How habits, social ties, and economic switching barriers affect customer loyalty in contractual service settings
While existing literature acknowledges positive effects of satisfaction and economic switching barriers for building customer loyalty, studies analyzing interactions of these antecedents reveal mixed findings. Prior research does not consider, as antecedents of switching barriers, either habits or social ties that result from shared service-usage within a family or community. This paper contributes to the literature, first, by replicating the effects of satisfaction, economic switching barriers, and their interaction with customer loyalty and word-of-mouth of subscribers to a contractual service. Second, the study empirically tests the role of social ties as a social switching barrier. Third, the study introduces and tests the effects of habits as a precursor of economic and social switching barriers. Results reveal significant positive effects of satisfaction, economic switching barriers, and social ties on customer loyalty and word-of-mouth. Additionally, economic switching barriers and social ties interact significantly with satisfaction and habits act as a precursor of economic switching barriers and social ties.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Balabanis, George & Reynolds, Nina & Simintiras, Antonis, 2006. "Bases of e-store loyalty: Perceived switching barriers and satisfaction," Journal of Business Research, Elsevier, vol. 59(2), pages 214-224, February.
- Chiu, Hung-Chang & Hsieh, Yi-Ching & Li, Yu-Chuan & Lee, Monle, 2005. "Relationship marketing and consumer switching behavior," Journal of Business Research, Elsevier, vol. 58(12), pages 1681-1689, December.
- Brown, Jacqueline Johnson & Reingen, Peter H, 1987. " Social Ties and Word-of-Mouth Referral Behavior," Journal of Consumer Research, University of Chicago Press, vol. 14(3), pages 350-62, December.
- Yuxin Chen & Jinhong Xie, 2007. "Cross-Market Network Effect with Asymmetric Customer Loyalty: Implications for Competitive Advantage," Marketing Science, INFORMS, vol. 26(1), pages 52-66, 01-02.
- Kyle B. Murray & Gerald Hubl, 2007. "Explaining Cognitive Lock-In: The Role of Skill-Based Habits of Use in Consumer Choice," Journal of Consumer Research, University of Chicago Press, vol. 34(1), pages 77-88, 03.
- W. Edwards Deming & Gerald J. Glasser, 1968. "A Markovian Analysis of the Life of Newspaper Subscriptions," Management Science, INFORMS, vol. 14(6), pages B283-B293, February.
- Jones, Michael A. & Mothersbaugh, David L. & Beatty, Sharon E., 2002. "Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes," Journal of Business Research, Elsevier, vol. 55(6), pages 441-450, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:64:y:2011:i:8:p:800-808. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.