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More on the role of switching costs in service markets: A research note

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  • Chebat, Jean-Charles
  • Davidow, Moshe
  • Borges, Adilson

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.

Suggested Citation

  • Chebat, Jean-Charles & Davidow, Moshe & Borges, Adilson, 2011. "More on the role of switching costs in service markets: A research note," Journal of Business Research, Elsevier, vol. 64(8), pages 823-829, August.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:8:p:823-829
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    7. Duijmelinck, Daniëlle M.I.D. & Mosca, Ilaria & van de Ven, Wynand P.M.M., 2015. "Switching benefits and costs in competitive health insurance markets: A conceptual framework and empirical evidence from the Netherlands," Health Policy, Elsevier, vol. 119(5), pages 664-671.
    8. Rémi Mencarelli & Carole Lombart, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Post-Print hal-01592035, HAL.
    9. Chuah, Stephanie Hui-Wen & Marimuthu, Malliga & Kandampully, Jay & Bilgihan, Anil, 2017. "What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 124-136.
    10. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    11. Agus Salim, 2017. "How to Build Satisfaction and Customer Loyalty with a Focus On Complaints Handling (Review of the Scientific Literature)," GATR Journals jfbr127, Global Academy of Training and Research (GATR) Enterprise.
    12. Muhammad Sohaib, 2022. "An Investigation of Repurchase Intentions in the Banking Industry: What Reason Do They Return?," SAGE Open, , vol. 12(1), pages 21582440211, January.
    13. Pick, Doreén, 2014. "“Switching is easy†—Service firm communications to encourage customer switching," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 502-509.
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    15. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    16. Haj-Salem, Narjes & Chebat, Jean-Charles, 2014. "The double-edged sword: The positive and negative effects of switching costs on customer exit and revenge," Journal of Business Research, Elsevier, vol. 67(6), pages 1106-1113.
    17. Goudarzi, Kiane & Borges, Adilson & Chebat, Jean Charles, 2013. "Should retailers pay to bring customers back? The impact of quick response and coupons on purchase outcomes," Journal of Business Research, Elsevier, vol. 66(5), pages 665-669.
    18. Mencarelli, Rémi & Lombart, Cindy, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 12-21.
    19. Gambetta, Nicolás & Zorio-Grima, Ana & García-Benau, María Antonia, 2015. "Complaints management and bank risk profile," Journal of Business Research, Elsevier, vol. 68(7), pages 1599-1601.
    20. Akamavi, Raphaël K. & Mohamed, Elsayed & Pellmann, Katharina & Xu, Yue, 2015. "Key determinants of passenger loyalty in the low-cost airline business," Tourism Management, Elsevier, vol. 46(C), pages 528-545.

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