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In service companies, maintenance and expansion of relational exchanges reinforce customer retention as a differentiator from the competition. In this research we developed and tested a theoretical model considering perceived value, service provider reputation, trust, and switching costs as determinants of customer retention. After that, a survey was done, and analysis of the results was performed using structural equation modeling with a sample of 269 client companies of corporate health plans. The contributions of the specified theoretical model, considering its uniqueness, proved that perceived value positively influences service provider reputation, service provider reputation has a direct impact on trust and switching costs, switching costs are configured as determinants of customer retention, and customer retention is positively influenced by service provider reputation in a relational context.

Purpose The purpose of this paper is to analyze customer loyalty in the context of existing relationships between Brazilian banking service provider and its customers in the context of B2C (Business-to-Consumer) relationships. Hence, a theoretical model was proposed and tested with banking services private individual customers taking into account perceived value, service provider reputation, financial bonding tactics, structural bonding tactics, social bonding tactics and switching costs as customer loyalty determinants. Design/methodology/approach A multivariate statistical approach with structural equations modeling was used in a 505 customer sample of the one prominent bank in Brazil. Findings Results indicate that the proposed theoretical model confirming a satisfactory fit, presenting a good explanatory power (R2=0.738) and supporting that perceived value influences the service provider reputation; financial bonding tactics, structural bonding tactics and social bonding tactics influence perceived value; service provider reputation influences switching costs; switching costs influence customer loyalty and the social bonding tactics influence customer loyalty. Practical implications The results evidenced in the present research could serve as benchmarking for other researchers or managers connected to the financial service sector (or bank service) when looking for a better understanding about the antecedents of customer loyalty, adapting strategies and actions to stimulate and generate better market and economic–financial results for the institutions of this sector. Originality/value Finding out which constructs better explain customer loyalty, and its possible relations, is something relevant for the banking sector, once it can generate more effective managerial insights, positively making an impact in a customer portfolio performance, or the financial institution itself, from the construction, maintenance and strengthening of the relationships with customers.