The Impact of Switching Costs Upon the Service Quality–Perceived Value–Customer Satisfaction–Service Loyalty Chain: A Study in the Context of Cellular Services in India

Abstract

Abstract It is a common wisdom in the cellular service industry that high switching costs increase customer loyalty to a service provider and vice versa. Academic studies, too, have shown this to be true. However, a comprehensive understanding of the direct and indirect interactions of the nomologically proximate concepts of switching costs, service quality, perceived value, customer satisfaction, and customer loyalty has not yet been accomplished; in the present study, we attempt to do the same. In particular, the interaction effects of switching costs upon the service quality-perceived value link and the satisfaction-loyalty link are explored, and in both cases the effects are shown to be significant. To test these relationships, an empirical study among the mobile phone service users in India was carried out. Implications of the study for marketing theory and practice are discussed. KEYWORDS: cellular servicescustomer satisfactionIndialoyaltymoderating effectperceived valueservice qualityswitching costs Notes Note. SQ = service quality; PV = perceived value; SC = switching costs; PSQ = perceived service quality; PSC = perceived switching costs. Note. CS = customer satisfaction; SC = switching costs; CL = customer loyalty; PSC = perceived switching costs. Note. PSQ = perceived service quality; PV = perceived value; PSC = perceived switching costs. Note. CS = customer satisfaction; PCS = perceived customer satisfaction; CL = customer loyalty. Note. PSQ = perceived service quality; PSC = perceived switching costs. Note. CS = customer satisfaction; PSC = perceived switching costs. Note. CS = customer satisfaction; PSC = perceived switching costs.. a R2 = .294 (Adjusted R 2 = .279).