AJIBM  Vol.8 No.4 , April 2018
Customer Satisfaction, Switching Costs and Customer Loyalty: An Empirical Study on the Mobile Telecommunication Service
Abstract: Previous research mentioned that Customer satisfaction and switching cost play an important role on customer loyalty. Based on empirical study, this present research attempts to evaluate the effect of the switching cost on customer loyalty and identify which one among switching cost dimensions and Customer satisfaction has the most influence on customer loyalty; then investigate the moderate effect of switching cost between customer satisfaction and customer loyalty link. To test the theoretical model, 300 questionnaires were self-administered to the subscribers of all mobile telecommunication providers in Madagascar and 273 questionnaires were returned with 253 questionnaires claimed efficient. Then SPSS 20.0 and regression method was used to establish the relationship between the dependent and independent variables. The findings indicate that there is significant relationship between switching cost and customer loyalty, then customer satisfaction and customer loyalty. It is also showed that among the dimensions of switching cost, financial cost has the most influence on customer loyalty. Even though switching cost shows up a strong effect to customer loyalty, it is always proved that satisfaction is the most significant cause to steer the loyalty from customers. The relationship between satisfaction and customer loyalty is moderated by the financial cost and relational cost.
Cite this paper: Willys, N. (2018) Customer Satisfaction, Switching Costs and Customer Loyalty: An Empirical Study on the Mobile Telecommunication Service. American Journal of Industrial and Business Management, 8, 1022-1037. doi: 10.4236/ajibm.2018.84070.

[1]   Kotler (2009) Marketing Management (Millenium Ed.).

[2]   Picon, A., et al. (2014) The Relationship between Satisfaction and Loyalty: A Mediator Analysis’. Journal of Business Research, 67, 746-751.

[3]   Fornell, C., Johnson, M.D., Anderson, E.W., Jaesung, C. and Bryant, B.E. (1996) The Americain Customer Satisfaction Index: Nature, Purpose and Findings. Journal of Marketing, 60, 7-18.

[4]   Bruner, et al. (2003) Consumer Switching Costs: A Typology, Antecedents, and Consequences. Journal of the Academy of Marketing Science, 31, 109-126.

[5]   Doreén, P. and Martin Eisend, J. (2014) Switching Is Easy—Service Firm Communications to Encourage Customer Switching. Journal of Retailing and Consumer Services, 21, 502-509.

[6]   Joseph, O.J. and Joachim, A.J. (2009) Switching Cost and Customers Loyalty in the Mobile Phone Market: The Nigerian Experience. Business Intelligence Journal, 3, 111-121.

[7]   Miranda-Gumucio, L., et al. (2013) An Exploratory Study of the Determinants of Switching and Loyalty in Prepaid Cell Phone Users: An Application of Concept Mapping. Service Business, 7, 603-622.

[8]   Deng, Z., Lua, Y., Weib, K. and Zhang, J. (2009) Understanding Customer Satisfaction and Loyalty: An Empirical Study of Mobile Instant Messages in China. International Journal of Information Management, 30, 289-300.

[9]   Markus, B., et al. (2015) How Procedural, Financial and Relational Switching Costs Affect Customer Satisfaction, Repurchase Intentions and Repurchase Behaviour: A Meta-Analysis. International Journal of Research in Marketing, 32, 226-229.

[10]   Chung, K.H., et al. (2015) The Effects of CSR on Customer Satisfaction and Loyalty in China: The Moderating Role of Corporate Image. Journal of Economics, Business and Management, 3, 542-547.

[11]   Narjes, H. and Jean-Charles (2014) The Double-Edged Sword: The Positive and Negative Effects of Switching Costs on Customer Exit and Revenge. Journal of Business Research, 67, 1106-1113.

[12]   Jean-Charles, et al. (2011) More on the Role of Switching Costs in Service Markets: A Research Note. Journal of Business Research, 64, 823-829.

[13]   Astous. (2005) The Project of Marketing Research. Chenelière Education, Montreal.

[14]   Jones, M., Mothersbaugh, D. and Beatty, S. (2002) Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Costs and Managing Their Differential Strategic Outcomes. Journal of Business Research, 55, 441-450.

[15]   Lee, J. and Feick, L. (2001) The Impact of Switching Costs on the Customer Satisfaction-Loyalty Link: Mobile Phone Service in France. Journal of Services Marketing, 15, 35-48.