Antecedents Of Customer Loyalty In The Retailing Sector: The Impact Of Switching Costs

The objective of this work is to propose and test a conceptual framework that considers customer satisfaction, store image, perceived value and switching costs as antecedents of customer loyalty. In addition, we examine the moderating effect of switching costs in the relationship between loyalty and its antecedents. While customer satisfaction, store image and perceived value are important determinants of loyalty, switching costs have the same strong impact on customer loyalty as satisfaction. The findings prove that switching costs have a moderating effect on the relationship between store image and loyalty, as well as between perceived value and loyalty

Perceived Value, Store Image and Satisfaction as Antecedents of Store Loyalty Moderated by Procedural Switching Costs

The phenomenon of measuring behavioral loyalty on specific stores or merchants obviously popular, particularly despite the existence of structural and fundamental criticism on specific issue. The objectives of this research is to examine the antecedents of customer loyalty specifically on store loyalty. We operate survey method to gather primary data. The focus of the research is to examine the effect of perceived value, store image, and customer satisfaction on store loyalty. The results indicate that customer who perceive low perception of procedural switching costs and high perception of procedural switching costs experienced different perception in their perceived value on customer satisfaction, perceived value on loyalty, and store image on customer satisfaction. The results shows that the perceived value, store image, and customer satisfaction has a positive and significant relationship of store loyalty in the different perception of procedural switching costs. Furthermore, procedural switching costs play a significant role in moderating the relationship between customer satisfaction and store loyalty. There was an indirect effect in the relationship between perceived value and store loyalty, which was mediated by customer satisfaction. The indirect effect of the relationship between store image and store loyalty was also proven to be mediated by the customer satisfaction

The Mediating Effects of Switching Costs on the Relationship between Service Quality, Customer Satisfaction and Customer Loyalty: A Study in Retail Banking Industry in Vietnam

This paper develops and empirically tests the mediating role of switching costs in service quality - loyalty and satisfaction-loyalty relationships. Especially, different types of switching costs are tested separately providing more insights into their roles. A research model about the interrelationships between service quality, customer satisfaction, switching costs and customer loyalty is developed. Based on this model, a survey is conducted with retail banking customers, with and 261valid respondents. The hypotheses are then proposed and tested using Structural equation modeling technique (SEM). The analysis reveals that: positive switching cost is a significant mediator for both service quality-loyalty and satisfaction-loyalty relationships, while negative switching cost only mediates the service quality-loyalty relationship. These findings suggest that building and managing switching costs are necessary following-up steps after customer satisfaction for achieving long-term customer loyalty

The mediating effects of switching costs on the relationship between service quality, customer satisfaction and customer loyalty: A study in retail banking industry in Vietnam

This paper develops and empirically tests the mediating role of switching costs in service quality - loyalty and satisfaction-loyalty relationships. Specially, different types of switching costs are tested separately providing more insights about their roles. This approach extended the insights on mediating effects of switching costs by differentiate the roles of positive switching costs and negative switching costs in the model. A research model about the interrelationships between service quality, customer satisfaction, switching costs and customer loyalty is developed. Based on this model, a survey is conducted with retail banking customers, with and 261 valid respondents. The hypotheses are then proposed and tested using Structural equation modeling technique (SEM). The analysis reveals that: positive switching cost is a significant mediator for both service quality-loyalty and satisfaction-loyalty relationships, while negative switching cost only mediates the service quality-loyalty relationship. These findings suggest that building and managing switching costs are necessary following-up steps after customer satisfaction for achieving long-term customer loyalty. However, using the right types of switching costs is necessary to significantly boost the loyalty from customers. © ExcelingTech Pub, UK

Customer Loyalty Development: The Role Of Switching Costs

Customer loyalty plays a crucial role in firm’s performance.  Over the last three decades the antecedents of customer loyalty in the service sector have attracted great interest by academics and practitioners alike.  This study has two key objectives.  First, we investigate how image perceptions, service quality and customer satisfaction contribute to customer loyalty.  The results show that the organizational image customers hold of the service provider and perceived service quality have a similarly strong relationship with customer loyalty.  Moreover, both, service quality and organizational image are significantly and positively correlated with customer satisfaction.  The findings highlight that it is in particular through the formation of customer satisfaction that service quality and organizational impact customer loyalty. Thus, we can demonstrate that customer satisfaction has a mediating effect between external and interactive marketing initiatives and the development of customer loyalty.  Second, we investigate the role of switching costs in the development of customer loyalty.  The findings indicate that perceived switching costs, here assessed in terms of price sensitivity, have by far the strongest, positive and direct impact on customer loyalty in comparison to the other antecedents included in the model.  The importance of switching costs is further corroborated with the finding that switching costs moderate the link between customer satisfaction and customer loyalty

Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: Investigation of retail banking in Vietnam

Switching cost highlights the way how companies create barriers to proactively prevent customer defection which directly and significantly affects customer loyalty and then companies’ performance. The purpose of this paper is to provide empirical evidences about the impact of switching cost on customer loyalty by examining its mediating and moderating effects on the relationships between service value, customer satisfaction and customer loyalty. Specially, two difference types of switching costs, positive one and negative one, are proposed and tested independently in order to provide more insights about their impacts. The data about switching costs and other constructs are collected from 261 retail banking customers, and analysed using structural equation modelling and moderated path analysis. It is found that positive switching costs increase customer loyalty by partly transforming the effect of service value and customer satisfaction into customer loyalty. While negative switching cost only mediates the service value-loyalty relationship. Moreover, only negative switching cost has significant moderating effect on the satisfaction-loyalty relationships. Finally, the analysis reveals that negative switching cost might also weaken good impacts from positive switching cost on satisfaction-loyalty relationships. © Foundation of International Studies, 2017. and CSR, 2017

The differential effects of switching costs and attractiveness of alternatives on customer loyalty

Dissertação apresentada como requisito parcial para obtenção do grau de Mestre em Estatística e Gestão de Informação.There is an increasing recognition among marketing scholars and practitioners of the importance of the influence of switching costs and attractiveness of alternatives in the relationship between customer satisfaction and customer loyalty. To date, however, there is a lack of research about the process through which these variables influence the satisfaction-loyalty relationship. This dissertation aims to evaluate the importance of switching costs and attractiveness of alternatives in explaining customer loyalty. Using a revised model of the European Customer Satisfaction Index (ECSI), applied to the banking industry, this study intends to include switching costs as perceived by customers and the attractiveness of alternatives as independent antecedents of customer loyalty and as moderators of the impact of satisfaction on loyalty. Both direct and moderating effects of switching costs and attractiveness of alternatives are tested, using a methodology based on structural equation models. The main findings of this study indicate that both constructs influence loyalty directly and the strength of the satisfaction-loyalty relationship

The influence of market heterogeneity on customer loyalty: A multigroup analysis.

Loyalty is configured as one of the main determinants of firm performance. Many works have proposed models that analyze the relationship between loyalty and its main determinants: the customer perceived value (PV), their level of satisfaction and their perceived switching costs (PSC). Thus, the aim of this study is to validate a model that gathers the relationships between these variables and analyze the influence of customer characteristics –propensity towards switching and customer involvement- on these relationships in the insurance industry. The results show that (a) for the whole sample, perceived value, satisfactions and switching costs are set as antecedents of loyalty; (b) however, for customers with high tendency to switch, the path to a loyalty behavior is only mediated by the influence of their perceived value in their satisfaction; and finally (c) for these individuals, the strength of the relationship between satisfaction and loyalty is lower than customers with low tendency to switch

THE IMPACT OF SERVICE QUALITY ON BANKING CUSTOMER LOYALTY: THE ROLE OF SATISFACTION AND SWITCHING COSTS AS MEDIATOR

The notion of customer loyalty as an efective marketing strategy in fecing keen competition has been identified. The purpose of this study is to examine the role of customer satisfaction and switching costs as mediator on the relationship between service quality and customer loyalty. The research population is all banking deposit customers of Nagari Bank Main Branch Padang while the numbers of usable samples were 117 respondents. In order to test hypotheses, this study performs SmartPLS 3.2.8. The results of analysis displayed that the strongest effect of service was found on switching costs compared to customer satisfaction and loyalty. In addition, customer satifcation and switching costs were proven as determinants of customer loyalty, and they also were found as mediator on the relationship between service quality and customer loyalty.The research findings provided some practical contributions that in order to enhancing customer loyalty future, it was suggested to increase customer satisfaction as well switching costs through creating the best service quality. Keywords: Service quality, Customer satisfaction, Switcing costs, and Customer loyalt

Third Party Logistics Service Quality And The Moderating Role Of Switching Costs Between Customer Satisfaction And Behavioural Loyalty

A multitude of companies has already identified the need to create a loyal customer base and acknowledged maintaining existing customers and extending businesses with them are significantly less expensive than acquiring new customers. Therefore this thesis describes the development of a conceptual model to investigate the factors affecting customer behavioural loyalty towards third party logistics (3PL) provider involving factors such as logistics service quality (LSQ), customer satisfaction and switching costs. One hundred and seventy four sets of completed questionnaire were collected from 3PL customers in the manufacturing sector from industrial hubs throughout Malaysia. Using Partial Least Squares - Structural Equation Modeling (PLS-SEM) analysis approach, the findings revealed four out of the nine dimensions of LSQ have positive relationships with customer satisfaction. The second order factor, functional quality and technical quality have positive relationships with customer satisfaction. LSQ as the third order factor has positive relationship towards customer satisfaction and behavioural loyalty. Customer satisfaction is a partial mediator in the relationship between LSQ and behavioural loyalty. Only procedural switching cost is a moderator towards the relationship between customer satisfaction and behavioural loyalty. Therefore, spurious loyalty is revealed in the relationship between customer satisfaction and behavioural loyalty when procedural switching cost exists. The findings of this study will help practitioners such as 3PL providers maintain close relationships with customers