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.     

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.     

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.     

How habits, social ties, and economic switching barriers affect customer loyalty in contractual service settings

While existing literature acknowledges positive effects of satisfaction and economic switching barriers for building customer loyalty, studies analyzing interactions of these antecedents reveal mixed findings. Prior research does not consider, as antecedents of switching barriers, either habits or social ties that result from shared service-usage within a family or community. This paper contributes to the literature, first, by replicating the effects of satisfaction, economic switching barriers, and their interaction with customer loyalty and word-of-mouth of subscribers to a contractual service. Second, the study empirically tests the role of social ties as a social switching barrier. Third, the study introduces and tests the effects of habits as a precursor of economic and social switching barriers. Results reveal significant positive effects of satisfaction, economic switching barriers, and social ties on customer loyalty and word-of-mouth. Additionally, economic switching barriers and social ties interact significantly with satisfaction and habits act as a precursor of economic switching barriers and social ties.     

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.     

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.”     

What induces online loyalty? Online versus offline brand images

This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-subjects design. Results reveal that offline brand image exerts significant effects on online brand image - which, in turn, significantly explains online perceived risk - and online customer loyalty. However, online perceived risk has no significant effect on online customer loyalty after controlling for the effects of online and offline brand images. These results provide implications for the direct and indirect halo effects of offline brand image and the direct effect of online performance that may influence consumers' perceptions, expectations, and loyalty regarding multi-channel retailers.     

Online purchase determinants of loyalty: The mediating effect of satisfaction in tourism

The purpose of this research is to investigate the impact of four online purchase determinants (website image, routine, website knowledge and innovativeness) on customer loyalty and the mediating effect of customer satisfaction within the context of e-commerce. The research model is tested using data collected from 3188 regular buyers of the national leader in the sector being studied. The statistical analyses were conducted within the Structural Equation Modeling framework. Results show that there is a complete mediating effect of e-customer satisfaction in the relationship between three online purchase determinants (website image, online routine and website knowledge) and e-customer loyalty. The research results provide an important insight into how e-companies can pursuit and use delight to highlight customers' loyalty. These results allow for a better understanding of customer specificities, with practical actions aimed at their real needs and expectations.     

Decline and variability in brand loyalty

In this paper, we examine the over-time behavior of brand loyalty for a large set of brands drawn from 21 consumer packaged goods categories. Using the brand-loyalty operationalization of Colombo and Morrison (1989), the following conclusions are obtained. First, little support is found for the often-heard contention that brand loyalty is gradually declining over time. Second, while the short-run variability around a brand's mean loyalty level is not negligible, no evidence is found that this variability has systematically increased over time, and it can be reduced considerably through a simple smoothing procedure. Finally, the brand-loyalty pattern for market-share leaders is found to be more stable than for other brands. The study findings were robust to variation in the time interval used to construct the switching matrices, and to different treatments of multiple purchases.     

Store and store format loyalty measures based on budget allocation

In highly competitive environments, such as retail markets, characterized by a growing heterogeneity of demand and the proliferation of new retail formats, cross-shopping behavior between stores and formats is becoming increasingly common. This process makes customer loyalty a key strategic challenge for retailers that want to consolidate their position within the market. To contribute to the analysis and comprehension of this reality, the authors propose and assess different objective indicators of store loyalty, store format loyalty, and intra-format store loyalty based on budget allocation. Specifically, they analyze the role of retail format in observable loyalty patterns in a market. Through an empirical analysis of grocery purchase patterns of a sample of 580 Spanish households, the authors find that diverse objective loyalty indicators based on budget allocations provide very similar information from a practical point of view. They also find that consumers' regular use of various formats (specifically, supermarkets, hypermarkets, and discount stores) for their purchases explain observed disloyalty better than does purchasing in several stores within these formats. The observed patterns reveal that retail formats define differentiated store profiles that relate to the benefits sought in different purchase situations.     

The influence of customer experience with automated games and social interaction on customer engagement and loyalty in casinos

Drawing on experiential marketing theory, This study examines the relationship between casino customers’ experience with automated games and their engagement and loyalty responses to casinos. Social interaction as a proxy of visiting motivation is modelled as a moderator in the relationship. Customer behaviours include word-of-mouth, visiting frequency, and average spending. The study focuses on Australian land-based casino members with automated game experience. The results show that customer experience with some features of automated games had a positive and significant impact on customer engagement with the casino, which led to positive loyalty. Automated game experience also had an indirect effect on customer loyalty. Social interaction exhibited a significant moderating effect on the relationship between customer engagement and visiting frequency. Discussion and implications of these findings for the literature and practitioners conclude the paper.     

Comparing email and SNS users: Investigating e-servicescape,customer reviews,trust, loyalty and E-WOM

For better or worse, satisfied or dissatisfied customers function as trusted branding faces for organizations as they transmit potentially viral messages through E-WOM. These E-WOM messages can prove marketers' best friends or worst enemies, depending on their tenor. With data from actual customers of an e-tailer, this research enriches our understanding of how e-servicescape is linked to E-WOM. E-servicescape captures the online environmental factors of marketers’ websites. Two forms of E-WOM are examined; i.e., emails and social network postings. Customer reviews were investigated as a prospective sub-dimension of e-servicescape. Findings suggest that customer reviews play an integral role in the e-servicescape construct, that e-servicescape positively impacts trust and that trust positively influences E-WOM and customer loyalty. Two groups of customers were compared, and results indicated differences between email and SNS users. Theoretical and managerial insights related to E-WOM and electronic commerce shopping behavior were generated.     

服务行业顾客重购意向的影响因素及其相互关系研究

本文探讨了转换壁垒、顾客感知价值、顾客满意对顾客重购意向的影响作用及其相互关系。以理发行业为研究对象,通过发放问卷收集数据,并运用结构方程分析软件进行了实证性检验,结果发现:顾客满意和顾客感知价值都对顾客重购意向具有直接显著影响;转换壁垒的不同维度对顾客重购意向的影响不同,社会利益对顾客重购意向产生积极的影响作用,转换成本不能增加顾客价值和顾客满意,但会对顾客产生锁定作用。对企业来说,管理者可以增加顾客满意和顾客感知价值来增加顾客重购意向,也可以通过提高顾客对转换壁垒的感知,从而对顾客起到锁定作用。     

Retailers with traits of consumer: Exploring the existence and antecedents of brand loyalty in small unorganized retailers

Retail in most emerging countries, like India, is dominated by the informal sector consisting of small unorganized retailers and marketers selling through them desperately want to win them over because it can be a powerful competitive advantage in these markets.Small unorganized retail store is a unique setting because most of these stores are owned and managed by individual proprietors who are neither schooled in systematic business decision making and nor have access to professional expertise and scientific tools to assist in taking business decisions in a systematic way. With loads of decisions to be made by this individual, it can be assumed that heuristics and common sense drive a lot of their business decisions and this makes them very similar to the decision making done by the end consumers, who also engage in buying decisions but are not scientific in their approach.Based on this similarity, this study attempts to explore a simple but profound question that like individual consumers, do these retail customers’ buying decisions also get affected by brand loyalty? In that direction, the study assesses the role of three variables - salesperson quality, self-experience with the brand and perceived company support, for predicting brand loyalty in small unorganized retailers.Using Structured Equation Modelling on data collected from 543 retailers, the proposed hypothesized paths have been tested. The results strongly support the proposition made. This study extends the application of the existing attitudinal – behavioural framework of brand loyalty to retailers and puts forward a vital and a unique way for marketers to get these retailers on-board and work as an influencer to push their brand.     

Adjusted expectations,satisfaction and loyalty development

The primary contribution of this article is an analysis of the influence of the use of individual's expectations about a service consumption on the behavior models, that examine the process according to which loyalty and satisfaction are generated. More specifically, the research examines the implications of considering adjusted expectations, namely those that tourists have after having visited a destination, rather than those expectations they may have prior to their visit. By developing structural equations, the research verifies that the use of adjusted expectations modifies the chain of causal relationships described in the cognitive–affective explanatory models for tourist satisfaction and loyalty.     

Effects of customer loyalty on customer entitlement and voiced complaints

The value of customer loyalty has been well documented by academicians and practitioners. Nevertheless, prior literature has paid little attention to the negative consequences of customer loyalty, for example, entitlement behaviors (e.g. requests for deeper discounts) and complaint behaviors (voicing dissatisfaction to the company). This research empirically examines the effects of customer loyalty on entitlement and voiced complaint behaviors in the context of Frequent Flyer programs in airline industry. Base on partial least squares-structural equation modeling, the results show that (1) customer loyalty has a positive effect on customer entitlement, which is the extent to which customers expect special treatment from the company; (2) the effect of customer loyalty on voiced complaints is fully mediated by customer entitlement; (3) perceived status of loyalty programs amplifies the entitlement behaviors of loyal customers, while tangible rewards of loyalty programs mitigate the entitlement behaviors of loyal customers. Theoretical and managerial implications are elaborated in the discussion section.     

Assessing the relationship between loyalty program attributes, store satisfaction and store loyalty

After a decade of research there is still much to understand about the relationship between loyalty programs and whether they deliver on their promise of building customer loyalty towards a store and understanding the mediating role of store satisfaction. Our results suggest that loyalty program as a summary construct, explains a significant proportion of the variance in store satisfaction and store loyalty. However, disaggregation of the construct into hard versus soft attributes, promotes greater specificity, precision and accuracy in uncovering the differential impact on store satisfaction and store loyalty.     

顾客转换障碍的内涵及其在营销中的应用

随着竞争的日趋激烈,吸引新顾客的成本越来越高,企业为了保留顾客不仅要管理好顾客满意度,同时也要重视转换障碍。转换障碍是指顾客在转换产品或服务提供者时所遭遇到的这种困难和成本的支出,转换障碍可以分为正面转换障碍和负面转换障碍,正面转换障碍反映的是顾客主动保留在主顾关系中,而负面转换障碍反映的是顾客被动保留在主顾关系中。转换障碍在保留顾客计划中具有非常重要的意义。     

Retail relationships and store loyalty: A multi-level perspective

An important factor in retail store loyalty is interpersonal relationships between retail salespeople and customers. However, relationships can also exist at the person-to-store level. This paper examines the linkages between trust in a salesperson, trust in the store, and repeat purchase intention. A model of store loyalty which includes relationships at both the person-to-store as well as person-to-person level is tested. The findings reveal that for those with an interpersonal relationship, trust and commitment to the salesperson are directly linked with purchase intention as well as indirectly through store attitude. For customers without a salesperson relationship, trust in the store leads to loyalty indirectly through store attitude, but does not have a direct impact on purchase intention. The results illustrate the existence of multi-level relationships between customers and stores and how those relationships link to store loyalty. The research adds to our understanding of the complexity of relationship retailing, while providing further evidence of the value of generating and maintaining interpersonal relationships as a retail strategy.