Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context Academic Article uri icon

abstract

  • Although researchers and managers pay increasing attention to customer value, satisfaction, loyalty, and switching costs, not much is known about their interrelationships. Prior research has examined the relationships within subsets of these constructs, mainly in the business-to-consumer (B2C) environment. The authors extend prior research by developing a conceptual framework linking all of these constructs in a business-to-business (B2B) service setting. On the basis of the cognition-affect-behavior model, the authors hypothesize that customer satisfaction mediates the relationship between customer value and customer loyalty, and that customer satisfaction and loyalty have significant reciprocal effects on each other. Furthermore, the potential interaction effect of satisfaction and switching costs, and the quadratic effect of satisfaction, on loyalty are explored. The authors test the hypotheses on data obtained from a courier service provider in a B2B context. The results support most of the hypotheses and, in particular, confirm the mediating wie of customer satisfaction.

author list (cited authors)

  • Lam, S. Y., Shankar, V., Erramilli, M. K., & Murthy, B.

citation count

  • 977

publication date

  • July 2004