Understanding Customer Switching Behavior in a Liberalizing Service Market

Abstract

In recent decades, many service markets have been liberalized, which means incumbent service firms face new competitors and must address customer switching—which from a public policy perspective, is necessary to ensure that liberalization succeeds. In this article, the authors conduct an exploratory study in which they investigate determinants of customer switching in the liberalizing Dutch energy market. Their results suggest that relationship quality, switching costs, and current demand for products and services from the energy supplier (e.g., usage rate, number of contracts) represent important determinants for all customers. In a subsequent analysis that accounts for customer heterogeneity, the results indicate a large inertia segment (71%) but a relatively small (6%) disloyal segment. The authors discuss implications for both incumbent service firms (former monopolists) and public policy officials.

Pengaruh Perceived Risk Terhadap Customer Loyalty Melalui Switching Cost

“…Konsep ini banyak diteliti dalam penelitian yang berkaitan dengan kepuasan pelanggan (Hu & Hwang, 2006). Khususnya bagi perusahaan online yang sudah beroperasi lama, penerapan switching cost merupakan strategi yang sangat penting dalam meningkatkan loyalitas pelanggan (Roos & Gustafsson, 2007;Wieringa & Verhoef, 2007) sejalan dengan kemajuan dibidang teknologi internet yang masih sulit dibuktikan penggunaannya.…”

“…Wieringa & Verhoef (2007) menambahkan bahwa bila pelanggan beralih ke service provider lain, berarti konsumen perlu memberitahukan lewat e-mail atau harus mengkonversi beberapa hubungan mereka yang selanjutnya dapat menghambat biaya penggunaan mereka. Dengan alasan ini konsumen merasa enggan untuk menghabiskan banyak waktu dan tenaga bila beralih ke service provider lain dalam melakukan transaksi online.…”

Customer loyalty and switching behavior of customer for Pepsi in Pakistan

“…Although, switch behavior additionally seems in theory, wherever economic students approach switch prices as a mean for keeping customers in relationships (Wieringa and Verhoef, 2007) Burnham et al, 2003;Bansal et al, 2004;Yanamandram and White, 2006). A lot of notably, procedural switch price enhances calculating commitment, that after will increase repurchase intention and reduces undesirable emotions, negative viva-voce and ultimately, switch (Jones et al, 2007;Khan et al, 2010).…”

“…If an organization doesn't provide its client with the standard product then the client are going to be disgruntled and due discontentment he can switch to the opposite different product for his satisfaction. customer satisfaction is a vital topic for nearly each supplier of service, and is believed to be related to enlarged revenue and reduces value (Reichheld 1993;Reichheld and Sasser, 1990).customer satisfaction and change behaviors are relevant antecedents of client's loyalty, and their role in making the loyalty receives substantial attention within the literature ( designer et al, 2003;Jones et al, 2000: Patterson and smith, 2003Wieringa andVehrof , 2007 : rule andPeterson, 2004).…”

Examining Customer Switching Behavior in Cellular Industry

“…Although, relationship quality is an important driver of switching intentions, but switching costs and attractiveness of switching are its significant determinants (Wieringa and Verhoef, 2007).…”