Effects of satisfaction, trust and alternative attractiveness on switching intentions in industrial customers

Abstract

This study explores the antecedents of customers' supplier switching intention in a business-to-business context. Few studies have examined the drivers of customer switching intention in industrial customers, particularly, in relation to the alternative attractiveness effect. The contribution of this study lies in bridging the research gap by examining the relationship between switching intention and its antecedents. This work presents a causal model and then tests it using questionnaire survey data gathered from 260 Taiwanese electronics firms. Structural equation modelling techniques employing LISREL were applied for measurement model assessment and hypothesis testing. This investigation reveals that effective communication and customer satisfaction significantly and positively impact trust which has negative effect on customer switching intention. Reduced customer satisfaction directly increases switching intention. Furthermore, alternative attractiveness negatively affects customer satisfaction and positively influences switching intention.