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Cited by 702Customer Service Quality and LoyaltyCustomer churn and segmentationService and Product Innovation

The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting

Ranaweera, Chatura, Prabhu, Jaideep·2003·International Journal of Service Industry Management
DOI 10.1108/09564230310489231
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Abstract

Adopts a holistic approach that examines the combined effects of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. Argues that such an approach helps uncover hitherto neglected effects on retention and, in the process, unveils more cost effective ways of retaining customers. Drawing on this framework develops several hypotheses regarding the main and interaction effects of customer satisfaction, trust and switching barriers on retention. Tests these hypotheses on data from a large‐scale mail survey of fixed line telephone users in the UK, finding that both customer satisfaction and trust have strong positive effects on customer retention. Contrary to some assertions in the literature, however, finds that the effect of trust on retention is weaker than that of satisfaction. Nevertheless, the interaction between trust and satisfaction also has a significant effect on retention, indicating that building both customer satisfaction and trust is a superior strategy to a focus on satisfaction alone. Qualitative evidence from the survey offers further support for this finding. Even a “satisfying” service recovery process might be inadequate to prevent loss of trust, with significant implications for future consumer behaviour. Finally, the results show that switching barriers have both a significant positive effect on customer retention as well as a moderating effect on the relationship between satisfaction and retention. While service providers may be able to retain even dissatisfied customers who perceive high switching barriers, argues that ideally, firms should aim at a combined strategy that makes switching barriers act as a complement to satisfaction.

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Crossref · 10.1108/09564230310489231

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Authors
Ranaweera, C., & Prabhu, J.
Affiliations
  • Wilfrid Laurier University (CA)
  • University of Cambridge (GB)
ORCID
Venue
International Journal of Service Industry Management
Publisher
Emerald
Published
2003-10-01
Volume
14
Issue
4
Pages
374-395
ISSN
0956-4233 (ISSN-L)
DOI
10.1108/09564230310489231
OpenAlex
W2075578818
Cited by
700
References
50
Citations by year
2026: 12 · 2025: 16 · 2024: 31 · 2023: 39 · 2022: 23 · 2021: 53 · 2020: 42 · 2019: 31 · 2018: 45 · 2017: 35 · 2016: 41 · 2015: 49 · 2014: 68 · 2013: 50 · 2012: 44
FWCI
9.28
Type
journal article
Language
en
Open access
closed
Licence
www.emerald.com/insight/site-policies (tdm)
Locations
International Journal of Service Industry Management (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
  • Social Sciences › Business, Management and Accounting › Marketing › Customer churn and segmentation
  • Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
Keywords
customer satisfaction, consumer trust, switching barriers, customer retention, service recovery, interaction effects, moderating effect, customer loyalty

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