Abstract

Although the roles of switching costs and alternative attractiveness as switching barriers in the relationship between customer satisfaction and loyalty have been documented, the empirical results lack a clear consensus. In addition, despite identifying multi-dimensional attributes, most studies have approached customer satisfaction and switching costs as a single construct. To address these gaps, this study first breaks down customer satisfaction into cognitive and affective satisfaction, and switching costs into financial, procedural, and relational switching costs. It then empirically analyzes the causal and moderating relationship among these constructs, using data collected from 846 mobile service users in South Korea. The findings demonstrate that both cognitive and affective satisfaction are strong determinants of customer loyalty. However, the role of switching barriers varies depending on the type of customer satisfaction; in particular, the negative interactions between financial switching costs and cognitive satisfaction, and relational switching costs and affective satisfaction on customer loyalty are found. The empirical evidence on these couplings in moderation from each rational and emotional aspect, to the best of our knowledge, is initially identified. Procedural switching costs and alternative attractiveness do not play roles as moderators in either satisfaction. This study provides a discussion on the implications of these findings.

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