Securing business-to-business relationships

the impact of switching costs

Research output: Contribution to journalArticle

Abstract

While the relationship marketing literature acknowledges the importance of switching costs for increasing customer retention, little is known about its relevance in industrial markets. In particular, it is unclear whether switching costs, and associated dimensions, impact on behavioral outcomes of buyer–seller relationships in business-to-business (B2B) markets. In order to contribute to theory development in this important area, our research first explores the dimensions of switching costs for the B2B domain and also tests the relative impact of these dimensions on business customers' actual purchase behavior. Results suggest that switching costs in B2B settings are a multi-faceted construct, including (i) procedural, (ii) financial, and (iii) relational switching costs. Moreover, we find relational switching costs to be most important for securing B2B buyer–seller relationships since they impact a customer's (a) share-of-wallet, (b) cross-buying behavior, and (c) actual switching behavior. While procedural switching costs only influence share-of-wallet, financial switching costs solely impact customer's cross-buying behavior. These findings contribute to a better understanding on how to secure B2B buyer–seller relationships.
Original languageEnglish
Pages (from-to)82-90
Number of pages9
JournalIndustrial Marketing Management
Volume52
Early online date23 May 2015
DOIs
Publication statusPublished - Jan 2016

Fingerprint

Business-to-business relationships
Switching costs
Share of wallet
B2B relationships
Cross-buying
Buying behaviour
Industrial markets
Switching behavior
Theory development
Business-to-business (B2B)
Customer retention
Purchase behavior

Bibliographical note

© 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • buyer–seller relationships
  • switching costs
  • purchase behavior
  • customer satisfaction
  • mixed-method approach

Cite this

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title = "Securing business-to-business relationships: the impact of switching costs",
abstract = "While the relationship marketing literature acknowledges the importance of switching costs for increasing customer retention, little is known about its relevance in industrial markets. In particular, it is unclear whether switching costs, and associated dimensions, impact on behavioral outcomes of buyer–seller relationships in business-to-business (B2B) markets. In order to contribute to theory development in this important area, our research first explores the dimensions of switching costs for the B2B domain and also tests the relative impact of these dimensions on business customers' actual purchase behavior. Results suggest that switching costs in B2B settings are a multi-faceted construct, including (i) procedural, (ii) financial, and (iii) relational switching costs. Moreover, we find relational switching costs to be most important for securing B2B buyer–seller relationships since they impact a customer's (a) share-of-wallet, (b) cross-buying behavior, and (c) actual switching behavior. While procedural switching costs only influence share-of-wallet, financial switching costs solely impact customer's cross-buying behavior. These findings contribute to a better understanding on how to secure B2B buyer–seller relationships.",
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Securing business-to-business relationships : the impact of switching costs. / Blut, Markus; Evanschitzky, Heiner; Backhaus, Christof; Rudd, John; Marck, Michael.

In: Industrial Marketing Management, Vol. 52, 01.2016, p. 82-90.

Research output: Contribution to journalArticle

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