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Cited by 342

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Customer loyalty and the effect of switching costs as a moderator variable: A case in the Turkish mobile phone market

Aydin, Serkan, Özer, Gökhan, Arasil, Ömer·2005·Marketing Intelligence & Planning
DOI 10.1108/02634500510577492
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Abstract

Purpose: In the GSM mobile telephony sector, the main condition for protecting the subscriber base is to win customer loyalty, a key necessity for the maintenance of a brand's life in the long term. To achieve this aim, customer satisfaction and trust must be measured and “switching costs” identified. The latter render subscribers' preference for rival operators more expensive. In this connection, this paper's aim is to measure the effects of customer satisfaction and trust on customer loyalty, and the direct and indirect effect of “switching cost” on customer loyalty. Design/methodology/approach: The data set covered 1,662 mobile phone users in Turkey. The data were analyzed by moderated regression analysis to test the hypotheses. Findings: The findings of this study show that the switching cost factor directly affects loyalty, and has a moderator effect on both customer satisfaction and trust. Therefore, it plays a crucial role in winning customer loyalty. In short, it is a quasi moderator. However, switching costs was measured as a unidimensional factor, but switching costs in fact contains psychological, financial and procedural sub‐dimensions. Therefore, future research might measure the sub‐dimensions of switching costs and examine their moderating effects. Originality/value: With respect to the findings, trust has more importance than customer satisfaction in engendering loyalty, since trust contains belief in the brand, which provides positive outcomes not only in the present but also in the future. But customer satisfaction does not contain this dimension. So, the effect of trust on loyalty becomes greater than the effect of customer satisfaction. Therefore, any GSM operator who wishes to preserve its existing subscriber base should concentrate on winning its subscribers’ trust.

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Metadata

Authors
Aydin, S., Özer, G., & Arasil, Ö.
Venue
Marketing Intelligence & Planning
Publisher
Emerald
Published
2005-01-01
Volume
23
Issue
1
Pages
89-103
ISSN
0263-4503 (ISSN-L)
DOI
10.1108/02634500510577492
OpenAlex
W1534134546
Cited by
342
References
11
FWCI
13.21
Type
journal article
Language
en
Open access
closed
Licence
www.emerald.com/insight/site-policies (tdm)

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Aydin, S., Özer, G., & Arasil, Ö. (2005). Customer loyalty and the effect of switching costs as a moderator variable: A case in the Turkish mobile phone market. Marketing Intelligence & Planning. https://doi.org/10.1108/02634500510577492

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