Relational switching costs, satisfaction and commitment

Hari Vasudevan · Sanjaya Singh Gaur · Rajesh Kumar Shinde

64 citations0/0 files storedAsia Pacific Journal of Marketing and Logistics

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Customer Service Quality and Loyalty Quality and Supply Management Outsourcing and Supply Chain Management

Abstract

Purpose This study attempts to understand the impact of relational switching costs and satisfaction on commitment as well as its impact on the satisfaction – commitment link in a supplier‐to‐manufacturer context in manufacturing. Design/methodology/approach The data for this study were collected from the small and medium size manufacturing firms located in and around Mumbai. A total of 67 CEOs/business heads were randomly selected and personally interviewed with the help of a structured questionnaire. Findings Study strengthens the view that small and medium enterprises need to invest in relationships so that such investments are turned into relational switching barriers and they would thereby help in increasing customer retention. It also shows that if relational switching costs are higher, then even if satisfaction is lower the customer is less likely to terminate the relationship. Research limitations/implications For marketing practitioners, the findings validate the long‐held belief that relationship marketing orientation is critical for business performance. However, data in this study were obtained from manufacturing firms, which are into plastics and light engineering sector. Replication of this study on a wider scale across different industries is essential for the generalization of the findings. Further, it could be useful to explore the complexities of the relationship between relational switching costs and other types of switching costs like the set‐up and financial costs. Originality/value Although empirical studies have dealt with the customers’ switching behaviour, the concept of relational switching costs and its impact on other relational parameters is relatively new. This study's unique contribution is in this direction.

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References

1994The Commitment-Trust Theory of Relationship Marketing 1992Measuring Service Quality: A Reexamination and Extension 1987Developing Buyer-Seller Relationships 1959The Social Psychology of Groups 1990A Model of Distributor Firm and Manufacturer Firm Working Partnerships 1992Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations 1993Factors Affecting Trust in Market Research Relationships 1992Marketing Services: Competing Through Quality

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