The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting
Firms always try to be noticed by the new customer and want to retain their existing customers. In the competitive environment where there are many firms working and producing same Quality products it is very much difficult to retain their existing customers. According to the CITATION Oli80 l 1033 (Oliver R. L., A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions, 1980) customer satisfaction is basic factor that influence customer and firm relationship for longer time period. Satisfied customers are likely to create goodwill of the firm in the market and connected with firm for longer period are financially beneficial for firm. Jones & Sasser, (1995) satisfied customers are not likely to be retained always. Satisfaction is important factor of customer retention but trust and switching barriers also play their key role in customer retention both individually and both in collaboration CITATION Ran03 l 1033 (Ranaweera & Jaideep, 2003). Customer retention is covered in past because of its significance in firms profitability. There are many factors that play their role in customer retention, like customer trust, customer satisfaction and switching barriers CITATION Ran03 l 1033 (Ranaweera & Jaideep, 2003).
This study will help the marketing manager to know the impact level of trust satisfaction and switching barriers. By knowing this they will be able to make better policies and strategies to retain the customers to increase firm’s profitability. This research will aid the marketers to build customer base that will help them to maintain their competitive advantage in the market. This study will also help the managers to know the relation of the issue to retain the customers and they can compete firms that are giving competition.
This study will also contribute to the existing knowledge and will provide the broader view of the factors affecting retention in the fashion apparel industry. Fashion apparel industry marketing manager will be well informed to make new strategies. The findings of this study will be very important on long term planning of customer retention.
The purpose of this paper is to understand.
The effect of customer satisfaction on customer retention.
The effect of customer trust on customer retention
The effect of switching barriers on customer retention
This purpose of this research is to examine the effect of customer trust customer Satisfaction and switching barriers over customer retention in this fashion apparel industry.
Customer satisfaction is the customer’s emotional assessment showing the level of customer’s positive belief about service provider CITATION Cro00 l 1033 (Cronin, Brady, ; Hult, 2000). It is the mostly studied topic in the marketing CITATION Noo09 l 1033 (Noone, Kimes, Mattila, ; Wirtz, 2009). Aftermath of the purchase and utilization arise from the shopper’s judgment of the advantage and price of the purchase regarding the foreseen outcomes is known as satisfaction CITATION Chu82 l 1033 (Churchil & Surprenant, 1982). Customer satisfaction is the expected value of the goods by the customer CITATION Bar95 l 1033 (Barsky & Warner, 1995). Customer satisfaction is always been the main motive of the consumers marketing managers. CITATION Oli99 l 1033 (Oliver, 1999). Customer satisfaction is the main idea in marketing management perhaps the principal idea as it is essential to marketing concept CITATION Oli97 l 1033 (Oliver R. L., Satisfaction: A Behavioral Perspective on the Consumer, 1997). Many studies have been conducted in service sector to test the connection between customer satisfaction and customer retention CITATION And93 l 1033 (Anderson & Sullivan, 1993). This link support marketing concept that satisfied customers likes to continue shopping with firms CITATION Kot02 l 1033 (Kotler, Armstrong, & Cunningham, 2002).Literature shows that customer satisfaction has gained importance in long term relationship between firm and customer. CITATION Oli80 l 1033 (Oliver R. L., A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions, 1980)Customer trust
Trust has gained much importance among researchers CITATION Gar99 l 1033 (Garbarino & Johnson, 1999)Customer relationship managers dealing in the service organizations have major worry in the customer trust. Trust is the shopper’s belief in the product’s reliability and integrity CITATION Mor94 l 1033 (Morgan & Hunt, 1994). It is been observed that Customer satisfaction is followed by trust which tends to repurchase decision CITATION Gan12 l 1033 (Ganiyu, Uche, & Elizabeth, 2012). Trust is the parameter set by the consumer regarding the attributes of the suppliers and the later performance of said supplier CITATION Eid11 l 1033 (Eid, 2011). There are cases when the firms are unable to retain their satisfied customers CITATION Sch99 l 1033 (Schneider & Bowen, 1999). To engage customer with firm for longer time relationship firms needs to other elements such as trust to retain customers CITATION Har l 1033 (Hart & Johnson). Firms aim to build trust rather than satisfaction to retain customers CITATION Mor94 l 1033 (Morgan & Hunt, 1994). The main aim of trust is to build and keep the bond among customer and service provider CITATION GEY98 l 1033 (GEYSKENS, KUMAR, & STEENKAMP, 1998) CITATION Mor94 l 1033 (Morgan & Hunt, 1994) it is the level of loyalty that is endorsed by seller to buyer in relationships CITATION Rot67 l 1033 (Rotter, 1967). Trust is firm’s ability to fulfill its promise which are linked to customer expectations CITATION Chr92 l 1033 (Christine, Zaltman, ; Deshpande, 1992)Switching barriers.
As per the past studies the switching barriers consist of the cost of changing the service provider, the attraction to the substitutes available in the market and the personal relationship with the suppliers. Switching barriers are the elements that make it tough for the consumer to convert to another supplier CITATION Jon00 l 1033 (Jones, David, ; Sharon, 2000). Switching barriers are fiscal and emotional phases that a customer has to overcome in the process of shuffling from one supplier to other CITATION Kim04 l 1033 (Kim, Park, ; Jeong, 2004). If the loss attached with the switching the suppliers are high then even the dissatisfied customer will like to continue dealing with the same suppliers to avoid the costs and losses that he will suffer from changing the suppliers CITATION Lee01 l 1033 (Lee, Lee, ; Feick, 2001).Switching cost means the cost the customer have to bear when he is changing the supplier, that cost consist of time, Money, and the emotional cost CITATION Dic94 l 1033 (Dick ; Basu, 1994).Relationship between the customer and the employees of the organization is considered as interpersonal relationships CITATION Wil89 l 1033 (Wilson ; Turnbull, 1989).Through the past studies held in the Management and psychology it is been revealed that individuals like to be in touch with the firms where the personal relationships are strong CITATION Rio95 l 1033 (Riordan ; Rodger, 1995). The financial cost, time and the struggle to find new substitute that are attached with the customer’s switching to new product are known as perceived switching cost.
Business motto is always to create new customers and then retain new and old customers. In the competitive market the customer retention earn good repute for the firm. Itis very much important to the firms because engaging new customers cost the firm greater than to continue the existing customers CITATION Sin12 l 1033 (Singh & Khan, 2012). Basic aim of the retention programmes is to turn irregular customer to regular customer and force them to recommend the firm or products to their connections. Customers raise the prospects of customer to buying more products of the firms rather than buy one or two. Because of the rising cost of losing customer firms are looking to obtain and retain their loyal and existing customers. Studies conducted in the past and recent past suggest Customer retention as more critical than ever CITATION Pot94 l 1033 (Potter, 1994).It is apparent fact that customer retention is accepted at wider level because of its role in relationship marketing. Because retention focus on the promotion of the firm so it’s is closely related to repurchase intention of consumers CITATION Hen97 l 1033 (Hennig ; Klee, 1997). Retention is customer intention to buy more from a firm. The studies conducted in recent era shows that retaining the old customer is five time more beneficial for form as to draw attention of new customers (Kim ; Gupta, 2009, CITATION Chi12 l 1033 (Chiu, Hsu, Lai, ; Chang, 2012). Firm can earn more profit by retianing more customers CITATION Jia05 l 1033 (Jiang ; Rosenbloom, 2005). Marketing mangers cinsider customer retention as a serious problem in because of smaller growth of new customer is market CITATION Ahm02 l 1033 (Ahmad ; Buttle, 2002).
Customer Satisfaction and Customer retention:-
Customer retention is directly influenced by customer satisfaction which leads customer to buy again from the firm CITATION Als12 l 1033 (Alshurideh, Masa’deh, & Alkurdi, 2012). Customer satisfaction guarantees customer retention CITATION GPr13 l 1033 (G & Rajan, 2013). Satisfied customers will remain in relationship with firm for longer period of time CITATION GPr13 l 1033 (G & Rajan, 2013). Firms can gain many benefits from retaining the old customers. Customer trust and customer satisfaction positively affect customer retention CITATION Ran03 l 1033 (Ranaweera & Jaideep, 2003). Satisfied customers repurchases from firm this shows that customers retention is directly influenced by the customer satisfaction CITATION Als12 l 1033 (Alshurideh, Masa’deh, ; Alkurdi, 2012). Customer satisfaction is key to customer retention CITATION Kot94 l 1033 (Kotler, Marketing management : analysis, planning, implementation, and control, 1994). Customer satisfaction and customer retention are key factor for the profit earning
H1:Customer trust significantly influences Customer retention.
H2Customer satisfaction significantly influences Customer retention.
H3Switching barriers significantly influence Customer retention.
RESEARCH PHILOSOPHY AND RESEARCH TYPE
To conduct this study Positivism philosophical approach that will be used. Because there is already established frame work and hypothesis are already laid down. The positivist approach is based on the occurring knowledge based or gained through observations, measurements is true and trustworthy. The framework and research problem is identified through observation so the philosophy used will be positivist. In this approach main emphasize is on the Quantifiable results. In positivist research researcher tries to crate relationship between variables.
The deductive approach is concerned with the development of hypothesis based on already existing theory and then tests those developed hypothesis with reference to research CITATION Sil13 l 1033 (Silverman, 2013). Deductive approach is best suited for the positivist philosophical approach that allows development and testing of hypothesis and expected results can be tested statistically CITATION Sni09 l 1033 (Snieder ; Larner, 2009).
In presence of established hypothesis and the result will be tested statistically with the Help of SPSS the Deductive approach is best suited for this research.
The population for this research consist the students of different colleges and universities that uses fashions apparel brands.
There are two types of sampling named as probability sampling and Non- probability sampling. Probability offers every participant a chance to participate in study. Randomization is the essence of probability sampling. In Non probability sampling only certain members of the population has chance to participate in the study.
To minimize the Biasness in the study the probability sampling will be applied to conduct this study.
Sampling is the feature of the study design that influences significance of the relationship between variables CITATION Pee96 l 1033 (Peers, 1996 ). It is very important to select sample size to minimize the biasness in quantitative study CITATION Bar01 l 1033 (Bartlett, Kotrlik, ; Higgins, 2001). CITATION Gor83 l 1033 (Gorsuch, 1983) And CITATION Kli94 l 1033 (Kline, 1994) recommends sample size of at least 100 participants. CITATION Com92 l 1033 (Comrey ; Lee, 1992)Recommends sample size of 50 as very poor, 100 as poor, 200 as fair, 300 as good, 500 as very good, and 1,000 or more as excellent.
The target sample size for this study is 250.
Timeframe within the research is to be completed CITATION Sau07 l 1033 (Saunders, Lewis, ; Thornhill, 2007). There are two types of time frames designed in the research that are cross sectional and longitudinal CITATION Bry01 l 1033 (Bryman, 2001). Cross sectional research probe the relationship between variables at single point of time. This is cross sectional study and the data will be collected at single point of time from respondents.
To collect data for this study survey technique will be used and the respondents will be handed over questionnaire to receive their feedback. A survey data technique is affordable tool to collect large amount of data. Questionnaire, Interviews and documentation review are most popular techniques associated with survey data techniques. This technique will provide detailed view of the respondents and also large amount of data. Structured questionnaire will be used to receive the feedback from perspective respondents. The Questionnaire will be adopted and adapted from previous literature. The scales related to the Switching barriers were adapted from CITATION Mur11 l 1033 (Murad, 2011) and CITATION Ull15 l 1033 (Ullah, Khan, ; Shahzad, 2015) the scales relating to other variables satisfaction, trust, and customer satisfaction were adapted from CITATION Ull15 l 1033 (Ullah, Khan, ; Shahzad, 2015).
Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree
Switching Barriers CITATION Mur11 l 1033 (Murad, 2011)1 Switching from one brand to another would cause too many problems 2 Switching from one brand to another would be too expensive. 3 Switching from one brand to another would require too much learning. 4 I would consume much effort in deciding which
other bank to deal with 5 I would lose personal relationships Switching Barriers CITATION Ull15 l 1033 (Ullah, Khan, ; Shahzad, 2015)6 Quality of brand is to be considering the switching barrier. 7 Highly switching barrier mostly occurs in service sector 8 Investment in efforts and time is one of the highest barriers for switching. 9 Monopoly is one of the barriers which keeps 100% customer retain. 10 Switching becomes difficult when prices of other brand become high. 11 For me, money is barrier instead of personal relationship to switch Satisfaction
Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree
12 What is your overall satisfaction with apparel fit? 13 Overall, the experience that I have had with clothing fit has been satisfactory. 14 Overall, I am pleased with how the clothing I find in stores fits. 15 Overall, I am satisfied with apparel fit. 16 Overall, in purchasing clothing, my experience with apparel fit is positive. Satisfaction CITATION Ull15 l 1033 (Ullah, Khan, ; Shahzad, 2015)16 I get satisfied when my basic needs become fulfill. 17 My expectation is basically my satisfaction
18 Satisfaction compel customer toward repurchasing Trust CITATION Ull15 l 1033 (Ullah, Khan, ; Shahzad, 2015)19 My trust developed when my expectation gets completed. 20 I understand that keeping the promise is actually trust. 21 Trustworthiness of services is more important than product 22 I believe that Trust contribute 70% toward customer retention Customer retention CITATION Ull15 l 1033 (Ullah, Khan, ; Shahzad, 2015)23 Customer retention is the future behavioral intention 24 I believe on retention of customer instead of
Profit 25 Loyalty by the reason of attachment and obligation is customer retention. 26 Ongoing purchasing is customer retention
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