A model of customer retention of dissatisfied business services customers
Abstract
Purpose: The purpose of this paper is to present a theoretical framework of the factors that potentially influence dissatisfied customers to continue purchasing from their existing service provider in the business‐to‐business (B2B) services sector. Design/methodology/approach: This review paper synthesises the findings from previous studies on switching barriers, and relationship variables, dependence, and calculative commitment. Findings: Five major factors deter customers from switching to an alternative service provider: switching costs; interpersonal relationships; the attractiveness of alternatives; service recovery; and inertia. These factors are mediated by dependence and calculative commitment. Originality/value: This is the first comprehensive study of the factors that potentially influence dissatisfied customers to remain behaviourally loyal to a service provider in the B2B services sector. This important study has significance for marketers in developing strategies for customer retention and service recovery.
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The first perspective on customer inertia is associated with lack of attractive alternatives, and the second describes inertia as a function of customers' passivity, inactivity, and non-conspicuousness.
“The first perspective on customer inertia has been associated with lack of attractive alternatives (Bozzo 2002; Colgate and Lang 2001) and the second described inertia as a function of customers’ passivity, inactivity, and non-conspicuousness (White and Yanamandram 2007).”
From Health insurance policy renewal: an exploration of reputation, performance, and affect to understand customer inertia (2022) · cites this paper as White and Yanamandram 2007
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- Authors
- White, L., & Yanamandram, V.
- Affiliations
- Macquarie University (AU)
- University of Wollongong (AU)
- Venue
- Managing Service Quality: An International Journal
- Publisher
- Emerald
- Published
- 2007-05-22
- Volume
- 17
- Issue
- 3
- Pages
- 298-316
- ISSN
- 0960-4529 (ISSN-L)
- OpenAlex
- W2023337817
- Cited by
- 99
- References
- 113
- Citations by year
- 2026: 1 · 2024: 4 · 2023: 4 · 2022: 4 · 2021: 6 · 2020: 2 · 2019: 5 · 2018: 8 · 2017: 8 · 2016: 9 · 2015: 7 · 2014: 4 · 2013: 13 · 2012: 6
- FWCI
- 7.14
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Managing Service Quality (publishedVersion)
- Research Online (University of Wollongong) (submittedVersion)
- Figshare (submittedVersion)
- 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 retention, customer dissatisfaction, business-to-business services, switching barriers, switching costs, interpersonal relationships, dependency, calculative commitment, service recovery, inertia, behavioral loyalty
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