V. Yanamandram & L. White
Faculty of Commerce - Papers, University of Wollongong, at Research Online, 2005
AbstractThis paper presents a conceptualisation of the factors that lead dissatisfied business-tobusiness
(B2B) customers to stay with their existing service providers. While studies in a B2B
context have addressed some important barriers to switching, they have not discussed all of
these, and not necessarily under conditions of dissatisfaction. A literature review of previous
research, both theoretical and empirical, identified that a gap in the body of knowledge exists
regarding the reason that dissatisfied customers are behaviourally loyal, and results from a
previous qualitative study unearthed additional barriers that exist. Hence, this paper proposes
a model of the deterrents to switching amongst dissatisfied business services customers,
including moderators and meditators that are postulated to influence the relationship.
IntroductionJust as satisfied customers are not necessarily loyal (Rowley and Dawes, 2000), dissatisfied
customers do not always exit (Day, 1984; Hirschman, 1970). While Colgate and Lang (2001)
empirically validated the reasons why dissatisfied customers stay with service organisations
in the consumer market, studies in a B2B context have only addressed some individual
barriers to switching (Bozzo, 2002; Hansen, Swan and Powers 1996; Nielson, 1996;
Sengupta, Krapfel and Pusateri, 1997). These studies (with the exception of service recovery)
have not empirically investigated the switching barriers under conditions of dissatisfaction.
Further, no attempt appears to have been made to conceptualise those determinants
comprehensively in a single model in the B2B services sector (Yanamandram and White,
2005). Since the highest growth in services marketing is in business markets (Brown, 2002),
this is a valuable area of investigation.
Conceptual FrameworkBased on the literature review in consumer and business markets, and results from a
qualitative study (Yanamandram and White, 2005) conducted previously in the Australian
B2B services sector, a conceptual framework of behavioural loyalty amongst dissatisfied . . . . . . . .
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