Are inertia and calculative commitment distinct constructs?: An empirical study in the financial services sector

International Journal of Bank Marketing

Volumn 28, Issue 7, 2010, Pages 569-584

  Yanamandram, Venkata ^a   White, Lesley ^b  

^a UNIVERSITY OF WOLLONGONG   (Australia)

^b UNIVERSITY OF SYDNEY   (Australia)

Author keywords

Australia; Consumer behaviour; Costs; Financial services

Indexed keywords

EID: 78049520570     PISSN: 02652323     EISSN: None     Source Type: Journal    
DOI: 10.1108/02652321011085202     Document Type: Article

References (67)

1. Akerlund, H. (2005), "Fading customer relationships in professional services" in Managing Service Quality, Vol. 15, No. 2, pp. 156-71.
2. Anderson, E. and Weitz, B.A. (1992), "The use of pledges to build and sustain commitment in distribution channels" in Journal of Marketing Research, Vol. 29, No. 1, pp. 18-34.
3. Anderson, J.C. and Gerbing, D.W. (1988), "Structural equation modeling in practice: a review and recommended two-step approach" in Psychological Bulletin, Vol. 103, No. 3, pp. 411-23.
4. Assael, H. (1998), Consumer Behaviour and Marketing Action, Southwestern College Publishing, Cincinnati, OH.
5. Bagozzi, R.P. and Yi, Y. (1988), "On the evaluation of structural equation models" in Journal of the Academy of Marketing Science, Vol. 16, No. 2, pp. 74-94.
6. Becker, H.S. (1960), "Notes on the concept of commitment" in American Journal of Sociology, Vol. 66, No. 1, pp. 32-42.
7. Bozzo, C. (2002), "Understanding inertia in an industrial context" in Journal of Customer Behaviour, Vol. 1, No. 3, pp. 335-55.
8. Burnham, T.A., Frels, J.K. and Mahajan, V. (2003), "Consumer switching costs: a typology, antecedents, and consequences" in Journal of the Academy of Marketing Science, Vol. 31, No. 2, pp. 109-26.
9. Chintagunta, P.K. and Honore, B.E. (1996), "Investigating the effects of marketing variables and unobserved heterogeneity in a multinomial probit model" in International Journal of Research in Marketing, Vol. 13, No. 1, pp. 1-15.
10. Colgate, M. and Lang, B. (2001), "Switching barriers in consumer markets: an investigation of the financial services industry" in Journal of Consumer Marketing, Vol. 18, No. 4, pp. 332-47.
11. Dwyer, F.R., Schurr, P.H. and Oh, S. (1987), "Developing buyer-seller relationships" in Journal of Marketing, Vol. 51, No. 2, pp. 11-28.
12. East and Partners (2006), "Banks failing their business customers", available at: www.east.com.au/bankingnews.asp?id=1692 (accessed 21 January 2009).
13. Evanschitzky, H., Iyer, G.R., Plassmann, H., Niessing, J. and Meffert, H. (2006), "The relative strength of affective commitment in securing loyalty in service relationships" in Journal of Business Research, Vol. 59, No. 12, pp. 1207-13.
14. Fornell, C. (1992), "A national customer satisfaction barometer: the Swedish experience" in Journal of Marketing, Vol. 56, No. 1, pp. 6-21.
15. Fornell, C. and Larcker, D. (1981), "Evaluating structural equation models with unobservable variables and measurement error" in Journal of Marketing Research, Vol. 18, No. 1, pp. 39-50.
16. Fujitsu (2007), "Banks to battle it out over SME leanding", available at: www.fujitsu.com/au/news/pr/archives/2007/20070619-01.html (accessed 10 January 2010).
17. Geyskens, I., Steenkamp, J. and Scheer, L.K. (1996), "The effects of trust and interdependence on relationship commitment" in International Journal of Research in Marketing, Vol. 13, No. 4, pp. 303-17.
18. Gilliland, D.I. and Bello, D.C. (2002), "Two sides to attitudinal commitment: the effect of calculative and loyalty commitment on enforcement mechanisms in distribution channels" in Journal of the Academy of Marketing Science, Vol. 30, No. 1, pp. 24-43.
19. Gounaris, S. and Stathakopoulos, V. (2004), "Antecedents and consequences of brand loyalty: an empirical study" in Journal of Brand Management, Vol. 11, No. 4, pp. 283-306.
20. Gounaris, S.P. (2005), "Trust and commitment influences on customer retention: insights from business-to-business services" in Journal of Business Research, Vol. 58, No. 2, pp. 126-40.
21. Guiltinan, J. (1989), "A classification of switching costs with implications for relationship marketing" in Childers, T.L., Bagozzi, R.P. and Peter, J.P. (Eds.), AMA Winter Educators' Conference: Marketing Theory and Practice, American Marketing Association, Chicago, IL, pp. 216-20.
22. Heide, J.B. and John, G. (1988), "The role of dependence balancing in safeguarding transaction-specific assets in conventional channels" in Journal of Marketing, Vol. 52, No. 1, pp. 20-35.
23. Herche, J. and Engelland, B. (1996), "Reversed-polarity items and scale unidimensionality" in Journal of the Academy of Marketing Science, Vol. 24, No. 4, pp. 366-74.
24. Hinkin, T.R. (1995), "A review of scale development practices in the study of organizations" in Journal of Management, Vol. 21, pp. 967-88.
25. Huang, M. and Yu, S. (1999), "Are consumers inherently or situationally brand loyal? A set intercorrelation account for conscious brand loyalty and nonconscious inertia" in Psychology and Marketing, Vol. 16, No. 6, pp. 523-44.
26. Inder, B. and O'Brien, T. (2003), "The endowment effect and the role of uncertainty" in Bulletin of Economic Research, Vol. 55, No. 3, pp. 289-301.
27. Jackson, B.B. (1985), Winning and Keeping Industrial Customers: The Dynamics of Customer Relationships, Lexington Books, Lexington, MA.
28. Jones, M.A., Mothersbaugh, D.L. and Beatty, S.E. (2002), "Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes" in Journal of Business Research, Vol. 55, No. 6, pp. 441-50.
29. Jones, M.A., Reynolds, K.E., Mothersgbaugh, D.L. and Beatty, S.E. (2007), "The positive and negative effects of switching costs on relational outcomes" in Journal of Service Research, Vol. 9, No. 4, pp. 335-55.
30. Kahneman, D. and Tversky, A. (1979), "Prospect theory: an analysis of decision under risk" in Econometrica, Vol. 47, No. 2, pp. 263-92.
31. Kim, M., Kliger, D. and Vale, B. (2003), "Estimating switching costs: the case of banking" in Journal of Financial Intermediation, Vol. 12, No. 1, pp. 25-56.
32. Klemperer, P. (1995), "Competition when consumers have switching costs" in Review of Economic Studies, Vol. 62, No. 4, pp. 515-39.
33. Kumar, N., Hibbard, J.D. and Stern, L.W. (1994), "The nature and consequences of marketing channel intermediary commitment", Marketing Science Institute, Cambridge, MA, MSI Working Paper, Report No. 94-115.
34. Lee, M. and Cunningham, L.F. (2001), "A cost/benefit approach to understanding service loyalty" in Journal of Services Marketing, Vol. 15, No. 2, pp. 113-30.
35. Liu, A.H. (2006), "Customer value and switching costs in business services: developing exit barriers through strategic value management" in Journal of Business & Industrial Marketing, Vol. 21, No. 1, pp. 30-7.
36. Liu, A.H., Leach, M.P. and Bernhardt, K.L. (2005), "Examining customer value perceptions of organizational buyers when sourcing from multiple vendors" in Journal of Business Research, Vol. 58, No. 5, pp. 559-68.
37. Matthews, C. and Murray, D. (2007), "Helping bank customers switch: a case study" in Journal of Financial Services Marketing, Vol. 11, No. 4, pp. 360-9.
38. Matthews, C., Moore, C. and Wright, M. (2008), "Why not switch? Switching costs and switching likelihood", paper presented at the 13th Finsia - Melbourne Centre for Financial Studies Banking and Finance Conference, 29-30 September, Melbourne.
39. Meyer, J.P., Stanley, D.J., Herscovitch, L. and Topolnytsky, L. (2002), "Affective, continuance, and normative commitment to the organization: a meta-analysis of antecedents, correlates, and consequences" in Journal of Vocational Behavior, Vol. 61, No. 1, pp. 20-52.
40. Morgan, R.M. and Hunt, S.D. (1994), "The commitment-trust theory of relationship marketing" in Journal of Marketing, Vol. 58, No. 3, pp. 20-38.
41. Nielson, C.C. (1996), "An empirical examination of switching cost investments in business-to-business marketing relationships" in Journal of Business & Industrial Marketing, Vol. 11, No. 6, pp. 38-60.
42. Oliver, R.L. (1999), "Whence customer loyalty" in Journal of Marketing, Vol. 63, No. 4, pp. 33-44.
43. Panther, T. and Farquhar, J.D. (2004), "Consumer responses to dissatisfaction with financial service providers: an exploration of why some stay while others switch" in Journal of Financial Services Marketing, Vol. 8, No. 4, pp. 343-53.
44. Perera, N. and Kim, H.-W. (2007), "The effect of switching costs on resistance to change in the use of software", working paper, Department of Information Systems, National University of Singapore, Singapore.
45. Ping, R.A. (1993), "The effects of satisfaction and structural constraints on retailer exiting, voice, loyalty, opportunism and neglect" in Journal of Retailing, Vol. 69, No. 3, pp. 320-52.
46. Podsakoff, P.M., Mackenzie, S.B., Lee, J.-Y. and Podsakoff, N.P. (2003), "Common method biases in behavioural research: a critical review of the literature and recommended remedies" in Journal of Applied Psychology, Vol. 88, No. 5, pp. 879-903.
47. Porter, M.E. (1980), Competitive Strategy: Techniques for Analysing Industries and Competitors, The Free Press, New York, NY.
48. Pritchard, M.P., Havitz, M.E. and Howard, D.R. (1999), "Analyzing the commitment-loyalty link in service contexts" in Journal of the Academy of Marketing Science, Vol. 27, No. 3, pp. 333-48.
49. Ranaweera, C. and Neely, A. (2003), "Some moderating effects on the service quality-customer retention link" in International Journal of Operations and Production Management, Vol. 23, No. 2, pp. 230-48.
50. Samuelsen, B. and Sandvik, K. (1997), "The concept of customer loyalty" in Arnott, D. and Bridgewater, S. (Eds.), 26th EMAC Conference Proceedings. Marketing: Progress, Prospects and Perspectives, Warwick Business School, University of Warwick, Coventry, pp. 1122-40.
51. Samuelson, W. and Zeckhauser, R. (1988), "Status quo bias in decision marketing" in Journal of Risk and Uncertainty, Vol. 1, No. 1, pp. 7-59.
52. Schmitt, N. and Stults, D. (1986), "Methodology review: Analysis of multitrait-multimethod matrices" in Applied Psychological Measurement, Vol. 10, pp. 1-22.
53. Sengupta, S., Krapfel, R. and Pusateri, M. (1997), "Switching costs in key account relationships" in The Journal of Personal Selling and Sales Management, Vol. 17, No. 4, pp. 9-16.
54. Sharma, N., Young, L. and Wilkinson, I.F. (2006), "The commitment mix: dimensions of commitment in international trading relationships in India" in Journal of International Marketing, Vol. 14, No. 3, pp. 64-91.
55. Sheth, J.N. (1996), "Organizational buying behaviour: past performance and future expectations" in Journal of Business & Industrial Marketing, Vol. 11, Nos 3/4, pp. 7-24.
56. Solomon, M.R. (1994), Consumer Behaviour: Buying, Having and Being, 2nd ed., Paramount Publishing, Wayland, MA.
57. Tyler, K. and Stanley, E. (1999), "Marketing financial services to businesses: a critical review and research agenda" in International Journal of Bank Marketing, Vol. 17, No. 3, pp. 98-115.
58. Wallace, J.E. (1997), "Becker's side-bet theory of commitment revisited: is it time for a moratorium or a resurrection?" in Human Relations, Vol. 50, No. 6, pp. 727-49.
59. Weiss, A.M. and Anderson, E. (1992), "Converting from independent to employee salesforces: the role of perceived switching costs" in Journal of Marketing Research, Vol. 29, No. 1, pp. 101-16.
60. Wetzels, M., de Ruyter, K. and van Birgelen, M. (1998), "Marketing service relationships: the role of commitment" in Journal of Business and Industrial Marketing, Vol. 13, Nos 4/5, pp. 406-23.
61. White, L. and Yanamandram, V. (2004), "Why customers stay: reasons and consequences of inertia in financial services" in Managing Service Quality, Vol. 14, Nos 2/3, pp. 183-94.
62. Whitten, D. and Wakefiled, R.L. (2006), "Measuring switching costs in IT outsourcing services" in Journal of Strategic Information Systems, Vol. 15, No. 3, pp. 219-48.
63. Yanamandram, V. and White, L. (2006), "Switching barriers in business-to-business services: a qualitative study" in International Journal of Service Industry Management, Vol. 17, No. 2, pp. 158-92.
64. Ye, G. (2005), "The locus effect on inertia equity" in Journal of Product and Brand Management, Vol. 14, Nos 2/3, pp. 206-10.
65. Zeelenberg, M. and Pieters, R. (2004), "Beyond valence in customer dissatisfaction: a review and new findings on behavioral responses to regret and disappointment in failed services" in Journal of Business Research, Vol. 57, No. 4, pp. 445-55.
66. Zeithaml, V.A. (1981), "How consumer evaluation processes differ between goods and services" in Donnelly, J.H. and George, W.R. (Eds.), Marketing of Services, American Marketing Association, Chicago, IL, pp. 186-90.
67. Shugan, S.M. (1980), "The cost of thinking" in Journal of Consumer Research, Vol. 7, No. 2, pp. 99-111.