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Best student paper: Some moderating effects on the service quality-customer retention link (ABSTRACT)

Ranaweera, C., & Neely, A.

published: 2003 | Research publication | Refereed Journals - Marketing

Winner of the Emerald Literati Club Outstanding Paper of the Year Award

Ranaweera, C., & Neely, A. (2003). "Some moderating effects on the service quality-customer retention link". International Journal of Operations and Production Management, 23 (2), 230-249.

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.

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revised Dec 6/04

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