Most previous research on consumers' switching intention has focused on individual variables that have immediate effects on consumers' intentions or behaviors, rather than analyzing it as a complex phenomenon. This article provides evidence that some service provider behaviors precipitate relationship dissolution, whereas other behaviors create a predisposition to switch. This different effect is observed through the mediating effect of customer satisfaction. While poor service quality and low firm commitment undermine consumer satisfaction and have only an indirect effect on switching intentions, price unfairness and anger incidents have a strong effect on switching, both directly and indirectly through satisfaction. Implications are discussed for customer relationship management.
Purpose -The objective of this work is to provide evidence of customer switching intentions as a complex phenomenon involving a series of firm actions -service quality failures, unfair price, low perceived commitment and anger incidents -and factors relating to the purchase situation or the consumer that also play an important role as moderators in the dissolution process. Design/methodology/approach -An empirical study has been carried out in the case of customers of car-insurance firms. Findings -Results demonstrate the existence of some factors that have a weak influence on the switching intention -service quality and company commitment -and other factors that have a strong influence and precipitate the consumers' decisions -price changes and critical incidents. This study also underlines the moderator role of knowledge about alternatives and switching costs in this process.Practical implications -This findings show that a continuing dissatisfaction with the firm as a consequence of a quality that is poorer than expected does not influence individuals as much as a change in the price policy or a one-off incident in which consumers experience a strong unease. Originality/value -This work provides empirical evidence about the existence of various determinants of switching: variables that weaken the relationship and variables that precipitate dissolution. These categories had already been discussed theoretically in previous work, but their effect had not been tested. Moreover, it advances in the idea that switching intention may fundamentally be conditioned by consumers' level of involvement and their knowledge about other alternatives.
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