2001
DOI: 10.1108/08876040110387917
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A cost/benefit approach to understanding service loyalty

Abstract: Examines determinants of service loyalty under the assumption that consumers perform a cost/benefit analysis when deciding whether or not they want to be “regular customers”. It develops potential determinants of service loyalty based on the service quality, transaction cost, and switching cost literature, and estimates their relative influences with survey data from customers currently using banks and travel agencies. The results indicate that, in addition to service quality perceptions, transaction/switching… Show more

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Cited by 339 publications
(231 citation statements)
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References 72 publications
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“…Finally, it might be convenient to incorporate retailer switching costs in this model, since different studies (eg Jones et al ., 2000 ;Lee and Cunningham, 2001 ) report the infl uence of this variable on loyalty towards the service provider and, following Ruyter et al . (1998) , it might explain the differences between activity sectors.…”
Section: Resultsmentioning
confidence: 99%
“…Finally, it might be convenient to incorporate retailer switching costs in this model, since different studies (eg Jones et al ., 2000 ;Lee and Cunningham, 2001 ) report the infl uence of this variable on loyalty towards the service provider and, following Ruyter et al . (1998) , it might explain the differences between activity sectors.…”
Section: Resultsmentioning
confidence: 99%
“…The relationship between perceived service quality and several behavior intentions has been proofed in numerous studies (e.g., Boulding et al, 1993;Zeithaml et al, 1996;De Ruyter et al, 1998;Lee & Cunningham, 2001;Gracia et al, 2011;Ha & Jang, 2012). Zeithaml et al (1996) proposed a model for the consequences of perceived quality, through which they differentiated between favorable and unfavorable behavior intentions.…”
Section: Perceived Services Quality and Behavior Intentionsmentioning
confidence: 99%
“…Exchange of information might take place in response to customer (telephone) enquiries and in the course of interactive activities initiated by the network operator (e.g., presentation of an invoice). Lee and Cunningham (2001) considers pricing, area coverage, clarity of sound, access to provider, precision of billing service and perceived difficulty to switch are the main factors which have important impact on customer loyalty in France. Call drop rate (percentage of abnormally terminated calls), the number of complaints, providing attractive sales-promotion offerings, monthly billed amounts and customers with a non-use or suspended status are positively associated with the probability of customer churn in South Korea mobile telecom industry (Ahn et al, 2006).…”
Section: Introductionmentioning
confidence: 99%