More on the role of switching costs in service markets: A research note |
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Authors: | Jean-Charles Chebat Moshe Davidow Adilson Borges |
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Institution: | a HEC Montréal, 3000 Côte Ste-Catherine, Montréal, Quebec, Canada H2T 3A7b Dept. of Economics and Management, Yizreel Valley College, Israelc Reims Management School, 59, Rue Pierre Taittinger, BP 302, 51061 Reims Cedex, France |
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Abstract: | The present paper focuses on several important and under-researched issues related to switching costs (SC) as a defensive marketing tool in retaining customers with complaint handling. While most previous research analyzed the effects of SC on the behavioral intent of customers, our findings have focused on the actual behavior of bank customers; that is, staying with or leaving the bank to which they had complained previously. The findings show that, of the six potential facets of SC, only two significantly affect the actual behavior of complainants, one directly (i.e., Continuity Costs) and the other as a moderator (i.e., Learning Costs). Likewise, a customer's evaluation of the complaint handling affects behavior directly. |
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Keywords: | Switching costs Evaluation of Complaint Handling Satisfaction Customer exit behavior |
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