Membership-based consumer switching intentions and benefit exchange theory

Abstract

Purpose This research aims to predict private club members’ intentions to switch service providers based on the benefit exchange theory through a structural model with a second-order factor. Design/methodology/approach This study uses a qualitative procedure to develop a functional, social and psychological model based on the benefit exchange and switching intention literatures. A further quantitative analysis surveyed a sample of 366 private club members and assessed the usefulness of this model. Findings The results of the confirmatory factor analysis and structural equation modeling indicate that social benefits have a stronger impact on switching intention than loss of functional benefits under the context of a high level of interaction between members and between members and service providers. In addition, they confirm the moderating effects of psychological benefits on the relationship between functional benefits and switching intention. Practical implications The findings indicate that members are unlikely to switch if there are positive word of mouth and interpersonal interactions between members and the club (social benefits). Even if they are disappointed with the functional benefits of the club’s products or services, they may still choose to stay with it owing to psychological benefits affecting their decision to switch. The findings offer managerial insights into utilizing relationship marketing activities to strengthen interpersonal relationships, word of mouth, trust, commitment and emotional factors to retain members. Originality/value This research confirms that the benefit exchange theory can explain members’ intentions to switch from their current clubs and provides valuable recommendations to managers on retaining their clubs’ members. Because the switching intentions of club members have not previously been adequately studied, this study fills an important gap in the literature.