Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam
Switching cost highlights the way how companies create barriers to proactively prevent customer defection which directly and significantly affects customer loyalty and then companies’ performance. The purpose of this paper is to provide empirical evidences about the impact of switching cost on custo...
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| Format: | Article |
| Language: | English |
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Centre of Sociological Research, Szczecin
2017-05-01
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| Series: | Journal of International Studies |
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| Online Access: | http://jois.eu/?309,en_moderating-and-mediating-effects-of-switching-costs-on-the-relationship-between-service-value-customer-satisfaction-and-customer-loyalty-investigation-of-retail-banking-in-vietnam |
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| author | Vu Minh Ngo Drahomíra Pavelková |
| author_facet | Vu Minh Ngo Drahomíra Pavelková |
| author_sort | Vu Minh Ngo |
| collection | DOAJ |
| description | Switching cost highlights the way how companies create barriers to proactively prevent customer defection which directly and significantly affects customer loyalty and then companies’ performance. The purpose of this paper is to provide empirical evidences about the impact of switching cost on customer loyalty by examining its mediating and moderating effects on the relationships between service value, customer satisfaction and customer loyalty. Specially, two difference types of switching costs, positive one and negative one, are proposed and tested independently in order to provide more insights about their impacts. The data about switching costs and other constructs are collected from 261 retail banking customers, and analysed using structural equation modelling and moderated path analysis. It is found that positive switching costs increase customer loyalty by partly transforming the effect of service value and customer satisfaction into customer loyalty. While negative switching cost only mediates the service value-loyalty relationship. Moreover, only negative switching cost has significant moderating effect on the satisfaction-loyalty relationships. Finally, the analysis reveals that negative switching cost might also weaken good impacts from positive switching cost on satisfaction-loyalty relationships. |
| format | Article |
| id | doaj-art-ec711f9e06f240b2a4e833c335dd32ca |
| institution | OA Journals |
| issn | 2071-8330 2306-3483 |
| language | English |
| publishDate | 2017-05-01 |
| publisher | Centre of Sociological Research, Szczecin |
| record_format | Article |
| series | Journal of International Studies |
| spelling | doaj-art-ec711f9e06f240b2a4e833c335dd32ca2025-08-20T02:21:49ZengCentre of Sociological Research, SzczecinJournal of International Studies2071-83302306-34832017-05-0110110.14254/2071-8330.2017/10-1/1Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in VietnamVu Minh Ngo0Drahomíra Pavelková1Tomas Bata University in ZlínTomas Bata University in ZlínSwitching cost highlights the way how companies create barriers to proactively prevent customer defection which directly and significantly affects customer loyalty and then companies’ performance. The purpose of this paper is to provide empirical evidences about the impact of switching cost on customer loyalty by examining its mediating and moderating effects on the relationships between service value, customer satisfaction and customer loyalty. Specially, two difference types of switching costs, positive one and negative one, are proposed and tested independently in order to provide more insights about their impacts. The data about switching costs and other constructs are collected from 261 retail banking customers, and analysed using structural equation modelling and moderated path analysis. It is found that positive switching costs increase customer loyalty by partly transforming the effect of service value and customer satisfaction into customer loyalty. While negative switching cost only mediates the service value-loyalty relationship. Moreover, only negative switching cost has significant moderating effect on the satisfaction-loyalty relationships. Finally, the analysis reveals that negative switching cost might also weaken good impacts from positive switching cost on satisfaction-loyalty relationships.http://jois.eu/?309,en_moderating-and-mediating-effects-of-switching-costs-on-the-relationship-between-service-value-customer-satisfaction-and-customer-loyalty-investigation-of-retail-banking-in-vietnamcustomer satisfactionservice qualityservice valuecustomer loyaltypositive switching costsnegative switching costs |
| spellingShingle | Vu Minh Ngo Drahomíra Pavelková Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam Journal of International Studies customer satisfaction service quality service value customer loyalty positive switching costs negative switching costs |
| title | Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam |
| title_full | Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam |
| title_fullStr | Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam |
| title_full_unstemmed | Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam |
| title_short | Moderating and mediating effects of switching costs on the relationship between service value, customer satisfaction and customer loyalty: investigation of retail banking in Vietnam |
| title_sort | moderating and mediating effects of switching costs on the relationship between service value customer satisfaction and customer loyalty investigation of retail banking in vietnam |
| topic | customer satisfaction service quality service value customer loyalty positive switching costs negative switching costs |
| url | http://jois.eu/?309,en_moderating-and-mediating-effects-of-switching-costs-on-the-relationship-between-service-value-customer-satisfaction-and-customer-loyalty-investigation-of-retail-banking-in-vietnam |
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