2003; Wirtz and Kimes, 2007) that the actual price paid for a
given service has a direct and negative effect on customers’
return intentions. Furthermore, regardless of how satisfied a
customer is with the service experience, this is not sufficient
to override the direct influence that price has over intent to
use the brand again in the future. The finding is consistent
with Keaveney (1995) who found, that even when satisfied
with a service provider, customers may switch providers on
the basis of price. While the services literature has tended to
focus on service quality, satisfaction, service encounters and
service design as antecedents of customer loyalty, the findings
of this study, coupled with those of Keaveney(1995), suggest
that price is an additional factor that should be considered
in order to understand customer defections from service
firms fully. Findings also suggest that reward programme
membership does not influence the effect of price on return
intent. While reward programmes are designed to build
barriers to switching, this finding supports that of Mattila
(2006) regarding customers’ perceptions of low switching
costs associated with rewards programmes. It also supports
the notion that reward programmes will not induce loyalty
in the absence of an emotional bond with the brand. It is that
emotional bond, or affective commitment, that is required to
ensure repeat patronage (Mattila, 2006).
2003; Wirtz and Kimes, 2007) that the actual price paid for a
given service has a direct and negative effect on customers’
return intentions. Furthermore, regardless of how satisfied a
customer is with the service experience, this is not sufficient
to override the direct influence that price has over intent to
use the brand again in the future. The finding is consistent
with Keaveney (1995) who found, that even when satisfied
with a service provider, customers may switch providers on
the basis of price. While the services literature has tended to
focus on service quality, satisfaction, service encounters and
service design as antecedents of customer loyalty, the findings
of this study, coupled with those of Keaveney(1995), suggest
that price is an additional factor that should be considered
in order to understand customer defections from service
firms fully. Findings also suggest that reward programme
membership does not influence the effect of price on return
intent. While reward programmes are designed to build
barriers to switching, this finding supports that of Mattila
(2006) regarding customers’ perceptions of low switching
costs associated with rewards programmes. It also supports
the notion that reward programmes will not induce loyalty
in the absence of an emotional bond with the brand. It is that
emotional bond, or affective commitment, that is required to
ensure repeat patronage (Mattila, 2006).
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