• Title/Summary/Keyword: switching behavior of customers

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The Effects of Customers' Chemyeon and Relationship Benefits on Switching Behavior for Apparel Purchases (의류소비자의 체면중시와 관계혜택이 전환행동에 미치는 영향)

  • Suh, Yong-Han
    • Fashion & Textile Research Journal
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    • v.10 no.6
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    • pp.900-906
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    • 2008
  • This study investigated factors influencing consumers' switching behavior in apparel purchasing situation. As customer switching behavior is getting more and more important, a considerable amount of researches have focused on how service providers acquire and sustain customers. The field of customers' switching behavior has been relatively well researched over the years, at least from the perspective of the cultural value(Chemyen). The purpose of this study is to understand customer' switching behavior to relationship benefits and Chemyeon. The sample was consisted on 182 females over 20 years old living in Ulsan and Gyungnam province. The data was analyzed by frequency, reliability, factor analysis, and structural equation model analysis. Findings showed that Chemyeon was shown to reduce customer' switching behavior. Also, three factors of relationship benefits(economic benefit, social·psychological benefit, and special treatment benefit) had negative effects on customer' switching behavior.

The Effects of Consumer Perception and Propensity on Satisfaction and Switching Intention (소비자 지각 및 성향이 만족도와 전환의도에 미치는 영향)

  • Kim, Hyun-Kyung
    • Journal of Family Resource Management and Policy Review
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    • v.12 no.3
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    • pp.1-21
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    • 2008
  • Research has emphasized that relationship marketing programs enhance customer satisfaction and reduce switching intentions by building switching barriers. However, the psychological reactance theory demonstrates that building switching barriers can make customers fsel that the alternative not chosen is more attractive, because their freedom of choice has been deprived. It can be hypothesized that a relationship marketing program, which is intended to offer various benefits to customers, may not result in positive customer attitude and behavior. This paper examines the effects of relationship marketing programs on customers' perceptions of switching cost and loss of freedom. The effects of those perceptions on customer satisfaction and switching intentions were identified. In addition, the moderating role of personal reactance was examined. The results of this study suggest that (1) perceived switching cost has significant influence on boosting perceived loss of freedom; (2) perceived loss of freedom has no significant effects on customer satisfaction; (3) perceived loss of freedom enhances customers' switching intentions. Furthermore, psychological reactance has a significant influence on customers' switching intentions. This study concludes that the role of relationship marketing programs should be reconsidered, especially in terms of customers' switching intentions. Customer satisfaction is not the key factor of predicting customers' future behavior.

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A Study on the Relationship Marketing of Family Restaurant Toward Customers' Satisfaction, Switching Behavior and Store Loyalty (패밀리 레스토랑의 관계마케팅활동이 만족, 전환행동 및 점포 애호도에 미치는 영향관계)

  • Kim, Young-Kyu;Choi, Young-Joon
    • Journal of the Korean Society of Food Culture
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    • v.19 no.5
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    • pp.544-555
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    • 2004
  • The purpose of this study is to highlight the importance of relationship marketing which has been developed as an alternative way of handling marketing in family restaurants. This study focused on the consumers' behavior - mainly their switching behavior and loyalty toward relationship marketing activities exercised by from family restaurants. 269 usable questionnaires were collected from customers patronizing three family style restaurants in Seoul. Several statistical methods were used including descriptive analysis, reliability test, covariance analysis, confirmatory factor analysis, and covariance structural analysis. The result drawn from empirical test proved that relationship marketing activities actually are the significant determinants of relationship quality and thus to the customers' behaviors toward the restaurants they patronize. Managerial implications can be drawn from the result findings that restaurant companies can identify the activities of relationship marketing to continue the long-term relationship with their customers. Also restaurant companies can use the activities of relationship marketing as differentiating strategies, and allocate their resources into the activities of relationship marketing.

Examining the Effect of Online Switching Cost on Customers' Willingness to Pay More

  • Kim, Hee-Woong;Gupta, Sumeet;Lee, So-Hyun
    • Asia pacific journal of information systems
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    • v.23 no.1
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    • pp.21-43
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    • 2013
  • Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers'lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer's willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers' willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

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A Study on Interaction of Cause and Effect among Personal Involvement, Satisfaction, Trust, Switching Cost and Loyalty Regarding Casual Dining Restaurant (레스토랑에 대한 소비자의 개인적 관여도와 만족, 신뢰, 전환비용, 충성도의 인과관계 연구)

  • Cho, Woo-Je
    • Journal of the Korean Society of Food Culture
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    • v.24 no.5
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    • pp.496-505
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    • 2009
  • This study was conducted to provide basic data and insight into behaviors that result in increased continuous sales and competitiveness. This was done by examining the effect of personal involvement on customer satisfaction and trust, the effect of customer satisfaction on switching cost and loyalty, the effect of trust on switching cost and loyalty and by analyzing the indirect effect of trust and loyalty to personal involvement on switching cost and loyalty of the patrons of casual dining restaurants. In order to achieve the goals of the study, a hypothesis and structural equation were proposed based on preceding research and the proposed model was analyzed using LISREL 8.30 to prove the hypothesis and better understand the interactions between the cause and effect. The results were as follows: Six proposed hypothesis were chosen and the indirect effect was verified. In other words, customers' personal involvement was shown to have an effect on trust and devotion and satisfaction influenced switching cost and loyalty. Trust had an effect on switching cost and loyalty and by analyzing the indirect effect the customers' personal involvement was shown to affect the switching cost and loyalty through satisfaction and trust. The result of this analysis provides clues to better understand the eating-out behavior of customers and proves that personal involvement, satisfaction, trust, switching cost and loyalty are directly and indirectly related.

A Study on the Affecting Factors and Effects of Switching Costs in On-line shopping mall (온라인 쇼핑몰 전환비용의 영향 요인과 효과에 관한 연구)

  • Han, Pil Koo;Kang, Seong Chul;Jun, Byoung Ho
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.7 no.3
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    • pp.137-150
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    • 2011
  • Long-term customer retention strategies with switching cost is very important for gaining a competitive advantage in on-line shopping mall environment. The purpose of this study is to investigate the affecting factors of switching cost in terms of on-line shopping mall's quality and the effects of it on customers' behavior moderating commitment. According to the result, information quality and customized information were found to be significantly related to social switching cost, and also royalty program and product differentiation were found to be significantly related to lost benefit cost and procedural cost respectively. When it comes to the relationship between switching cost and commitment, results shows that social switching cost is not significantly related to affective commitment. Lost benefit cost and procedural cost, however, were found to be significantly related to affective commitment and calculative commitment respectively. Finally, affective commitment was found to bolster repurchase intention and control negative WOM, and calculative commitment was found to bolster both repurchase intention and negative WOM.

Stage of Service Switching Behavior based on the Transtheoretical Model: Focused on Accommodation Sharing Economy Service (범이론적 모형에 기반한 서비스 전환 행동 단계 연구: 숙박공유경제 서비스를 중심으로)

  • Byounggu Choi
    • Information Systems Review
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    • v.19 no.4
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    • pp.183-209
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    • 2017
  • With changes in information technology (IT), many innovative IT-based services, such as AirBnB, have become popular. Switching behavior toward new and innovative services become a major issue for managers who want to attract many customers. In response, many researchers have investigated why customers switch service providers. However, little research has been conducted on the processes of switching behavior for a hedonic service. To fill this research gap, this study aimed to identify the stages of switching behavior based on transtheoretical model. Furthermore, the factors affecting the service switching behavior in stages were identified on the basis of service provider switching model. This study also hypothesized the customer's switching behavior in accommodation sharing economy service and analyzed it empirically. Results showed that the factors affecting switching behavior differ across five stages. The present results can provide a basis to prevent switching behavior and reduce churn by analyzing the difference in switching behavior among stages. This study also helps managers who want to improve organizational performance by enhancing customer retention capability.

Study on the Switching behavior of Customers of Local Monopolistic Department Store (지방 독점 백화점 고객들의 전환행동에 관한 연구)

  • Kang, Hee-Suk
    • Journal of Global Scholars of Marketing Science
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    • v.12
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    • pp.29-57
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    • 2003
  • Customers of local monopolistic department store can switch their store more easily than ever due to the rapidly changing environment in distribution system represented by multi-store-strategy of large department stores, increase in discount store and growing non-store retailing system. Consequently, local department stores which enjoyed their business with little competition are forced to study and understand the customer switching behavior. This work is intended to understand the switching behavior characteristics of monopolistic local clepartrrent store users. For the end, previous researches are reviewed firstly, then characteristics of store-switching behavior of custorrers amid rapidly changing distribution environment are studied in view of the relations of dissatisfaction factor, switching barrier, switch intention and custorrer characteristics such as shopping orientation, variety-seeking behavior, degree of openess to competition and sociodemographics. Study shows that; 1) dissatisfaction factor is related to customer characteristics (shopping orientation and degree of openess to competition), 2) switching barrier recognition is related to customer characteristics (degree of openess to competition and sociodemographics) and dissatisfaction factor, 3) intention to switch to expected competitor is related to customer characteristics (shopping orientation, degree of openess to competition and sociodemographics) and switching barrier recognition. Accordingly, switch control strategy of the monopolistic local department store facing competitors' entry into market, must be made, specifically, in a way to understand customer characteristics and to make deliberate effort to reduce customer dissatisfaction.

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The Effects of Hospitals' CRM Activities on Customers' Relationship States and Customers' Behavior Intention (고객지식을 활용한 병원 CRM활동이 고객관계상태 및 향후 행동 의도에 미치는 영향)

  • Kang, Soo-Young;Oh, Pyeong-Seok;Kim, Sang-Man
    • Knowledge Management Research
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    • v.12 no.3
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    • pp.39-58
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    • 2011
  • As the information from today's knowledge-based society alters the awareness of patients and provides a wider selection of medical institutions, the reality of medical institution management is struggling compared to the past. CRM was introduced to domestic hospitals as marketing strategy to dominate the competition under varying medical environment. Thus, this research invests on CRM activity types used in hospitals and the effects of CRM activities toward loyalty and switching intention. Futhermore, we investigate the mediating role of customer relationship commitment and termination in CRM activities. The subjects in this study included three hundred customers who are using hospital settings or who had experience with using the hospital settings. The researcher collected 262 survey questionnaires from May 23th, 2011 to June first. In order to evaluate the hypothesis in this study, structural equation model was analyzed by using AMOS 18.0.

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Customer Complaint Intention in the Service Distribution Industry : Types and Determinants (서비스 유통 산업에서 고객 불평의도 유형과 결정요인)

  • Cho, Hyun-Jin
    • Journal of Distribution Science
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    • v.16 no.8
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    • pp.69-77
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    • 2018
  • Purpose - With growing competition in the service distribution industry, the importance of managing customer complaints has increased. If firms handle customer complaints effectively, they can strengthen customer loyalty and repurchase intention. Many studies have focused on customers expressing complaints, yet research on silent customers is scant. This study focuses on two types of complainers and non-complainers. In other words, this study is to examine the value of voice complaint intention and no-action intention. This study also investigates how perceptual and relational factors affect complaint intention. Research design, data, and methodology - This study was carried out using the survey with undergraduate students who have faced a service failure in a retail store(fast foods, electronics, apparel). And if such complaint were to occur again, respondents were asked about any possible action they would take. 300 questionnaires were distributed and a total of 279 respondents provided complete and usable data. The sample consisted of 158 males(56.6%) and 121 females(43.4%). The structural equation modeling analysis was used for the hypothesis test. Results - The results are as follows. First, attitude toward complaining, likelihood of successful complaint, and ease of complaint were positively related to voice complaint intention. Second, attitude toward complaining, likelihood of successful complaint, and ease of complaint were negatively related to no-action intention. Third, commitment was positively related to voice complaint intention but didn't have a significant negative impact on no action. Forth, voice complaint behavior reduced switching intention and no-action intention enhanced switching intention. Conclusions - The findings of this study confirm the value of complaint behavior and show voice complaint intention and no-action intention should be managed differently. Voice complaint intention is evaluated positively because it reflects customers' concerns about the company, while no-action intention is evaluated negatively. Attitude toward complaing is the most effective in increasing voice complaint intention and likelihood of successful complaint is a major factor in reducing no-action intention. Also, in explaining switching intention, voice complaint intention plays a more important role than no-action intention.