Analyzing Customers' Switching Intentions in the Telecom Sector

ABSTRACT

Mobile Number Portability (MNP) has not only affected customers' behavioral patterns, but also increased competition among telecom operators. Against this backdrop, the study examines the relationship between customers' switching intentions and attitude towards MNP, customer loyalty, and switching barriers. It also investigates the impact of these intentions on actual switching or staying behavior of customers. Data were collected from a sample of 260 telecom customers comprising university students. Findings reveal that customers' switching intentions would largely depend upon switching barriers perceived by them. Switching intentions predict both actual staying and switching behavior. Our understanding of switching barriers is limited to those involved in switching from a current service provider to a new service provider. Future research can examine the barriers associated with returning to the original provider and the effect on the decision to leave in the first place, especially in the case of contractual agreements such as BSNL. The present study will help practitioners and telecom service providers in understanding the factors affecting customers' switching intentions to prevent switching.     

Can the Retailer’s ICT Enhance the Impact of Service Recovery Efforts on Customer Satisfaction?

Abstract

Service recovery remains a topic of considerable interest for both academics and practitioners. This paper aims to explore the relations between recovery efforts and causal attributions, satisfaction, and both conventional and online word-of-mouth, as well as the moderating role of information and communication technologies (ICT) on the relationship between retailer’s efforts and satisfaction with the service recovery. On a sample of 336 retail customers who experienced service failure, we use SEM and multigroup analysis. As a result of the data analysis, there is evidence supporting the positive impact of attributions and recovery efforts on satisfaction, and the influence of the latter on both conventional and online word-of-mouth. Furthermore, the moderating influence of technology in the “recovery efforts-satisfaction” relationship is evidenced. Practical implications for retail managers and further research are presented.     

An integrative framework for customer switching behavior

Due to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.     

Value Co-Creation in Business-to-Business and Business-to-Consumer Service Relationships

Abstract

The purpose of this study is to examine the interrelationships among value co-creation, switching costs (SC), and customer share (CS) in both business-to-business (B2B) and business-to-consumer (B2C) relationships. In spite of increasing attention to value co-creation in the Service Dominant Logic, there are only a limited number of empirical studies on this concept. Furthermore, few researchers have investigated the inter-relationship among value co-creation, SC, and CS in a single framework for both B2B and B2C relationships, although many enterprises serve both types of customers. The conceptual framework is developed primarily based on relationship marketing and services marketing. This study evaluates six hypotheses, analyzing survey data from 209 enterprises and 337 individuals by structural equation modeling (SEM). Further, confirmatory factor analysis (CFA) is conducted to confirm the convergent validity and discriminant validity. In conclusion, the positive impact of execution of value co-creation (EVC) activities on SC and CS is supported with appropriate statistical evidence in both B2B and B2C relationships. Also, the causal relationship between values in relational exchanges (VRE) and CS is confirmed with adequate empirical findings for both relationships. These results suggest to marketing managers that service firms may achieve larger CS by executing value co-creation activities and providing VRE for customers.     

Service value and switching barriers: a personal values perspective

This research aims to investigate how customers, the key actors in a service relationship, perceive service value and switching barriers. The study is framed along the means-end-chain theory of personal values and theory of customer resources in the service-dominant logic. Hypotheses about the impact of personal values on customer value, switching barriers and customer loyalty were tested using structural equation modeling of survey data obtained from the health care and retail banking sectors in Vietnam. The results show that in both sectors, personal values have a significant impact on perceived process and outcome value as well as on perceived economic and relational switching barriers. Economic barriers were found to affect loyalty in the banking sector, in the same way that relational barriers affect loyalty in the health-care sector only. Loyalty in both sectors is influenced by process but not by outcome value. The implications of these findings are discussed.     

A Study of Factors Affecting Tip Size in Restaurants

Abstract

This study was undertaken to gain understanding of the tipping phenomenon in restaurants. The study reviews the phenomenon of tipping and the accompanying characteristics that determine the gratuity amount of consumers. An understanding of the relationship between tip size and factors such as food quality and level of service will help to determine what areas restaurant personnel should focus on to enhance customer satisfaction and facilitate those working in the restaurant industry. In this study, the researchers tested the hypothesis that the greater the tip size, the more satisfied the customer is with the food quality and service provided by server. The other hypothesis tested was: The greater the tip size, the greater the likelihood of a return patronage. Data were collected at a restaurant in Houston, Texas. This analysis found a strong relationship between tip size and service provided by server and return intentions, but did not find a significant relationship between tip size and food quality.     

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACT

As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.     

The Mediating Role of Postrecovery Satisfaction in the Relationship between Justice Perceptions and Customer Attitudes

ABSTRACT

The present study advances the literature by examining the meditating roles of postrecovery satisfaction in the relationships between distributive and interactional justices, and postrecovery attitudes. The model is empirically tested using survey data collected from 600 telecommunications service customers; and analyzed using partial least squares technique. Results indicate that postrecovery satisfaction partially mediates the perceptions of justice in the recovery process and service quality as well as repurchase intention. It is the first study to examine postrecovery satisfaction as a mediator in understanding the impact of recovery justice (antecedent) on service quality (consequence) in the telecommunications service context.     

An Exploration of Managerial Views on Positioning Services in Ghana

ABSTRACT

The paper constitutes an analysis of the views of managers of service firms on positioning strategies in Ghana. The research employed a qualitative research method. Data were collected from 21 service managers and analyzed using content analysis procedures. The results indicate that for service managers, the perceived dominant positioning strategies of their organizations were: service quality, customer relationship, innovation, availability of service, community support, and leading organization, among others. The findings suggest that the dominant managerial views of Ghanaian service managers form a ‘hybrid’ of those of the Western manager. This research is important in clarifying this position. Additionally, as an exploratory piece, the study provides bases for further research on a topic in Ghana with a rather scant evidence of research.     

The Relative Effects of Relationship Quality and Exchange Satisfaction on Customer Loyalty

ABSTRACT

This paper addresses two key questions on how supplier firms can better manage industrial buyers to create higher loyalty. The first involves whether to focus on relationship quality or exchange satisfaction. This dual route model towards enhancing loyalty in essence is concerned with comparing the relative strengths of the effect from relationship quality to loyalty and from exchange satisfaction to loyalty. The second point of interest pertains to whether the effects from relationship quality and exchange satisfaction to loyalty are moderated by environmental conditions such as switching barriers and viable alternatives. Using data on business customers' ratings of a major information technology provider, we find that the effect of exchange satisfaction on loyalty is significantly greater than the effect of relationship quality on loyalty. We also find that the impact of exchange satisfaction on loyalty is less sensitive and more stable across different levels of switching barriers and viable alternatives. Conversely, the effect of relationship quality on loyalty is more pronounced to such moderating variables in that the effect of relationship quality on loyalty was greater when switching barriers were low and many viable alternatives existed. Implications for marketing theory and practice are discussed.     

The moderating role of switching barriers on customer loyalty in the life insurance industry

In recent service management literature, researchers have incorporated switching barriers as an important potential influential factor on customer loyalty and found that the impact of customer satisfaction on customer loyalty might vary under different switching barrier conditions. However, switching barriers and their importance in the life insurance service contexts have received little in-depth attention. This study aims to examine the impact of switching barriers as a potential moderator on the complex interrelationships among the antecedents and consequences of customer satisfaction in the life insurance service context. The main findings of this study show that the switching barriers do have a moderating effect and play a crucial role in winning customer loyalty.     

The double-edged sword: The positive and negative effects of switching costs on customer exit and revenge

What happens when customers have to deal with switching costs after a service failure and a poor recovery? This study seeks to address this question by proposing and testing an integrative model that incorporates customers' negative emotions as mediators between switching costs and behavioral outcomes (i.e., loyalty and revenge). The model distinguishes positive from negative switching costs, and inward from outward negative emotions. Analysis of survey data from 280 real customers who actually experienced a service failure and poor recovery with a major telecommunications firm reveals that customers react to switching costs strongly, emotionally, and sub-optimally. In contrast to most findings in the service literature, the results indicate that negative switching costs generate both exit and desire for revenge. Paradoxically, positive switching costs generate both loyalty and an even higher level of desire for revenge. These findings have important implications for the service industry.     

A cross-cultural study of switching barriers and propensity to stay with service providers

This study examines the important and often underestimated role that switching barriers play in the propensity to stay with service providers. Three service types (with different structural characteristics) were studied across two diverse cultures—Australia (Western, individualistic culture) and Thailand (Eastern, collectivist culture). Six potential switching barriers are examined: search costs; loss of social bonds; setup costs; functional risk; attractiveness of alternatives; and loss of special treatment benefits. The results from a series of multiple regression analyses show switching costs capture a substantial amount of the explained variance in the dependent variable, propensity to stay with a focal service provider. Furthermore we demonstrate using interaction terms that these switching costs appear to be universal across west-east cultures. However, significant variations were found across industries. Next, using a hierarchical regression procedure, we add a satisfaction variable into each model. The incremental gain in R² is significant in each industry. Nonetheless the significant impact of switching barriers gives rise to the identification of a new type of service loyalty, which we term “captive loyalty.”     

Customer Complaints and Switching Behavior—A Study of Relationship Dynamics in a Telecommunication Company

Abstract

Data on customer complaints and switching behavior provide us with important information about customer relationship dynamics. Studying customer complaints and switching behavior, i.e., crossroads in a relationship, will help us better understand the consequences of customer dissatisfaction and what erodes loyalty and has a negative impact on profitability. This understanding will help manage complaints proactively rather than reactively and help prevent switching. It will also improve quality and support service development.     

Investigating antecedents of consumers' recommend intentions and the moderating effect of switching barriers

The current study moves beyond customer-perceived value, service quality, and corporate image and demonstrates that switching barriers are important factors influencing a customer's decision to recommend a service provider to others. This work examines a contingency model between customer-perceived value, service quality, corporate image, and switching barriers. The results indicate that the impact of these parameters on consumers' recommend intentions increases under conditions of high switching barriers. The implications of these results are also discussed.     

Three Criteria That Separate the Top Sellers from the Cellar Dwellers

Abstract

In the past, studies of the causes and consequences of service failures were generally conducted from the perspective of the consumers. Only a few of the studies were conducted through the perspective of management involvement. Furthermore, qualitative analysis tends to be extensively used in such studies, as well as CIT, case study or multivariate analysis. Therefore, this study is an attempt to use a non-linear fuzzy neural model as the method for empirical study. A survey has been conducted in the chain stores of Starbucks, La New and one vegetarian food store chain. They are industries with a high level of interaction with customers. A total of 104 respondents were samples. The results of this survey indicate that if we are to trace the unanimous reasoning of service defects, the factor of management involvement tends to be higher for employees exhibiting personality characteristics of external control rather than internal control. If the level of service defects becomes seriously high, a higher level of management involvement is necessary for employees exhibiting personality characteristics of external control rather than internal control. For employees exhibiting internal control in personality characteristics, a higher level of management involvement is required to make voluntary moves in pursuing remedial recovery strategy. For employees exhibiting external control in personality characteristics, a lower level of management involvement is required to make voluntary moves in pursuing remedial measures for compensational strategy. The pursuit of remedial recovery strategy may vary according to the situation of service defects. The level of management involvement positively correlates with customer relation strengths. The customer relation strengths positively correlate with the pursuit of remedial recovery strategy.     

What Makes Consumers Willing to Pay for Online Services? Discovering Consumer Opinions and Determinant Factors on Charged Online Services

ABSTRACT

Recently, more and more service e-businesses began to charge their consumers on the services provided to assure revenues for their survival. An understanding of consumer opinions on and behaviors toward the charged online services is critical to successful business models for service e-business. Through survey data analyses, the exploratory study reported herein attempts to discover consumer opinions and behaviors regarding charged online services. The findings of this study would contribute effectively to the formulation and implementation of sustainable business models for e-businesses in the service sector.     

The Effect of Perceived Value and Switching Barriers on Customer Price Tolerance in Industrial Energy Markets

Purpose: This article analyzes the effects of perceived value, satisfaction, and switching barriers on price tolerance. It also examines the moderating effect of switching barriers.

Methodology/Approach: Empirical research was conducted by collecting information from a sample of 326 major gas and electricity consumers in a newly liberalized industrial market with a high concentration of suppliers.

Findings: Switching barriers are the main antecedent to price tolerance. Price tolerance of industrial customers depends directly on switching barriers more than on satisfaction. The customer satisfaction construct is a necessary but not sufficient predictor of price tolerance. While satisfaction has an effect on price tolerance, the effect of perceived value on price tolerance is only indirect through satisfaction, even though it may produce positive direct effects when there are high switching barriers.

Originality/Value/Contribution: For the first time in a B2B framework, the moderating effects of switching barriers on the relationship between perceived value, satisfaction, and price tolerance have been analyzed.     

Adjustment Problems in Developing Countries and the U.S.-Central America-Dominican Republic Free Trade Agreement

Abstract

In this study, MERCOSUR's past exports to the EU under the protectionist environment of the period between 1988 and 1996 are examined and an attempt is made to determine MERCOSUR's exports' growth potential in a liberalized EU market. A sectoral study is considered indispensable since tariff and non-tariff trade barriers vary strongly among sectors. The influence of the macroeconomic environment on MERCOSUR's exports is examined in a dynamic panel analysis. A simulation study based on a quite comprehensive evaluation of EU trade barriers is performed for the Argentinean case to evaluate the impact of EU trade liberalization.     

The Use of Logistic Regression Analysis to Evaluate Customer Satisfaction with a Telephone Hotline

Abstract

This article describes a method used to evaluate customer satisfaction with a telephone Hotline that, at the time of the study, received more than 200,000 calls annually. The statistical analysis, which is based on responses to a customer survey, specifies three logistic regression models as a set of recursive equations estimated in a two-stage process. The first stage analysis estimates two equations designed to measure service quality characteristics that contribute to customer satisfaction. The second stage analysis estimates the likelihood that customers were satisfied with their Hotline experience, as a function of the service quality characteristics and other factors. The results of the analysis provided several practical areas lor improving customer satisfaction with the Hotline.