Switching experience, customer satisfaction, and switching costs in the ICT industry

2015 ◽  
Vol 26 (1) ◽  
pp. 117-136 ◽  
Author(s):  
Kurt Matzler ◽  
Andreas Strobl ◽  
Norbert Thurner ◽  
Johann Füller

Purpose – Stabilizing business in highly competitive and volatile business-to-business (B2B) markets is a strategic imperative for many companies. In such a context, customer retention through the creation of switching barriers (i.e. by increasing switching costs) is a common strategy. The purpose of this paper is to develop a network of relationships among customer switching experience, customer satisfaction, perceived switching costs, and behavioral loyalty intentions. Design/methodology/approach – Survey data were collected from 327 business customers (very small enterprises with fewer than nine employees; customers included physicians, lawyers, tax advisors, consultants, civil engineers, etc.) of an information and communications technology (ICT) company. The research model was tested using partial least square structural equation modeling. Findings – The results show that switching experience negatively influences customer satisfaction and behavioral loyalty intention. Furthermore, the influence of customer satisfaction on behavioral loyalty intentions is partially mediated by financial and relational switching costs. Practical implications – In saturated markets, companies often try to grow by acquiring customers from competitors. This study reveals that this strategy can backfire. The customers that can be most easily acquired may be those that are the most difficult to retain because customers experienced in switching are difficult to satisfy – and low satisfaction means lower perceived financial and relational switching costs and, in turn, lower loyalty. Originality/value – This research contributes to theory and practice by shedding further light on the satisfaction-loyalty link by investigating the often widely neglected role of switching experience. Furthermore, the study seeks to add to the discussion of how to specify the role of switching costs: as a mediator or as a moderator.

2018 ◽  
Vol 30 (4) ◽  
pp. 1087-1111 ◽  
Author(s):  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Norjaya Md Yasin ◽  
Nor Liza Abdullah

Purpose This study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI. Design/methodology/approach Data were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses. Findings Results reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost. Research limitations/implications It is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching. Originality/value This study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.


2018 ◽  
Vol 10 (3) ◽  
pp. 76 ◽  
Author(s):  
Temoor Anjum ◽  
Sara Ravan Ramzani ◽  
Muhammad Farrukh ◽  
Valliappan Raju ◽  
Nida Nazar ◽  
...  

The purpose of this study was to investigate the impact of entrepreneurial education on entrepreneurial intentions of the university students, moreover, a mediating role of  Entrepreneurial Passion, Perceived Creativity Disposition and Entrepreneurial Passion was also assessed. Data were collected from 595 university students; Partial least square technique was used with the help of SmartPLS software. Results of partial least square structural equation modeling showed that all the hypothesized direct and indirect relationship were supported. Possible implications for theory and practice are discussed in detailed.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miao Miao ◽  
Tariq Jalees ◽  
Syed Imran Zaman ◽  
Sherbaz Khan ◽  
Noor-ul-Ain Hanif ◽  
...  

PurposeThis research study investigates the factors that influence e-customer satisfaction, e-trust, perceived value and consumers repurchase intention in the context of the B2C e-commerce segment. It investigates the mediation effect of e-customer satisfaction, e-trust and perceived value on repurchase intention. It also examines the moderating role of prior online experience.Design/methodology/approachBased on the adapted questionnaire, pre-recruited enumerators collected the data from five leading business universities of Karachi. They distributed 425 questionnaires and received 415 questionnaires. The study has used Partial Least Square-Structure Equation Modeling (PLS-SEM) technique for data analysis.FindingsWe have tested 20 hypotheses, of which our results do not support five, including two direct, two mediating. Our results support all the direct hypotheses except the following two: (1) delivery service affects e-satisfaction (2) customer services quality effect on trust. We did not find support for the following two mediating hypotheses (1) e-satisfaction mediates delivery services and repurchase intention, (2) service quality mediates customers' service quality and repurchase intention. Our results do not support one moderating relationship. Prior online experience moderates e-perceived value and repurchase intention.Research limitations/implicationsThis research provides valuable information to the online retailers of B2C e-commerce, which can help them make strategies based on their consumers' behavior and encourage them to make repeat purchases from online retailing stores. It allows future researchers to replicate the model in cross-cultural studies in different product categories.Originality/valueWe have examined the moderating effect of prior online experience between (e-satisfaction, e-trust and perceived value) on the repurchase intention.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Ali Raza ◽  
Abdul Waheed

PurposeBased on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.Design/methodology/approachA hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.FindingsPartial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.Originality/valueDespite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.


2019 ◽  
Vol 13 (4) ◽  
pp. 559-587 ◽  
Author(s):  
Haniruzila Hanifah ◽  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Ali Vafaei-Zadeh

Purpose Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera small and medium-sized enterprises (SMEs) had received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture to generate innovation performance. As such, the purpose of this study is to examine the ambidextrous orientation and innovation strategy on innovation culture, and how innovation culture could mediate the relationship between ambidextrous orientation and innovation strategy and innovation performance. In addition, this study also examines the role of government support as the moderator between innovation culture and innovation performance. Design/methodology/approach Data were collected from 140 Bumiputera SMEs and analyzed using partial least square-structural equation modeling via Smart PLS. Findings Findings indicated that ambidextrous orientation (alignment and adaptability) and innovation strategy (proactive creativity strategy and growth risk orientation strategy) had a significant impact on innovation culture. Besides, innovation culture mediated the relationship between alignment, proactive creativity strategy, growth risk orientation strategy and innovation performance. Surprisingly, innovation culture does not significantly mediate the relationship between adaptability and innovation performance. However, government support plays an important role to support innovation culture and innovation performance in Bumiputera SMEs. Originality/value This study makes both theoretical and practical contributions, especially in identifying the significant role of Bumiputera SMEs in creating an innovation culture. Besides, it explained government support as an important role in strengthening the relationship between innovation culture and innovation performance. The findings of the study will provide great help to Bumiputera entrepreneurs in formulating innovation culture in Malaysian SMEs.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bernhard Fabian Bichler ◽  
Birgit Pikkemaat ◽  
Mike Peters

PurposeQuality in foodservices has become essential, and new methodological ways of determining service quality enable a better representation of service processes and help to increase revisits. This paper focuses on the foodservice context and explores the relationship between staff-related service dimensions, atmosphere, food quality and revisit in a full-service setting.Design/methodology/approachThis study combines an often neglected mystery guest approach with partial least square–structural equation modeling (PLS-SEM) to shed more light on customers' service perceptions. The mystery guest approach has been updated with a digitally supported smartphone questionnaire (e-mystery) that provides more reliable results since previous measurements experienced difficulties of feasibility in time-limited settings (N = 247).FindingsThe findings of this study confirm the direct effects of the service quality dimensions reliability, attentiveness and atmosphere on revisit intention and highlight the mediating role of food quality. In detail, the findings showed significant results for service employees' reliability and attentiveness and underlined the role of atmosphere for revisit intention.Originality/valueThe contribution of this paper supplements that mystery guest approaches represent a reliable alternative to convenience sampling, especially in combination with a digitally supported questionnaire (e-mystery). Thereby, this paper suggests the further application of e-mystery for the hospitality and tourism industry. In terms of implications, this study highlights the importance of securing food quality by fostering specialized schools and training programs for career starters. Since the findings stress the importance of service quality and atmosphere, managers need to ensure that employees are trained in culturally sensitive communication and services to excel in service-related dimensions.


2020 ◽  
Vol 38 (4) ◽  
pp. 917-932
Author(s):  
Johra Kayeser Fatima ◽  
Rita Di Mascio ◽  
Ali Quazi ◽  
Raechel Johns

PurposeThis study aims to capture the mediation role of customer–frontline employee rapport on customer satisfaction and affective, calculative and normative commitment by using three alternative models. It also verifies the moderation effect of relationship age on the rapport-satisfaction link in each alternative model.Design/methodology/approachThe survey data collected from bank customers were analyzed using structural equation modeling (SEM) with the partial least square (PLS) method.FindingsResults confirmed rapport as a significant mediator between satisfaction and each of the three types of commitment. Relationship age significantly moderates the links between rapport to affective and normative commitment but not to calculative commitment.Research limitations/implicationsAdditional findings from “importance–performance analysis” suggest that satisfaction is more import to customers than rapport for developing commitment, so further investigations can reveal the underlying reasons. Also, complementary mediation shows one or more missing mediators, which calls for future research.Practical implicationsManagers need to use rapport strategically with customers in different relationship ages to build different types of commitment. Specific tactics to build rapport and possible long run implications for developing affective, calculative and normative commitment have been discussed in the “note to practitioner” section.Originality/valueUsing “broaden-and-build” theory, the study extends the literature by confirming the mediation influence of rapport on satisfaction and three types of commitment relationships.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Swati Dhir ◽  
Tanusree Chakraborty

PurposeThis paper aims to understand the role of perception of HR capability, HR service quality, along with HR inducements, which, in turn, provides satisfaction with HR practices and affects employee performance.Design/methodology/approachThe data of 155 managers have been collected through a questionnaire to understand the relationship among the studied constructs using partial least square structured equation modeling (PLS-SEM).FindingsThe results suggest that employers should attempt to create a positive perception by providing quality services in the HR domain, and quality services will certainly enhance employee performance.Originality/valueThis study is unique in terms of its contribution. This study has tried to link service quality and satisfaction to HR practices with employee performance. Further, it also shows that HR should be capable and have high HR inducements to provide the necessary and expected HR services, which leads to employee satisfaction with HR practices and employee performance.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chun-Chu Chen ◽  
Jiyoon (Jennifer) Han ◽  
Yao-Chin Wang

Purpose This paper aims to examine the relationship among guests’ lodging recovery experience, work-related rumination, guest satisfaction and well-being, within the context of hotels and bed and breakfasts (B&Bs). Design/methodology/approach The sample included 823 Taiwanese full-time workers. The proposed relationships were tested using partial least square structural equation modeling, and the moderating effects of accommodation types were tested using multi-group analysis. Findings The research findings indicate that staying at a hotel or B&B provides a respite from work and reduces negative, repetitive thoughts about work issues (work-related rumination). These recovery effects then contribute to customer satisfaction and hedonic and eudaimonic well-being. Practical implications The findings indicate that practitioners need to develop products that could reduce customers’ negative emotional attachments to work and enhance the well-being of customers in a stressful society, which could ultimately contribute to promoting the public health of full-time workers. Originality/value To the best of the authors’ knowledge, this study is the first to examine the stress-recovery aspect of lodging experiences and their impacts on customer satisfaction and well-being. Further insights are demonstrated with the inclusion of work-related rumination.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Simonov Kusi-Sarpong ◽  
Sharfuddin Ahmed Khan ◽  
Asad Khushal ◽  
...  

PurposeThis research aims to propose a framework for measuring customer loyalty for third party logistics (3PL) industry by exploring the attributes that are more attractive to customers and ascertain the mechanisms for increasing customer loyalty in 3PL industry.Design/methodology/approachData were collected from one hundred and thirty-three (133) respondents who were employees of different industries that outsource 3PL services. The partial least square structural equation modeling (PLS–SEM) was deployed for analysis.FindingsThe results showed that service quality has a significant positive impact on customer orientation, customer satisfaction and relationship quality. On the other hand, customer orientation has been observed to positively impact customer satisfaction but an insignificant impact on customer loyalty and relationship quality. Customer satisfaction has a significant positive impact on relationship quality but an insignificant impact on customer loyalty. Also, relationship quality has a significant positive impact on customer loyalty.Practical implicationsThe results recommend that 3PL companies' managers focus more on developing quality relationships with their customers, delivering exemplary service quality and offering customer orientation.Originality/valueThis study will help the stakeholders gain much more understanding and insights on how competitive advantage can be achieved and, consequently, help 3PL become the market leaders.


Sign in / Sign up

Export Citation Format

Share Document