Satisfaction, loyalty and word of mouth within the customer base of a utility provider: differences between stayers, switchers and referral switchers

Abstract

Research on satisfaction, loyalty and word of mouth (WOM) behaviour has made considerable progress within recent years, but important aspects remain neglected. In this paper, it is argued that, within the customer base of service providers, certain groups can be identified which differ from each other with regards to these variables. Hypotheses are developed and tested in a sample of 765 clients of a large German energy provider. The results show that recently acquired customers (switchers) differ from long‐term customers (stayers), and that switchers acquired through customer referrals differ from switchers recruited through advertising or direct mail in their satisfaction, loyalty and WOM behaviour. The paper ends with some important implications for management and future research. Copyright © 2004 Henry Stewart Publications Ltd.

Behavioral consequences of customers’ satisfaction with banking products and services

“…This result is consistent with previous results research (Anderson, 1998;Bolton & Drew, 1992;Herr et al, 1991;Wangenheim & Bayon, 2004;Wangenheim & Bayon, 2007). For example, Anderson (1998) showed that customers with a higher level of satisfaction engage to a greater extent in positive informal interpersonal verbal communication, recommending products from the company where they are customers.…”

“…Literature offers enough arguments to support the relationship between satisfaction and positive interpersonal verbal communication (Athanassopoulos et al, 2001;Bitner, 1990;Hartline & Jones;Swan & Oliver, 1989), while satisfaction, respectively dissatisfaction to a consumption experience are the main antecedents of WOM communication (Anderson, 1998;Bolton & Drew, 1992;Herr et al, 1991;Schlesinger & Heskett, 1991;Wangenheim & Bayon, 2004;Wangenheim & Bayon, 2007 …”

Exploring the role of referral efficacy in the relationship between consumer innovativeness and intention to generate word of mouth

“…However, some researchers have focused on customers creating WOM behavior (Bitner 1990Gruen et al 2006Hennig-Thurau et al 2004Reichheld and Earl Sasser 1990Yoo et al 2013). For example, Wangenheim (2004) investigated the difference in creating WOM behavior among stayers and switchers. The role of opinion leadership in generating WOM is also dealt with (Richins and Root-Shaffer 1988).…”

The effect of retail service quality and product quality on customer loyalty

“…Loyalty is an attitude; it refers to positive feelings towards a brand in addition to repurchasing time after time. 25 It includes both attitudinal and behavioural practices, such as repeat buying of a product and service, repurchasing a brand for a long period of time, non-sensitivity to price increases, 26,27 a relational construct where repeat behaviour and psychological bond are closely connected, 28 a higher possibility of introducing or recommending companies to others and establishing positive public word-of-mouth . 29 With reference to the above defi nition, customer loyalty has been generally described as occurring when customers repeatedly purchase goods or services over time and hold favourable attitudes towards, and support, the company supplying the goods or services.…”