The differential effects of Switching Costs and Attractiveness of Alternatives
on Customer Loyalty
by
Sara Henriques de Jesus Paninho Magalhães
Dissertation submitted in partial fulfillment of the requirements for the Degree of
Mestre em Estatística e Gestão de Informação
(Master of Statistics and Information Management)
Instituto Superior de Estatística e Gestão de Informação
The differential effects of Switching Costs and Attractiveness of
Alternatives on Customer Loyalty
Dissertation supervised by
Professor Doutor Pedro Simões Coelho
iii
! " !#$
%
! & &
iv
' % ( % )
% * *+ *+
( , - *. ( % /
*+ *+ *+ )
* *+ 0
1 *+ " !# $
' + *
*+ *+
* +
% *. 2
% / *+
*+
1 *+ 3 *
v
4 ! 5 5 .
3 5 3 6 ( 7
& 5 68 9 0
5:
! 5 ;
'
vi
! "!####################################################################################################################################################################### $$$
%& ####################################################################################################################################################################### $
"'( ) & (! #####################################################################################################################################################
(! (! ###################################################################################################################################################################### $
$ ! * +$)% ############################################################################################################################################################ $$
$ ! * ############################################################################################################################################################# $$
$ !$ ( $ ! ###################################################################################################################################################### $$$
,# -(! %"!$ (############################################################################################################################################################## ,
.# $!" $() " ! ( !! "!$ ( * ! ( !$ $( ! " $ & ############################################################### /
0# + & ' * $!" $() " ! ( !! "!$ ( * ! ( !$ ( "% ! & ! ################################### 1
/# " & ! ) ######################################################################################################################################### ,,
< = > ==
< ? 2 =?
2# % ! ################################################################################################################################################################### ,/
@ = > =<
@ ? =@
@ A 3 =B
3# $ "% $ ( ( (" % $ ( ############################################################################################################################### .,
1# $&$! !$ ( ############################################################################################################################################################# .0
vii
- +
+
-4 = C
4 ? =D
- +
= ! =A
? 3 0 =@
A 4 =B
< E =C
@ % =F
viii
5- -
-& ! H -& !
&7 H & 7
& ! H & !
! H !
I32 H I 3 2
5: H 5 : %
E>> E > >
1
,# -
-%
"> J $ =DD<K 2 =DDD# 4 " 0 J $ ?GGG I J
?GG<#
"2 =DDDK $ ?GGB# 3
"$ ?GGAK $ ?GG<K L J 5 ?GG<K 7 J ?GG@K $
?GGB# ! M
"E J 0 =DF<K
5 J E =DDAK 5 J ?GGAK $ ?GG<K 7 J ?GG@# &
" ?GGB#
"I J ?GG<#
2
"& J 3 ?GGGK : ?GG<# ! 9
"4 =DD?K 6 ?GGG#
"6 J
=DD@K E =DDBK : ?GG=# !
" J 5 ?GGGK ?GGAK N ?GGF# 3
0
" J 5 ?GGGK $ ?GGAK ?GGAK 7 ?GGAK $ ?GG<K 3 J N
?GGD#
9
2
" J I =D@D#
" =DCB#
&
9 !
"& J =DDAK
9 =DD<K 6 ?GGG J 5 ?GGGK : ?GG<K L 5 ?GG<
J N ?GGD# 3 9
"N ?GGF#
N '
"$ ?GG<K $ ?GGB#
!
"6 ?GGG 5 J ?GGA# !
I "=D@D#
0 : "=DF?#
0
0 5 "?GGG# 9
&
3 '
4 0
"6 =DF@K 5 J ?GGA# 3
3
=DD<# N &
'
E
"& J =DDAK 9 =DD<K 6 ?GGG J
5 ?GGGK : ?GG<K L J 5 ?GG< J N ?GGD# !
%
! " !# & 6 "?GG=#
7 "?GGA# $ "?GG<# $ "?GGB# ! &
; ' O
• 4
&
• !
3 !
• & '
! M
0
! %
4
.#
- 6- -5 + -5 - 6!
=DDG " J I =D@DK 3 J 9 =DD<# E
"3 J 9 =DD<# 9
O P
P "$ J 5 =DD= 3 J 9 =DD<O ?=# >
" J I =D@D#
& Q
Q"$ ?GGAO ==G# & : "?GG@# !
&
"3 J 9 =DD<# N 3 9 "=DD<# > $ "=DD<#
%
"5 =DDAK : ?GG<#
6 "?GG?# 0 & $ "?GG<#
3 $ "?GGA#
0
"6 ?GGGK 6 ?GG?K 5 J ?GGA#
"$ ?GGA# "6 ?GG?# 4
5
"6 ?GGGK J
: ?GG=K 5 J ?GGA# !
"L J 5 ?GG<#
& R
&
6 "?GGG# M
5 "=DDA#
M &
" J I =D@DK =DB?#
>
N L 5 "?GG<# '
" J 5 ?GGGK $ ?GGAK $ ?GG<K : ?GG<#
& "4 =DD?K 2
=DDDK : ?GG=# 5 "?GGG#
9 "=DD<# & J "=DDA# & 6 "?GGG# J N "?GGD#
& L 5 "?GG<#
$ $ "?GGA# : "?GG<#
2
"6 ?GGGK ?GGA# 4
5 "?GGG#
&
6
%
"N ?GGD#
!
" #
& !
!
7
0# +
+ - 6- -5 + -57 7
! 0
! 4 =
% "
# N !
%
O 3
> "4 =DD?K &
=DD<# "3 J 9 =DD<# " J I =D@DK
=DCB#
! !! $( 8 (! & !$() ** "!
H2b-
H3b+
H3a- H2a+
Expectations Image
Perceived Value
Customer Satisfaction
Perceived Quality
Customer Loyalty Switching Cost
8
&
9 " #
0
"
# & M
0
: "=DB@# : "=DF?#
R R !
" # 9
%
"I J $ ?GGG#
5
" J 5 ?GGGK ?GGAK 3 J N ?GGD#
O
: "?GG<# M
$ $ 6 "=DD@#
S
"6 ?GGGK J : ?GG=K L J 5 ?GG<# &
&
E
9
L 5 "?GG<#
4 "=DD?# : "?GG=#
" J 5 ?GGGK $ ?GGAK $ ?GG<K : ?GG< 3 J
N ?GGD# %
"6 ?GGGK 9 ?GGA# 4 $ "?GGA# "?GGA#
:
"?GG<# 3
"& J =DDAK 9 =DD<# 4 6 "=DF@# 5 "=DDA#
& 5 "=DDA# 0
M !
" J 5 ?GGG# S
5 "=DD<# 4
L "?GGC#
0 2
"6 ?GGGK J 5 ?GGGK ?GGAK 3 J N
?GGD# &
" J I =D@DK =DB?#
O
N 3 J 9 "=DD<#
9
! $ "?GGA# : "?GG<# 0
& 3 N "?GGD# M
2 L 5 "?GG<#
10
2
"6 ?GGGK J N ?GGD# & 6 "?GGG# "?GGA#
5 M
"?GGG#
" J 5 ?GGG# &
Q T
" # 9 6 M "=DD@#
Q T %
3
5 "=DDA#
!
11
/#
6 6 7>
! ?GGC
% ?GGC %
! "
% # %
"=F #
!
"E>># & 3
B M
% %
4
& ! =C@@
$ 5 : % "5: # 5
3 " ?GG@# 2 5: =DBB 9 N
=DCC 5: %
5:
0 & 5:
! & ! "& ! #
& & "?GG<# Q5:
12
! 5: %
5: "9 4 ?GGBK 9 ?GGD#
5: ; & $
& !
%
! ! " ! #
" J ?GG=O F<GK 7 J ?GG@O A?=#
7 "$
?GGB# M
; 0
0 & == Q
T =? Q ! =A Q
! $ ?GG< : ?GG< 6 ?GGG &
=< Q ! =@ "
! 6 "?GGG#
5 "?GGA# 0
&
6 "?GGG#
4 = =G
3 ;
13
=
! " !
! (! 5 $ -( $" !
# " ==! ! Q T " #
=?! ! Q T " #
=A! ! Q T " #
=<! ! Q T " #
=@! ! Q T " #
$ %
$ %
?=! ! Q T Q T "
#
?? Q T Q T ! %
" #
A=! " #
A?! " #
AA! " #
A<! " #
A@! 0 " #
&' == % Q T " #
=?
" #
=A " #
( ) #=U " #
??E " #
#A> " #
?< " #
?@; % " #
* A= % " #
A? % " #
# <=2 " #
<?4 " #
<A> " #
+ ) ) B=5 Q T "
#
14
2#
, % )
@A AV
O ?@ DV AG K ?C ?V AG AD K ?= DV <G <D
?@ GV @G N CGV
FGV =< ?V B FV
2 AGV M =G BV C =V B FV
< CV E <B FV "D
#K ?< BV " =G =? # ?F @V
3 !
; ?
% 2
!
< @G " ?= H Q " ! " !
$ !H #
F @? " A?H Q !#
2 = @A " A?H Q
!# ? F< " =AH Q " !#
15
- . ! ! ! % ! ! ! / ! ! %
( ! %"! -( $" ! ( ! # $ !$ ( $()
$!" $() !
== =? =A =< =@ B =@ < @D @ FF @ =C B ?? ? BC ? CA ? F< ? F? ? B<
G C@WW
G CGWW
G F<WW
G CDWW
G C?WW
!! "!$ ( * ! ( !$ ?= ?? < @G < FF ? ?F ? A@
G C<WW
G DCWW
-& ) A= A? AA A< A@ F =G F @? C @D C C? C D< = CG = @A = DA = DF = C?
G FAWW
G CAWW
G FGWW
G F@WW
G FAWW
98 "! !$ (
== =? =A C <D C <B C @? = B= = BF = C?
G FAWW
G F@WW
G C@WW
" $ :% $! ?= ?? ?A ?< ?@ C BG F == C FD C BB C DA = CB = F@ = B@ = BA = @F
G F<WW
G CDWW
G F=WW
G F=WW
G F@WW
" $ % A=
A?
@ C< B @B
? =@ = FD
G DGWW
G DAWW
!$ * "!$ (
<= <? <A C F< C A? B D@ = B< = CF ? GA
G FBWW
G FCWW
G F@WW
! @= @? C @= C BA ? B? ? AD
G DAWW
G D<WW
;; $)($*$" (! ! <=#=, >! ! $ ! !?
, &' ) )
" A# & 7
G @ "9 =DD@#
% "$ M
16
! Q T
! =@H Q
T
3 M =
Q T M
) !
-( $" ! + "! , + "! .
== =#32 G GB
=? =#31 G GB
=A =#10 G GA
=< =#3@ G =<
=@ =#2. G =B
?= G G= =#32
?? G GB =#34
, - ) ! % ! )
M & "&7 # < &
M & " =D@=# G C S
$ "=DD<# G C? & & G FF
5 % 2 %
G F@
N "&7 # G B "4 J :
=DF=#
0 0
17
G C =V
4 < 0
% " %? #
G GA= ;
%? G AF G C? &
!
! @ 9
"4 J : =DF=# &
% &7 " #
S
=
0 ) ! % ! )
! (! 5 $
( " 8
&8 $! $ $ $!
) 5 $ (" 9! "!
.
$!" $() ! G CF G F@ G @D
! "!$ ( * ! ( !$ G C? G F@ G C@
-& ) G FC G DG G BB
98 "! !$ ( G C< G F@ G BB G <@
" $ :% $! G FF G D= G BC G <B
" $ % G F? G D? G F< G AF
!$ * "!$ ( G F? G DG G C< G C?
18
, % ! 1 % % ' !
&
& ! U 7 :
=#11 G GC G A= G ?F G A? G ?D G AF G AC
&
=#43 G =G G GC G == G =A G =C G ?@
! =#4, G BC G F= G @< G CF G BB
=#4, G BD G <D G B? G @?
U =#4. G BG G F= G C?
7 =#@. G B= G @C
=#43 G CF
: =#@/
! S %
4 ? N
" # G GC " W #
G @F " # G G=
O
" " ! " " ) )
G GD
+ % % ! " " ) )
G =< K
" " ! ) ) " " " " "
G GB 9
0
" " ! ) ) " " %
%
19
" " ! % % !
%
"β=# "β?# % N GOβ=Xβ? '
G G= S
0
# ! " !
WWO YG G= " #
WO YG G@ " #
! B 0
0 % 4
G @F
'
"$ ?GGAK ?GGAK : ?GG<# !
"G <D# G =@
! "
0.16*** 0.44**
0.51** 0.69**
0.67** 0.32** 0.15**
0.58**
- 0.07** 0.14**
- 0.06** 0.09**
Expectations Image Perceived Value Customer Satisfaction Perceived Quality Customer Loyalty Switching Cost Attractiveness of Alternatives Satisf. * Attract.
20
G A?# W W G GB
HG GC
!
S
G A? 2
!
G F<
2 . ! / ) )
$"! $ "! ! A
G GD G GD G G?
& G =< G =< G G@
! G =@ G <D G G?
G ?<
U G A=
7 G GD
G @F G @F G <G
G GB G GB G G=
G GC G GC G G=
0
21
3#
- --3 0
"4 =DDB# % "> J
$ =DD<K 6 J =DD@K & J 3 ?GGG# ! 0
"6 ?GGGK
J 5 ?GGGK N ?GGF#
! !
3 0
4
0
! '
!
3
! !
22
L "?GGC#
R
4
! 3
O
• 4
! K
• !
!
K
• 2
4
3
E M "=DDB# Q T M
23
1#
- --!
6 "=DD@# : "?GG=# ! %
& $ &?GG@#
"2 8 ?GG=# &
0 0
"3 9 =DD<K 5 ?GGGK $ ?GGB# !
"$ ?GG@#
4 0
9 0
& 0
24
4#
+& N "=DD<# ' ("=# =D
AG
& N 4 3 0 I "?GG<# 7 )
' *+"2 # =C? F@
& N 3 7 "?GGG# 5 ) % ,"?#
=GC =?G
& N 3 N "=DDA# & % 4
' -#"?# =?@ =<?
& 6 ; > N "=DFF# % 3 5 O E E
& . / -0,"A# <== ?A
$ > 5 3 / & "?GG<# O &
! 1 ) ' ,+"DR=G# =?C? =?DA
$ > 5 7 3 "?GGB# 5 0 : ) ' #0"B#
AD= <GA
$ 9 4 6 L "?GG@# Q3 T O
M ) 2 ' ,,"=# DB ==@
$ & 3 6 > U & "?GG<# & 1
) ' ,+"=R?# ?@A ?C@
$ & 4 6 I 3 ' 7 "?GGA# O & &
% ) 2 ' ,-"?# =GD =?B
6 & "?GG=# 3 O
! 3 ' -#"CRF# FA< <=
3 4 N : 9 "?GGD#
) #4"F# ==G@ ==?A
5 5 "?GGC# 4
) ' % 54"A# A=A AAD
3 : $ "?GG=# O &
) 6 ' -+"<# A?AHA<C
: 6 "=D@=# & ! . =B ?DC AA<
> & $ I "=DD<# O ) 2
' ##"?# DDH==A
E "=DB?# 5 > E 2 % ?C"=# A= <=
25
4 "=DD?# & S $ ) ' (*
"=# B ?=
4 : > 4 "=DF=# % 3 7
3 ) ' % -+"=# AD @G
4 6 3 > & N 6 $ $ "=DDB# &
! O S 5 4 ) ' *0"<# C =F
9 6 4 & E E $ N "=DD@# ' 7 2 S L
5 9
9 6 E > ! N $ "=DD<# ' -,"<# A?C
@G
9 5 I ; ; 3 E & E 6 & "?GGA# O
% 1 ) ' ,8"==R=?# =CB? =FGG
9 6 4 ; "?GGB# 5: ! O 7 0 7
N N 9 6 N 9 " #O 9 5 : % E 3
$ R9 RS L O
9 6 E 3 E E "?GGD# 5 : % 5 3 !
3 2 ' ?G ?CC A=D
6 $ $ "=DF@# 9 : :
3> : $
6 2 N "=DD@# N > / % 8,"=# FF DD
6 3 & 3 > : $ "?GGG# $ E !
) % 8*"?# ?@D ?C<
6 3 & 3 > : $ "?GG?# N O 3
) / % (( <<=H
<@G
6 3 > ; & & N : : 6 "?GG=#
) 1 . ##"?# ?=C <@
I > & "=DCD# 5 O & & > E 1 Z:7!! ?BA
?D=
I $ & "?GGG# $ O N [ N [ ) ;
?C CF DD
I 7 > "?GG<# $ ?= )
% +0 A=C AAG
: L 7 3 I 3 $ "?GG<# 7 :
O & ! $ $ ) 2 '
26
: 6 : 6 4 : "?GG=# ! : : 3
5 4 ) ' -("=# A@ <F
: ; "=DB@# 3 O& ) '
#8 =D ?F
: E & ; $ "=DF?# 3 U 3 ! 4 ! S " # ;
% % 6 " <D B@# $ 9 O 5
: & 9 : 3 5 $ I : "?GG@# 0
) / % (+ @@D @BF
S 6 $ ! "=DD<# . &A # S L 3 ; 9
3 > N : "?GGD# I ) -"=# =G@ =?G
3 E 3 9 > "=DD<# ) ' @F
6 ?G AF
2 8 ; > N I I ' 3 "?GG=# % O
3 ' < / 1 -#"A# AGC A??
2 E : "=DDD# N ) ' *,"@# AA <<
5 5 ; "?GGA# &
) % 84 =GC =?G
5 > E 3 "=DDA# = = ; / % : = 6 S L
R>
5 E & 6 "=DDA#
) % *4"A# A?= <D
5 E & 6 "=DD<# >
[ ) 2 ' ## AB< C=
E 4 4 "=DDB# 1 : / > . ? $
9 $ $
E : 6 0 6 "=DF<# & E ) 6 '
= <@ @=
S 5 5 ; "?GGG#
) '
--"@# <CG <DG
S "?GGA# % O
) % 6 -0"<# ?@A B?
6 ! > $ & 5 3 "?GGB# : 3 O & E
27
3 7 0 7 L 3 : "?GG@# 5: 6 < 7
2 <F =@D ?G@
6 N I 9 9 "=D@D# . > S L 6 N
7 5 "?GGA#
) ' *8"<# AG <@
7 3 6 5 "?GGA# ! 3 1
) ' ,8"==R=?# =CGA =C??
7 3 6 5 "?GG@# @A 6 ' 2 @A > A 2 B
:
N ; 0 9 N 3 "?GGF# ! O
1 ) ' 5#&DR=GC DCC =GG<
N L "?GGD# ! M
) -"==# = ==
L \ 5 E "?GG<# 5 7 : O
. ' #-"=G# CDD F??
L I I N 9 I "?GGC# 3 E O E &