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Puji Setyawan E. Putranto
Bogor Agricultural University
Decision Sciences, Operations Research & Management

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Switching Cost to Customer Loyalty: Operation and Business Relationship Puji Setyawan E. Putranto
Business and Entrepreneurial Review Vol. 5 No. 1 (2005): Volume 5, No. 1 October 2005
Publisher : Universitas Trisakti

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (692.368 KB) | DOI: 10.25105/ber.v5i1.1008

Abstract

Many business customers to day consolidate their supply basis and implementing preferred supplier programs. Consequently suppliers forced to gain a key supplier status from their customers where as a collaborative buyer-seller relationship represents a source of competitive advance. The vendors sometimes in flict switching costs on their customers, to prevent them from defecting to new suppliers. In a competitive setting where competition dominated by a price war, the potential switching costs might be an exit barrier and a binding factor of customer loyalty. ln efforts to address that issue this research examines the moderating effects of switching costs on customer loyalty through both satisfaction and perceived-value measures. The research investigates opporlunities for differentiation through value creation in business to business (B2B) relationship.
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