Title

Spurious loyalty towards financial institutions - the impact of switching costs among dissatisfied corporate customers

Document Type

Conference Paper

Publication Details

Yanamandram, V. & White, L. (2007). Spurious loyalty towards financial institutions - the impact of switching costs among dissatisfied corporate customers. In M. Hoque & C. Fernandes (Eds.), Fifth International Business Research Conference 2007. Strands of Development Dubai: University of Wollongong in Dubai.

Abstract

This paper investigates the impact of various switching cost dimensions,and key mediating variables, calculative commitment and inertia, onrepurchase intentions in the corporate financial services sector. Weexamine these relationships amongst dissatisfied customers in ourendeavour to contribute to a better understanding of how behaviouralloyalty towards financial institutions is formed under a troubled ordysfunctional relationship. Data was collected online from 129 businessesusing a key informant approach. Analysis of data using AMOS 5.0(structural equation modelling) indicates that pre-switching and postswitchingcosts are significant in increasing customers' likelihood tocontinue to do business with their financial institutions. Furthermore, bothcalculative commitment and inertia fully or partially mediate therelationships.

RIS ID

21663

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