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Switching Costs as a Mediating Variable for Service Quality, Satisfaction, and Repurchase Intention

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Document pages: 13 pages

Abstract: This study identified the relationships among perceived service quality, customer satisfaction, switching cost, and repurchase intention. It also examined the antecedents of switching cost which would have a significant effect on repurchase intention in the airline industry. A survey was conducted at Incheon International Airport in South Korea between March 13, and 16, 2014, using the convenience sampling method. Potential participants were asked whether they had an interest in filling out a questionnaire, then the questionnaires were collected immediately upon completion. After 200 self-administered questionnaires were distributed, 193 usable questionnaires were obtained. The proposed model had a satisfactory fit with the data and the inclusion of these variables significantly increased the model’s ability to predict customers’ repurchase intentions. The relationships that this study were able to establish are the following: 1) perceived service quality has a significant effect on customer satisfaction; 2) there is significant relationship between perceived service quality and switching cost; 3) customer satisfaction is a key factor influencing switching cost; and 4) switching cost affects customer repurchase intention. From the results, theoretical and practical implications were suggested.

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