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Service Quality and Customer Retention Insights

Lincoln Assignment
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0% found this document useful (0 votes)
18 views7 pages

Service Quality and Customer Retention Insights

Lincoln Assignment
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The relationship between Service quality,

Satisfaction of Consumer and the Effort to


Moderate the Consequences of Barriers to Change

Part 3
Introduction

• In the current situation where competition intensi es, rms must avoid losing their current
customers.
• The reason lies behind this strategy is economically, it is more costly to recruit new customers
rather than retaining current customers (Aydin & Özer, 2005).
• Retaining customers is a challenging task for service provider as customers are exposed to switch
to other alternatives. Thus, one of the critical elements to be understood is why customers
switch to competitors and how to avoid it.
• Recently, marketing research began to pay more attention to the in uence of switching barriers
which refer to any factor, making it di cult or costly for customers to change service providers.
• Previous study shows that raising switching barriers can become one of the strategies used to
retain customer so that they are less likely to change to other service providers.
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Problem Statement

• Customer’s behavioral intention is a critical issue that concern businesses.


• Favourable behavioral intention such as repurchase intention, positive recommendation and willingness to pay more will bring
bene ts in terms of pro tability and sustainability of a company.
• That is why there are many studies that have been carried out in this area in di erent types of industries. For instance, in online
shopping industry, in transportation industry, in tourism industry and in hotel industry.
• Studies in this area merely focused on the factors a ecting behavioral intention such as customer satisfaction. Still, many factors
remain unexplored such as in the condition where customer satisfaction plays a lesser role.
• In general, service quality, customer satisfaction and switching barriers can suitably form the basis of the research in behavioral
intention area. By doing so, researcher can e ectively come out with a better model to determine customers’ behavioral intention.
This study will contribute to the literature in three aspects. First, the study examined the perceived dimensions of service quality in
Malaysia’s pay TV service provider. Second, the study empirically tested main relationships i.e., between service quality and
customer satisfaction as well as the e ect of customer satisfaction to behavioral intention. Finally, the investigation empirically
tests the moderating role of switching barriers to the relationship between customer satisfaction and three behavioral intention
namely repurchase intention, positive recommendation and willingness to pay more. To understand more customer switching
behavior in pay TV setting, this study had introduced a new switching barriers component which is called social ties.
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Research Questions

• What are the determinants of service quality in pay TV service setting?


• Is there any relationship between service quality and customer satisfaction?
• Is there any relationship between customer satisfaction and repurchase intention?
• Is there any relationship between customer satisfaction and positive recommendation?
• Is there any relationship between customer satisfaction and willingness to pay more?
• Do switching barriers have moderating e ects on the relationship between customer satisfaction and
repurchase intention?
• Do switching barriers have moderating e ects on the relationship between customer satisfaction and
positive recommendation?
• Do switching barriers have moderating e ects on the relationship between customer satisfaction and
willingness to pay more?
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Methods

• Primary and Secondary both data will be collected to complete the research.
• Questionnaires
• Interviews
• Surveys
• Company reports
• Word of mouth
• Numerical data on websites
Ethical Concerns

• Most research involves human participants; therefore, it is fundamentally important


that human research ethics approval has been obtained.
• It is important that approval has been gained before the commencement of data
gathering from human participants because human research ethics committees
cannot grant approval for research after the data collection has begun (with three
expectations; data was collected for non-research purposes is now proposed to be
used for research, data was gathered through a ‘chance encounter’, and if the data
was already publicly available, e.g., already published).
Conclusion

• Service quality and customer satisfaction are believed to a ect customer behavior. On that basis, research
related to service quality and customer satisfaction whether in manufacturing or services sector continued
to gain great attention among social science researchers and academicians. One of the main research focus
in marketing eld is to get a better understanding in the dynamic relationship between service quality and
customer satisfaction and their impact on customer behavior. The e ect of switching barriers imposed by
service provider to the relationship between customer satisfaction and customer behavioral intentions has
received a considerable attention but it is still in the matter of debate. Review of the literature showed a little
research has been done to measure the e ect of social switching barrier as a result from interaction between
customers who share same service. This paper proposed a conceptual framework which explained how the
concept of switching barriers and social ties moderating the relationship between customer satisfaction and
customer’s behavioral intentions in a pay TV setting. The ndings of this article would provide important
implications to the service provider. More importantly, based on the obtained results, service provider can
enhance performance by improving the current strategies on customer relationship management.

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