An Investigation of Repurchase Intentions in the Banking Industry: What Reason Do They Return?

In an increasingly competitive market, customer retention is imperative for businesses in the services sector, particularly banks. This study aims to understand how relationship quality as second-order impacts repurchase intentions based on the Theory of Repurchase Decision Making (TRD). The switching cost moderating role is addressed. The model was validated using empirical data from Pakistan. A regression modeling was adopted to measure the research hypotheses that underpinned a proposed conceptual model. Results show that relationship quality positively and significantly influences the repurchase intentions. Switching cost determined to be a moderator between relationship quality and repurchase intentions. The implication is that services industry professionals should not overlook the importance of relationship quality and switching costs, as they have a significant impact on repurchase intentions.

How Switching Costs with Process Monitoring and Operational Integration Affect Sustainable Supplier Relationship

Building on sustainable supply chain management and operations strategy literature, our study seeks to identify structural relationships between switching cost and sustainable supplier relationships from a demand-side perspective. More specifically, this study looks at the impact of the switching cost on process monitoring, operation integration, and sustainable supplier relationships. To test the structural relationships in our research model, we used Manufacturing Productivity Survey data from Korea to conduct an empirical analysis based on 351 data that fit our study’s purpose. The results show that the indirect effect of switching cost on sustainable supplier relationships through process monitoring and operational integration is positively valid. Additionally, the results emphasize that the social exchange theory can be explained in the perspective of the switching cost.

The role of switching cost in the e-service recovery framework among banking customers

Purpose The emergence of tech-driven initiatives in retail banking has created a vast spectrum of system-related service failures; hence, e-service recovery quality is of prime importance to banks to ensure e-service recovery satisfaction. However, e-service satisfaction is dependent on the ease of moving from one service provider to the other; thus, switching costs assume great significance. This study aims to probe the moderating role of switching cost on e-service recovery satisfaction by exploring e-service recovery quality antecedents. Design/methodology/approach A measurement model is suggested in the contextual settings of the Indian banking scenario and is estimated using structural equation modeling. Responses from 399 e-banking customers, who had experienced a service failure, were sought using a five-point Likert scale. Findings The result affirms that “recovery expectation” is the most significant predictor of e-service recovery satisfaction, and that switching cost moderates the relation between e-service recovery quality and e-service recovery satisfaction. Practical implications The study highlights the high relevance of switching costs in the e-banking context and emphasizes investment in marketing strategies and campaigns to do away with switching intentions. It also highlights the relevance of recovery expectations as an antecedent of e-service recovery quality and thus stresses the need to satisfactorily address the same in the e-service recovery process. Originality/value This study contributes to the e-service recovery satisfaction literature in the banking context by empirically validating the moderating role of switching cost. It also identifies the critical antecedents of banking e-service recovery quality.

Interdependence with suppliers in the innovation ecosystem: the effects of supplier concentration on firm innovation

Purpose Based on the strategy and new institutional economic literature, this study aims to explore how different levels of supplier concentration (SC) will be characterized by differences in switching cost and coordinated adaptation in an ecosystem, thereby shaping its research and development (R&D) intensity, innovation performance and innovation efficiency. Design/methodology/approach This study adopted a set of panel data of Chinese listed firms in the Growth Enterprise Board and their top five suppliers from 2012 to 2016. A Tobit model is used to test the hypotheses. Findings The study finds that SC has an inverted U-shape effect on R&D intensity. This finding implies that firms are more likely to invest in R&D when SC is intermediate level. While it has a U-shape relationship between SC and innovation output, both lower SC and higher SC are more efficient in innovation because of their advantage in low switching cost and better coordinative adaptability, respectively. Originality/value The study complements the innovation ecosystem literature by using SC to represent the structure of the interdependence between firms and suppliers in an ecosystem, then examining the correlation between SC and firms’ innovation investment and output, respectively. Second, combining strategy and new institutional economic literature, the non-linear effects of SC on firms’ innovation are found.

Why travelers switch to the sharing accommodation platforms? A push-pull-mooring framework

Purpose Drawing on and extending the push-pull-mooring (PPM) framework, this paper aims to empirically explore the influencing mechanism of traveler switching intention from the hotel reservation platforms to the sharing accommodation platforms (SAPs). Design/methodology/approach This study adopts structural equation modeling to analyze the 543 responses collected among hotel reservation platforms and SAPs travelers. Findings The results support the positive effect of both push factors (e.g. dissatisfaction with product, service and information quality of hotels on the hotel reservation platform) and pull factors (e.g. price value, authenticity, interaction, home benefits and novelty of SAPs) on traveler switching intention. Except for the negative effect of switching cost, other mooring factors including prior switching experience and social influence positively affect traveler switching intention. The authors also found the switching cost negatively and prior switching experience positively moderated the push effects on traveler switching intention, while the social influence positively moderated the pull effects on traveler switching intention. Research limitations/implications Recommendations of future SAP participation research to consider the competing platforms, the unique experiences of SAPs and mooring factors. Examining the factors of different sources is also useful for practitioners to better understand travelers’ demands and to improve the overall welfare of travelers. Originality/value This paper embraces an extended PPM framework to explore traveler switching intention in online travel platforms. Moreover, this paper provides unique insights into the switching behavior from the hotel reservation platforms to the SAPs.

Modeling the factors that explain customer loyalty in retail banking

Literature suggests that achieving adequate customer loyalty is a significant determinant of growth and profitability. However, in South Africa, there is no evidence of a validated customer-loyalty-in-retail-banking scale. Thus, this study aimed to contribute to the literature by validating customer loyalty in retail banking as a six-factor structure comprising customer loyalty, service quality, customer commitment, trust, switching cost and customer satisfaction, which practitioners can use as a marketing guide to better understand customer loyalty. Data was collected from one sample only once, and the sample size was selected (N = 400). Descriptive and confirmatory factor analyses were undertaken to achieve the study’s objective. Confirmatory factor analysis results validated customer loyalty in retail banking as a six-factor structure that includes customer loyalty, service quality, customer commitment, trust, switching cost and customer satisfaction. The results show no serious multicollinearity between the latent factors and that acceptable internal-consistency reliability was returned for each factor. Moreover, the measurement model returned acceptable composite reliability together with construct, convergent and discriminant validity. Moreover, IFI, TLI, CFI, SRMR and RMSEA model fit index values suggest a good fitting model. Thus, the results concluded that this six-factor model is a reliable and valid instrument of customer loyalty in retail banking and is the first validated customer loyalty scale within the retail-banking context of South Africa. Retail banks are encouraged to use this instrument as a marketing guide in their quest to provide excellent banking services to their market segments, as well as build solid bank-customer relationships.

Adoption of online pharmacy applications during COVID-19 pandemic; empirical investigation in the Indian context from push-pull and mooring framework

Purpose The purpose of this study is to identify antecedents of adoption and post-adoption switching of online pharmacy applications (OPA) in Indian society. A push-pull-mooring (PPM) model was formulated to evaluate the impact of various constructs upon “consumers’ switching intention” (CSI). Design/methodology/approach An online questionnaire was sent to 252 users of OPA in India. Hypotheses were generated to examine the push, pull and mooring effects of constructs developed. The relationships between dependent and independent variables were evaluated using structured equation modeling (SEM). Findings The study explicated the effect of PPM constructs on CSI in the context of OPA adoption. “Perceived usefulness,” “perceived ease of use” and “alternative attractiveness” had a significant “pull” effect on CSI. “Switching cost” had a “mooring” effect on CSI, whereas the degree of “customer involvement in decision-making” was found to have a “push” effect upon CSI. Research limitations/implications This study theoretically established that the constructs of “perceived usefulness,” “perceived ease of use” and “alternative attractiveness” had significant “pull” effect on “consumers’ switching intention.” The construct of “switching cost” had a “mooring” effect on CSI, whereas the degree of “customer involvement in decision-making” was found to have a “push” effect upon CSI. Practical implications The study provided valuable insights regarding consumer behavior regarding OPAs. These findings could be applied by managers in framing effective strategies to grow and retain the customer base of OPAs. Originality/value To the best of the authors’ knowledge, this was one of the first empirical investigative studies to assess precursors of adoption and post-adoption characteristics of consumer behavior through the PPM model, in the context of Indian OPAs.