Customer Switching Research Articles

Determinants of customer switching behaviour: evidence from the non-bank financial institutions in Ghana

Due to the intensified competition in the financial sector as a result of homogenous products and services, it is becoming increasingly important for service providers to take steps to retain their customers. The paper sought to investigate the factors influencing NBFIs' customer switching behaviour. Data collected from 400 respondents was analysed using descriptive statistics and multiple regressions. The study found excessive pricing, poor service quality, customer dissatisfaction and lack of trust to have a statistically significant influence on NBFIs' customer switching behaviour in Ghana.

Switching behaviour model in the Jordanian internet sector: an integration of the TPB and customer loyalty

While consideration has been given to the traditional model of relationship marketing, the current research is concerned with advancing our understanding of customer switching behaviour by exploring the influence of customer loyalty on customer switching behaviour. In order to provide a more comprehensive clarification of the switching behaviour of Jordanian internet users, a more in-depth study of the switching behaviour model was conducted by including customer loyalty as the main outcome of the relationship marketing model. The current research is designed to explore the TPB and investigate the influence of including customer loyalty in switching behaviour model in order to present a more comprehensive model of switching behaviour in Jordan. As such, a conceptual model along with four hypotheses are tested with a sample of 464 internet users, and then analysed quantitatively using structural equation modelling - partial least squares (SEM-PLS) method. The findings of the current research provided support for the research model as well as for most of the hypotheses regarding the relationship among the model variables. Particularly, in this paper, the research model presented is distinctive in that it synergistically combines the TPB variables along with customer loyalty in evaluating the switching behaviour of the Jordanian internet users.

Investigating the impact of Shari’ah perception on customer switching intentions: A study of Takāful and conventional insurance

AbstractThe core objective of this paper is to examine the relationship between the Shari’ah perceptions and the customers’ switching intentions in both Takāful and Conventional Insurance. In today’s world, most of the businesses are focusing on customer retention rather than the customer acquisition. However, our current knowledge of insurance systems is unable to address the crucial issues of target achieving marketing tactics. Takāful is firming its roots in Muslim communities across the globe. As per customer satisfaction been considered as an important factor of customer switching, we have gone further and investigated the mediating role of customer satisfaction to customer switching intentions. The sample size of 400 customers of major life Insurance and family Takāful companies was taken using convenient sampling method. Mediation analysis was performed to test the mediating role of customer satisfaction in Family Takāful and Life Insurance. The impact of Shari’ah perceptions in life insurance and ...

Brand Switching Pattern Discovery by Data Mining Techniques for the Telecommunication Industry in Australia

There is more than one mobile-phone subscription per member of the Australian population. The number of complaints against the mobile-phone-service providers is also high. Therefore, the mobile service providers are facing a huge challenge in retaining their customers. There are a number of existing models to analyse customer behaviour and switching patterns. A number of switching models may also exist within a large market. These models are often not useful due to the heterogeneous nature of the market. Therefore, in this study we use data mining techniques to let the data talk to help us discover switching patterns without requiring us to use any models and domain knowledge. We use a variety of decision tree and decision forest techniques on a real mobile-phone-usage dataset in order to demonstrate the effectiveness of data mining techniques in knowledge discovery. We report many interesting patterns, and discuss them from a brand-switching and marketing perspective, through which they are found to be very sensible and interesting.

Managing online service recovery: procedures, justice and customer satisfaction

Purpose The internet has changed the way services are delivered and has created new forms of customer-firm interactions. Whilst online service failures remain inevitable, the internet offers opportunities for delivering efficient service recovery through the online channel. Notwithstanding, research evidence on how firms can deliver online service recovery remains scarce. The purpose of this paper is to investigate the impact of two online service recovery strategies – online information and technology-mediated communication – on customer satisfaction, switching and word of mouth intentions. Design/methodology/approach A scenario-based experiment is employed. Data are analysed using partial least squares structural equation modelling. Findings Online information and technology-mediated interactions can be used as online service recovery strategies. When fair, online service recovery can restore customer satisfaction, lower switching and enhance positive word of mouth. Interactional justice delivered through technology-mediated communication is a strong predictor of satisfaction with online service recovery. Yet, customers in subscription services show greater expectations of online service recovery than those in non-subscription services. Research limitations/implications Further research could examine the impact of online service recovery on relational constructs, such as trust. Since customers participate in the online recovery process, future research could investigate the role of customers as co-creators of online service recovery. Practical implications Service managers should design online recovery strategies that meet customer need for interactional justice, for example, bespoke e-mails, and virtual chat communications with genuine customer care. Originality/value Online information and technology-mediated communication function as online service recovery strategies. Customer perceptions of justice towards online service recovery restore satisfaction, and encourage loyal behaviour.

미용 서비스의 로열티 프로그램 가치가 고객만족과 전환장벽을 통해 점포충성도에 미치는 영향

The purposes of this study was to investigate impacts of loyalty program value on store loyalty through customer satisfaction and switching barrier. This study suggests some basis about the direction guidance for successful store-running marketing activities and beauty service related researches. A total of 986 usable questionnaires were obtained from female adults of Busan. Data were analyzed by frequency analysis, correlation analysis, factor analysis using SPSS for Window 22.0 and confirmatory factor analysis and structural equation model analysis by AMOS 22.0. The results suggested that, loyalty program value benefits(hedonic benefits and utilitarian benefits) had positive effect on customer satisfaction, and loyalty program value costs(hedonic costs and utilitarian costs) had oppositive effect on customer satisfaction. The impact of hedonic benefits of the loyalty program values was the largest. Customer satisfaction and switching barrier directly affect store loyalty. The customer satisfaction affected the store loyalty indirectly but the direct effect was bigger.

Satisfaction and switching intention in mobile services: Comparing lock-in and free contracts in the Spanish market

Switching costs are a relevant issue affecting market competition in the mobile services industry. However, customer switching costs have not disappeared, since numerous leading mobile services companies use lock-in strategies, such as obliged long-term contractual relationships. The present study provides and empirically test a conceptual model in order to analyze the creation of customer satisfaction and switching intention with mobile services, as well as to examine the differences between lock-in and free contracts in a South European mature market – Spain. For this purpose, drawing on a sample of 370 customers, we developed Structural Equation Modeling (SEM) through a multi-group analysis. Our findings suggest that service quality is one of the key determinants of satisfaction, while the availability of attractive alternatives is the main switching barrier. Moreover, some interesting differences were found between the two type of contracts analyzed. Consequently, we suggest shifting resources to customer retention through improved service quality for reducing customer churn rate.

A Study to Investigate the Consumer Behavior and Cultural Dimensions of Engineering Students in Pakistan

The current study compares consumer behavior and Cultural Orientations between engineering and non-engineering students in Pakistan. Engineering students by virtue of their academic background are considered to have more technical know-how, more cognitive skills and can easily learn and adopt a new technology as compared to students from a non-engineering background. Furthermore the researchers were interested to find out that how the thinking skills and choice making of engineering students differ from other students and ultimately effects their consumer behavior and Cultural Dimensions. For this purpose three consumer behavior variables have been selected that are Customer Satisfaction, Customer Loyalty and Customer Switching. Cultural Dimensions are measured using the model proposed by Geert Hofstede. Two technologically sophisticated services are used in this study that is Mobile Phone and Debit Cards. The target population of the study consisted of 5000 students of which approximately 500 respondents were from various engineering universities in Pakistan. The comparison of consumer behavior and Cultural Dimensions differences was made through two group’s Discriminant Analysis. Differences in behavior and Cultural Dimensions have been reported among the engineering versus non-engineering students. Mobile Phone services satisfaction and loyalty were high among nonengineering students whereas engineering student’s registered higher satisfaction and loyalty in Debit Card services. Another interesting finding is difference in switching behavior. In case of both the services engineering students reported a higher mean score for switching. Score for Cultural Dimensions were also different among the two students type; whereby mean score for Masculinity was higher for engineering students as compared to other professions.

Retrospective: why do customers switch? The dynamics of satisfaction versus loyalty

Purpose This paper aims to revisit the 1998 paper (“Why do customers switch […]”) published in this journal with the goal of documenting research progress since then and identifying gaps still present in the knowledge base on the relevant key issues. Design/methodology/approach The method is literature review, theoretical scrutiny and critical reflections on the findings of the research studies over the past two decades that deal with customer satisfaction, loyalty and switching behaviors, with particular emphasis on service businesses. Findings The core issue of why satisfaction may not explain loyalty has been examined by positing other co-predictors and moderators of loyalty such as relationship quality, price value, trust, image, etc. These predictors have been found significant, implying that satisfaction is not the only driver of customer loyalty. Additionally, other drivers of switching and staying behavior have been established such as attraction of the alternatives and switching costs, respectively. This paper points out, however, that the gains of the new research literature are attenuated due to assumption of linearity in the loyalty effects of satisfaction and due to a lack of separate analyses of customer segments who defy the satisfaction–loyalty logic. Research limitations/implications The relevant literature is so vast that any account of it within the scope of this paper had to be by design delimited. The paper not only sampled the literature selectively but also summarized the principal findings of the selected papers over-simplistically. Interested readers must get a firsthand read of the reviewed literature. Practical implications The spotlight on the nonlinearity implies that practitioners should analyze customer data separately for customer segments that experience low, moderate and high satisfaction, and also separately for segments that show the expected positive satisfaction–loyalty relationship versus those who would defect despite being satisfied. Originality/value Against the backdrop where most academic as well as industry research had presumed a positive loyalty effect of satisfaction, the 1998 paper drew attention to segments of consumers who exhibited the contrarian loyalty behavior. The present paper shines a light on that topic with even sharper focus, highlighting six unaddressed issues that must frame future research.

Factors affecting customer loyalty for mobile telecommunication industry

Purpose This research works toward identifying the service quality constructs for the telecommunication industry, the extent they affect customer satisfaction, the perceived switching costs and their significance to the customer. The purpose of this paper is to examine the effect of customer satisfaction and switching barriers on customer loyalty as well as the mediating effect of the switching barriers on the customer satisfaction and loyalty link. Design/methodology/approach An empirical causal framework was developed and tested through qualitative and quantitative phases. In-depth interviews were performed with consumers and experts in the field as well a survey with consumers. The results were analyzed using Cronbach’s α, Pearson’s correlation and regression analysis techniques. Findings The results of the research showed that network quality, customer support and pricing structure are the main service quality constructs that affects the customer satisfaction, showing how the customer is more interested in the core services other than other benefits and value-added services. Originality/value The research presents a comprehensive framework enabling mobile service providers to understand the factors affecting consumer loyalty. In terms of practical implication; the telecommunications sector is changing radically and as the market is approaching its maturity, customer retention has become a critical issue in the success of the mobile telecommunications business. The findings of the research can aid practitioners in firms in focussing their efforts on areas that can build consumer loyalty and retention.

Churn Versus Diversion in Antitrust: An Illustrative Model

An important question in horizontal merger analysis is what share of a firm's lost output from a unilateral price increase will divert to its merger partner. This ‘diversion ratio’ is often estimated using data on customer switching from a firm to its rivals (‘churn’). We use a tractable oligopoly model to investigate the potential biases of such estimates, depending on what caused the churn: shifts in quality or marginal cost of the firm or of a rival; or demand‐side shifts due to changed circumstances or learning about product attributes. With demand‐side shifts, churn can be greater between more distant competitors.

Research on customer switching behavior in the service industry

Purpose This study aims to analyze and explain the characteristics and findings in previous studies of switching behavior and identifies the developments within this topic in order to improve its current understanding. Design/methodology/approach The authors construct a literature database of studies published in prominent business and management journals from 1996 to 2013 and conduct an analysis using the variables in the data fields. Furthermore, we execute meta-analysis to combine the research goals of tracing the history of customer switching behavior studies. Findings Satisfaction switching costs and attractiveness of alternatives are the most commonly used predictor variables to explain switching intentions. Switching costs subjective norms and interpersonal relationships moderate the relationship between switching intentions and its antecedents. Customer switching behavior in mobile telecommunication services has received a lot of attention. Practical implications This study assists researchers by examining the type and topic of these studies and the research tools and findings reported in theory. The authors ultimately identify the developmental trend in the literature on switching behavior and propose a direction for future studies. Originality/value This study clarifies the characteristics and findings of previous studies on switching intention from a literature review and improves the current understanding.

The effects of selection attributes on customer satisfaction, switching cost, and attractiveness of the alternative in small cafes

The effects of selection attributes on customer satisfaction, switching cost, and attractiveness of the alternative in small cafes

Research of Factors Influencing Customer Switching Behaviour in Farmerss Markets in Lithuania

In recent years, farmers’ markets have become one of the most popular places for alimentary shopping. People searching for the alternative and healthier products often choose farmers’ markets instead of shopping centres. However, farmers’ markets face the same or even tougher competition as the conventional shopping places: farmers not only compete with powerful shopping chains, they have to compete among each other for every single customer. Therefore, customer loyalty becomes inevitable in this industry. Knowing the factors that lead customers to switch to another vendor becomes very important for consumer retention. The aim of the research is to determine the factors influencing customer switching behaviour in farmers’ markets in Lithuania. Achieving to reach the aim, the research was provided in stages: 1) the expert evaluation was provided to determine the factors influencing customer switching behavior that would be relevant to the industry; 2) questionnaire survey regarding latter factors was provided; 3) the influence of the factors on customer switching behavior regarding the different states of customer loyalty was assessed.

호텔의 경험적 소비특성이 재방문의도와 전환의도에 미치는 영향

호텔의 경험적 소비특성이 재방문의도와 전환의도에 미치는 영향

The use of customer-centric philosophy in hotels to improve customer loyalty

PurposeThe purpose of this paper is to study the impact the quality of online and multi-channel offers have on perceived value. It is also analyzed whether customer-centric management will ensure a greater perceived value and loyalty of the customer for the hotel. The authors analyze its relationship with customer satisfaction, perceived value and switching costs related to hotels with customer-centric management.Design/methodology/approachThe sample of the paper are hotel users with Internet access. The authors have obtained 420 valid questionnaires through personal interviews. The statistical methodology used is the causal analysis, using structural equation models.FindingsThe empirical results of this paper indicate that by improving the online quality offered by hotels with a personalized online service and an increased efficiency of the service, reducing information asymmetries, search and transaction time and bargaining costs, building loyalty by customization and innovation, the customer perceives more value in the service provided by hotels.Originality/valueIt is analyzed empirically how the customer-centric philosophy, a key philosophy for the hotel sector, allows an effective differentiation, greater customer loyalty and, therefore, an increased profitability of the company.

Integrated Marketing Communications and Their Effects on Customer Switching Intention

ABSTRACTThis research investigates the path from integrated marketing communications to switching cost, satisfaction, commitment, and switching intention among mobile telecommunications customers. This research is based on extant literature that brand awareness, image, and personality created by company integrated marketing communications influence consumer expectations. Exploratory research finds that consumers will be satisfied if the provider can fulfil its promises and meet customer expectations. Sales promotion has a direct relationship with switching costs. In turn, switching costs affects the level of commitment, which can be augmented by high consumer satisfaction. Customer satisfaction, commitment, and switching cost are direct antecedents of switching intention.

Service value and switching barriers: a personal values perspective

ABSTRACTThis research aims to investigate how customers, the key actors in a service relationship, perceive service value and switching barriers. The study is framed along the means-end-chain theory of personal values and theory of customer resources in the service-dominant logic. Hypotheses about the impact of personal values on customer value, switching barriers and customer loyalty were tested using structural equation modeling of survey data obtained from the health care and retail banking sectors in Vietnam. The results show that in both sectors, personal values have a significant impact on perceived process and outcome value as well as on perceived economic and relational switching barriers. Economic barriers were found to affect loyalty in the banking sector, in the same way that relational barriers affect loyalty in the health-care sector only. Loyalty in both sectors is influenced by process but not by outcome value. The implications of these findings are discussed.

Determinants of customer loyalty in the Korean smartphone market: Moderating effects of usage characteristics

Since the Korean smartphone market has reached a saturation state, device manufacturing companies are re-focusing their resources and capabilities to enhance customer loyalty in order to retain existing customers and attract new customers. However, there are only few previous studies on customer loyalty of smartphones. The purposes of this study are to examine the effect of customer satisfaction and switching barriers on customer loyalty, and evaluate the moderating effects of usage characteristics in the Korean smartphone market. To test the research model, we collected data from 700 smartphone users via a face-to-face survey method. The results show that customer satisfaction and switching barriers (alternative attractiveness and switching cost) have significant impacts on customer loyalty. The device features (functions, usability, and design) and corporate factors (customer support and corporate image) significantly influence customer satisfaction. Usage characteristics (relationship length and usage experience) moderate some of the links in the research model.

Service Quality Dimensions and Customers' Satisfactions in Mobile Communications

Objective - The world is moving towards continuous and ubiquitous availability of information. Entry of private operators in 1990's, competition has caused prices to drop and calls across India are one of the cheapest in the world. Technological advances combined with forces of globalization resulted in the transformation of the economy, industries, markets and customers resulting in a connected knowledge economy, borderless global economy, globalizing, covering and consolidating industries, fragmenting and frictionless markets and active, connected, informed and demanding customers. The objective of this research is to ascertain the constructs like customer satisfaction towards the mobile phone service providers, switching barrier and the customer loyalty factors. Methodology/Technique - Respondents in the study are the customers who use mobile phones. Primary data were collected with the help of the specially designed questionnaire, which was administered to the mobile users. The final questionnaire was pre-tested on 40 respondents and the coefficient values are all above .8 thus meeting Nunnaly's recommendation of greater than 0.7 as the acceptable reliability level. The overall alpha value was 0.8 and the instrument consists of customer satisfaction regarding the mobile service providers, which includes factors like price (5 items, 0.816), network coverage (4 items, 0.795), customer service (5 items, 0.852) and usage (8 items, 0.884). Switching barriers factors consists of 28 items like credibility factors (8 items, 0.863), congruency factors (7 items, 0.816), switching cast (8 items, 0.871), and value (5 items, 0.900). Final part of the instrument includes 17 customer loyalty factors like trust (7 items, 0.858), commitment (4 items, 0.848), word of mouth (3 items, 0.779) and cooperation (3 items, 0.691). Findings - Gender, location of the customers and service providers has a significant association with level of customer satisfaction. Gender and occupation have a significant association with level of customer switching barriers. Hierarchical regression analysis was used to analyze the main effect and the adjustment effect of those switching barrier factors and the relative effect. The contribution is that this study reviews theoretically and verifies empirically the relationship and mechanism between the customer retention and the switching barrier. Type of Paper - Empirical Keywords: Customer satisfaction factors; switching barrier factors; Customer loyalty factors.