New insights in the moderating effect of switching costs on the satisfaction-repurchase behavior link

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

*Corresponding author for this work

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)408-427
Number of pages20
JournalJournal of Retailing
Volume90
Issue number3
Early online date26 Apr 2014
DOIs
Publication statusPublished - Sep 2014

Fingerprint

Switching costs
Repurchase
Moderating effect
Replication
Inverted-U
Relationship satisfaction
Moderator
Industry
Lock-in effect
Prospect theory
Predictors

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.2014.04.001

Keywords

  • customer retention management
  • customer satisfaction
  • hierarchical regression
  • prospect theory
  • repurchase behavior
  • switching costs

Cite this

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title = "New insights in the moderating effect of switching costs on the satisfaction-repurchase behavior link",
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.",
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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 journalArticle

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