service quality, student satisfaction, switching barriers on behavioural intentions among private higher education institutions (HEIs) with self-accreditation status in Malaysia.

Design/methodology/approach

A total of 388 valid questionnaires were collected via a self-administered questionnaire from the undergraduate students of private HEIs with self-accreditation status in Malaysia. PLS-SEM has been employed for hypotheses testing.

Findings

The results show that student perceived service quality is positively influence student satisfaction and student behavioural intentions, particularly the positive word-of-mouth (WOM). The relationship of student perceived service quality and student behavioural intentions is fully mediated by student satisfaction. However, there is no mediating effect found for the switching barriers on the relationship between student satisfaction and behavioural intentions.

Research limitations/implications

This study's findings are only generalizable to the private HEI with self-accreditation status in Malaysia. The paper contributes to the body of knowledge in the areas of service quality, satisfaction, switching barriers and behavioural intentions. These findings provide valuable insight to the private universities management and policymakers to improve existing policies and practices in order to formulate effective strategies to attract potential new students and retain the existing students through the delivery of high-quality services.

Originality/value

This study's findings have reconfirmed that the causal relationship of perceived service quality-satisfaction-behavioural intentions model. Switching barriers has treated as the mediator which received less attention in the context of private higher education sector. Thus, this study broadens the exiting body of knowledge and advances the understanding of how switching barriers play a crucial role by influencing students' behavioural intention, particular WOM.

Details

Journal of Applied Research in Higher Education, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-7003

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Article
Publication date: 15 March 2013

Rooma Roshnee Ramsaran‐Fowdar

The purpose of this paper is to look at the influence of switching barriers on patients' private general practitioner (GP) service expectations and tolerance zone

Abstract

Purpose

The purpose of this paper is to look at the influence of switching barriers on patients' private general practitioner (GP) service expectations and tolerance zone

Design/methodology/approach

From 750 questionnaires distributed to a convenience sample, 257 were completed and returned, yielding a 34 per cent response rate.

Findings

There was a significant association between switching barriers and what patients expected from their GPs. Switching barriers did not have a significant association with the tolerance zone.

Practical implications

Private GPs can develop strategies to overcome switching barriers. For example, they can develop personal relationships with their patients, re‐familiarise themselves with the patient's medical history before the consultation and provide better services to patients who perceive high switching barriers and hence higher adequate expectations.

Originality/value

This study contributes to the existing literature relating to healthcare service quality.

Details

International Journal of Health Care Quality Assurance, vol. 26 no. 3
Type: Research Article
ISSN: 0952-6862

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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…

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.

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Article
Publication date: 1 July 2001

Mark Colgate and Bodo Lang

Much research looks at why customers switch service organizations but there has been less focus on why customers do not switch service organizations, even though they have…

Abstract

Much research looks at why customers switch service organizations but there has been less focus on why customers do not switch service organizations, even though they have seriously considered doing so. In light of this, we present an analysis of the literature and develop a list of potential switching barriers. These switching barriers are then empirically tested within two financial services industries. Results from over 400 consumers enable us to ascertain not only the importance of each switching barrier but also to develop a more parsimonious understanding of these barriers, through factor analysis. The results reveal similar patterns in the two industries in respect to switching barriers. The first of the four factors contains reasons related to apathy, the second factor contains negative reasons for customers staying with their current service provider, the third factor relates to relationship variables and the final factor relates to service recovery. Results clearly indicate that the first two factors are far more important than the latter two in terms of why customers stay even when they seriously considered leaving.

Details

Journal of Consumer Marketing, vol. 18 no. 4
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 2 September 2014

Moh’d A. Al-hawari

The purpose of this paper is to explore the relationships between switching barriers and bank customers’ loyalty in the UAE, and their variation according to customers…

Abstract

Purpose

The purpose of this paper is to explore the relationships between switching barriers and bank customers’ loyalty in the UAE, and their variation according to customers’ emotional stability.

Design/methodology/approach

Data were collected from 413 bank customers through a self-administered questionnaire. The conceptual model and hypotheses were tested using a structural equation modeling method.

Findings

Social benefits, confidence benefits, and switching cost affected the banks’ customers’ loyalty directly and in a positive manner. This study's findings confirm that switching barriers are more important in triggering the loyalty of less emotionally stable customers in comparison with highly emotionally stable customers.

Practical implications

Banks could use these results to manage switching barriers and customer relations.

Originality/value

This paper demonstrates how the emotional stability of customers interferes with customers’ switching behavior.

Details

Managing Service Quality, vol. 24 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

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Article
Publication date: 8 June 2012

Gurjeet Kaur, R.D. Sharma and Neha Mahajan

The purpose of this paper is to investigate the extent of customer switching and the reasons that underlie customer‐switching intentions. The paper aims to focus on the…

Abstract

Purpose

The purpose of this paper is to investigate the extent of customer switching and the reasons that underlie customer‐switching intentions. The paper aims to focus on the various factors on account of which a customer may or may not switch a particular bank.

Design/methodology/approach

A total of 800 bank customers were selected randomly from a total population of 71,600 and were contacted personally to gather the requisite data.

Findings

The paper finds that the model reveals significant effect of quality, satisfaction and trust on predicting switching barriers. Of these relationships, satisfaction emerged as the strongest factor which influences switching barriers.

Research limitations/implications

The study is limited to Indian banks; a larger empirical study would be useful to replicate the results in the banking as well as other services.

Practical implications

In order to ensure loyalty among bank customers, increased value addition in the banking services and wide‐ranging relationships with customers can make the switching process more complex.

Originality/value

The preliminary work in this paper demonstrates the impact of various relationship marketing factors, namely, service quality, customer value, satisfaction, trust, commitment, loyalty, switching costs and barriers on customers' switching intentions.

Details

International Journal of Bank Marketing, vol. 30 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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