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.
| Original language | English |
|---|---|
| Pages (from-to) | 408-427 |
| Number of pages | 20 |
| Journal | Journal of Retailing |
| Volume | 90 |
| Issue number | 3 |
| Early online date | 26 Apr 2014 |
| DOIs | |
| Publication status | Published - Sep 2014 |
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Bibliographical note
NOTICE: this is the author’s version of a work that was accepted for publication in Journal of retailing. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Nagengast, L, Evanschitzky, H, Blut, M & Rudolph, T, 'New insights in the moderating effect of switching costs on the satisfaction-repurchase behavior link' Journal of retailing, vol. 90, no. 3 (2014) DOI http://dx.doi/10.1016/j.jretai.2014.04.001Keywords
- customer retention management
- customer satisfaction
- hierarchical regression
- prospect theory
- repurchase behavior
- switching costs
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New insights in the moderating effect of switching costs on the satisfaction-repurchase behavior link. / Nagengast, Liane; Evanschitzky, Heiner; Blut, Markus; Rudolph, Thomas.
In: Journal of Retailing, Vol. 90, No. 3, 09.2014, p. 408-427.Research output: Contribution to journal › Article
TY - JOUR
T1 - New insights in the moderating effect of switching costs on the satisfaction-repurchase behavior link
AU - Nagengast, Liane
AU - Evanschitzky, Heiner
AU - Blut, Markus
AU - Rudolph, Thomas
N1 - NOTICE: this is the author’s version of a work that was accepted for publication in Journal of retailing. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Nagengast, L, Evanschitzky, H, Blut, M & Rudolph, T, 'New insights in the moderating effect of switching costs on the satisfaction-repurchase behavior link' Journal of retailing, vol. 90, no. 3 (2014) DOI http://dx.doi/10.1016/j.jretai.2014.04.001
PY - 2014/9
Y1 - 2014/9
N2 - 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.
AB - 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.
KW - customer retention management
KW - customer satisfaction
KW - hierarchical regression
KW - prospect theory
KW - repurchase behavior
KW - switching costs
UR - http://www.scopus.com/inward/record.url?scp=84906099682&partnerID=8YFLogxK
U2 - 10.1016/j.jretai.2014.04.001
DO - 10.1016/j.jretai.2014.04.001
M3 - Article
AN - SCOPUS:84906099682
VL - 90
SP - 408
EP - 427
JO - Journal of Retailing
JF - Journal of Retailing
SN - 0022-4359
IS - 3
ER -