Customer Switching Behavior in Service Industries: An Exploratory Study

1995 ◽  
Vol 59 (2) ◽  
pp. 71-82 ◽  
Author(s):  
Susan M. Keaveney

Customer switching behavior damages market share and profitability of service firms yet has remained virtually unexplored in the marketing literature. The author reports results of a critical incident study conducted among more than 500 service customers. The research identifies more than 800 critical behaviors of service firms that caused customers to switch services. Customers’ reasons for switching services were classified into eight general categories. The author then discusses implications for further model development and offers recommendations for managers of service firms.

Author(s):  
Le Thi Hai Ha ◽  

Service quality and customer switching behavior are among the most important factors that affect service firms’ market share and profitability, yet they remain understudied in Vietnam’s service sectors. This study surveys 343 customers who using service of bank in Hanoi to explore the perceived importance of customer switching behavior in banking service sector. By using seceral statistical analytical tools, i.e. descriptive statistics, Independent T-test and Anova; the study identifies the following: There is, statistically, significant difference in the level of customer’s switching behavior towards banking service providers in Hanoi from these different gender, age, Academic standard and income. Based on the findings, some recommendations are given for banks in Hanoi to improve the quality service and loyalty of customers.


2018 ◽  
Vol 1 (3) ◽  
pp. 53
Author(s):  
Bushra Mahadin

Purpose-This paper aims to investigate factors that affect customer switching from Internal Combustion Engine Vehicles (ICEV’s) to Hybrid Electrical Vehicles (HEV’s), in Jordan for the period of (2010-2014).Design/methodology/approach-A self-administered survey was hand-delivered to the targeted sample of car users in Jordan. The authors delivered 400 questionnaires to customers, from which 333 were deemed valid for the analysis, corresponding to the percentage of (83.25%) which indicates the validity of the study. Findings- There was no difference in switching behavior between (ICEV’s) and (HEV’s) based on gender in the Jordanian market. Fuel consumption efficiency was the number one variable that supports the switching behavior towards (HEV's), followed by Eco friendliness, lower taxes and technological features. Price and the current trend in the market were the least supporting factors. In addition to that the perception of the battery life of (HEV's), limited choices in the market, lack of information and fear of the relatively new technology were the major hindering factors of choosing an (HEV).Research limitations-Future research needs to investigate other factors that may affect customers’ behavior such as perceived image, trust, and subjective norms. Future research should investigate into the importance of environmental awareness and new technologies, and gender differences in behavior. From an international marketing standpoint, comparative studies between Jordanian and non-Jordanian customers are potential areas of future research for international marketing strategies and cross-cultural consumer behaviour analysis. Practical implications-The paper identifies the determinants of switching behavior. marketers should focus addressing customers concerns in terms of providing enough information and building awareness towards the technology and it's benefits towards the society and the environment.Originality/value-Our study is one of the few in Jordan that investigates the switching behavior towards vehicles technology. Our study is thought to have made a modest contribution to consumer behaviour literature and, specifically, for decision making process. It offers marketers insights into the determinants of switching behavior towards the hybrid vechicle technology and how this contribute to consumers’ decision making process and attitudes to achieve the intended behavioural outcomes


2016 ◽  
Vol 30 (6) ◽  
pp. 643-658 ◽  
Author(s):  
Jackie L.M. Tam ◽  
Piyush Sharma ◽  
Namwoon Kim

Purpose This paper aims to examine the role that personal cultural orientations play in customer attributions in intercultural service encounters. Design/methodology/approach A conceptual model was developed depicting the relationships between service delivery outcome, personal cultural orientations and customer attributions. Data were collected from 640 Chinese and Western customers using scenario-based experiments in a restaurant context to assess the hypothesized relationships in the model. Findings The findings show that compared to service delivery success, customers tend to hold service employee and firm responsible for service delivery failure rather than themselves and cultural differences. Moreover, personal cultural orientations partially moderated the influence of the service delivery outcome on customer attributions. Research limitations/implications Future research could adopt different methodologies such as critical incident techniques and surveys to replicate the study. Practical implications Service firms are recommended to design programs to influence customer attributions such as “customer education programs” and “customer appreciation programs” to achieve high customer satisfaction. Originality/value This study examines the differences in customer attributions between successful vs unsuccessful service delivery. It also sheds light on the potential moderating role of personal cultural orientations on the relationship between service delivery outcome and customer attributions.


2018 ◽  
Vol 82 (3) ◽  
pp. 1-24 ◽  
Author(s):  
Alexander Edeling ◽  
Alexander Himme

The impact of market share on financial firm performance is one of the most widely studied relationships in marketing strategy research. However, since the meta-analysis by Szymanski, Bharadwaj, and Varadarajan (1993) , substantial environmental (e.g., digitization) and methodological (e.g., accounting for endogeneity) developments have occurred. The current work presents an updated and extended meta-analysis based on all available 863 elasticities drawn from 89 studies and provides the following new empirical generalizations: (1) The average raw market share–financial performance elasticity is .132, which is substantially lower than the effectiveness of other intermediate marketing metrics. This result challenges a widely used strategy that solely focuses on increasing market share. (2) Elasticities differ significantly between contextual settings. For example, they are lower for business-to-business firms than for business-to-consumer firms, for service firms than for manufacturing firms, and for U.S. markets than for emerging and Western European markets. The authors also observe differences between countries with respect to a general time trend (e.g., lower elasticities in recent times for Western European markets) and recessionary periods (e.g., lower elasticities in the United States, higher elasticities in non-Western economies).


2016 ◽  
Vol 17 (2) ◽  
pp. 41-58
Author(s):  
Theingi ◽  
Suchira Phoorithewet ◽  
Yunmei Wang ◽  
Sikankaew Panthongprasert

This study explores the antecedents and consequences of customer engagement behaviors in the Thai mobile network business. This study found that the approach to switching behavior and cross-buying behavior is connected to customer loyalty behaviors. However, the spending behaviors of customers may not be a good indicator of customer loyalty in the mobile network business because those who do not have the intention to switch to another brand do not necessarily increase their spending. In addition, most respondents are concerned with competitive promotional packages, which influence customer engagement behaviors. Hence, it was proposed that service quality and competitive promotional packages are antecedents to customer engagement behaviors and all these factors are important in explaining customer loyalty toward mobile network providers in Thailand.


Author(s):  
Chandra Sekhar Patro

The telecom services have been an imperative means for socio-economic development of a country and a large contributor to the rapid growth and modernization of various sectors of the economy. In recent years, the mobile services are having enormous growth due to rapid changes in technology. The mobile users have the choice to switch from one telecom operator to another within the telecom circle without the change of phone number. The introduction to MNP promoted more competition in the telecom sector and forced service providers to improve service quality and reduce prices. Therefore, it is necessary to understand the factors influencing customer switching behaviour for using mobile number portability. The study identified that the respondents are not only aware of MNP but also know the procedure of using MNP. The results show that service payout, trustworthiness, responsiveness, and monetary value have a positive influence on customers to switch over other service providers whereas accessibility and technology do not have a positive influence on customer switching behaviour.


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