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The Impact of Service Characteristics on the Switching Costs–Customer Loyalty Link

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  • Blut, Markus
  • Beatty, Sharon E.
  • Evanschitzky, Heiner
  • Brock, Christian

Abstract

This research investigates the interrelationship between service characteristics and switching costs and makes two contributions to the service retailing literature: (1) As a means of better understanding the effectiveness of switching costs, the study suggests a two-dimensional typology of switching costs, including internal and external switching costs and (2) it reveals that the effect of these switching costs on customer loyalty is contingent upon four service characteristics (the IHIP characteristics of service). We carried out a meta-analytic review of the literature on the switching costs–customer loyalty link and created a hierarchical linear model using a sample of 1,694 customers from 51 service industries. Results reveal that external switching costs have a stronger average effect on customer loyalty than do internal switching costs. Moreover, we find that IHIP characteristics moderate the links between switching costs and customer loyalty. Thus, the link between external switching costs and customer loyalty is weaker in industries higher in the four service characteristics (as compared to industries lower in these characteristics), while the opposite moderating effect of service characteristics for the internal switching costs–loyalty link is noted.

Suggested Citation

  • Blut, Markus & Beatty, Sharon E. & Evanschitzky, Heiner & Brock, Christian, 2014. "The Impact of Service Characteristics on the Switching Costs–Customer Loyalty Link," Journal of Retailing, Elsevier, vol. 90(2), pages 275-290.
    • Handle: RePEc:eee:jouret:v:90:y:2014:i:2:p:275-290
    DOI: 10.1016/j.jretai.2014.04.003
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    Cited by:

    1. Sunghee Lee & Jinsoo Park, 2021. "How Switching Costs with Process Monitoring and Operational Integration Affect Sustainable Supplier Relationship," Sustainability, MDPI, vol. 13(24), pages 1-12, December.
    2. Padgett, Daniel & Hopkins, Christopher D. & Williams, Zac, 2020. "Buyer dependence in B2B relationships: The role of supplier investments, commitment form, and trust," Journal of Business Research, Elsevier, vol. 119(C), pages 13-24.
    3. Ali, Mazhar & Ahmed, Masood, 2018. "Determinants of students’ loyalty to university: A service-based approach," MPRA Paper 84352, University Library of Munich, Germany.
    4. Kumar, Anil, 2021. "Analysing the drivers of customer happiness at authorized workshops and improving retention," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    5. Nagengast, Liane & Evanschitzky, Heiner & Blut, Markus & Rudolph, Thomas, 2014. "New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link," Journal of Retailing, Elsevier, vol. 90(3), pages 408-427.
    6. Kyungyeol (Anthony) Kim & Kevin K. Byon & Heedong Choi, 2020. "A Conceptual Analysis of Switching Costs: Implications for Fitness Centers," Sustainability, MDPI, vol. 12(9), pages 1-16, May.
    7. Heiner Evanschitzky & Valentina Stan & Liane Nagengast, 2022. "Strengthening the satisfaction loyalty link: the role of relational switching costs," Marketing Letters, Springer, vol. 33(2), pages 293-310, June.
    8. Nyadzayo, Munyaradzi W. & Khajehzadeh, Saman, 2016. "The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 262-270.
    9. Eleni-Plousia Kosteroglou & Georgios Theriou & Dimitrios Chatzoudes, 2016. "Customer satisfaction from private utility companies: An explanatory study," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 9(3), pages 13-23, December.
    10. Kumar, Anil & Luthra, Sunil & Khandelwal, Dinesh Kumar & Mehta, Rajneesh & Chaudhary, Nityanand & Bhatia, Sukhdev, 2017. "Measuring and improving customer retention at authorised automobile workshops after free services," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 93-102.
    11. Miglė Černikovaitė & Žaneta Karazijienė & Lina Bivainienė & Valdas Dambrava, 2021. "Assessing Customer Preferences for Shopping Centers: Effects of Functional and Communication Factors," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    12. Park, Eunil & Kim, Ki Joon & Kwon, Sang Jib, 2017. "Corporate social responsibility as a determinant of consumer loyalty: An examination of ethical standard, satisfaction, and trust," Journal of Business Research, Elsevier, vol. 76(C), pages 8-13.
    13. Ilona Lipowska & Marcin Lipowski & Dariusz Dudek & Radosław Mącik, 2024. "Switching Behavior in the Polish Energy Market—The Importance of Resistance to Change," Energies, MDPI, vol. 17(2), pages 1-14, January.
    14. Zhang, Qi & Ariffin, Shaizatulaqma Kamalul & Richardson, Christopher & Wang, Yuling, 2023. "Influencing factors of customer loyalty in mobile payment: A consumption value perspective and the role of alternative attractiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    15. Marymagdaline E. Tarkang & Ruth N. Yunji & Simplice A. Asongu & Uju V. Alola, 2021. "Antecedents of Customer Loyalty (CL) in the Mobile Telecommunication Companies in Cameroon," Working Papers 21/036, European Xtramile Centre of African Studies (EXCAS).
    16. Muzammal Ilyas Sindhu & Muhammad Arif, 2017. "Corporate social responsibility and loyalty: Intervening influence of customer satisfaction and trust," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1396655-139, January.
    17. Cambra-Fierro, Jesús & Gao, Lily (Xuehui) & Melero-Polo, Iguácel & Trifu, Andreea, 2021. "How do firms handle variability in customer experience? A dynamic approach to better understanding customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    18. Gianfranco Walsh & Daniel Brylla, 2017. "Do product returns hurt relational outcomes? some evidence from online retailing," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(4), pages 329-339, November.
    19. Beatriz Moliner-Velázquez & Maria Fuentes-Blasco & David Servera-Francés & Irene Gil-Saura, 2019. "From retail innovation and image to loyalty: moderating effects of product type," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 199-224, March.
    20. Sukhoon Chung & Jin-Woo Park & Sangryeong Lee, 2022. "The Influence of CSR on Airline Loyalty through the Mediations of Passenger Satisfaction, Airline Brand, and Airline Trust: Korean Market Focused," Sustainability, MDPI, vol. 14(8), pages 1-15, April.
    21. Bashir Baba & Shafie Mohamed Zabri & Ahmed Kaseri Ramin, 2019. "Evaluating the Customer Satisfaction’s Effect on Murabahah and Mudarabah Financing in Islamic Banking," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 5(1), pages 2001-2022, January.
    22. Coelho do Vale, Rita & Verga Matos, Pedro & Caiado, Jorge, 2016. "The impact of private labels on consumer store loyalty: An integrative perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 179-188.
    23. Vonny Susanti & Andreas Samudro, 2022. "Assessing the Role of Corporate Reputation on Brand Satisfaction: A Study of Chemical Industry," Corporate Reputation Review, Palgrave Macmillan, vol. 25(2), pages 122-138, May.

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