Customer value and switching costs in business services: developing exit barriers through strategic value management

Customer value and switching costs in business services: developing exit barriers through... Purpose – The purpose of this study is to examine the concept of customer value and its role in building switching costs perceptions. The current research develops scales and empirically validates a typology of customer value for business services. Design/methodolgy/approach – Through an extensive literature review, qualitative interviews, and an empirical investigation, the current study identifies three facets of customer value for business services (i.e. economic value, relational value, and core value) and investigates their relationships with buyers' perceptions of switching costs. Structural equation modeling techniques were used to evaluate a measurement model and structural relationships. Findings – The findings show that economic value and the value obtained from relational and support aspects of a service exert strong positive impact on customers' perceptions of switching costs and thus serve as barriers to exit. Although core service does not seem to have positive impact on switching costs, core value maybe a “hygiene” factor that may promote customers' switching if not properly managed. Research limitations/implications – The results of this study are generated from a single industry; additional studies in other industries may strengthen the generalizability of the proposed constructs and framework. Practical implications – Business suppliers need to build exit barriers through co‐creating relational value. Through communications, suppliers may be able to monitor customers' desired value as a proactive action to anticipate changes and to influence positive changes in customer value. Originality/value – The current study sheds some light on how supplier firms can enhance switching costs, and consequently raise exit barriers by better managing various aspects of customer value perceptions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business & Industrial Marketing Emerald Publishing

Customer value and switching costs in business services: developing exit barriers through strategic value management

Journal of Business & Industrial Marketing, Volume 21 (1): 8 – Jan 1, 2006

Loading next page...
 
/lp/emerald-publishing/customer-value-and-switching-costs-in-business-services-developing-eR0C1mNRJI
Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0885-8624
DOI
10.1108/08858620610643157
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this study is to examine the concept of customer value and its role in building switching costs perceptions. The current research develops scales and empirically validates a typology of customer value for business services. Design/methodolgy/approach – Through an extensive literature review, qualitative interviews, and an empirical investigation, the current study identifies three facets of customer value for business services (i.e. economic value, relational value, and core value) and investigates their relationships with buyers' perceptions of switching costs. Structural equation modeling techniques were used to evaluate a measurement model and structural relationships. Findings – The findings show that economic value and the value obtained from relational and support aspects of a service exert strong positive impact on customers' perceptions of switching costs and thus serve as barriers to exit. Although core service does not seem to have positive impact on switching costs, core value maybe a “hygiene” factor that may promote customers' switching if not properly managed. Research limitations/implications – The results of this study are generated from a single industry; additional studies in other industries may strengthen the generalizability of the proposed constructs and framework. Practical implications – Business suppliers need to build exit barriers through co‐creating relational value. Through communications, suppliers may be able to monitor customers' desired value as a proactive action to anticipate changes and to influence positive changes in customer value. Originality/value – The current study sheds some light on how supplier firms can enhance switching costs, and consequently raise exit barriers by better managing various aspects of customer value perceptions.

Journal

Journal of Business & Industrial MarketingEmerald Publishing

Published: Jan 1, 2006

Keywords: Customer loyalty; Consumer behaviour; Customer service management; Customer retention; Business‐to‐business marketing

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off