The effects of relationship quality and switching barriers on customer loyalty

• Published in: International journal of information management Vol. 31; no. 1; pp. 71 - 79
• Main Authors: Liu, Chung-Tzer, Guo, Yi Maggie, Lee, Chia-Hui
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.02.2011; Elsevier; Elsevier Science Ltd
• Subjects: Barriers; Brand loyalty; Cell phones; Construction; Consumer relations; Customer satisfaction; Customer services; Exact sciences and technology; Hypotheses; Information and communication sciences; Information management; Information science. Documentation; Library and information science. General aspects; Loyalty; Mathematical analysis; Mathematical models; Mobile telecommunication service; Quality of service; Relationship quality; Sciences and techniques of general use; Studies; Switching; Switching barrier; Trust; Use and user studies. Information needs; Wireless carriers; Taiwan; Switching barrier; Loyalty; Mobile telecommunication service; Relationship quality; Use study
• ISSN: 0268-4012; 1873-4707
• DOI: 10.1016/j.ijinfomgt.2010.05.008

Because the cost of attracting new customers is much higher than the cost of retaining old customers, keeping customers loyal is a crucial issue for service firms. This research explores how relationship quality and switching barriers influence customer loyalty. Relationship quality consists of two aspects: satisfaction and trust. Antecedents of satisfaction and trust are explored. To test the proposed research model, a survey research methodology was used. Paper survey was distributed to mobile phone users in Taiwan. A total of 311 valid questionnaires were returned. Structural equation modeling was used to test hypotheses. Satisfaction, trust, and switching barriers have positive effects on loyalty. In terms of antecedents, it was found that playfulness and service quality impact satisfaction while service quality and intimacy affect trust. From a managerial perspective, this research suggests that practitioner should not only keep improving service quality, but also provide playfulness to ensure customer satisfaction. Service providers should also build relationship quality and switching barriers to reduce the possibility of defection and enhance customer loyalty.