Griffith Research Online
https://research-repository.griffith.edu.au
Inclusion of Switching Behaviour
into Relationship Marketing Model: A
Theoretical Model
Author
Alnaimi, Husam, Gyrd-Jones, Richard, Perkins, Helen
Published
2011
Conference Title
Proceedings of the Australian and New Zealand Marketing Academy Conference
Copyright Statement
Copyright remains with the authors 2011. The attached file is reproduced here in accordance with the
copyright policy of the publisher. For information about this conference please refer to the conference’s
website or contact the authors.
Downloaded from
http://hdl.handle.net/10072/45284
Link to published version
http://www.anzmac.org/conference
Inclusion of Switching Behaviour into Relationship Marketing Model: A Theoretical
Model
Husam Alnaimi. Griffith University. [email protected]
Richard Jones. Griffith University. [email protected]
Helen Perkins. Griffith University. [email protected]
Keywords; relationship marketing, relational bonds, switching behaviour, satisfaction,
relationship strength, loyalty.
Abstract
Relationship marketing authors have attempted to develop distinct models suitable for
investigating relationship marketing in different contexts. However, there is no agreement as
yet about the antecedents that best capture the characteristics of the relational exchange that
influences relationship marketing. Maintaining a long-term relationship with a customer is
one of the fundamental factors determining the value that the customer provides to the
company. A serious threat to achieving a long-term relationship is the customer’s switching
behaviour. This study develops a theoretical model of relationship marketing, which includes
customers’ switching behaviour (switchers and stayers), as a vital construct to understand the
relationship development process between customers and service providers. Also, hypotheses
to specify the association between the underlying models’ constructs were presented as a
basis for further study.
1
Introduction
Most relationship marketing scholars developed distinct models of relationship marketing by
considering customer satisfaction, relationship strength and customer loyalty (e.g. Bove and
Johnson, 2000, 2001; Garbarino and Johnson, 1999; Gwinner, Gremler and Bitner, 1998).
However, this study is concerned with advancing our understanding of long-term
relationships by developing a more complete model of relationship marketing, which includes
relational bonds and customers switching behaviour. This goal is consistent with Roos (1999),
who argues that even though many scholars have attempted to explain the development of
buyer-seller relationships, few have paid explicit attention to the role played by switching
behaviour in this process. Consequently, the current study seeks to contribute to the existing
literature by investigating the integration of customers’ switching behaviour as an important
component in the buyer-seller relationship development. The overall research issue can be
defined in the question: ‘What additional value in the explanation of the relationship
marketing process is provided through the inclusion of switching behaviour into an extended
relationship marketing model?’
Relational Bonds as Antecedent of Loyalty
To achieve sustainable loyalty in a competitive environment, service providers have to
identify the antecedence of loyalty. Relationship marketing authors have attempted to develop
distinct models suitable to investigate relationship marketing in different contexts. In
reviewing these models, it has been found that the most critical variables are customer
satisfaction, relationship strength and customer loyalty (Alrubaiee and Al-Nazer, 2010; Jane
and Goutam, 2009; Lin, Weng and Hsieh, 2003; Ndubisi, 2007; Wang and Liang, 2010; Yen,
Liu and Tuan, 2009). Within the relationship marketing literature, however, there is no
agreement as yet about the antecedents that best capture the characteristics of the relational
exchange that influences relationship marketing (Palmatier, Gopalakrishna and Houston,
2006). That is, which antecedents (when they are associated with customer satisfaction,
relationship strength and loyalty in one single model) provide a complete understanding of
successful relationship marketing? Although there are a number of variables that could be
useful as antecedents to customer satisfaction that ultimately maintain customer loyalty,
relationship marketing researchers have considered relational bonds - financial, social and
structural - as the cornerstone in relational exchange between customers and service providers
(e.g. Arantola, 2002; Berry, 1995; Hsieh, Chiu and Chiang, 2005; Palmatier, Gopalakrishna
and Houston, 2006; Smith, 1998; Wang, Liang and Wu, 2006). Customer bonding with their
service providers is an important element in achieving stable relationship marketing (Smith,
1998). Thus, any relationship trying to develop customer values through partnering activities
is likely to build a greater bonding between the customer and the marketer; additionally the
customer’s satisfaction may be enhanced through such bonding. As a result, the customer is
less likely to switch to another service provider (Sheth and Parvatiyar, 1995). For this reason,
the principle of relational bonds is a useful framework for any investigation, and it is clearly
necessary in developing such constructs (Smith, 1998).While there is some empirical
evidence to suggest that relational bonds are associated with customer satisfaction (e.g. Smith,
1998; Palmatier, Gopalakrishna and Houston, 2006; Wang, Liang and Wu, 2006), a number
of critical research gaps remain in regard to which other relational outcomes customer
satisfaction could be linked. One of these major gaps is the lack of any systematic
investigation into the impact of customer satisfaction on switching behaviour.
2
Customer’s Switching Behaviours
The switching behaviour of customers is becoming an area of interest in relationship
marketing. Various studies have discussed and investigated potential antecedents of customer
switching (Bansal and Taylor, 1999; Chiu, et al., 2005; Ganesh, Arnold and Reynolds, 2000;
Keaveney, 1995; Roos, 1999). Furthermore, several studies have indicated that satisfied
customers are less likely to display switching intentions (Szymanski and Henard, 2001).
Several authors have been examined the heterogeneous nature of the companies’ customer
base in order to analyse the differences between switchers and stayers (e.g., Chiu et al., 2005;
Ganesh, Arnold and Reynolds, 2000; Keaveney and Parthasarathy, 2001; Li, Browne and
Wetherbe, 2007). The current study aims to theoretically explain the relationship between
customers’ satisfaction and customers’ switching behaviour (distinguishing between switchers
and stayers), in relation to customer relationship development. While previous studies provide
limited information about a linkage between customer satisfaction and switching behaviour,
the current study proposes to extend the relationship marketing model in which customer
satisfaction is influenced by relational bonds - financial, social and structural - which inturn
influences customer switching behaviour. The work of Ganesh, Arnold and Reynolds (2000)
in the financial services sector shows that switchers differ from stayers in their satisfaction
and loyalty. They examined what happened to “switching-in customers” in regard to
satisfaction and loyalty with the new service provider Also, they divided the customer base
into three main groups: stayers, satisfied and dissatisfied switchers. Interestingly, they found
that dissatisfied switchers were more satisfied with their current service provider than the
customers from the other two groups. Consequently, the stayers were more satisfied than the
satisfied switchers. In relation to loyalty, the authors indicated that dissatisfied switchers were
more loyal with their current service provider than the other two groups. In addition, satisfied
switchers are less loyal than stayers. Because of the scarcity of the literature about this point,
and because of the difficulties in examining the results in other contexts and other countries,
there is an urgent need to improve our understanding of these relationships. This also suggests
that the link between the differences in switching behaviour between customers (switchers
and stayers) and loyalty is another gap in the literature that needs to be examined.
Theoretical Framework and Hypotheses
As discussed previously, the traditional models of relationship marketing have focused on the
relationships between customer satisfaction, relationship strength and loyalty. In the following
sections, the association between these constructs will be discussed. Then, the impact of
relational bonds and switching behaviour will be presented.
Various relationship marketing authors have considered customer satisfaction to be a key
determinant of the strength of the relationship between customer and service provider
(Garbarino and Johnson, 1999; Hennig-Thurau, Gwinner and Gremler, 2002; Hennig-Thurau
and Klee, 1997; Leverin and Liljander, 2006; Morgan and Hunt, 1994; Zineldin and Jonsson,
2000). The current study proposes that the relationship between customers and service
providers will be stronger if levels of customer satisfaction are higher, and the following
hypothesis is presented:
H1: Customer’s satisfaction will positively influence the relationship strength between
customers and their service providers.
3
In addition, there has been some previous evidence in support of a link between relationship
strength and loyalty (Bove and Johnson, 2000, 2001; Garbarino and Johnson, 1999; Gwinner,
Gremler and Bitner, 1998; Herington and Weaven, 2007). For example, in respect to the
linkage between the relationship strength and loyalty, Gwinner, Gremler and Bitner (1998)
found that, by obtaining a strong relationship with customers, service providers can achieve
greater customer loyalty and retention. Furthermore, Bove and Johnson (2000) demonstrated
that the strength of the relationship has a significant effect on customer loyalty. These
findings provide support for the linkage between relationship strength and loyalty. Therefore,
the following hypothesis is suggested:
H2: Relationship strength positively affects customer loyalty.
Relationship marketing authors empirically link relational bonds (financial, social and
structural) with other relational outcomes in their conceptual frameworks. One important
outcome frequently studied is customer satisfaction (Smith, 1998; Palmatier, Gopalakrishna
and Houston, 2006; Wang, Liang and Wu, 2006). For example, Smith (1998) argued that such
relational bonds reduce the risk inherent in voluntary exchange relations and enhance a
customer’s satisfaction with the overall relationship. Additionally, various studies have
provided empirical evidence supporting the positive relationship between relational bonds and
satisfaction (e.g. Garbarino and Johnson, 1999; Palmatier, Gopalakrishna and Houston, 2006;
Smith, 1998; Wang, Liang and Wu, 2006). Therefore in the current study being undertaken, it
is proposed that service providers will be rewarded more by customers’ satisfaction (high
customer’s satisfaction) when relational bonds are perceived to be strong. Thus the first
hypothesis of this study is:
H3: The strength of relational bonds will positively affect customer satisfaction.
Various relationship marketing studies have examined the heterogeneous nature of the
company’s customer base in order to analyse the differences between the switchers and the
stayers (Chiu, et al., 2005; Ganesh, Arnold and Reynolds, 2000; Keaveney and Parthasarathy,
2001; Li, Browne and Wetherbe, 2007; Lopez, Redondo and Olivan, 2006). Despite the
attention of Ganesh, Arnold and Reynolds (2000), little information is available about the
linkage between customer satisfaction and switching behaviour. Therefore, the current study
proposes an extended relationship marketing model in which relational bonds influence
customer satisfaction which then influences customer switching behaviour and relationship
strength. The model also addresses customer switching behaviour (differences between
switchers and stayers), which is hypothesized to be an important variable influencing
customer loyalty (i.e. whether a customer stays or not). From a review of the literature it
appears that a few studies have investigated the differences in loyalty between switchers and
stayers (e.g. Chiu, et al., 2005; Ganesh, Arnold and Reynolds, 2000). As discussed previously
and Based on the work of Ganesh, Arnold and Reynolds (2000), the current research proposes
the following hypotheses to test these differences:
H4: Stayers will be more satisfied than switchers.
H5: Dissatisfied switchers will be more loyal to their service providers than stayers and
satisfied switchers.
A number of researchers have indicated that customers who have stronger relationships with
their service providers are less likely to switch (e.g. Bove and Johnson, 2000; Morgan and
Hunt, 1994; Zineldin and Jonsson, 2000). For example, Morgan and Hunt (1994) found that
the consumers’ commitment to, and trust in, a business relationship are the main reasons for
4
their staying with a business. Li, Browne and Wetherbe (2007) investigated how online
consumers’ switching behaviour (switchers and stayers) differs according to five significant
relationship factors (commitment, trust, satisfaction, comparison level of the alternatives, and
non-retrievable investment). In summary, although some limited studies have argued for a
link between relationship strength and customer switching behaviour (switchers and stayers),
the theoretical justification supporting this linkage in the proposed model is strong. Further,
the current study expands the existing literature by investigating the link between relationship
strength and the customer’s switching behaviour. Therefore, the following hypothesis is
proposed:
H6: Relationship strength will influence customer switching behaviour.
When examining customer switching behaviour in more detail, there are a number of
researchers have argued that a customer’s attitude towards switching is a key determinant of
their intention to switch (e.g. Bansal and Taylor, 1999; Keaveney, 1995; Keaveney and
Parthasarathy, 2001). However, according to Bansal and Taylor (1999), there have been few
studies that have explored in any detail this relationship between customer attitude toward
switching and switching intention. From reviewing the literature, there is evidence of the
strength of such relationships, which can be found in the various applications of Theory of
Planned Behaviour (TPB) (e.g. East, 1993). Within TPB, Ajzen (1991) proposed that
behaviour is a direct function of behavioural intention and that behavioural intention is
formed by the customer’s attitude towards this behaviour. On this basis, Bansal and Taylor
(1999) applied the TPB model and claimed that a customer’s attitude towards switching has a
significant influence on switching intention. Furthermore, in accordance with the TPB, an
individual’s intention is considered a critical factor in predicting a particular type of
behaviour (actual switching behaviour) (Bansal and Taylor, 1999). This has been supported
by consistent evidence across a number of different contexts (e.g. Ajzen, 2002; Bagozzi,
Wong and Bergami, 2000; Bansal and Taylor, 1999). However, this relationship between
customer intention and behaviour in regard to the specific context of predicting switching
behaviour remains empirically unexplored. Based on this discussion, the following
relationships are expected:
H7: Customer’s attitude toward switching will positively affect customer’s intention to
switch service provider.
H8: Customer’s intention to switch will positively affect actual customer’s switching
behaviour.
In summary, although various relationship marketing scholars developed relationship
marketing models by presenting theoretical and empirical discussion about customer
satisfaction, relationship strength and customer loyalty; little attention have been paid to the
influence of customer switching behaviour on buyer-seller relationships. Based on the
intensive literature review, the proposed model, shown in Figure 1, is presented. This model
expands our understanding of relationship marketing by including customers’ switching
behaviour into relationship marketing model and forms the basis for further empirical work.
5
Figure 1: Proposed Theoretical Model of Relationship Marketing
Attitude
toward
Switching
H7
H3
Financial
Bonds
Switching
Intention
H8
Social
Bonds
Customer
Satisfaction
H4
Switching
Behaviour
H1
Structural
Bonds
H5
Loyalty
H6
Relationship
Strength
H2
Implications
Research regarding the way of development of relationship marketing between customers and
their service providers is an area worthy of academic research. A number of practical and
theoretical grounds highlight the importance of this research, justify its focus and emphasise
its potential contribution to the domains of relationship marketing. From a theoretical
perspective, the knowledge obtained through this research will enhance our understanding of
the factors influencing the development of relationship marketing. Although, most of
relationship marketing scholars were theoretically and practically focused on the traditional
relationship marketing model, the current research explores the significance of including
relational bonds and switching behaviour into relationship marketing model. Further, the
understanding of the difference of satisfaction and loyalty between the groups of customers’
base is another contribution of the current research as it assists the relationship marketing
literature with a clearer picture about the relationship between these two constructs (switching
behaviour, switchers and stayers, and loyalty). From a practical perspective, the findings will
assist in providing managers with valuable information regarding the importance of
employing relational bonds to enhance customer’s satisfaction and the strength of relationship
with customers which, consecutively, will influence loyalty. Further, it is important for
managers to consider the difference in satisfaction and loyalty between switchers and stayers;
such understating can allow them to focus on the more satisfied and loyal customers as they
are more valuable for the company.
6
References
Ajzen, I., 2002. Perceived behavioral control, self-efficacy, locus of control, and the theory of
planned behavior. Journal of Applied Social Psychology 32, 665-683.
Ajzen, I., 1991. The Theory of Planned Behavior. Organizational Behavior and Human
Decision Processes 50 (2), 179-211.
Alrubaiee, L., Al-Nazer, N. 2010. Investigate the impact of relationship marketing orientation
on customer loyalty: The customer's perspective. International Journal of Marketing Studies
2(1), 155-174.
Arantola, H., 2002. Consumer bonding - a conceptual exploration. Journal of Relationship
Marketing 1 (2), 93-107.
Bagozzi, R., Wong, N., Bergami, M., 2000. Cultural and situational contengencies and the
theory of reasoed action: Application to fast food resturant consumotion. Journal of Consumer
Psychology 9 (2), 97-106.
Bansal, H. S., Taylor, S. F., 1999. The Service Provider Switching Model (SPSM): A model
of consumer switching behavior in the service industry. Journal of Service Research 2 (2),
200-218.
Berry, L. L., 1995. Relationship marketing of services - growing interest, emerging
perspective. Journal of the Academy of Marketing Science 23 (4), 236-245.
Bove, L. L., Johnson, L. W., 2000. A customer-service worker relationship model.
International Journal of Service Industry Management 11 (5), 491-511.
Bove, L. L., Johnson, L. W., 2001. Customer relationships with service personnel: Do we
measure closeness, quality or strength? Journal of Business Research 54 (3), 189-197.
Chiu, H.-C., Hsieh, Y.-C., Li, Y.-C., Lee, M., 2005. Relationship marketing and consumer
switching behavior. Journal of Business Research 58 (12), 1681-1689.
East, R., 1993. Investment decisions and the theory of planned behaviour. Journal of
Economic Psychology 14 (2), 337-375.
Ganesh, J., Arnold, M. J., Reynolds, K. E., 2000. Understanding the customer base of service
providers: An examination of the differences between switchers and stayers. Journal of
Marketing 64 (3), 65-87.
Garbarino, E., Johnson, M. S., 1999. The different roles of satisfaction, trust, and commitment
in customer relationships. Journal of Marketing 63 (2), 70-87.
Gwinner, K. P., Gremler, D. D., Bitner, M. J., 1998. Relational benefits in services industries:
The customer's perspective. Academy of Marketing Science Journal 26 (2), 101-114.
7
Hennig-Thurau, T., Gwinner, K. P., Gremler, D. D., 2002. Understanding relationship
marketing outcomes: An integration of relational benefits and relationship quality. Journal of
Service Research 4 (3), 230-247.
Hennig-Thurau, T., Klee, A., 1997. The impact of customer satisfaction and relationship
quality on customer retention: A critical reassessment and model development. Psychology &
Marketing 14 (8), 737-764.
Herington, C., Weaven, S., 2007. Can banks improve customer relationships with high quality
online services? Managing Service Quality 17 (4), 404-427.
Hsieh, Y., Chiu, H., Chiang, M. 2005. Maintaining a committed online customer: A study
across search-experience-credence products. Journal of Retailing 81(1), 75-82.
Jane, W. L., Goutam, C., 2009. The effects of stake, satisfaction, and switching on true
loyalty: A financial services study. The International Journal of Bank Marketing 27(4), 252269.
Keaveney, S. M., 1995. Customer switching behavior in service industries: An exploratory
study. Journal of Marketing 59 (2), 71-82.
Keaveney, S. M., Parthasarathy, M., 2001. Customer switching behavior in online services:
An exploratory study of the role of selected attitudinal, behavioral, and demographic factors.
Academy of Marketing Science Journal 29 (4), 374-390.
Leverin, A., Liljander, V., 2006. Does relationship marketing improve customer relationship
satisfaction and loyalty? The International Journal of Bank Marketing 24 (4), 232-251.
Li, D., Browne, G. J., Wetherbe, J. C., 2007. Online consumers' switching behavior: A buyerseller relationship perspective. Journal of Electronic Commerce in Organizations 5 (1), 30-42.
Lin, N., Weng, J. C. M., Hsieh, Y., 2003. Relational bonds and customer's trust and
commitment - A study on the moderating effects of Web site usage. The Service Industries
Journal 23 (3), 103-124.
Lopez, J. P. M., Redondo, Y. P., Olivan, F. J. S., 2006. The impact of customer relationship
characteristics on customer switching behavior. Managing Service Quality 16 (6), 556-574.
Morgan, R. M., Hunt, S. D., 1994. The commitment-trust theory of relationship marketing.
Journal of Marketing 58 (3), 20-38.
Ndubisi, N. O., 2007. Relationship marketing and customer loyalty. Marketing Intelligence &
Planning 25 (1), 98-106.
Palmatier, R. W., Gopalakrishna, S., Houston, M. B., 2006. Returns on business-to-business
relationship marketing investments: Strategies for leveraging profits. Marketing Science 25
(5), 477-493.
Roos, I., 1999. Switching processes in customer relationships. Journal of Service Research 2
(1), 68-85.
8
Sheth, J. N., Parvatiyar, A., 1995. Relationship marketing in consumer markets: Antecedents
and consequences. Academy of Marketing Science. Journal 23 (4), 255-271.
Smith, B., 1998. Buyer-seller relationships: Bonds, relationship management, and sex-type.
Canadian Journal of Administrative Sciences 15 (1), 76-92.
Szymanski, D. M., Henard, D. H., 2001. Customer satisfaction: A meta-analysis of the
empirical evidence. Academy of Marketing Science. Journal 29(1), 16-35.
Wang, W.H., Liang, C.-J., 2010. Consumer behavior of the information services industry in
Taiwan: Conceptual framework and hypotheses development. Measuring Business Excellence
14(2), 12-21.
Wang, W., Liang, C., Wu, Y., 2006. Relationship bonding tactics, relationship quality and
customer behavioural loyalty-behavioural sequence in Taiwan's information services industry.
Journal of Services Research 6 (1), 31-57.
Yen, T., Liu, H., Tuan, C-L., 2009. Managing relationship efforts to influence loyalty: An
empirical study on the sun link sea forest and recreational park, Taiwan. International Journal
of Organizational Innovation 2(2), 179-194.
Zineldin, M., Jonsson, P., 2000. An examination of the main factors affecting
trust/commitment in supplier-dealer relationships: An empirical study of the Swedish wood
industry. The TQM Magazine 12 (4), 245-265.
9