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Examining the impact of the attractiveness of alternatives on customers’ perceptions of price tolerance: Moderation and mediation analyses

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  • Mohamed Sobhy Temerak

    (Cairo University
    Business Administration Department)

Abstract

The current literature provides mixed support for the positive influence of competitors on customers’ perceptions of price tolerance (Herrmann et al, Psychology & Marketing, 2004 21(7), 533–551). This paper examines a number of mediators and moderators of this relationship, such as positive switching barriers, negative switching barriers and customer satisfaction. A total of 162 valid responses was collected from the financial brokerage context by means of a random sample. The data were analysed using the Partial-least square (PLS) approach to structural equation modelling. The findings show that customers’ satisfaction with the service provider partially mediates the positive effect of alternatives on price tolerance. Negative, not positive, switching barriers were found to weaken the effect on price tolerance of the attractiveness of alternatives.

Suggested Citation

  • Mohamed Sobhy Temerak, 2016. "Examining the impact of the attractiveness of alternatives on customers’ perceptions of price tolerance: Moderation and mediation analyses," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(4), pages 284-297, December.
    • Handle: RePEc:pal:jofsma:v:21:y:2016:i:4:d:10.1057_s41264-016-0010-5
    DOI: 10.1057/s41264-016-0010-5
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    References listed on IDEAS

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    Cited by:

    1. Temerak, Mohamed Sobhy & El-Manstrly, Dahlia, 2019. "The influence of goal attainment and switching costs on customers’ staying intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 51-61.
    2. 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).
    3. 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.

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