Customer Switching Resistance

Effects of Switching Barriers on Satisfaction, Repurchase Intentions and Attitudinal Loyalty

Claes-Robert Julander Ragnar Söderberg Professor of Business Administration Center for Consumer Marketing Stockholm School of Economics1

Magnus Söderlund Associate Professor Center for Consumer Marketing Stockholm School of Economics

SSE/EFI Working Paper Series in Business Administration. No. 2003:1. Stockholm: January 2003.

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Claes-Robert Julander Stockholm School of Economics Box 6501 se 113 83 Stockholm Sweden Phone: [phone] Fax: [phone] Email: [e-mail]

Effects of Switching Barriers on Satisfaction, Repurchase Intentions and Attitudinal Loyalty

ABSTRACT The positive effect of customer satisfaction on repurchase intentions and attitudinal loyalty has been shown in numerous studies. The effect of switching barriers on these variables, however, have been subject to much less attention from researchers. In this study we propose that switching barriers can be seen as either positive or negative, and we examine their effects on customer satisfaction, repurchase intentions and attitudinal loyalty. A LISREL analysis of the empirical data shows that negative switching barriers have negative effects on customer satisfaction and attitudinal loyalty, but a positive effect on repurchase intentions. Positive switching barriers impinge positively on customer satisfaction, repurchase intentions and attitudinal loyalty. Keywords: Switching barriers, loyalty, satisfaction, repurchase intentions

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Introduction Numerous studies show that customer satisfaction is related to repurchase intentions and attitudinal loyalty (Cronin & Taylor, 1992; Fornell, 1992; Anderson & Sullivan, 1990; Boulding, Kalra, Staeling, & Zeithaml, 1993; Taylor & Baker 1994; de Ruyter, Wetzels, & Bloemer, 1996; Zeithamel, Berry, & Parasuraman, 1996; Mägi & Julander 1996). However, customer satisfaction never explains all of the variation in repurchase

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