Understanding the Customer Base of Service Providers: An Examination of the Differences between Switchers and Stayers
Open accessAbstract
Creating and maintaining customer loyalty has become a strategic mandate in today's service markets. Recent research suggests that customers differ in their value to a firm, and therefore customer retention and loyalty-building efforts should not necessarily be targeted to all customers of a firm. Given these sentiments, it is becoming increasingly necessary for firms to have a thorough understanding of their customer base. Yet current knowledge is limited in providing insights to firms regarding the differences within their customer base. This research comprises two studies in which the authors examine the differences among internal customer groups in a service industry. As theory suggests and as is empirically validated here, customers who have switched service providers because of dissatisfaction seem to differ significantly from other customer groups in their satisfaction and loyalty behaviors. The findings offer some interesting implications for both marketing theory and practice.
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Customer switching negatively affects companies' market share and profitability.
“Customer switching has negative consequences on companies’ market share and profitability (Ganesh et al. 2000).”
From Health insurance policy renewal: an exploration of reputation, performance, and affect to understand customer inertia (2022) · cites this paper as Ganesh et al. 2000
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- Authors
- Ganesh, J., Arnold, M. J., & Reynolds, K. E.
- Affiliations
- University of Central Florida (US)
- ORCID
- Ganesh, Jaishankar
- Venue
- Journal of Marketing
- Publisher
- SAGE Publications
- Published
- 2000-07
- Volume
- 64
- Issue
- 3
- Pages
- 65-87
- ISSN
- 0022-2429 (ISSN-L)
- 1547-7185
- OpenAlex
- W2159105921
- Cited by
- 1,305
- References
- 112
- Citations by year
- 2026: 9 · 2025: 23 · 2024: 36 · 2023: 32 · 2022: 37 · 2021: 61 · 2020: 67 · 2019: 73 · 2018: 61 · 2017: 68 · 2016: 70 · 2015: 71 · 2014: 70 · 2013: 75 · 2012: 73
- FWCI
- 32.44
- Type
- journal article
- Language
- en
- Open access
- Locations
- Journal of Marketing (publishedVersion)
- Journal of International Crisis and Risk Communication Research (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 switching, customer retention, customer loyalty, customer satisfaction, customer segmentation, service providers, customer value, customer dissatisfaction
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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