It must be pointed out that customer loyalty and retention are not always attributable to
customer satisfaction. It is because a customer may not be satisfied with the services/products
but may find it difficult to switch to a competitor simple because of the circumstances he/she
is faced with. This is usually common in most services context. For example with Insurance
services, until the time period for a particular insurance policy or product a customer may
have bought expires, the customer may be forced to maintain the policy. Such a customer
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may be dissatisfied but will be forced to remain loyal to an organisation; this is a kind of
forced loyalty by implication. Loyalty is therefore affected by situational factors and
switching cost.