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New Insights in the Moderating Effect of Switching Costs on the Satisfaction-Repurchase Behavior Link

Lookup NU author(s): Professor Markus Blut

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Abstract

Existing studies on the role of switching costs (SC) as moderator of the relationship between satisfaction and repurchase behavior are inconclusive. We attempt to explain these inconclusive findings by synthesizing an amplifying and a lock-in effect, and hypothesize a nonlinear moderating effect. In Study 1 (a main study and three replications), we find strong evidence for an inverted u-shaped moderating effect of overall SC. Our results suggest that satisfaction is a particularly important predictor of repurchase behavior in situations characterized by medium-levels of SC. Based on Prospect Theory, Study 2 (a main study and one replication) reveals that this inverted u-shaped moderating effect of SC is stronger for positive (relational and financial) SC than for negative (procedural) SC. We conclude with recommendations for satisfaction management of different customer segments, and describe possibilities to influence customer switching costs in various industries.

Publication metadata

Author(s): Nagengast L, Evanschitzky H, Blut M, Rudolph T

Publication type: Article

Publication status: Published

Journal: Journal of Retailing

Year: 2014

Volume: 90

Issue: 3

Pages: 408-427

Print publication date: 01/09/2014

Online publication date: 26/04/2014

Date deposited: 27/04/2015

ISSN (print): 0022-4359

ISSN (electronic): 1873-3271

Publisher: Pergamon

URL: http://dx.doi.org/10.1016/j.jretai.2014.04.001

DOI: 10.1016/j.jretai.2014.04.001

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