scholarly journals Switching Cost to Customer Loyalty: Operation and Business Relationship

2016 ◽  
Vol 5 (1) ◽  
pp. 35
Author(s):  
Puji Setyawan E. Putranto
Keyword(s):  
Customer Loyalty ◽  
Value Creation ◽  
Switching Costs ◽  
Perceived Value ◽  
Business Relationship ◽  
Moderating Effects ◽  
Binding Factor ◽  
Business Customers ◽  
Business To Business ◽  
Seller Relationship

Many business customers to day consolidate their supply basis and implementing preferred supplier programs. Consequently suppliers forced to gain a key supplier status from their customers where as a collaborative buyer-seller relationship represents a source of competitive advance. The vendors sometimes in flict switching costs on their customers, to prevent them from defecting to new suppliers. In a competitive setting where competition dominated by a price war, the potential switching costs might be an exit barrier and a binding factor of customer loyalty. ln efforts to address that issue this research examines the moderating effects of switching costs on customer loyalty through both satisfaction and perceived-value measures. The research investigates opporlunities for differentiation through value creation in business to business (B2B) relationship.

Antecedents and Consequences of Relationship Quality in B2B Markets

2015 ◽  
Vol 6 (1) ◽  
pp. 35-60 ◽  
Author(s):  
Eman Mohamed Abd-El-Salam
Keyword(s):  
Service Quality ◽  
Relationship Quality ◽  
Customer Loyalty ◽  
Vital Role ◽  
Business Relationship ◽  
Sustainable Business ◽  
Relationship Value ◽  
Business Customers ◽  
Business To Business

The purpose of this paper is to examine how service quality, relationship value, relationship quality and customer loyalty play a vital role in the Egyptian business to business market-and to test it empirically in agricultural business customers of chemical manufacturer with respect to their main supplier. The findings of this study show significant positive relationships among the variables under investigation. An international manufacturing company can manage its buyer-seller relationships to gain the trust, commitment, satisfaction, and loyalty of its business customers by offering high service quality. When the goal is to improve corporate marketing performance and increase business with an existing customer, managers should focus on the role of value as a key building block in their relationships. Relationship quality (satisfaction, trust and commitment) appears to be an important antecedent in establishing a sustainable business relationship. The paper adds to the understanding of business relationships in the Egyptian context by studying customer satisfaction, customer loyalty, customer trust, and customer commitment from the perspective of relationship-value-based dimensions. This approach emphasizes the pivotal role of relationship value as well as relationship quality, which has not been studied before in Egyptian business to business relationship markets.

Mobile communications: a comprehensive hierarchical modelling approach

2014 ◽  
Vol 26 (1) ◽  
pp. 114-146 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Xin Shu ◽  
Christopher Gan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Mobile Communications ◽  
Switching Costs ◽  
Important Determinant ◽  
Perceived Value ◽  
Corporate Image ◽  
Content Type ◽  
Customer Perceived Value

Purpose – Global mobile communication is one of the most dynamic and important service markets. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital importance to the mobile communications market. This study aims to develop and test a comprehensive hierarchical model of these six important constructs. The model also incorporates the retailing function of a major mobile communication provider. Design/methodology/approach – The research sample of 516 was drawn from customers of one of the largest mobile communications service providers in China. The data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Findings – The results of the study support using a hierarchical and multidimensional approach for conceptualising and measuring customers' perceptions of service quality in the mobile communications market. In addition, the findings illustrate that service quality is an important determinant of customer perceived value, customer satisfaction, corporate image, and perceived switching costs. Customer perceived value is also an antecedent of customer satisfaction. Corporate image, customer satisfaction, and perceived switching costs are three key drivers of customer loyalty. However, the findings also indicate that corporate image is not an important determinant of customer satisfaction and that customer perceived value is not a key driver of customer loyalty. Originality/value – This is the first paper that has developed and tested a comprehensive hierarchical model of the mobile communications market.

scholarly journals Enhancing customer loyalty: critical switching cost factors

2016 ◽  
Vol 27 (2) ◽  
Author(s):  
Dahlia El-Manstrly
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Design Methodology ◽  
Switching Costs ◽  
Perceived Value ◽  
Service Industries ◽  
Moderator Effect ◽  
Customer Perceived Value ◽  
Moderator Effects ◽  
Practical Implications

Purpose This paper aims to simultaneously examine the moderator effects of switching costs, classified by type (relational, procedural and financial) and direction (positive and negative), on the relationships between customer-perceived value, trust and loyalty. Design/methodology/approach This study reports on quantitative data from a survey of two service contexts which vary in their degree of customer-employee contact and customization. Three hundred and sixty usable questionnaires were collected, and the data was analysed using multi-group structural equation modelling. Findings The results demonstrate that switching costs moderate, in different ways, the relationships between customer loyalty, trust and perceived value. Moreover, the strength of the moderator effects vary according to service type. Research limitations/implications This study provides new insight into understanding the moderating role of switching costs thus, reduces inconsistencies about the direction and the strength of the moderator effect of switching costs in loyalty frameworks. Practical implications This study helps managers choose the most effective loyalty strategy for specific service industries and perceptions of switching costs, and to look beyond their service boundaries in order to cross-fertilize strategies for handling switching costs. Originality/value No empirical study to date has simultaneously examined the moderator effect of switching costs classified by type and direction on the relationships between customer-perceived value, trust and customer loyalty across two different service contexts in a single framework.

Loyalitas Pelanggan Pada Business-To-Business: Pengaruh Kualitas Pelayanan

2019 ◽  
Vol 5 (1) ◽  
pp. 10-20
Author(s):  
Lulu Marjani ◽  
Mamun Sutisna
Keyword(s):  
Quality Of Service ◽  
Service Quality ◽  
Customer Loyalty ◽  
Business Customers ◽  
Business To Business

Customer loyalty is the key to the success of every company, especially in business to business (B2B) markets where the company has a long-term orientation business. Due to the importance of maintaining the quality of service to create customer loyalty, this research was conducted to determine the effect of service quality on customer loyalty on business to business. This research uses 117 business to business customers as respondents. The results of this study illustrate that service quality has an effect of 54,6% on customer loyalty.

scholarly journals Examining Paid Mobile Application Customer Loyalty: The Moderating Effect of Switching Costs

2016 ◽  
Vol 6 (2) ◽  
pp. 100 ◽  
Author(s):  
Wen-Tsung Wu ◽  
Chie-Bein Chen ◽  
Chiao-Chen Chang
Keyword(s):  
Customer Loyalty ◽  
Mobile Applications ◽  
Mobile Application ◽  
Switching Costs ◽  
Critical Role ◽  
Perceived Value ◽  
Moderating Effect ◽  
A Value ◽  
Application Industry ◽  
The Relationship

The mobile application industry has more actions and services in recent years due to consumer demand.The purpose of this study is to explain the relationships among perceived value, satisfaction, and customer loyalty in the paid mobile application industry. Moreover, this studydevelops and testsa conceptual model that offer a value perspective in understanding customer loyalty toward paid mobile applications. Toachieve this aim, perceived value and customer satisfaction must be measured and “switching costs” identified. This study also takes a value component perspective from Bernardo, Marimon and del Mar Alonso-Almeida (2012) to confirm how the two types of switching costs (monetary vs. nonmonetary switching costs) moderate the link in perceived value, satisfaction, and loyalty in the instance of a paid entertainment mobile application. The results from an online survey indicate that the switching costs had a moderating effect on the relationship between perceived value and loyalty, and the satisfaction and loyalty of using paid mobile applications. With respect to the findings, the moderating effect of switching cost play a critical role in determining customer loyalty of paid mobile applications. It also revealed that nonmonetary switching costs has more importance than monetary switching costs in engendering loyalty, since monetary contains price in the download paid mobile applications, which provides negative outcomes among the relationship of perceived value, satisfaction, and loyalty. In the conclusion, the implications of these findings are discussed.

scholarly journals The effect of marketing communication on business relationship loyalty

2017 ◽  
Vol 35 (4) ◽  
pp. 458-472 ◽  
Author(s):  
Nora Hänninen ◽  
Heikki Karjaluoto
Keyword(s):  
Customer Loyalty ◽  
Perceived Value ◽  
Communication Channels ◽  
Marketing Communications ◽  
Marketing Communication ◽  
Manufacturing Companies ◽  
Business Relationship ◽  
Communication Quality ◽  
Content Type ◽  
Customer Perceived Value

Purpose The purpose of this paper is to create a new understanding of industrial business-to-business (B2B) relationships by connecting the theoretical streams of marketing communications and relationship marketing. This study tests how various marketing communication channels and communication quality increase the transformation of customer-perceived value into customer loyalty. Design/methodology/approach The theoretical framework consists of links between customer-perceived value, marketing communication quality, channel effectiveness, and customer loyalty. The age of the business relationship is also taken into consideration. Empirical testing is based on global survey data (n=121) collected from customers of Finnish manufacturing companies operating in the paper, mineral, and metal-processing industries. Findings The effects of customer-perceived value on customer loyalty are both direct and indirect, as marketing communications partially mediate this relationship. The customer-perceived effectiveness of various marketing communication channels adds more to loyalty formation than the perceived quality of marketing communications. Practical implications Of special interest for marketing practitioners is the channel-specific approach to the effectiveness of marketing communications. Results suggest that personalized channels would be the most important mediators of the effects of perceived value on loyalty and also bring up the possibility of combining personalized direct communication with new cost-effective digital channels. Originality/value Relatively little research has examined the mediating role of marketing communications in the relationship between perceived value and loyalty in the B2B context.

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

2015 ◽  
Vol 31 (2) ◽  
pp. 371 ◽  
Author(s):  
Valentina Stan
Keyword(s):  
Customer Satisfaction ◽  
Conceptual Framework ◽  
Customer Loyalty ◽  
Switching Costs ◽  
Perceived Value ◽  
Moderating Effect ◽  
Store Image ◽  
Strong Impact ◽  
The Impact ◽  
The Relationship

<p class="default">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.</p>

scholarly journals ANALISIS STRATEGI PENINGKATAN LOYALITAS CUSTOMER B2B E-COMMERCE, STUDI KASUS: GMF AEROTRADE DI PT. GMF AEROASIA

2019 ◽  
Vol 19 (2) ◽  
pp. 37
Author(s):  
Erlinda Muslim
Keyword(s):  
Performance Analysis ◽  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Perceived Value ◽  
Perceived Quality ◽  
Business To Business

PT. GMF AeroAsia menawarkan salah satu Business-to-Business E-Commerce terbesar di Indonesia yang bergerak di bidang MRO (Maintenance, Repair, and Overhaul) memiliki bisnis maintenance pesawat dan sebagai distributor material komponen pesawat yang bernama GMF AeroTrade. GMF AeroTrade merupakan bentuk platform E-Commerce berbentuk web store yang baru berdiri sejak awal tahun 2017. Meningkatnya kebutuhan material setiap tahunnya memberikan dampak yang cukup besar terhadap kompetitifnya pasar distributor kebutuhan komponen pesawat terbang. Dengan perubahan baru dengan diadakannya platform berbasis E-Commerce ini di GMF AeroTrade dan juga melihat adanya banyak kompetitor lainnya di dunia, peran loyalitas pelanggan sangat berpengaruh terhadap keuntungan perusahaan. Maka dari itu GMF AeroTrade membutuhkan strategi yang kuat untuk dapat meningkatkan loyalitas pelanggan (Customer Loyalty). Dalam pembuatan strategi tersebut akan diteliti dari pengaruh faktor Image, Perceived Quality, Perceived Value, dan Customer Satisfaction terhadap loyalitas pelanggan (Customer Loyalty) dengan menggunakan metode SEM-PLS. Selain itu, digunakan metode Importance-Performance Analysis untuk mendapatkan action items beserta tingkat prioritas pelaksanaan untuk setiap action items. Penelitian ini mengambil pelanggan yang aktif melakukan transaksi pembelian di GMF AeroTrade. Hasil dari penelitian ini merupakan strategi untuk meningkatkan loyalitas pelanggan (Customer Loyalty) GMF AeroTrade, sehingga dapat bersaing dengan kompetitor distributor material komponen pesawat lainnya yang ada di dunia

scholarly journals Creating Value for the Consumer Through Marketing Communication Tools

2021 ◽  
Vol 13 (1) ◽  
pp. 59-75
Author(s):  
Viktorija Kovanoviene ◽  
Giedrius Romeika ◽  
Wjatscheslav Baumung
Keyword(s):  
Customer Loyalty ◽  
Value Creation ◽  
Perceived Value ◽  
Observational Research ◽  
Marketing Communication ◽  
Consumer Loyalty ◽  
Communication Tools ◽  
Correlation And Regression Analysis ◽  
Survey Research Methods ◽  
Key Questions

The situation in the markets is changing rapidly and competition in the business sector is increasing rapidly. As a result, corporate marketing decisions are based on creating greater value for the consumer, which creates competitiveness and provides an advantage in competing for future customer loyalty. The purpose of this study is to determine whether there is a link between marketing communication tools and consumer perceived value in pursuit of consumer loyalty. Qualitative (observational research) and quantitative (a questionnaire survey) research methods were used to investigate the problem empirically. The observational research elucidated the value provided to the consumer by the research objects through marketing communication tools, supplementing the key questions for the quantitative study. Correlation and regression analysis were used in the study, with the results showing a statistically significant relationship between marketing communication tools and consumer perceived value in terms of user loyalty. It has also been determined that the greatest and strongest relationship in consumer value creation through marketing communication tools is the appropriate, mutually coordinated and complementary use of a package of marketing communication tools to achieve synergies that create the preconditions for increasing consumer loyalty in a competitive market.

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