Customer Responses to Switching Costs: A Meta-Analytic Investigation of the Moderating Influence of Culture

Abstract

Relationship marketing effectiveness varies across different markets, but prior research has provided limited evidence on how cultural variations relate to the effects of relationship variables such as switching costs. The authors develop and test a theoretical framework that explains how culture moderates the relationship between perceived switching costs and key consequences. The findings of a meta-analysis, based on 451 effect sizes collected in 25 countries, show that similar components that refer to a match between the value essence of Hofstede's cultural dimensions and the motivators that steer particular consequences explain how individualism, power distance, uncertainty avoidance, and masculinity moderate the impact of switching costs on word of mouth of customers and loyalty types. Furthermore, the economic development of a country explains when switching costs either reduce or increase switching of customers. The findings of this study support international companies in making decisions about the generation of switching costs in particular markets and the formation of international relationship marketing and referral programs.