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

Liane Nagengast; Heiner Evanschitzky; Markus Blut; Thomas Rudolph

doi:10.1016/j.jretai.2014.04.001

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 journal › Article › peer-review

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	https://doi.org/10.1016/j.jretai.2014.04.001
Publication status	Published - Sept 2014

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

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10.1016/j.jretai.2014.04.001

New insights in the moderating effect of switching costs on the satisfaction–repurchase behavior link
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
Accepted author manuscript, 550 KB

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

Abstract

Bibliographical note

Keywords

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