Article

Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Costs and Managing Their Differential Strategic Outcomes

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Abstract

Although switching costs are increasingly finding their way into models of customer loyalty, a lack of consistency and clarity exists regarding the appropriate conceptualization and measurement of this critical strategic construct. To address this deficiency, the following six dimensions of switching costs were proposed: (1) lost performance costs; (2) uncertainty costs; (3) pre-switching search and evaluation costs; (4) post-switching behavioral and cognitive costs; (5) setup costs; and (6) sunk costs. Support for these six dimensions was obtained across two studies and two service industries (banks and hairstylists). The multidimensional scale (24 items) evidenced reliability, discriminant validity, and convergent validity. In addition, individual dimensions related to various constructs in predictable and sometimes differential ways. For example, while all switching cost dimensions were positively and significantly associated with repurchase intentions in the overall sample, the association was strongest with lost performance costs. Industry differences also emerged both in the mean level of perceptions across switching cost dimensions, as well as in the strength of relationships between switching costs and outcomes such as repurchase intentions. For example, perceptions of setup costs and pre-switching search and evaluation costs were higher for hairstylists than banks and were also more strongly associated with repurchase intentions for hairstylists than banks. Strategic implications and areas for future research are discussed.

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... Given the preceding discussion, when switching from e-commerce to m-commerce, customers tend to weigh the benefits of adopting the latter against the costs of change from the existence. Collectively, the costs of change from the existence can be referred as switching barriers that lock them in and make them difficult to change (Jones et al., 2002). Thus, this paper employs the concept of switching barriers to examine how switching barriers created from e-payment make customers reluctant to accept m-payment. ...
... The general agreement is that "service quality leads to satisfaction" and "satisfaction leads to loyal behaviour such as wordof-mouth, repurchase, and retention" (Cheong et al., 2002;Rust and Zahoric, 1993). However, some studies demonstrated that customer satisfaction does not always lead to customer retention and unsatisfied customers retain when switching barriers are high (e.g., Anderson et al., 1994;Jones et al., 2002). According to Jones et al. (2000), the level of customer retention can vary depending on the magnitude of switching barriers when the level of customer satisfaction is identical. ...
... Move-in cost (MC switching ), often called set-up cost or learning cost, includes time, effort, and money that would be involved not only in searching and evaluating acceptable alternative service providers (Patterson and Smith, 2003) but also in learning a new service routine subsequent to switching (Jones et al., 2002). In the mobile payment context, MC switching can be referred to as any financial and psychological burdens incurred when switching to m-payment (Cheong et al., 2002). ...
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Conference Paper
Despite the rapid proliferation of Internet-enabled mobile technology, empirical research has been undertaken only in a limited number of research areas. Other important topics, such as changing from e-payment to m-payment, have been almost absent. Thus, this study empirically investigated how switching barriers created from e-payment make customers reluctant to accept m-payment in Vietnam. The concepts of switching barriers were added to the Technology Acceptance Model due to its robust and consistent explanatory power within the context. The measurement model showed an acceptable explanatory power as 66.4% of the variance in behavioural intention was explained. However, the insignificant relationship between "perceived ease of use" and "attitude toward m-payment" raised questions regarding its role in the TAM. In terms of switching barriers, while "continuity cost" was found to be negatively related to intention, "attractiveness of e-payment", "sunk cost", and "move-in cost" were found to have no significant influence on intention.
... The more complex the service, the greater the risk of error in its provision (Michel, 2004). According to Jones et al., (2002) (Ampudia & Ehrmann, 2017;Bunyan et al., 2016;Fungáčová & Weill, 2015;Grohmann et al., 2018;Rao & Malapit, 2014;Rhine & Greene, 2013;Szopiński, 2019 Jones (2002) were used in the analysis. The Mann-Whitney test and the chi-square test were used to verify the relationship between the respondents' trait and the propensity to switch banks. ...
... The more complex the service, the greater the risk of error in its provision (Michel, 2004). According to Jones et al., (2002) (Ampudia & Ehrmann, 2017;Bunyan et al., 2016;Fungáčová & Weill, 2015;Grohmann et al., 2018;Rao & Malapit, 2014;Rhine & Greene, 2013;Szopiński, 2019 Jones (2002) were used in the analysis. The Mann-Whitney test and the chi-square test were used to verify the relationship between the respondents' trait and the propensity to switch banks. ...
... Switching costs are costs induced to economic agents when they change their suppliers. Jones et al. (2002) related to switching costs. The first dimension is lost performance costs, also referred to as continuity costs by Chebat et al. (2011). ...
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Article
In the era of open banking, the phenomenon of bank switching will intensify. The aim of the current study is to answer the following question: is switching, or not switching banks, a result of conscious and independent decision-making? The results from primary data demonstrate that the switching group clients are more conscious than non-switching group clients. They are more likely to compare offers from different banks, visit blogs about finances, demonstrate independence in making financial decisions, and use more service providers which improves their knowledge concerning the offers. The analysis of perceptual maps shows that the switching group is differentiated by various switching costs.
... Evaluations of the benefits and risks of buying from the in-supplier or from an out-supplier result in perceptions of switching costs, which play an important role in decision processes for professional services and determine customer loyalty (e.g., Jones, Mothersbaugh, and Beatty 2002;Matzler et al. 2015;Narayandas 2005;Yanamandram and White 2006). Switching costs consist of monetary components (e.g., the money invested by customers to end their previous relationship and initiate a new one, Barroso and Picón 2012) and nonmonetary components (e.g., psychological effort and time invested, Dick and Basu 1994;Thompson, Loveland, and Loveland 2019). ...
... Switching costs consist of monetary components (e.g., the money invested by customers to end their previous relationship and initiate a new one, Barroso and Picón 2012) and nonmonetary components (e.g., psychological effort and time invested, Dick and Basu 1994;Thompson, Loveland, and Loveland 2019). Perceived switching costs not only include the potential loss of benefits associated with the insupplier, such as optimized cooperation procedures (Lam et al. 2004) and the loss of interpersonal relationships (Jones, Mothersbaugh, and Beatty 2002;Low and Johnston 2006), but also the anticipated losses associated with a new supplier, such as the emotional discomfort of dealing with the new provider's staff, or psychological stress due to uncertainty about service quality (Thuy, Le Hau, and Evangelista 2016). Blut et al. (2016) conceptualized switching costs in industrial markets as comprising three major dimensions: procedural, financial, and relational. ...
... We measured the intention to purchase the new service either from an out-supplier or from the insupplier with a seven-point semantic differential, following Liu, Li, and Dong (2019) and Zeithaml, Berry, and Parasuraman (1996). Perceived procedural switching costs were measured with 10 items, according to the suggestions from Jones, Mothersbaugh, and Beatty (2002), Burnham, Frels, and Mahajan (2003), Matzler et al. (2015), and Russo et al. (2016) that we adapted to our case (7-point rating scale: 1 = strongly disagree to 7 = strongly agree). To confirm that these 10 items measured the perceived procedural switching costs as intended, we conducted an exploratory factor analysis with SPSS (KMO = 0.856; Bartlett's test of sphericity p < .001), ...
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Article
Purpose The study investigates how different constellations of agile and plan-driven project management methods used by in- and out-suppliers, out-supplier reputation, and satisfaction with the in-supplier affect intentions to choose the out-supplier for a new professional service, and whether these effects are mediated by perceived switching costs. Methodology This is a survey-based study with 971 participants in Switzerland using scenarios about a new digital business solution. The data were analyzed using path analysis and analysis of variance. Findings The intention to choose the out-supplier is highest when the out-supplier uses agile methods while the in-supplier uses plan-driven methods. Higher out-supplier reputation leads to lower perceived switching costs and higher intentions to choose the out-supplier. Higher satisfaction with the in-supplier leads to higher perceived switching costs and lower intentions to choose the out-supplier. Research implications The results extend previous research by showing that the constellation of project management methods has stronger effects on perceived switching costs and intentions to choose the out-supplier than have out-supplier reputation and satisfaction with the in-supplier. While perceived switching costs depend more strongly on out-supplier reputation, intentions to choose the out-supplier depend more strongly on satisfaction with the in-supplier. Practical implications Out-suppliers can increase their acquisition rate by using agile methods when competing with an in-supplier using a plan-driven approach. Out-suppliers should proactively communicate the benefits of agile approaches in the business initiation stage, invest in proactive reputation management, and carefully analyze the existing business relationship between the target customer and the in-supplier. If the target customer is satisfied with the in-supplier using an agile approach, it is less likely that the out-supplier will successfully outcompete them. Originality This study is the first to examine the effects of different constellations of project management methods in addition to out-supplier reputation and satisfaction with the in-supplier on perceived procedural switching costs and the intention to choose the out-supplier.
... The scale of perceived risk (three items) was revised from Brown et al. (2003) and . Five items for habit from Limayem et al. (2007) and Venkatesh et al. (2012) were adapted and switching cost with five items from Zhang et al. (2008) and Jones et al. (2002). We adapted the perceived usefulness (four items), perceived ease of use (four items), and intention to switch (four items) from and Venkatesh and Davis (2000). ...
... The switching cost is the main negative factors because people only switch when the benefits should outweigh the costs Anderson, 1994). The costs of switching from cash payment to mobile payment are both the economic costs, including the actual mobile equipment costs, transaction costs, and access fees (Wu & Wang, 2005) and nonmonetary costs as time and effort, emotional and psychological cost, unfamiliarity, uncertainty, and learning costs (Han et al., 2011;Jones et al., 2002). In this research, switching cost has a moderating effect on customers' decision to switch from cash payment to mobile payment. ...
... Habit is the main barrier for switching because people like to stay with the current product or service, which becomes a familiar part of their daily routine (Jones et al., 2002). In this study, payment habit means cash is mostly used to pay for purchasing services or product and COD is chosen to pay for online transactions. ...
Chapter
Since the passage of Law on Tourism in 2005 and its amendment in 2017, Vietnam has increasingly invested in the tourism sector as a spearhead industry of the economy to turn Vietnam into a destination for the mass tourist. Along with tourism development, the negative impacts of tourism activities on the environment and society have been acknowledged to a certain extent. In such a context, sustainable tourism, ethical tourism, and responsible tourism have been discussed. However, there is a lack of previous research on how the responsible tourism concept is adapted to the situation of the Vietnam tourism industry. This paper presents the background of the Vietnamese tourism industry. Moreover, based on the survey results with 122 individuals and 20 tourism experts, this paper highlights prominent actions to promote responsible tourism in Vietnam. The implications for further research on the topic are also proposed.
... The scale of perceived risk (three items) was revised from Brown et al. (2003) and . Five items for habit from Limayem et al. (2007) and Venkatesh et al. (2012) were adapted and switching cost with five items from Zhang et al. (2008) and Jones et al. (2002). We adapted the perceived usefulness (four items), perceived ease of use (four items), and intention to switch (four items) from and Venkatesh and Davis (2000). ...
... The switching cost is the main negative factors because people only switch when the benefits should outweigh the costs Anderson, 1994). The costs of switching from cash payment to mobile payment are both the economic costs, including the actual mobile equipment costs, transaction costs, and access fees (Wu & Wang, 2005) and nonmonetary costs as time and effort, emotional and psychological cost, unfamiliarity, uncertainty, and learning costs (Han et al., 2011;Jones et al., 2002). In this research, switching cost has a moderating effect on customers' decision to switch from cash payment to mobile payment. ...
... Habit is the main barrier for switching because people like to stay with the current product or service, which becomes a familiar part of their daily routine (Jones et al., 2002). In this study, payment habit means cash is mostly used to pay for purchasing services or product and COD is chosen to pay for online transactions. ...
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Chapter
In Vietnam after 30 years of the renewal process, due to a number of factors, especially the industrial sector, the growth of labor productivity has been increased significantly. By using shift-share analysis method to intra-industry between 1996 and 2017, which focused on internal industry, the result showed that both intra-effect and static shift effect made a great contribution to the labor productivity growth of the economy, and the contribution of static effect tends to increase. This means that the movement of labor from inefficient sectors to the more efficient sectors has had a positive impact on the overall productivity growth rate. Therefore, in order to promote productivity growth in the economy, Vietnam has to implement solutions in terms of reallocating resources, transforming the economic structure, applications of technology, and training human resources.
... Summing up, the following research question shall be answered: In addition, former studies show that the switching cost aspect is also an inhibitor of the diffusion of MP adoption. However, former research conceptualizes the switching cost as a unidimensional construct [17,[19][20][21][22], despite that multiple steps exist like evaluation of alternatives or setup-cost [9,23] [12]. To overcome the purely cost-driven aspect of switching costs (e.g., buying a new smartphone), we conceptualize switching costs as multiple-dimensional constructs to provide new insights. ...
... Only two studies added non-financial cost aspects like cognitive costs [17,25]. However, those studies mainly operationalize costs or switching costs as unidimensional, despite suggestions that multiple dimensions exist like pre-switching search and evaluation costs or post-switching behavioral and cognitive costs [23]. Therefore, our study re-operationalized the construct switching costs with the multidimensional scale by Jones [23]. ...
... However, those studies mainly operationalize costs or switching costs as unidimensional, despite suggestions that multiple dimensions exist like pre-switching search and evaluation costs or post-switching behavioral and cognitive costs [23]. Therefore, our study re-operationalized the construct switching costs with the multidimensional scale by Jones [23]. Furthermore, none of the former studies investigated the relationship between perceived switching costs and perceived risk. ...
Chapter
Despite a global pandemic, it positively increases the intention to use contactless payments. MP usage still falls behind existing alternative payment methods like cash and card. Thus, this paper aims to explore the drivers and inhibitors of MP usage in relation to cash and card payment, which is still an underresearched area in MP. For this, we conducted an online survey (n = 227) in Germany and ran a partial least squares path modelling approach. The results reveal that relative advantage and compatibility drive the intention to use MP compared to cash and card payment. Especially, the result for relative advantage indicates that MP needs some “good” arguments to convince card-preferring users to switch to MP. Interestingly, users regard the disadvantages of MP differently. For instance, perceived switching costs are significantly stronger for MP compared to cash payment but data threat is significantly stronger for MP compared to card payment. The results of the disadvantages of MP confirm Germans’ strong “love” for cash payment and that German consumers regard MP as more similar to the card than to cash payment.
... Alternatively, the firm uses external switching costs (ESC) perceptions to encourage customers to stay. ESC is also a multidimensional concept, involving the perceived costs of the loss of benefits, such as the special treatment customers receive (Jones et al. 2002), as well as the potential loss of the brand identity and the firm's service personnel if a customer switches (Burnham et al. 2003). The brand and company become part of a customer's self-identity, making it hard for a customer to "break up" with the firm (McCracken 1986). ...
... Thus, these scales need additional scrutiny and work to ensure that the collectivist elements are handled equivalently across the two scales. Jones et al. 2002). Like Blut et al. (2014), we employed a parsimonious two-dimensional conceptualization of switching costs perceptions in our study, consistent with past work in the area. ...
... My personal identity, independent of others, is very important to me. (Jones et al. 2002) 0.89 0.89 If I changed grocery stores, it would take a lot of time and effort to locate a new store. If I changed grocery stores, I would have to search a lot to find a new one. ...
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Article
Firms operating internationally need to ascertain effective relationship marketing (RM) strategies for their foreign operations. One set of RM strategies is based on understanding and using switching costs perceptions. Based on data from 1,630 customers across 16 countries, we examine the interplay between culture and switching costs perceptions using Triandis and Gelfand's four cultural personal value dimensions (CPVs), horizontal and vertical individualism and collectivism. These CPVs are assessed on external switching costs (ESC) and internal switching costs (ISC) perceptions along with additional important outcomes, including commitment and share of wallet. We find vertical individualism (VI), horizontal collectivism (HC), and vertical collectivism (VC) positively relate to ESC, and VI and VC positively relate to ISC. VI produced the strongest relationship with both switching costs. Our findings indicate the importance of including the horizontal/vertical dimension in studying cultural values. Implications for RM strategies internationally are offered.
... Another issue that makes STTs operators sensitive and anxious is that in an oversupply market environment, both satisfied and dissatisfied tourists can easily switch to other STTs (Zhang et al., 2019). In the service industry, switching cost (SC) was proved to be a conditional factor that enlightens the satisfaction-loyalty link (Jones et al., 2002). It is suggested that member points, coupons and other methods have been utilized to increase SCs to improve user loyalty (Qiu et al., 2015). ...
... The moderating role of switching costs Satisfied customers tend to be loyal customers, but loyal customers may also be dissatisfied customers (Fornell, 1992). The principal reason for these arguments is that some seemingly loyal customers are dissatisfied, but they will not switch suppliers due to high SCs (Jones et al., 2002). Thereby, the variability hidden in the satisfaction-loyalty connection urges scholars to further investigate the role of SC, which is another crucial diver in customer retention (Burnham et al., 2003). ...
Article
Purpose This study aims to empirically testify an integrated model, including the attributes of smart tourism technologies (STTs) (user interface [UI] design, informativeness, accessibility, personalization and interactivity), satisfaction, loyalty and word of mouth (WOM), and further investigate the potential moderating effect of switching costs (SCs) on the satisfaction–loyalty/WOM relationships. Design/methodology/approach Systematic sampling was used to collect data in Macau. Partial least squares structural equation modeling (PLS-SEM) was employed to analyze valid data collected from 332 tourists who have recently used STTs. Findings The results indicate that informativeness has a stronger effect on satisfaction, loyalty and WOM than UI design, accessibility and personalization; interactivity shows no significant influence on satisfaction, loyalty and WOM; satisfaction positively influences loyalty and WOM. Furthermore, procedural SCs negatively moderate the effects of satisfaction on loyalty and WOM. Originality/value The present study extends the knowledge about information technology and tourism (ITT) by introducing a new attribute, UI design into STT structure and confirming that UI design is an effective predictor of user satisfaction. This paper is also a pioneer study that integrates customer satisfaction with STTs with SCs to explore the mechanism of how customer loyalty and WOM are generated. Practical recommendations are provided for STT designers and destination managers to improve the overall quality of STTs and to consider carefully setting procedural SCs as a retention strategy.
... Switching intention is a factor that induces switching behavior and means the will to change from a specific product or service to another new one [39]. This is an opposite concept to repurchase intention or continuous purchase intention and is the intention of service users to deviate from one service to another [40,41]. It can be predicted that the stronger the switching intention, the higher the switching behavior [42,43]. ...
... Therefore, this study aimed to derive factors for expanding visitors to on-site exhibitions by studying the relationship between risk factors perceived by visitors to on-site exhibitions, COVID-19 quarantine service quality, and switching intention for visiting exhibitions. In order to accomplish the study purposes, we set out the following three research questions and theoretical framework, which we based on the previous studies that have been cited above (see Figure 1): concept to repurchase intention or continuous purchase intention and is the intention of service users to deviate from one service to another [40,41]. It can be predicted that the stronger the switching intention, the higher the switching behavior [42,43]. ...
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Article
COVID-19 has shifted people's activities from the real world to the virtual world in many fields, such as conferences, shopping, education, and more. In the field of MICE, however, exhibitions have been held steadily since the second half of 2020 in the form of on-site exhibitions. The exhibition organizers and related authorities have tried to attract exhibitors and visitors to the exhibition hall by providing exhibition quarantine services. Moreover, despite various perceived risks during the COVID-19 period, exhibition visitors continue to visit the exhibition. This study, therefore, paid attention to the psychological factors of visitors who consistently visit on-site exhibitions even during the pandemic. In addition to the perceived risks, this study tried to examine the quality of exhibition quarantine services and switching intention of visitors, and to analyze the relationships between them. A survey of 167 people who visited the camping exhibition and well-food exhibition held in June 2021 found that they would not visit the exhibition due to the functional and financial risk of the exhibition rather than the risk of the virus. On the other hand, it was found that visitors who felt the social risk of COVID-19 valued the quality of exhibition quarantine service. Furthermore, the study found that the quarantine service quality lowered switching intention. Therefore, the study suggests that exhibition organizers should think about ways to strengthen the most essential characteristics of on-site exhibitions along with appropriate quarantine measures to induce steady visits even during the pandemic.
... However, low satisfied customers' repurchase intentions are positively affected by the switching barriers. Moreover, as expected, switching cost and repurchase intentions vary according to the services industry (Jones et al., 2000(Jones et al., , 2002Kaur & Soch, 2018). ...
... The overall concept of switching cost as a moderator is explained in the shape of time, value, and money. These were measured with three items on a five-point Likert scale given by Jones et al. (2002). The rating scale measures against the following anchors as "1 = strongly disagree" and "5 = strongly agree." ...
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Article
In an increasingly competitive market, customer retention is imperative for businesses in the services sector, particularly banks. This study aims to understand how relationship quality as second-order impacts repurchase intentions based on the Theory of Repurchase Decision Making (TRD). The switching cost moderating role is addressed. The model was validated using empirical data from Pakistan. A regression modeling was adopted to measure the research hypotheses that underpinned a proposed conceptual model. Results show that relationship quality positively and significantly influences the repurchase intentions. Switching cost determined to be a moderator between relationship quality and repurchase intentions. The implication is that services industry professionals should not overlook the importance of relationship quality and switching costs, as they have a significant impact on repurchase intentions.
... Consequently, Kim and Kankanhalli (2009) considered learning cost as the main cause of transition cost as per technology acceptance literature. Learning costs are the time and effort costs of acquiring new skills or know-how to effectively use a new product or service (Jones et al. 2002;Perera and Kim 2007). As per digitalized education in COVID-19, learning costs refer to the time and effort expended in learning to use virtual learning, which would directly influence the switching behavior in the new learning environment. ...
... Similarly, lost performance costs have been identified as a part of switching costs which have been recognized as a loss cost by Perera and Kim (2007), which refers to the loss of the benefits and privileges when moving from face-to-face to virtual learning in loss of the service quality, effectiveness, and interpersonal bonds (Jones et al. 2002). Besides, costs of lost performance derive from the interpersonal relationships and friendships that develop over time within the learning setup. ...
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Conference Paper
Digitalization of education with the COVID-19 outbreak has created complicated issues for tertiary education, where profound changes to education delivery have been identified. Consequently, this rapid shift from face-to-face to virtual has made learners resist the change and prefer to be in their status quo. However, this comprehensive acknowledgment shows an absence of focus on SQB and digitalized education. In light of this context, this short paper presents a formative a-priori model and a survey design that orchestrates the key constructs to address SQB in digitalized education and test afterward. Grounded in the Status Quo Bias theory, it delivers a valuable and pragmatic assessment based on replies derived from the hermeneutic literature review. Our future work will test the proposed model's hypotheses that explain the learner status quo bias on digitalized education and form a theoretical base for future research.
... Sum Chau, and Kao (2009) concluded that there is a relationship between service quality and customer loyalty. Jones, Beatty and Mothersbaugh (2002) discovered that there is a positive relationship between service quality and loyalty variables such as repurchase intention, recommendation and resistance to better alternatives. Adrian (2011) reiterated that loyalty involves customers becoming an enthusiastic advocate of a company. ...
... n=377, p<0.0005]; a weak, negative correlation between customer satisfaction in terms of service quality and the overall customer loyalty of respondents (as measured by L7) [r=-0.062, n=377, p<0.0005]; a weak, negative correlation between customer satisfaction in terms of service quality and the confession that MMT comes into respondents' mind whenever one wants to enjoy quality Jones et al., (2002), and Anderson and Sullivan (1993), but support the conclusions by Michael et al. (2008). ...
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Article
The paper seeks to examine customer’s perception about the state of public transport in Ghana; assess the extent to which customers are satisfied with Metro Mass Transport’s (MMT) public bus service delivery; and further establish the relationship (if any) among service quality, customer satisfaction, and customer loyalty. A quantitative approach, using questionnaires, was adopted to survey 377 regular students from the University of Cape Coast, who mostly patronize public transport services, especially on vacations, public holidays and school reopening seasons. Data was analyzed, using descriptive statistics and Pearson’s product moment correlation technique. The findings indicate that the respondents’ strongest perception about the state of public transportation was its importance to society. Majority of the respondents were generally dissatisfied with MMTs service delivery; and empirically, there was a weak, negative correlation between customer satisfaction in terms of service quality and customer loyalty. It is recommended that Metro Mass Transit Limited management focus on some quality variables such as safety-comfort-cleanliness; information-communication; accessibility; terminal and stop points performance; and online performance, in order to improve and sustain customer loyalty.
... A lack of SB in a consumer leads to consumer loyalty toward the retailer. Thus, we agree that SB influences BL (Biedenbach et al., 2015;Aydin et al., 2005;Gustafasson et al., 2005;Gounaris, 2005;Kim et al., 2004;Jones et al., 2002;Amine, 1998). Our first hypotheses are as follows: ...
... A few scholars have shown an influence of SB on loyalty (such as Biedenbach et al., 2015;Aydin et al., 2005;Gustafasson et al., 2005;Gounaris, 2005;Kim et al., 2004;Jones et al., 2002;Amine, 1998). Taking these conclusions into account, our next hypothesis is as follows: ...
Article
The objective of this study was to examine interrelationships among the dimensions of brand equity, using three validated models. A questionnaire was developed, tested for validity and reliability, and then distributed for data collection. Questionnaire was distributed to retailing consumers in Jakarta and neighbours area. In all, 411 valid questionnaires were collected out of 500 distributed, and obtained a response rate of 82.2%. The results show that perceived quality (PQ), brand awareness (BA) and brand trust (BT) affect switching behaviour (SB) significantly and directly. SB, in turn, influences brand loyalty (BL) significantly and directly. Thus, the effects of PQ, BA, and BT on BL are mediated by SB. Further, evidence was also found for the direct and significant effects of PQ, BA, and BT on BL, as well as for a direct and significant effect of BA on PQ and BT. Finally, BL affects SB significantly and directly.
... At the same time, due to the change of consumer channels, consumers incur costs in this process, which also makes consumers consider how to select channels. Jones et al. (2002) pointed out when studying the transfer cost in the banking field that the transfer cost is a combination of the costs customers feel when switching from one bank to another. Burnham et al. (2003) pointed out that the transfer cost is the cost incurred in the process of customers converting credit card service providers, that is, evaluation cost, learning cost, benefit loss cost, interpersonal relationship cost and brand related loss cost. ...
... Dalam penelitian Lee dan Lim's (2000), menemukan bahwa perceived quality dan perceived value ditemukan memiliki peran yang penting dalam mempengaruhi niat beli. Dan juga berdasarkan Jones et al. (2002), berpendapat bahwa persepsi kualitas berkorelasi positif dengan niat beli, dan pandangan ini didukung oleh penelitian terbaru tentang perceived quality memiliki pengaruh positif terhadap niat pembelian konsumen pada produk perawatan kulit En Lee et al. (2019). Itu ditemukan bahwa persepsi kualitas berhubungan positif dengan keputusan konsumen. ...
Article
The purpose of this research is to examine whether 1) brand image can predict purchase intention of consumers Aice in West Jakarta.2) brand awareness can predict purchase intention of consumers Aice in West Jakarta.3) perceived quality can predict purchase intention of consumers Aice in West Jakarta.4) perceived value can predict purchase intention of consumers Aice in West Jakarta. Sample was selected using convenience sampling method amounted to 150 respondents at West Jakarta. The result of this study show that brand image has significant effect to predict purchase intention, brand awareness and perceived value have significant effect to predict purchase intention, and perceived quality has no significant effect to predict purchase intention. Tujuan dari penelitian ini adalah untuk menguji apakah 1) citra merek dapat memprediksi niat pembelian es krim Aice di Jakarta Barat. 2) kesadaran merek dapat memprediksi niat pembelian es krim Aice di Jakarta Barat. 3) persepsi kualitas dapat memprediksi niat pembelian es krim Aice di Jakarta Barat. 4) persepsi nilai dapat memprediksi niat pembelian es krim Aice di Jakarta Barat. Sampel dipilih menggunakan metode convenience sampling berjumlah 150 responden di Jakarta Barat. Hasil penelitian ini menunjukkan bahwa citra merek memiliki pengaruh signifikan untuk memprediksi niat pembelian, kesadaran merek dan persepsi nilai memiliki pengaruh signifikan untuk memprediksi niat pembelian, dan persepsi kualitas terbukti tidak mampu memprediksi niat pembelian.
... "Airline customers tend to be loyal to airline companies due to the traits of airline service such as mileage programs. Even customers who are not satisfied with service quality can keep on using an airliner rather than switching to another airliner" (Jones, Mothersbaugh, & Beatty, 2002). ...
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Research
This report focuses the effects of Airline Customer Satisfaction, such as age, gender, class, number of flights per year, arrival delay, departure delay and satisfaction. The relationship between these variables and levels of satisfaction and the general perceptions about inflight service quality, anticipating customer needs, time/consistency of inflight service, and flight schedule convenience were also investigated. After the analysis we came to know that the variables under study namely age, arrival delay and minutes, departure delay in minutes, and flight distance had significant relationship/impact in satisfaction. Similarly, it was also fond that the perception of the satisfaction differs significantly across gender and class of customers. Furthermore, responsiveness and empathy also will influence the level of customer satisfaction and that is why food quality, alcoholic beverage, non-alcoholic beverage, and reliability are also important to the suppliers. It shows a new direction for future research that worth to explore.
... A variety of conveniences provided such as service hours are flexible, location is a convenient place, easy transport facility, parking convenience and drive-thru provided are essential in influencing the customer to be loyal and keep buying the products. Besides having good quality food, a high level of convenience plays an important role for customers to be loyal to the product (Jones, Mothersbaugh, & Beatty, 2002). An article from Al Masud et al. (2018) indicated a good convenience that encourages a high positive level of customer loyalty. ...
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KFC is known globally as one of the largest fast-food chains. It raises the issue of how they managed to survive years after years, although the fast-food industry's rivalry has grown rapidly with many leading brands in the market. For KFC to survive the severe competition, they need to retain the values that keep their loyal customers. This research aims to investigate the contributing factors to customer loyalty. A total of 100 respondents from Malaysia have participated in the survey. The results indicated that food quality, convenience, and price and value are the important factors that lead to customer loyalty. The findings may be useful for the management of KFC Malaysia to sustain their business through the competitive industry.
... In general, customer loyalty is an important factor in marketing. Jones et al. (2002) found that the source of loyalty is switching costs and that the strength of a customer's connection to a particular product creates consistency in product selection. As for the airline industry, Basso et al. (2009) andde Boer andGudmundsson (2012) indicated that airlines have strategically introduced frequent flyer programmes in order to increase passengers' cost of switching over to competitors. ...
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This research investigates whether passengers living in a city with a local public airport have an attachment to that airport and tend to use it. Focusing on the greater Kansai area with its three airports and Kobe, which owns one of them, Kobe Airport, as an example, an empirical analysis was conducted using a nested logit model and micro data. The result of the basic model shows that passengers living in Kobe prefer the Kobe Airport when compared to passengers living in other cities. An additional analysis based on a questionnaire survey revealed that a certain percentage of respondents choose Kobe Airport because they love it, meaning that the non-economic factor of attachment influences passengers’ decisions. The results of this research suggest that enhancing attachment to an airport might be a possible idea for policy makers of airport cities to increase their passengers.
... Suppliers' strategies tend to focus on interpersonal relationships and service recovery, which add value to the relationship by providing essential benefits that can diminish the likelihood of switching (Burnham et al., 2003). However, dependent relationships also might cause buyers to feel trapped (Jones et al., 2002). According to Money (2004), older companies switch more. ...
Article
Purpose Combining a conceptual framework with empirical evidence, this study aims to offer insights into why small and medium-sized enterprises (SMEs) in the business-to-business beauty sector switch suppliers, due to pricing considerations. Design/methodology/approach Data gathered from 475 telephone surveys of Spanish hairdressers provide the input for discrete choice models for testing the proposed hypotheses. Findings The SMEs that change suppliers tend to be sensitive to promotions, express less satisfaction with a current supplier’s offerings and serve fewer customers who buy professional products for their in-home use. If SMEs are satisfied with the supplier’s services though, they are less likely to change and more prone to negotiate with that supplier. Research limitations/implications This study does not address why dissatisfied SMEs might remain with their current suppliers. Further research might replicate this study using additional pricing data from suppliers. Practical implications Suppliers in business-to-business (B2B) sectors can leverage these findings to allocate their marketing budgets optimally and establish service strategies that will enable them to retain buyers and reduce their switching risk. Originality/value As an extension of extant literature, this study specifies switching drivers for SMEs in the B2B beauty sector. The findings should apply throughout this worldwide service sector, as well as to similar markets such as health, beauty and personal care and well-being services.
... Second, customers may develop high capability-based switching costs because of the turbulent environment. This means that the time and effort invested in acquiring the necessary capabilities may be proportionally too high considering the fast pace of market and technological change, which creates high levels of uncertainty concerning product adoption and substitution (Jones, Mothersbaugh, & Beatty, 2002). For instance, manufacturing companies that shift from subtractive manufacturing to additive manufacturing need to make sizeable investments in new skills and processes associated with a fast-evolving technology. ...
Article
Prior studies considered external conditions that trigger the adoption of servitization in product firms, but little is known on the decision to provide standardized vs. customized services. We analyze this tradeoff when companies face market and technological turbulence. We follow the capability-based switching costs theory, which considers the cost resulting from customer efforts to create new capabilities related to the solution offered by product firms. We propose that customized services help create these switching costs in turbulent environments. We also consider the mediating role of service-centric business models and the moderating role of cross-functional knowledge integration in these relationships. We combined data from a survey of 104 firms and secondary industry-level data on turbulence and analyzed it with regression techniques. Results show that, in turbulent environments, companies increase service customization instead of standardization and enhance service-centric business models, which benefits customer loyalty (a measure of capability-based switching costs). Companies focused on knowledge integration were less sensitive to technological turbulence and could better develop service activities for customization. We extend the service theory connecting it to the capability-based switching cost view and explain service provision mechanisms in turbulent environments. Managers can learn what to consider to implement a servitized business model in turbulent environments.
... Thus, improved service quality translates into favourable behavioural intentions, which in turn, leads to customer retention. Success of a service provider depends on the high quality relationship with customers (Panda, 2003) which determines customer satisfaction and loyalty (Jones et al., 2002) as cited by Lymperopoulos et al., 2006). Delivering quality service to customers is a must for success and survival in today's competitive banking. ...
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The purpose of this study is to examine the relationship between Service Quality and Customer Retention in Deposit Money Banks in Port Harcourt, Rivers State, Nigeria. The population of the study involves staff from the 21 Deposit Money Bank in Port Harcourt, Rivers State, Nigeria. The sample size of this study was 168 staff that was selected randomly and 150 copies of the questionnaire were retrieved and used for the analysis. The hypothesis was tested using Spearman rank order correlation coefficient. Findings indicate that service quality and all its dimensions such as tangibility and empathy have significant and positive association with customer satisfaction and loyalty of customers towards their respective financial service providing organizations. The study concluded that there is a relationship between the two variables. In light of these, the study recommend that there is need for Deposit Money Banks in Port Harcourt, Rivers State, Nigeria to ensure that they remain reliable to their customers if indeed they need to remain competitive in the market. This is because customers are seen to be keen on the reliability of services offered to them from different banks in Port Harcourt. Banks can well achieve this by introducing back up services in the event of service breakdowns in the business process. The study also recommends the need for banks to innovate new ways of enhancing the way they respond to customer needs so as to avoid service breakdowns. This can well be achieved through the new communication channels such as the internet and the use of other social media platform or mobile telecommunication. This will go a long way in enhancing customer loyalty to their products and thus enhance customer retention.
... Interested in the plastic arts, including the fees of children by the nature of close bonding with the reality of human, social, educational and psychological dimensions, which earned it character holistic in the expression of the whole ideas, cultures and knowledge that involve radical changes curbed formats, and comes studies concerned with the technical and looking for the extent of the expression The importance of this aspect in a child's life through which the child can freely reveal his feelings and thoughts (Sherman et al., 1997;Jones et al., 2002). Some factors affect the emergence or emergence of emotional problems through the relationship between the child and his parents and the social environment in which the child lives, as emotional growth is clearly linked to social development, through the child's relationships between him and the closest people around him, feelings and emotions are formed that affect the child's psyche and built upon the composition and construction of personality, as the culture and the arts and in paternalism nascent human and environment interaction together, and it adapts according to the circumstances Alajtm conscious for each generation or for each time period, so the highlight of our important case reveals aside from the need to refer to the nature of a combination of factors, and the fact that the child He does not live in a normal place without finding someone to share with him from individuals or groups who have their influence and to which the child responds (Said, 1990). ...
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The current research deals with an important category of society, namely, children in the primary education stage (fourth primary), which is an important stage of human development, as the child of different sex witnesses changes from different aspects of sexual, mental and emotional development. After the researcher took and looked at a group of drawings of children of financially poor families who are 9 years old, it became clear to them some characteristics and psychological dimensions that emerged clearly and tangibly, which were developed by children in the form of subconscious projections through shapes, colors and lines, in drawing children of poor families Of the parts of the human body, we clearly notice the psychological dimensions through drawing those parts, as it tends to draw (the size of the human head is large), which indicates that the child suffers from frustration or excessive sensitivity and excessive preoccupation with fantasies, and exaggeration in drawing the size of the head greatly expresses On the individual's need to depend on others. Also, drawing the head in a large size is due to the feelings of inferiority felt by children who live in a financially poor family.
... Positive relationship between quality of a brand and repeat purchase intention relate regardless whether that brand is foreign or local (Aaker, 1991). Jones et al. (2002), stated with related to a service there is a positive relationship between the perceived quality and the intention of further purchase. Particularly for unfamiliar brands, perceived quality is more important in terms of purchase intention (Hoyer & Brown, 1990). ...
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Conference Paper
Understanding what differentiates customers in line with repeat purchase intention of a product category is crucial in the highly competitive present era. Brand equity is considered as a crucial concept in business practice as well as in academic research for the reason that marketers can gain competitive advantages through winning brands. The purpose of this study is to examine the impact of the drivers of brand equity on consumers repeat purchase intention towards low involvement and high involvement product categories. The survey method was used as the main research method and the sample consist of 232 respondents in Southern province in Sri Lanka. Structured questionnaires were used for data collection. Convenient sampling technique was followed to collect data. Results demonstrated the significance of brand loyalty on consumers' repeat purchase intention for any product category. Along with brand loyalty, perceived quality, brand awareness, and brand associations were significant drivers for all product categories in influencing customers' repeat purchase intention. Brand awareness and brand loyalty drivers shown a stronger impact for high involvement products than low involvement products on consumers' repeat purchase intention. Brand associations and perceived quality drivers shown a greater impact for low involvement products than high involvement products on consumers' repeat purchase intention. The results suggested that both product categories (high and low involvement) shown similarities as well as differences in the influence of brand equity dimensions on consumers' repeat purchase intention. Brand loyalty was the key dimension that influence consumers' repeat purchase intention for high involvement product category (mobile phones) and low involvement product category (soft drinks). Perceived quality was the second most important dimension to enhance consumers' repeat purchase intention of high involvement product category (mobile phones), while it was the third most influential dimension to enhance the repeat purchase intention of low involvement product category (soft drinks). Thus, it played different roles in case of two (high and low involvement) product categories. Brand awareness was a significant factor for high involvement product category in enhancing the consumers' repeat purchase intention, it was not a significant factor for low involvement product category. Conversely, brand association was a significant factor for low involvement product category in enhancing the consumers' repeat purchase intention, it was not a significant factor for high involvement product category. Study findings provide key insights for marketers of high involvement (mobile phone) and low involvement (soft drink) products. This study contributes to the literature by testing and suggesting the significant drivers of brand equity influence the consumers' repeat purchase intention of low involvement and high involvement products.
... Scholars believe the success of service provider depends on the relationship between quality and customers which leads to customer satisfaction and loyalty (Jones, 2002;Lymperopouloset al., 2006;Kheng et al., 2010). Providing superior service quality is a solution to reach consumer loyalty in any service organisation (Ehigie and Osayawe, 2006;Siddiqi, 2011). ...
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A few studies have examined the effect of hospital service quality, hospital accreditation, destination image on patient satisfaction and patient loyalty in a tourism context. The purpose of this study is to evaluate the effect of medical patients' behavioural intention in Malaysia. A total of 360 questionnaire were distributed and quantitative techniques were used to test the hypotheses within the structural equation modelling (SEM) using SmartPLS software. Our statistical results support the positive effect of hospital service quality, destination image and patient satisfaction on patient loyalty. Hospital accreditation didn't have positive impact on patient loyalty. The research contribution, implication, and limitation are discussed.
... When a consumer ways the cost of switching from one brand to another and discovers that it will cost him more, he or she may decide to be loyal to the initial brand. This perhaps explains why Jones, Beatty & Mothersbaugh (2002) define a switching barrier as any factor that makes it difficult or costly for customers to change providers. ...
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The study was designed to investigate the predictors of brand loyalty among the residents of Jos, Plateau State, Nigeria. Survey research method was used, while questionnaire was adopted as the instrument of data collection. Findings showed that several factors motivate consumers to be loyal to a particular brand; the factors, among others, are corporate reputation, customer satisfaction, product quality, switching cost and brand trus. The strategies companies use to build brand loyalty are, among others, advertising, public relations, customer relationship management and sales promotion. Based on the findings, it was concluded that there are certain factors that motivate customers to be loyal to brands. It was, therefore, recommended, among others, that companies should endeavour to provide mechanisms for customer feedback via comment cards or a dedicated email address.
... This type of cost includes the time and effort needed to acquire, exchange and evaluate information (Mothersbaugh, D., Jones, M. & Beatty, S., 2000). Learning costs are considered transition costs that are incurred while shifting from one situation to a new situation such as learning to use a new information system (Kim, H., Chan, H. & Gupta, S., 2007). ...
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Mobile payment system is gaining increasing acceptance as a mode of payment in the current economic environment. With the growing popularity of mobile payments, it is important to identify the key factors that motivate people use mobile payment. Pinpointing such factors would allow businesses to build the right mobile payment for customer’s needs. This article relies on a novel integrated model and a qualitative method to answer the question "what are the key factors influencing Mobile Payment Adoption in Hong Kong, a global metropolis where mobile payment is making steady inroads”. This study use a quantitative approach with a sample size of 203 to investigate the Influence of eight factors on Behavioural Intention to use mobile payment. The results show that factors relating to “Hedonic Motivation”, “Habit”, “Perceived Usefulness”, “Perceived Ease of Use”, “Social Influence” and “Government Support” significantly affect the Behavioural Intention to use mobile payments to conduct online transactions, while “Perceived Risk” and “Perceived Cost” shows no significant effect. Although the TAM/UTAUT model has been extensively studied in the previous research on mobile payment services, little effort has been done to combine and investigate other influencing factors in order to test their effects on the intention to adopt mobile payment. As a result of this, this study contributed by developing and testing a novel integrated model providing a valuable guideline to help researchers looking into issues related to mobile payment services in Hong Kong.
... E-commerce customer loyalty can be defined as online consumers' loyalty to products and services provided by enterprises on the Internet based on past shopping experiences. It refers to the loyalty of online customers to an online store or a brand of products or services on the e-commerce platform [11,12]. ...
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Analysing the data generated by the daily operations of enterprises through data mining technology can effectively predict customer loyalty and help enterprise leaders make correct decisions. Therefore, this paper classifies and analyses churn and loyalty of e-commerce customers, and by combining the application foundation of data mining technology in e-commerce customer loyalty prediction, a prediction model of e-commerce customer loyalty based on data mining is constructed. In this model, the local abnormal factor algorithm is used to eliminate the data for cleaning, the XGBoost algorithm is improved by adding penalty coefficient, and the prediction effect of the model is evaluated and compared according to the values of Accuracy, Precision, Recall and F. The results show that the model has high accuracy in predicting customer loyalty, which can accurately extract attributes of users and characteristic information of commodities.
... The literature review on industrial buyer satisfaction/ dissatisfaction has provided insights into certain response patterns because, although most of the research intended to define and measure satisfaction (Backhaus and Bauer, 2000), some authors investigated dissatisfaction (e.g. exit or escape behavior) but focusing on a very limited number of potential responses (Jones et al., 2002). Thus, complaints and spreading negative behaviors and word-of-mouth were the subject of study, with similar response clusters emerging, grouped according to their reaction to an unsatisfactory experience: doing nothing, complaining, switching providers, warning others or taking-third party action (Hansen et al., 1996a(Hansen et al., , 1996b. ...
Article
Purpose-There are numerous studies on satisfaction, but not enough on dissatisfaction when its consequences can be harmful. This study aims to examine different unsatisfactory situations during customer-supplier relationships in industrial markets combining the appraisal theory with the critical incident technique to identify potential problems and strategies to minimize their effect. Design/methodology/approach-This research follows an exploratory qualitative approach based on 18 in-depth interviews with managers from business-to-business firms. The information obtained was object of a textual and conceptual analysis using the analytical software ATLAS TI 9.0. Findings-The results show that negative cognitions have greater influence than negative emotions, and those dissatisfied customers may respond by expressing complaints, ending transactional relationships, reporting the other party legally, asking for explanations or continuing commercial relationships, even though they are dissatisfied. This will depend on the severity of the critical incident and the negative cognitions and emotions perceived. Proactivity and understanding of this situation will allow for understanding what specific actions to take to resolve conflicts and mitigate the negative effects among the parties. Originality/value-This paper focuses on dissatisfaction, instead of satisfaction, in industrial markets through the appraisal theory. Furthermore, it applies the critical incident technique to understand the cognitions and emotions related with dissatisfaction in the commercial relationships. Finally, it provides ideas on what are the main source of dissatisfaction and how to manage them to anticipate and better manage those incidents.
... As illustrated above in section 3.3, switching cost is outlined as a cost come from employing a new service rather than the old one (Jones et al., 2002), and consists of three dimensions called time, money, and effort to measure the effect of switching cost on customers' perception, attitude, intention and behaviour toward a product or service (Chang and Chen, 2008). Some studies illustrated the moderating role of switching cost. ...
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This paper investigates the effect of service quality on users' intention toward using Talabat application, and the moderating role of switching cost. Data were collected from 374 user of talbat application. Path analysis and multiple regression analysis were employed to test the research hypotheses through using AMOS. The results found that there is a significant effect of service quality on users' intention toward Talabat application. Moreover, results reveal that switching cost moderates the relationship between service quality and users' intention toward using Talabat application. It clear from the above results that there is a strong positive significant correlation relationship between the independent variable "service quality" and the dependent variable "users' intention", which is a statistically significant value (0.01), while there is a moderate positive significant correlation relationship between the independent variable "service quality" and the moderating variable "Switching cost", which is a statistically significant value (0.01). Finally, research limitations, implications and future recommendations were stated.
... Furthermore, Lam, Shanker, Erramilli and Murthy (2004) stated in their studies that switching costs may include loyalty benefits that customers need to return when their relationship ends with the service provider. According to Jones, Mothersbaugh and Beatty (2002), switching cost is the valued economic and psycho-logical costs related to switching from one supplier to another. Switching costs can be related to search costs, transaction costs, learning costs, loyal customer discounts, customer habit, emotional cost and cognitive effort, which are linked to consumer activities (Fornell & Claes, 1992). ...
... This set of consumers adapts to new product changes and discards a product fast if it does not meet their needs and requirements. Thus, companies should patiently deal with this set of consumers [13]. ...
Article
Can Corporate Social Responsibility have marketing implications and create value for the firm? This is a question which marketing managers often face. This study helps to examine and identify if CSR has a role in building brand loyalty and purchase consideration of products and services for Millennials. A questionnaire was rolled out, and factor analysis was conducted on the data. The Findings suggest that CSR does help in creating a strong brand image, adds to the brand value of the firm, and helps to develop brand loyalty in the consumers and firms, which invest in CSR, are easily recognized by the consumer and thus helps them to consider the firm for the purchase of products & services. Thus, Marketing Managers should focus on aligning CSR activities, so the consumer can also be engaged with the brand and adds value to all stakeholders. Thus if CSR managers enforce in their organizations to make sustainable products, customers can be won on product differentiation.
Article
The aim of this study is to examine the relationship between e-CRM and consumer loyalty in the Indian private healthcare sector with customer trust (CT), customer value (CV), customer satisfaction (CS), and switching costs (SCs) as mediators. As per the findings, mentioned variables in this analysis (with the exception of the relationship between e-CRM and customer loyalty (CL) as this relationship is accepted at p = 0.05 significance level and not at p = 0.001 significance level) have a direct significant positive association with one another. In addition, CT and CV are the partial mediator in the relationship between e-CRM and CS, whereas the relationship of CS with CL is fully mediated through SC. Above all, there is an existence of serial mediation in the relationship of e-CRM with CL having CS and SC as mediators.
Article
Although sharing is not a new subject, sharing behavior enabled by peer-to-peer software technologies is a recent phenomenon. Studies have explored the impact of the sharing economy on consumers by applying the theory of planned behavior, complexity theory, and social exchange theory, but few studies have explored transaction costs in the sharing economy. By integrating network externalities with transaction cost theory, this study explores transaction costs and their determinants in the context of the sharing economy. Structural equation modeling analysis was conducted on data from 375 users of Airbnb. The findings indicate that personalization of asset specificity and transaction frequency negatively influence transaction costs. Additionally, learning of asset specificity and transaction uncertainty positively affects transaction costs, which in turn influence behavioral intention. Furthermore, perceived complementarity has a direct effect on transaction uncertainty. Finally, the number of users moderates the relationship between transaction costs and behavioral intention. This understanding will assist managers in numerous industries impacted by the rapid development of the sharing economy by providing them with strategies for coping with this trend.
Article
Purpose There are numerous studies on satisfaction, but not enough on dissatisfaction when its consequences can be harmful. This study aims to examine different unsatisfactory situations during customer–supplier relationships in industrial markets combining the appraisal theory with the critical incident technique to identify potential problems and strategies to minimize their effect. Design/methodology/approach This research follows an exploratory qualitative approach based on 18 in-depth interviews with managers from business-to-business firms. The information obtained was object of a textual and conceptual analysis using the analytical software ATLAS TI 9.0. Findings The results show that negative cognitions have greater influence than negative emotions, and those dissatisfied customers may respond by expressing complaints, ending transactional relationships, reporting the other party legally, asking for explanations or continuing commercial relationships, even though they are dissatisfied. This will depend on the severity of the critical incident and the negative cognitions and emotions perceived. Proactivity and understanding of this situation will allow for understanding what specific actions to take to resolve conflicts and mitigate the negative effects among the parties. Originality/value This paper focuses on dissatisfaction, instead of satisfaction, in industrial markets through the appraisal theory. Furthermore, it applies the critical incident technique to understand the cognitions and emotions related with dissatisfaction in the commercial relationships. Finally, it provides ideas on what are the main source of dissatisfaction and how to manage them to anticipate and better manage those incidents.
Chapter
Mobile payment with huge advantages in the independence of time and location offers customers faster, safer, and easier payment experience than traditional methods. However, before accepting innovation technology, users must decide to continue paying by the current method or switching to one of its substitutes. To understand the main determinants that affect customers’ switching intention from cash payment to mobile payment in Vietnam, this study illustrates a conceptual model that combined the technology acceptance model (TAM) and push–pull–mooring (PPM) framework. The results show that alternative attractiveness is the most impact pull factor, followed by mobility. Regarding push factors, low satisfaction and inconvenience of cash payment have great influences on both perceived ease of use and perceived usefulness. Finally, regarding mooring effects, personal innovativeness has the significant influence on perceived usefulness, perceived ease of use, and switching intention, whereas perceived risk has a negative influence and the effect of mobile payment knowledge is not confirmed. Moreover, the relationships between the variables are influenced only by habit, while the impact of switching cost is not found.
Article
The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.
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Structured Abstract: Purpose: The widespread dietary adoption of cultured meat could provide important benefits to animal welfare, the environment, food safety and security. This study examines consumer segmentation and consumer motives for choice of cultured meat in China. Design/methodology/approach: The data were collected by means of a web-based questionnaire (n=608) distributed in the two cites of Shanghai and Chengdu. Factor analysis, cluster analysis and path analysis were employed for data analysis. Findings: Three consumer segments were identified with regard to the acceptance of cultured meat in China: Conservatives (25.7%), Acceptors (41.9%) and Pioneers (32.4%). Significant differences were recognised in age, household income, education and household size between the three consumer segments. The following meat choice motives have significant influences on Chinese participants’ attitudes and/or purchase intentions towards cultured meat: Usually eat, Environmental concern, Societal concern, Mood, Purchase convenience and Price. Originality/value: This is the first study to develop a factorial construct of meat choice motives (MCMs) based on a previous theoretical model of food choice motives (FCMs) in China. The study contributes understanding of choice motives for cultured meat in a non-Western setting, particularly in China - the country consuming the largest quantity of pork. Further, this is the first study to recognise segments that are directly based on consumer attitudes and purchase intentions towards cultured meat. The findings of this study will help global producers and policymakers to create effective promotion strategies and policies for this innovative product in developing countries, particularly in China.
Article
An airline scheduler plans flight schedules with efficient resource utilization. However, unpredictable airline disruptions, such as temporary closures of an airports, cause schedule perturbations. Therefore, recovering disrupted flight schedules is essential for airlines. Many previous studies have relied on copies of flight arcs, which could affect the quality of solutions, and have not addressed the key measure of airlines’ on-time performance as their objective. To fill these research gaps, we propose Q-learning and Double Q-learning algorithms using the reinforcement learning approach for aircraft recovery to support airline operations. We present an artificial environment of daily flight schedules and the Markov decision process for aircraft recovery. The proposed approach is first compared with existing algorithms on the benchmark instance. In comparison with other algorithms, the developed Q-learning and Double Q-learning algorithms obtain high-quality solutions within the proper computation time. To verify that the proposed approach can be applicable to a real-world case and can adapt to realistic conditions, we employ a domestic flight schedule from one of the airlines in South Korea. We evaluate the reinforcement learning approach on a set of experiments carried out on real-world data. Computational experiments show that reinforcement learning algorithms recover disrupted flight schedules effectively, and that our approaches flexibly adapt to various objectives and realistic conditions.
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Thesis
Tüketicilerin geleneksel alışveriş süreçlerine kıyasla elektronik ortamda farklı alışveriş davranışları sergilediğini literatürde birçok çalışmada ifade edilen bir görüştür. Bu bağlamda, pazarlama disiplininin merkezinde yer alan bir kavram olarak memnuniyet algısının, tüketici davranışlarının değişim gösterdiği elektronik ortamda araştırılması büyük önem arz etmektedir. Bu çalışmada pazarlama yazınında yer alan memnuniyet ve e-memnuniyete ilişkin mevcut modeller incelendikten sonra, e-memnuniyet (elektronik memnuniyet) kavramının açıklanmasında bilişim sistemleri disiplininden de yararlanarak e-perakendecilik sektörü için genişletilmiş bir e-memnuniyet modeli önerilerek, söz konusu modelin geçerliliği test edilmeye çalışılmıştır. Araştırma bağlamında önerilen modelin test edilmesi amacıyla oluşturulmuş olan anket online olarak online alışveriş yapmış olan tüketiciler üzerinde uygulanmıştır. Toplam 795 analize uygun anket geri dönüşü olmuştur. Elde edilen veriler üzerinde tanımlayıcı istatistik analizleri, açıklayıcı faktör analizi ve doğrulayıcı faktör analizi ile güvenirlilik ve yapı geçerlilik yönünden sınanmakta ve yapısal eşitlik modeli ile test edilmektedir. Araştırma bulguları verilerin önerilen modeli desteklemekte olduğunu ortaya koymaktadır. Bulgular ışığında, elektronik ortamda müşteri memnuniyetinin belirleyicileri olarak ortaya çıkan 10 faktörün (rahatlık ve zaman tasarrufu, ürün çeşitliliği ve bilgi zenginliği, promosyon etkinlikleri, ürün yorumlama, müşteri ilişkileri ve teslimatın yerine getirilmesi, güven, algılanan risk, görsel unsurlar, e-işlem etkinliği ve eğlence) üç ana boyut altında (web sayfası etkinliği, algılanan fayda ve güvenlik algısı) özetlenebileceğini ortaya koymaktadır. Bu üç boyuttan web sayfası etkinliği ile güvenlik algısının görece olarak daha yüksek belirleyiciliğe sahip olduğu gözlenmiştir. Yine bulgular e-sadakatin en önemli belirleyicisinin e-memnuniyet olduğunu ortaya koymaktadır.
Article
Research question Scholars have recognized the critical role of switching costs in predicting consumption behavior. However, a scale measuring fitness consumers’ switching costs was unavailable. The purpose of the study is to develop and validate a fitness switching costs scale (FSCS). Research methods A three-step study was conducted. Step 1 generated a pool of items, which were then content validated by expert judges (N = 6). Step 2 (n = 455) examined the reliability and validity of the FSCS. Finally, Step 3 (n = 441) cross-validated the FSCS. Results and Findings The results provided support for the reliability and validity of the FSCS composed of the third-order formative construct (i.e. switching costs) with the four second-order formative constructs (i.e. procedural costs, relationship costs, financial costs, and convenience costs) and the 11 first-order reflective constructs (i.e. adjustment to a new fitness center, lack of other attractive fitness centers, information search costs, fitness center relationship loss, employee relationship loss, other consumer relationship loss, termination fee, loss of price benefit, loss of location benefit, loss of service-hour benefit, and loss of equipment availability benefit). Implications The FSCS allows researchers to obtain reliable results and advances theory development in fitness switching costs. Fitness practitioners can also use the FSCS and survey their current consumers to determine factors that prevent consumer defection.
Chapter
Değiştirme maliyeti, müşterinin bir firmayı ya da ürünü değiştirmek istemesiyle ne gibi maliyetlere katlanacağının ifadesidir (Porter, 1998).Patterson ve Smith (2003), değiştirme maliyetini, bir ilişkiyi sona erdirmek ve alternatif birini güvenceye almak için gereken ek maliyetlerin büyüklüğü olarak tanımlamaktadır. Alternatiflerin çekiciliği, müşteri karar verme aşamasında ön plana çıkmaktadır (Yim vd., 2007). Litertürde bu kavramı tanımlamalayan çeşitli tanımlar aşağıdaki gibidir: Alternatiflerin çekiciliği, “en iyi kullanıma hazır alternatif ilişkide mevcut ilişkiyi karşılamanın global değerlendirmesi” olarak tanımlanmaktadır (Ping, 2003). Jones vd. (2000) tarafından bu kavram, “piyasadaki mevcut çeşitli alternatiflere ilişkin müşterilerin algıları” olarak tanımlanmıştır. Bu çalışmamızda, değiştirme maliyeti ve alternatiflerinin çekiciliği değişkenin kavramsal olarak neleri ifade ettikleri, literatürde nasıl tanımladıklarına değineceğiz. Bununla birlikte, literatürde her iki kavramın, sıklıkla ilişkilerinin ölçüldüğü marka sadakati ve müşteri memnuniyeti arasındaki ilişkilerin nasıl şekillendiği detaylı bir şekilde ortaya konulacaktır.
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هدفت هذه الدراسة الى معرفة أثير ابعاد تكاليف التحول على تعزيز ولاء الزبائن خدمة الهاتف النقال بالنسبة للمتعاملين الثلاثة موبيليس، جازي واوريدو في مدينة ورقلة. ومعرفة مدى اهتمام متعاملي الهاتف النقال بهذه التقنية في المحافظة على ولاء الزبائن من اجل ذلك تم توزيع 300 استبيان على مستخدمي الهاتف النقال في مدينة ورقلة بشكل غير عشوائي. وجاءت النتائج الى ان تكاليف التحول لها تأثير مباشر على ولاء الزبائن وخاصة تكاليف التحول الاجرائية (النفسية) وأنها تلعب دور في المحافظة على ولاء الزبائن
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Economists have argued that there are particular characteristics of online markets, and the pricing structure and models have to be understood differently from traditional one-sided offline markets. The predominant features of innovation and dynamic efficiency, indirect network effects in a multi-sided market, the savings of transaction costs, information costs, the lock-in effects that consumers have to suffer and the costs of attention given in the nonprice competition. This chapter discusses those characteristics and the implications for competition law. It presents the tension of encouraging innovation and protecting consumers’ privacy and the unsolved economic debate on whether antitrust scrutiny and intervention are necessary when there is sufficient competition between the users of the platform. The next chapter will continue the debate by focusing on the use of data and will discuss the characteristics of data and how data monopolies raise antitrust concerns.
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Purpose Technology has revolutionized the delivery of health-care services, with e-consultations becoming popular mode of service delivery, especially during the pandemic. Extant research has examined the adoption of e-health consultation services, with little attention paid to examine the switching behavior. This study aims to identify factors affecting patients’ intentions to switch from conventional mode i.e. visiting hospitals/clinics to e-health consultations. Design/methodology/approach To understand this we use the push–pull–mooring (PPM) framework and integrate variables from status quo bias framework to the model. A cross-section research design was used, which rendered 413 valid responses which were obtained from the patients visiting a traditional hospital setup. The data was analyzed using partial least square – structural equation modeling using SmartPLS 3.0. Findings Findings suggest that push effects (inconvenience and perceived risk), pull effects (opportunity for alternatives and ubiquitous care), mooring effects (trust) and inertia significantly influence patients’ switching intentions from visiting hospitals/clinics to e-health consultations. Further, habit and switching cost positively influence inertia. Practical implications This study shall enable online health-care service providers and practitioners to understand patients’ intentions to switch to online health platforms and accordingly develop related marketing strategies, services and policies to encourage them to switch to the new offerings. Originality/value The current study enriches the previous research on e-health services by applying and extending PPM framework as the base model and showing its efficiency in predicting individuals switching intentions in the context of emerging economies. This study bridges the gap by focusing on switching behavior in context of health services.
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Notwithstanding the increasing acknowledgment of prominence of Brand Loyalty (BL), in business performance, research efforts directed at investigating the relationship among Brand Service Quality (ServQ), Brand Experience (BE), Brand Trust (BT) and Brand Loyalty (BL) in the context of Kurdistan Region internet service industry, have largely been neglected. Therefore, the principal objective of this study is to fill this void. Service quality in this research is measured in two dimensions: technical and functional, while BE is measured in four dimensions: sensory, affective, intellectual, and behavioral. In particular, the current study seeks to explore the direct effects of Technical Service Quality (TQ) and Functional Service Quality (FQ) on consumer BE, BT and BL; and the mediating role of BE in brand service quality – brand trust relationship. Moreover, the direct impact of BT on BL along with the mediating role of BT in the BE-BL relationship will also be examined. To empirically test the posited research hypotheses, data is collected from internet consumers in Sulaymaniyah and Erbil provinces of the Kurdistan region in Iraq. In total, 485 internet users were interviewed in the region. The collected data were analyzed using IBM AMOS 23. Findings demonstrate that the Technical Quality of internet services impacts Brand Experience more positively than Functional Quality does. On the contrary, Functional Quality affects the customer Brand Trust directly while Technical Quality does not have any direct impact on the customer Brand Trust. Secondly, It is also observed that Brand Experience significantly mediates the relations between Technical Quality and Brand Trust. The direct impact of the Functional Quality on Brand Trust was stronger than the mediation effect of Brand Experience between Functional Quality and Brand Trust. It was observed that Brand Trust had a significant impact on customer Brand Loyalty. Lastly, Brand Trust significantly mediates the relations between Brand Experience and Brand Loyalty.
Purpose This study aims to develop and test a theoretical model postulating that a hotel customer’s brand attachment is reinforced by positive and negative switching barriers, which, in turn, determine customer citizenship behaviour (CCB) towards hotel brands. Design/methodology/approach Surveys were conducted and completed by 233 respondents in the USA who had favourite hotel brands and used these brands in the previous year. A framework was developed based on the literature, and eight hypotheses were tested using structural equation modelling. Findings The findings suggest that a customer’s brand attachment (brand-self connection and brand prominence) to a hotel is strengthened not only by relational benefits (positive switching barriers) but also by switching costs (negative switching barriers). Brand prominence can promote CCB, whereas the impact of brand-self connection on CCB is rather limited. Research limitations/implications This study highlights the importance of affirmative and passive reasons for customers to remain in a relationship with the hotel brand and how sub-dimensions of switching barriers are interrelated to predict a customer’s attitude and behaviour to the brand. By emphasising the role of customers’ hotel brand attachment, this study also ascertains that cognitive and affective bonds towards a hotel brand can be significant antecedents to their extra-role behaviours. Originality/value This research contributes to the hospitality literature by expanding the realm of consumer behaviour research on switching barriers, brand attachment and CCB.
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We investigate the current situation of gas retail contracts and awareness of the switching possibilities among Japanese households. We observed that households may not have switched suppliers due to concerns regarding binding contracts required by new entrants to the gas market, as well as the quality of their safety inspections and stability of their management. For households to overcome these psychological barriers to switching, it is necessary to proactively disclose information that removes consumer concerns through habitually used media, such as newspapers. Switching experience in other markets can help remove psychological barriers in consumers.
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Purpose The purpose of this paper is to determine empirically the effect of customer perceived ethicality (CPE) on customer loyalty (CL) and further the authors ascertained if customer trust (CT), customer affective commitment (CAC) and customer perceived quality (CPQ) acted as mediating mechanisms linking CPE and CL. This study also tested the influence of CL on customer word of mouth (CWOM). Design/methodology/approach In this study, data were collected from 390 customers of banks in Pakistan through a self-administered questionnaire and tested through partial least squares (PLS) with smart PLS 3.2.7 version. Findings Research findings provided evidence for the positive relationship between CPE and CL and mediating effects of CT, CAC and CPQ for the CPE–CL linkage. Furthermore, a positive and significant relationship between CL and CWOM was experienced. Practical implications This study can help banks to determine the importance of CT, CAC and CPQ, as they can facilitate translating CPE into CL. Furthermore, managers need to effectively communicate about their ethical activities and encourage their customers to share their experiences. Originality/value First, this paper has considered the effect of CPE on customer loyalty under research area of corporate service brands. Second, it examines the mediating role of three factors (CT, CAC and CPQ) between CPE and customer loyalty in the banking industry.
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Starting from the liberalization of the electricity market in Turkey, the annual switching rates have remained at low levels for both residential and industrial consumers. This study aims to investigate the supplier switching behavior of large scale industrial consumers in the Turkish Electricity market with an emphasis on behavioral factors. The data were collected from a total of 83 companies including Organized Industrial Zone (OIZ) and non-OIZ with the criterion of consuming more than 10,000,000 kWh. The survey includes the items for risk of switching, cost of switching, the attractiveness of switching, perceptions of the service quality, and market competition. The findings of binary logistic regression model revealed that the risk of switching and attractiveness of switching is significantly associated with the probability of switching behavior. That is, one-unit increases in the risk of switching and attractiveness of switching (higher scores denote for unattractiveness) are found to decrease the likelihood of switching the current electricity supplier. Robustness tests were conducted by utilizing binomial logistic estimations for OIZ and non-OIZ companies separately. The findings yielded that, for OIZ companies, the odds of electricity supplier switching behavior is negatively associated with risk of switching and attractiveness of switching; whereas for non-OIZ companies, the odds of switching behavior are found to be related with the risk of switching and perceptions of physical service qualities. The results of this study are particularly crucial for electricity suppliers, regulatory agencies, and policymakers.
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This article proposes that the dyadic interaction between a service provider and a customer is an important determinant of the customer's global satisfaction with the service. Based on role theory, a theoretical framework is presented which abstracts some of the critical components of service encounters across industries.
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If service quality relates to retention of customers at the aggregate level, as other research has indicated, then evidence of its impact on customers' behavioral responses should be detectable. The authors offer a conceptual model of the impact of service quality on particular behaviors that signal whether customers remain with or defect from a company. Results from a multicompany empirical study examining relationships from the model concerning customers' behavioral intentions show strong evidence of their being influenced by service quality. The findings also reveal differences in the nature of the quality-intentions link across different dimensions of behavioral intentions. The authors' discussion centers on ways the results and research approach of their study can be helpful to researchers and managers.
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This article compares problems and strategies cited in the services marketing literature with those reported by actual service suppliers in a study conducted by the authors. Discussion centers on several broad themes that emerge from this comparison and on guidelines for future work in services marketing.
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Valid predictions for the direction of nonresponse bias were obtained from subjective estimates and extrapolations in an analysis of mail survey data from published studies. For estimates of the magnitude of bias, the use of extrapolations led to substantial improvements over a strategy of not using extrapolations.
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This article examines methods for estimating nonresponse bias. Predictions of the direction of nonresponse bias are evaluated, and estimates are made of the magnitude of this bias. An attempt was made to include all relevant previously published studies. Methods For Estimating Nonresponse Bias
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A theme emerging in the services marketing literature indicates that services marketers should look beyond their own industry boundaries to gain marketing insight. A number of conceptual typologies for grouping services have been developed. However, none of these conceptualizations have been studied empirically. This article presents an empirically based taxonomy, developed through cluster analysis of consumer's perceptions of services. The results of the study offer several insights into strategic marketing for service marketers.
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Analysis of Ordinal Categorical Data Alan Agresti Statistical Science Now has its first coordinated manual of methods for analyzing ordered categorical data. This book discusses specialized models that, unlike standard methods underlying nominal categorical data, efficiently use the information on ordering. It begins with an introduction to basic descriptive and inferential methods for categorical data, and then gives thorough coverage of the most current developments, such as loglinear and logit models for ordinal data. Special emphasis is placed on interpretation and application of methods and contains an integrated comparison of the available strategies for analyzing ordinal data. This is a case study work with illuminating examples taken from across the wide spectrum of ordinal categorical applications. 1984 (0 471-89055-3) 287 pp. Regression Diagnostics Identifying Influential Data and Sources of Collinearity David A. Belsley, Edwin Kuh and Roy E. Welsch This book provides the practicing statistician and econometrician with new tools for assessing the quality and reliability of regression estimates. Diagnostic techniques are developed that aid in the systematic location of data points that are either unusual or inordinately influential; measure the presence and intensity of collinear relations among the regression data and help to identify the variables involved in each; and pinpoint the estimated coefficients that are potentially most adversely affected. The primary emphasis of these contributions is on diagnostics, but suggestions for remedial action are given and illustrated. 1980 (0 471-05856-4) 292 pp. Applied Regression Analysis Second Edition Norman Draper and Harry Smith Featuring a significant expansion of material reflecting recent advances, here is a complete and up-to-date introduction to the fundamentals of regression analysis, focusing on understanding the latest concepts and applications of these methods. The authors thoroughly explore the fitting and checking of both linear and nonlinear regression models, using small or large data sets and pocket or high-speed computing equipment. Features added to this Second Edition include the practical implications of linear regression; the Durbin-Watson test for serial correlation; families of transformations; inverse, ridge, latent root and robust regression; and nonlinear growth models. Includes many new exercises and worked examples.
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We examine one-on-one relationships between customers and sales associates, which we refer to as relationship selling to differentiate it from relationship marketing, using a qualitative research approach. We conducted observations of and interviews with a successful group of retail sales associates and a set of their “call customers.” Based on our data, a relationship formation/enhancement model emerged, which focused on: (1) commitment and orientation to customer service by top management and employees, as well as a desire for a relationship by the customer; (2) augmented personal service and team playing by employees; (3) repeat customer-employee interactions based on trust, friendship, and functionality; and (4) development of customer loyalty to the sales associate and firm, and employee reinforcement and loyalty to the company and customer.
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The essentially social nature of service encounters, a short-run phenomenon, provides the occasions in which buyer and seller negotiate the terms of their exchange relationship, a long-run phenomenon. Defined as the mutual recognition of special status between exchange partners, exchange relationships insure efficacy for the buyer, as they mitigate market volatility for the seller. Understanding how economic exchange is played out against a background of social exchange can yield actionable insights. One implication is that research must include both customer and provider perceptions as the focal unit. Other research implications include the need to study the impact of customer role performance on satisfaction, to identify the elements of style and substance that buyers or sellers use to judge relational performance, and the need to develop measures of relational quality and strength.
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Understanding why customers are receptive to relationships with service providers is a key issue in relationship marketing. This paper suggests that four broad drivers—environmental variables, partner variables, customer variables and interaction variables—affect customers' receptivity to relationship maintenance. Customers may maintain relationships either because of constraints (they “ have to” stay in the relationship) or because of dedication (they “want to” stay in the relationship). The potentially differential effects of these dual motivations on customers' subsequent relationship attitudes and behaviors are examined. A model of relationship maintenance is developed and propositions are presented regarding the antecedents and consequences of customers' relationship maintenance. Theoretical and practical implications of the paper are discussed.
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Service quality and customer satisfaction are widely recognized as key influences in the formation of consumers' purchase intentions in service environments. However, a review of the existing literature suggests that the specific nature of the relationship between these important constructs in the determination of consumers' purchase intentions continues to elude marketing scholars (c.f. Bitner and Hubbert 1994; Bolton and Drew 1994; Gronroos 1993; Rust and Oliver 1994). The study reported here was designed to aid in the understanding of these relationships by empirically assessing the nature of the relationship between service quality and consumer satisfaction in the formation of consumers' purchase intentions across four unique service industries. The results of the current research, coupled with the weight of the evidence in the emerging services literature, suggest that consumer satisfaction is best described as moderating the service quality/purchase intention relationship. The managerial and research implications of the reported study are also discussed.
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The article reports the results of a study of the associations between the response intentions of hardware retailers when there are problems with their supplier, and their antecedents. The objective was to fill a gap in our knowledge of retailer-supplier relationships by testing hypothesized associations between response intentions, such as relationship neglect, and antecedents that include investment in the relationship. The response intention variables were those proposed by Hirschman (1970), and others: exiting, voice (constructive attempts to change conditions), loyalty, opportunism (self interest seeking with guile), and relationship neglect (reduced contact). Their antecedents were overall satisfaction with the relationship, and the relationship “structural constraints” (Johnson 1982) of alternative attractiveness, relationship investment, and switching cost. The results add to our understanding of problem resolution and relationship maintenance in the channel, and shed light into the “dark side” of channel relationships.
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Personalization—the social content of interaction between service or retail employees and their customers—is advanced as an important mediator of customer satisfaction and patronage behavior. The influence of this service-enhancing factor is investigated within the nexus of SERVQUAL, a comprehensive measure of service quality. Survey data from 233 adult consumers show that “personalization” significantly influences customer experience and evaluation of service. As hypothesized, for a business that performs service on a physical possession, this influence is subsumed in other components of SERVQUAL. In contrast, for a business delivering service in interactive encounters with customers, “personalization” emerges as the most important determinant of perceived service quality, and of customer satisfaction and other patronage indicators.
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Conceptualization and measurement of the consumer complaint intentions and behavior (CCB) construct has been an obstacle to the development of a more extensive understanding of how consumers respond to dissatisfaction as well as the factors that influence these responses. Results of an experiment that investigated the structure and determinants of CCB responses to service dissatisfaction provide strong support for the validity and usefulness of Hirschman's exit, voice and loyalty classification of dissatisfaction responses and affirm the influence of exchange variables such as magnitude of the dissatisfaction problem, exit barriers and attractiveness of service alternatives on CCB responses.
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Many individual companies and some industries monitor customer satisfaction on a continual basis, but Sweden is the first country to do so on a national level. The annual Customer Satisfaction Barometer (CSB) measures customer satisfaction in more than 30 industries and for more than 100 corporations. The new index is intended to be complementary to productivity measures. Whereas productivity basically reflects quantity of output, CSB measures quality of output (as experienced by the buyer). The author reports the results of a large-scale Swedish effort to measure quality of the total consumption process as customer satisfaction. The significance of customer satisfaction and its place within the overall strategy of the firm are discussed. An implication from examining the relationship between market share and customer satisfaction by a location model is that satisfaction should be lower in industries where supply is homogeneous and demand heterogeneous. Satisfaction should be higher when the heterogeneity/homogeneity of demand is matched by the supply. Empirical support is found for that proposition in monopolies as well as in competitive market structures. Likewise, industries in general are found to have a high level of customer satisfaction if they are highly dependent on satisfaction for repeat business. The opposite is found for industries in which companies have more captive markets. For Sweden, the 1991 results show a slight increase in CSB, which should have a positive effect on the general economic climate.
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Marketing theory and practice have focused persistently on exchange between buyers and sellers. Unfortunately, most of the research and too many of the marketing strategies treat buyer-seller exchanges as discrete events, not as ongoing relationships. The authors describe a framework for developing buyer-seller relationships that affords a vantage point for formulating marketing strategy and for stimulating new research directions.
Article
Perceived quality, expectations, customer satisfaction, and effect of customer satisfaction on repurchase likelihood are found to be higher for products than for services, but repurchase likelihood for products is lower. Retailers have the highest repurchase likelihood and score lowest on the other variables. A set of relevant category characteristics is used to further understand variation in both the levels of these variables and their relationships. Quality, expectations, satisfaction, and satisfaction's effect on repurchase are higher — and repurchase likelihood is lower — when competition, differentiation, involvement, or experience is high and when switching costs, difficulty of standardization, or ease of evaluating quality is low. Peer Reviewed http://deepblue.lib.umich.edu/bitstream/2027.42/47140/1/11002_2004_Article_BF00993955.pdf
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The identification of sellers and the discovery of their prices is given as an example of the role of the search for information in economic life.
Developing and protecting profitable custo-mer relationships Zeithaml VA How consumer evaluation processes differ between goods and services Marketing of services Problems and strategies in services marketing Zeithaml VA, Berry LL, Parasuraman A. The behavioral consequences of service quality
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