The effects of relationship quality and switching barriers on customer loyalty

  • Authors:

  • Chung-Tzer Liu;Yi Maggie Guo;Chia-Hui Lee

  • Affiliations:

  • Department of Business Administration, Soochow University, 56 Kuei Yang St., Sec. 1, Taipei 100, Taiwan, ROC;Department of Management Studies, University of Michigan - Dearborn, 19000 Hubbard Dr., Dearborn, MI 48141, USA;Department of Business Administration, Soochow University, 56 Kuei Yang St., Sec. 1, Taipei 100, Taiwan, ROC

  • Venue:
  • International Journal of Information Management: The Journal for Information Professionals
  • Year:
  • 2011

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Abstract

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.