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New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link

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  • Nagengast, Liane
  • Evanschitzky, Heiner
  • Blut, Markus
  • Rudolph, Thomas

Abstract

Existing studies on the role of switching costs (SC) as moderator of the relationship between satisfaction and repurchase behavior are inconclusive. We attempt to explain these inconclusive findings by synthesizing an amplifying and a lock-in effect, and hypothesize a nonlinear moderating effect. In Study 1 (a main study and three replications), we find strong evidence for an inverted u-shaped moderating effect of overall SC. Our results suggest that satisfaction is a particularly important predictor of repurchase behavior in situations characterized by medium-levels of SC. Based on Prospect Theory, Study 2 (a main study and one replication) reveals that this inverted u-shaped moderating effect of SC is stronger for positive (relational and financial) SC than for negative (procedural) SC. We conclude with recommendations for satisfaction management of different customer segments, and describe possibilities to influence customer switching costs in various industries.

Suggested Citation

  • Nagengast, Liane & Evanschitzky, Heiner & Blut, Markus & Rudolph, Thomas, 2014. "New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link," Journal of Retailing, Elsevier, vol. 90(3), pages 408-427.
    • Handle: RePEc:eee:jouret:v:90:y:2014:i:3:p:408-427
    DOI: 10.1016/j.jretai.2014.04.001
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    5. Blut, Markus & Beatty, Sharon E. & Evanschitzky, Heiner & Brock, Christian, 2014. "The Impact of Service Characteristics on the Switching Costs–Customer Loyalty Link," Journal of Retailing, Elsevier, vol. 90(2), pages 275-290.
    6. Yi-Chun Ou & Peter C. Verhoef & Thorsten Wiesel, 2017. "The effects of customer equity drivers on loyalty across services industries and firms," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 336-356, May.
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    15. Wolter, Jeremy S. & Bock, Dora & Smith, Jeffery S. & Cronin, J. Joseph, 2017. "Creating Ultimate Customer Loyalty Through Loyalty Conviction and Customer-Company Identification," Journal of Retailing, Elsevier, vol. 93(4), pages 458-476.
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