How Habits, Social Ties and Economic Switching Barriers Affect Customer Loyalty in Contractual Service Settings

Woisetschläger, David M and Lentz, Patrick and Evanschitzky, Heiner (2011) How Habits, Social Ties and Economic Switching Barriers Affect Customer Loyalty in Contractual Service Settings. Journal of Business Research, 64 (8). pp. 800-808.

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Abstract

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.

Item Type: Article
Uncontrolled Keywords: Loyalty; Switching barriers; Habits; Social ties; Contractual relationships
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Schools and Research Institutes > Business School > Business and Human Resource Management
Research Priority Areas: Applied Business Research
Depositing User: Ineke Tijsma
Date Deposited: 28 Apr 2015 10:05
Last Modified: 28 Apr 2015 10:05
URI: http://eprints.glos.ac.uk/id/eprint/1615

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