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Article
Publication date: 5 April 2023

Yi-Fei Chuang, Cong-Minh Dinh and Wei-Min Lu

Contractual services are characterized by features such as termination fees, long-term commitment, and complex terms. When customers find better deals from other providers, they…

Abstract

Purpose

Contractual services are characterized by features such as termination fees, long-term commitment, and complex terms. When customers find better deals from other providers, they may want to switch, but contractual obligations prevent them from doing so. Thus, this study aims to draw upon the stimulus-organism-response paradigm and theories of emotion regulation to examine how punitive switching costs (PSCs) can evoke negative emotions (NEs) from customers and, consequently, lead to negative behavioral responses in contractual service settings.

Design/methodology/approach

This study collected data from 395 customers of telecommunications companies, fitness centers, tutoring firms/centers, and house leasing companies in Taiwan. We tested the hypotheses using partial least squares structural equation modeling via SmartPLS 3.0.

Findings

The results show that NEs partially mediate the relationship between PSC and customers’ switching intention and negative word-of-mouth. This study also finds alternative attractiveness (AA) and service recovery (SR) do not moderate the PSCs–NEs relationship, but AA does directly influence NEs.

Originality/value

First, this study contributes to the literature on switching costs by exploring how PSC exerts a detrimental impact on behavioral responses. Second, this study adds to the literature on service failures by identifying the mediating role of NEs in such a relationship.

Article
Publication date: 17 January 2023

Jianming Wang, Tan Vo-Thanh, Yi-Hung Liu, Thac Dang-Van and Ninh Nguyen

On the basis of the approach-avoidance motivation theory, this study aims to examine the role of information confusion in influencing consumer switching intention among social…

Abstract

Purpose

On the basis of the approach-avoidance motivation theory, this study aims to examine the role of information confusion in influencing consumer switching intention among social commerce platforms, with the mediating effect of emotional exhaustion and the moderating role of social overload.

Design/methodology/approach

This study applied a multi-method quantitative approach including a survey and two experiments. Data were obtained from consumers on popular social commerce platforms in China. The survey's sample size was 327 respondents, whereas a total of 1,621 consumers participated in the two experiments.

Findings

Findings from the survey reveal that information confusion affects switching intention directly and indirectly via emotional exhaustion. Moreover, social overload moderates the emotional exhaustion–switching intention relationship and the indirect impact of information confusion on switching intention. Results of the two experiments further confirm the relationships found in the survey.

Originality/value

This study develops and validates a mediation and moderation model which expectedly serves as a framework to better explain consumer switching intention on social commerce platforms. The study also offers fresh insights into consumer switching intention in the unique context of social commerce in an emerging market (i.e. China), which has been largely ignored in the prior literature.

Details

Information Technology & People, vol. 37 no. 1
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 5 March 2024

Daniel Padgett, Christopher D. Hopkins and Colin B. Gabler

This paper aims to investigate the interrelated role of relational commitment and dependence as drivers of key performance outcomes. Specifically, the authors provide a conceptual…

Abstract

Purpose

This paper aims to investigate the interrelated role of relational commitment and dependence as drivers of key performance outcomes. Specifically, the authors provide a conceptual model of the impact of commitment on relationship value dependence and switching cost dependence. The authors further investigate how these dimensions of dependence offer differing noneconomic and economic paths to strategic and financial performance.

Design/methodology/approach

Survey data was collected from 296 purchasing agents across multiple industries located in the USA. The conceptual model and accompanying hypotheses were tested via partial least squares structural equation modeling.

Findings

The results show that the relational path is driven by affective and normative commitment, which are related to relationship value dependence. Conversely, calculative commitment is related to switching cost dependence. This economic path is related to both strategic and financial performance, whereas the relational path is more closely related to strategic as opposed to financial performance outcomes.

Research limitations/implications

This study extends research on Business-To-Business (B2B) relationships by leveraging social exchange theory to examine the interrelated roles played by two forms of dependence on performance outcomes. Thus, the authors answer Scheer et al.’s (2015) call for research into the two distinct types of dependence – relationship value and switching cost dependence – and their roles in determining B2B relationship outcomes. The findings contribute to the literature by integrating social exchange and relationship marketing concepts to develop a dual pathway approach to B2B partnerships.

Practical implications

The results suggest that dependence is not necessarily negative for firms. Specifically, buyers can and do still exhibit positive performance, both strategic and financial, in relationships with suppliers even when dependent on the relationship. Regardless of whether buyers are dependent due to a relationship or economic factors, both can, in different ways, lead to positive strategic and financial outcomes. Together, the authors contribute to the understanding of B2B partnerships by offering guidelines for both buyers and suppliers in the dyad.

Originality/value

The authors derive a comprehensive model depicting primarily relational and economic paths to performance through different types of commitment and dependence. The authors contribute to the literature by demonstrating that relational and economic paths to success are not the same, highlighting how firms could influence performance even when the relationship is not necessarily characterized by generally positive relational benefits and behaviors.

Details

European Journal of Marketing, vol. 58 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 22 December 2023

Rafaela Nascimento Buhler, Fernando De Oliveira Santini, Wagner Junior Ladeira, Tareq Rasul, Marcelo Gattermann Perin and Satish Kumar

This study aims to synthesize and integrate findings from diverse research on the antecedents and moderators of customer loyalty in the banking sector. Through a comprehensive…

Abstract

Purpose

This study aims to synthesize and integrate findings from diverse research on the antecedents and moderators of customer loyalty in the banking sector. Through a comprehensive meta-analysis, the research seeks to understand the primary drivers of bank loyalty and the potential cultural, economic and social indicators that might influence these relationships.

Design/methodology/approach

A rigorous meta-analysis was conducted, analyzing 275 studies with 1,365 effect sizes involving over 134,000 bank customers from more than 50 countries. The research evaluated the effect sizes of the main relationships between loyalty antecedents and consequences and assessed the influence of cultural, economic and social moderators.

Findings

The study identified key antecedents of bank loyalty, with responsiveness, privacy, commitment, trust and empathy being paramount. Cultural dimensions, such as individualism and masculinity, significantly moderate the relationships between trust and loyalty. The human development index (HDI) was also identified as a significant economic moderator, particularly influencing the relationship between satisfaction and bank loyalty.

Originality/value

This research offers a holistic view of bank loyalty, bridging gaps from conflicting findings in prior literature. Examining a vast array of studies across diverse cultural and economic contexts provides empirical generalizations about bank loyalty behavior, offering valuable insights for academia and the banking industry.

Details

International Journal of Bank Marketing, vol. 42 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 29 February 2024

Kármen Kovács

The purpose of this paper is to develop a systematic literature review on the sunk cost effect from consumers’ perspectives. By applying a comprehensive approach, this paper aims…

Abstract

Purpose

The purpose of this paper is to develop a systematic literature review on the sunk cost effect from consumers’ perspectives. By applying a comprehensive approach, this paper aims to synthesise and discuss the impact of financial and behavioural sunk costs on consumers’ decisions, judgements and behaviour before and after purchasing. This study also identifies potential research avenues to inspire further studies.

Design/methodology/approach

Following a search in the Scopus and Web of Science databases, a systematic literature review was conducted by identifying and analysing 56 peer-reviewed articles published between 1985 and 2022 (November). Descriptive and content analysis was implemented based on the selected papers to examine and synthesise the effect of sunk costs on consumers’ choices, evaluations and actions in a comprehensive approach; uncover research gaps; and recommend paths for future research.

Findings

The research results found in the literature are discussed according to five related themes: factors affecting the sunk cost effect; the impact of past investments on purchasing decisions; consumers’ post-purchasing evaluation, behaviour and choices; the mental amortisation of price; and the sunk cost effect on loyalty and switching.

Originality/value

The originality of this study lies in the comprehensive approach to the sunk cost effect from consumers’ perspectives. This review paper synthesises and discusses the research results found in the literature related to financial and behavioural sunk costs that can influence consumers’ decisions, judgements and behaviour before and after paying for a good or service.

Details

Journal of Consumer Marketing, vol. 41 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 9 December 2022

Sana Rhoudri and Lotfi Benazzou

The purpose of this study is to examine the factors affecting deposit withdrawal intentions among Moroccan profit-sharing investment account holders.

Abstract

Purpose

The purpose of this study is to examine the factors affecting deposit withdrawal intentions among Moroccan profit-sharing investment account holders.

Design/methodology/approach

Applying the push-pull-mooring (PPM) theory, a quantitative survey, based on insights brought to light by a previous qualitative study, was developed and administered to 166 depositors from five participatory banks at branches located in Morocco. Structural equation modeling was then used to evaluate the significance of relationships between the various variables under study.

Findings

Empirical findings showed that the PPM model with a second-order construct structure exhibited a better representation of the observed variables as compared to a first-order factor model. The results of the structural analysis indicated a significant direct relationship between withdrawal intention and each of the PPM model constructs: push and pull factors were found to have a positive impact on withdrawal intention, while mooring factors had a significant inverse relationship with withdrawal intention. The results of this study also revealed that the moderating role of the mooring construct was found in both relationships between push and withdrawal intention and between pull and withdrawal intention.

Research limitations/implications

The absence of a longitudinal study measuring the actual withdrawal behavior is the main limitation of this study. Furthermore, withdrawal intention was examined without differentiating between individual and corporate depositors. Finally, despite being insightful, the empirical findings should be generalized with caution, as the sample was purposely chosen by the banks’ management.

Practical implications

This study implied that participatory banks should stress the importance of mooring factors, as they strongly inhibit depositors’ intention to shift their funds to the conventional banking system. Moreover, this study provides great indications to Moroccan regulators and policymakers on a number of issues that can be used to develop policies that could improve the participatory banking system.

Originality/value

To the best of the authors’ knowledge, this study represents the first attempt to confirm the effectiveness of the PPM model in examining depositor-withdrawal intentions. This study is also the first of its kind to address profit-sharing investment depositors’ apprehensions in the Moroccan context, to the best of the authors’ knowledge.

Article
Publication date: 16 December 2022

Ismail Juma Ismail

This study aims to analyze the mediating effect of brand love (BRL) on the relationship between service quality and brand addiction (BRA) among Islamic banks. Past studies have…

Abstract

Purpose

This study aims to analyze the mediating effect of brand love (BRL) on the relationship between service quality and brand addiction (BRA) among Islamic banks. Past studies have noted that customer satisfaction as the primary means of studying customer behaviour needs to be reconsidered because even satisfied customer switch brands, and the dissatisfied customer have repurchasing intentions. Therefore, considering BRL and BRA can be a new way of studying customer behaviour in Islamic banking.

Design/methodology/approach

This study used a structured questionnaire administered to 380 customers of Islamic banks. The study used structural equation modelling and Process Macro test in the analysis.

Findings

The empirical findings of this study suggest that service quality is positively and significantly related to BRL and that BRL positively and significantly relates to BRA. Furthermore, the findings indicate that BRL mediates the relationship between service quality and BRA.

Research limitations/implications

The findings of this study have revealed that the triangular theory of love and expectation-confirmation theory can be combined to explain the relationship between service quality and loving relationships among customers of Islamic banks.

Practical implications

The study provides ways in which service providers can use service qualities to manage BRL and addiction. Based on the positive and significant relationships, managers of Islamic banks can build service qualities that are vital for creating BRL and BRA.

Originality/value

The link between service quality, BRL and BRA is not adequately established, especially in Islamic banking. This is important to be established because studying consumer psychology is currently considered a vital strategy for customer repurchasing and switching barriers in the modern banking business. Furthermore, integrating two theories, the triangular theory of love and expectation-confirmation theory, provide a new way of combining two theoretical aspects from different disciplines.

Details

Journal of Islamic Marketing, vol. 14 no. 11
Type: Research Article
ISSN: 1759-0833

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

Article
Publication date: 28 August 2023

Heath McDonald, Steven Dunn, Dominik Schreyer and Byron Sharp

The purpose is to review literature on sports season ticket subscriptions to distil current knowledge and guide future research and practice.

Abstract

Purpose

The purpose is to review literature on sports season ticket subscriptions to distil current knowledge and guide future research and practice.

Design/methodology/approach

A systematic literature review is conducted of research on sports season tickets, a long-established and innovative subscription category.

Findings

In-depth examination of 28 papers showed a focus on drivers of satisfaction, churn and renewal causes, and product utilisation rates. Subscription markets typically involve many “solely loyal” consumers, most purchasing one or two subscriptions in a category. From reduced barriers to entry and exit to “curated” subscriptions, subscription marketing is changing very quickly. Sports marketers build relationships with subscribers using behavioural data, tier benefits to distinguish between casual and subscribing customers, and create recall and scarcity around key aspects of subscription to combat churn and increase utilisation.

Research limitations/implications

Scarce research on subscription marketing practices remains the primary limitation. Existing research suggests that strong connections between subscriber and organisation, heavy product utilisation and/or strong barriers to switching drive customer satisfaction and retention.

Practical implications

Rapid expansion of subscription products should reduce “excess loyalty”, meaning that subscription models' main benefit will be limited to reoccurring revenue. Exceptions occur when consumers are heavily connected to the product or have little provider choice, so allocate their category buying exclusively. New subscription products face myriad challenges. Guidance on effective subscription marketing from sports marketing research and practice is outlined.

Originality/value

By combining research on market structure, marketing empirical generalisations and subscription marketing, this paper guides future research and practice.

Details

Journal of Service Management, vol. 35 no. 1
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 30 May 2023

Wisudanto, Tika Widiastuti, Dien Mardhiyah, Imron Mawardi, Anidah Robani and Muhammad Ubaidillah Al Mustofa

The halal cosmetics industry continues to grow significantly. Furthermore, using halal cosmetics is a must for Muslims. This study aims to analyze the factors influencing the…

1185

Abstract

Purpose

The halal cosmetics industry continues to grow significantly. Furthermore, using halal cosmetics is a must for Muslims. This study aims to analyze the factors influencing the switching intention to halal cosmetics in Indonesia.

Design/methodology/approach

This quantitative study uses a Partial Least Square-Structural Equation Modelling (PLS-SEM) on 214 respondents. The variables include halal certification, halal awareness, product image, perceived behavioral control, subjective norm, attitude, advertisement and switching intention.

Findings

The product image plays the most influential role in deriving the attitude toward switching intention to halal cosmetics, following perceived behavioral control, halal awareness and subjective norm, but not halal certification and advertisement. The result indicates that the image of halal cosmetics influences customers’ attitudes toward switching to using halal cosmetics. Indonesian customers know the obligation to use halal products because they are Muslim. However, the existence of halal certification does not derive the switching intention to halal cosmetics.

Research limitations/implications

This study conducts research only in Indonesia. As a recommendation, further studies might conduct a comparative test using multicultural respondents in several countries. Other studies also suggested examining factors of switching intention through different generational, especially in countries with high individualism traits.

Practical implications

This study will encourage the halal industry, especially the halal cosmetics industry, to pay more attention to the product image. Meanwhile, the government can provide incentives or rewards to promote industry participation in halal cosmetics. The findings provide a more detailed understanding of how product image can influence someone to switch to halal cosmetics.

Originality/value

Research on switching intention to halal cosmetics is still limited. This study uses halal variables, while previous studies only used religiosity. This study also introduced the product images motivating customers’ switching intention to use halal cosmetics.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

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