The Mediative Effect of Relationship Trust in the Influence of Switching Barriers on Customer Loyalty

Author(s):  
Yan-cai Zhang
2017 ◽  
Vol 27 (3) ◽  
pp. 616-641 ◽  
Author(s):  
Stephanie Hui-Wen Chuah ◽  
Philipp A. Rauschnabel ◽  
Malliga Marimuthu ◽  
Ramayah Thurasamy ◽  
Bang Nguyen

Purpose The purpose of this paper is to go beyond satisfaction as an indicator of customer loyalty and propose a holistic model of service switching in a mobile internet setting. The model, which reflects both barriers and inducements of switching, is developed based on the “mooring” and “pull” concepts in the migration literature. Design/methodology/approach Focusing on Generation Y mobile internet subscribers, the study analyzed a total of 417 usable questionnaire responses. Partial least squares structural equation modeling was used to test the research model. Findings The results show that first, satisfaction and switching barriers (i.e. a focal firm’s marketing innovation initiatives, switching costs, inertia, and local network effects) are positively related to customer loyalty; second, switching barriers have a stronger influence on customer loyalty compared with satisfaction; third, switching inducements (i.e. competitors’ marketing innovation initiatives, alternative attractiveness, variety-seeking tendencies, and consumers’ susceptibility to social reference group influence) is negatively related to customer loyalty and the relationship is weaker when perceived switching barriers are high. Originality/value This study empirically validates multidimensional scales of switching barriers and inducements from a more nuanced perspective, and specifies them as reflective-formative type II models. This study is among the first to use opposing dimensions to measure switching barriers and its counterpart. Hence, it illustrates how the two contrasting mechanisms can coexist in the minds of mobile internet subscribers.


Author(s):  
S. Sakthivel Rani ◽  
S. Kannan

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.


2012 ◽  
Vol 4 (4) ◽  
Author(s):  
Irshad Hussain Sarki ◽  
Sarwar M. Azhar ◽  
Dr. Niaz Ahmed Bhutto ◽  
Rafique Ahmed Khuhro ◽  
Imran Arshaad

2013 ◽  
Vol 19 (4) ◽  
pp. 687-705 ◽  
Author(s):  
Yong-Jae Park ◽  
Myung-Hwan Rim ◽  
Seung-Koog Lee

Mobile radio frequency identification (RFID) services are expected to be launched in full-scale as a new service option in the telecommunications service market following the development of RFID technology and maturation of the IT infrastructure. Importance of customer loyalty has been widely recognized in business marketing for a long time, and the customer loyalty enhancement strategies for mobile RFID services is of significance to telecommunication carriers in terms of new business value creation. This study identifies the factors affecting customer loyalty for mobile RFID services and presents telecommunication service managers with information useful for improving customer loyalty for related new services. The data was collected from customers with some experience in the use of mobile RFID services through an online survey for an empirical analysis. And the collected data was analysed with structural equation model to verify the cause and effect relationship among perceived quality, switching cost, perceived value, customer satisfaction, switching barrier and customer relationship. The analysis showed that the quality of tag recognition and content quality proved to have a direct impact on the customer satisfaction, whereas connection quality and ease of use would rather indirectly than directly influence customer satisfaction by perceived value. Perceived value and satisfaction affected the loyalty. Adaptation cost affects switching barriers, the higher the switching barriers, the stronger the loyalty. Based on the results of the empirical analysis, practical implications were given. What is more, mobile RFID customers were divided into two groups that are favourably and unfavourably disposed toward the service, and suggested customer loyalty improvement strategies adapted for each group.


2018 ◽  
Vol 3 (1) ◽  
pp. 53
Author(s):  
Nevri Bayage Bayage ◽  
Dyah Sugandini ◽  
Purbudi Wahyuni

This study aims to analyze the factors that affect customer loyalty to customers of Bank Papua Branch Yogyakarta. Customer loyalty in this research is influenced by trust, switching barriers and bank image. Respondents in this study are all students who have savings in Bank Papua branch of Yogyakarta and domiciled in Yogyakarta. This research is a survey research by using questionnaires. The analytical tool used for hypothesis testing is SEM-PLS. The results of data analysis show that trust has a significant positive effect on switching barriers and image. Trust has no significant effect on loyalty. Switching barriers affect loyalty. The image is not proven to have a significant effect on loyalty. 


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