Customer Retention And Switching Behavior Case Study

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Recommended: Theories on customer loyalty

2.4 Customer Retention and Switching Behavior
Customer retention is one of the important and vital topics in the marketing literature. The more the customer is satisfied with the company service offered, the more the repurchase intention and the less switching behavior will be (Neimat, 2010).

Francis (2002) reports an investigation that customer retention is progressively being seen recently as an important managerial issue and a key objective of relationship marketing, especially in the context of saturated market such as Telecommunication marketplace or lower growth of the number of new customers. It has also been acknowledged that retaining customer is less cost than to acquire new customers.

As a result of understanding the preferences …show more content…

A further definition tackled the customer loyalty by Jones and Sasser, (1995) cited by Angelos (2008) as: "a feeling of attachment to or heart for a company’s folks, products & services". Additionally, Baker – Prewitt (2000), customer loyalty is "is the ultimate objective of customer satisfaction ". Accordingly, mobile service providers are trying to gain competitive advantage in order to strength the customer loyalty which become a key issue to them. Nowadays , companies tries by all means to increase the customer satisfaction due to the fierce competition in the marketplace and raise the perceived service quality in a way to gain customer loyalty in …show more content…

Bown and chen (2001) addresses three different approaches to define loyalty which are : (1) Behavior : which can be divided into consistency , repetitive purchase behavior ; (2) ; Attitude: which can be seen from emotional and psychological part ; (3) Composite: Mix between the first two factors. While , other researchers (Aydin and ozer , 2005 ; Odin et al. 2011) as cited by Abdellatif (2013) suggested that there are only two major approaches to define loyalty which are : (1) Stochastic: which addresses customer loyalty as behavior and (2) Deterministic: which addresses customer loyalty as an attitude.

That could take us to another question ; what if there is no loyalty?. According to Sathish et al., (2011) without customer loyalty , package of benefits will be lost and package of costs will be added to replace the one it has lost as discussed above. Therefore, Losing customer loyalty has a main drawback for present and future earnings for the

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