Effect of Switching Cost on Repurchase Intention: A Mediation Model

Abstract

As switching costs increases, customers may be more inclined to stick with their current provider because switching to another provider may require additional effort and cost. This may create a barrier for customers to protect their existing portfolios, which may affect repurchase intentions. The purpose of the study was to examine the mediating role of communication and perceived value in the relationship between switching cost and repurchase intention in private health insurance sector. The study designed as cross sectional and the data was collected from 314 private health insurance policy owners in a city of Türkiye. Using an online survey, participants completed self-report measures of switching cost, repurchase intention, communication and perceived value. The results showed that switching cost was a predictor of repurchase intention. Additionally, communication and perceived value significantly affected repurchase intention. Furthermore, communication and perceived value mediated the relationship between switching cost and repurchase intention. Communication and perceived value as crucial factors in mitigating the impact of switching cost on repurchase intention. Reducing the negative impact of switching costs is possible by maintaining strong communication and increasing the perceived value.