Strengthening the satisfaction loyalty link: the role of relational switching costs

Abstract

The extant retail research has placed much emphasis on understanding customer switching and the concept of switching costs (SCs). However, the empirical evidence is inconclusive with respect to the moderating role of SCs in general and relational switching costs (RSCs) in particular. Therefore, this research focuses on the moderating role played by SCs on the satisfaction-loyalty link. Specifically, our study attempts to clarify the nonlinear moderating effect of RSCs. Furthermore, we investigate RSCs in greater depth, considering their two dimensions, brand relationship loss costs (BRLCs), and personal relationship loss costs (PRLCs). We find that there is an optimal level of BRLC whereas increasing PRLCs decreases the impact of satisfaction on loyalty in a linear manner, calling for a more nuanced assessment of this type of SC in future studies. Our findings contribute to a deeper understanding of the effectiveness of SCs as a retention strategy.

I trust friends before I trust companies: The mediation of WOM and brand love on psychological contract fulfilment and repurchase intention

“…, 2016). This is stressed by evidence from the very recent literature about consumer psychology that some of the customers have switched to other products or have shown an intention to switch regardless of being highly satisfied customers (Evanschitzky et al. , 2022).…”

Effect of innovation practices of banks on customer loyalty: an SEM-ANN approach

“…LOY has become a popular research topic in recent years, especially in digital technologies innovation, SAT, service innovation, bank reputation, repurchase intention, emotions, personal relationship, quality, transaction, ambidextrous innovation and favourability of prior experiences (Chandrashekaran et al ., 2007; Kim et al ., 2016; Evanschitzky et al ., 2021; Biswas et al ., 2021; Shumakova, 2021; Chatzopoulou et al ., 2021; Tsai, 2017; El-Adly, 2019) (Table 1).…”

Punitive switching costs and behavioral responses in the context of contractual services

“…The presence of switching costs is a primary determinant of whether customers intend to continue patronizing their current service provider (Evanschitzky et al , 2022). Switching costs or switching barriers refer to any factor that “makes it more difficult or costly for consumers to change providers” (Jones et al , 2000, p.261).…”

“…Although a contract aims to facilitate a long-term relationship between the seller and the buyer (Wei et al , 2021), companies have also used it as a lock-in strategy for customer retention (Evanschitzky et al , 2022; Gao et al , 2022). For instance, if customers decide to switch away from their service provider before the contract expires, then they will be penalized with an early termination fee or canceling fee (de Matos and Adjerid, 2022; Xie and Gerstner, 2007).…”

“…Despite numerous studies on the impact of switching costs on customer behavior, findings have been inconsistent. Most research indicates that switching costs benefit firms by discouraging customers' switching intentions (SI; Chi et al , 2021; Gong et al , 2022b; Jeong et al , 2023) and fostering customer loyalty (Evanschitzky et al , 2022; Gong et al , 2022a; Wu et al , 2021). Conversely, switching costs also can hurt the firms by increasing SI (Fullerton, 2005; Malhotra and Malhotra, 2013), facilitating negative word-of-mouth (NWOM; Jones et al , 2007; Lee and Neale, 2012) or undermining loyalty (Valenzuela, 2012).…”