Some moderating effects on the service quality-customer retention link

doi:10.1108/01443570310458474

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International Journal of Operations & Production Management

ISSN: 0144-3577

Online from: 1980

Subject Area: Operations and Logistics Management

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Some moderating effects on the service quality-customer retention link

Document Information:
Title:	Some moderating effects on the service quality-customer retention link
Author(s):	Chatura Ranaweera, (The Judge Institute of Management Studies, University of Cambridge, Cambridge, UK), Andy Neely, (Centre for Business Performance, Cranfield School of Management, Cranfield, UK)
Citation:	Chatura Ranaweera, Andy Neely, (2003) "Some moderating effects on the service quality-customer retention link", International Journal of Operations & Production Management, Vol. 23 Iss: 2, pp.230 - 248
Keywords:	Consumer attitudes, Customer loyalty, Pricing, Service quality
Article type:	Research paper
DOI:	10.1108/01443570310458474 (Permanent URL)
Publisher:	MCB UP Ltd
Abstract:	This paper presents a holistic model of customer retention incorporating service quality perceptions, price perceptions, customer indifference and inertia. Data from a large-scale postal survey of telephone users in England showed that perceptions of service quality have a direct linear relationship with customer retention even in mass services with low customer contact. Price perceptions and customer indifference too were found to have a direct linear effect on retention. Furthermore, it was also seen how both price perceptions and customer indifference moderated the relationship between service quality perceptions and customer retention. A linear relationship between inertia and customer retention was not found. Furthermore, there was evidence to indicate that inertia was a relatively unstable condition and that reliance by service providers on inertia to retain customers could indeed be a risky strategy.