New Insights in the Moderating Effect of Switching Costs on the Satisfaction-Repurchase Behavior Link
Journal
Journal of Retailing
ISSN
0022-4359
ISSN-Digital
1873-3271
Type
journal article
Date Issued
2014-09-01
Author(s)
Abstract
Existing studies on the role of switching costs (SC) as moderator of the relationship between satisfaction and repurchase behavior are inconclusive. We attempt to explain these inconclusive findings by synthesizing an amplifying and a lock-in effect, and hypothesize a nonlinear moderating effect. In Study 1 (a main study and three replications), we find strong evidence for an inverted u-shaped moderating effect of overall SC. Our results suggest that satisfaction is a particularly important predictor of repurchase behavior in situations characterized by medium-levels of SC. Based on Prospect Theory, Study 2 (a main study and one replication) reveals that this inverted u-shaped moderating effect of SC is stronger for positive (relational and financial) SC than for negative (procedural) SC. We conclude with recommendations for satisfaction management of different customer segments, and describe possibilities to influence customer switching costs in various industries.
Language
English
Keywords
Customer satisfaction
Switching costs
Repurchase behavior
Customer retention management
Hierarchical regression
Prospect theory
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
New York, NY
Volume
90
Number
3
Start page
408
End page
427
Pages
20
Subject(s)
Division(s)
Eprints ID
235580