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The extant retail research has placed much emphasis on understanding customer switching and the concept of switching costs (SCs). However, the empirical evidence is inconclusive with respect to the moderating role of SCs in general and relational switching costs (RSCs) in particular. Therefore, this research focuses on the moderating role played by SCs on the satisfaction-loyalty link. Specifically, our study attempts to clarify the nonlinear moderating effect of RSCs. Furthermore, we investigate RSCs in greater depth, considering their two dimensions, brand relationship loss costs (BRLCs), and personal relationship loss costs (PRLCs). We find that there is an optimal level of BRLC whereas increasing PRLCs decreases the impact of satisfaction on loyalty in a linear manner, calling for a more nuanced assessment of this type of SC in future studies. Our findings contribute to a deeper understanding of the effectiveness of SCs as a retention strategy.

[Display omitted] •Museological displays infuse luxury products with artistic value.•The artistic infusion in museological displays occurs even if no artwork is in situ.•Products in museological displays benefit from an extended art infusion effect.•Products are perceived to be more luxurious, less risky and thus more purchasable.•Visual appeal and service level expectations constitute complementary explanations. As retailers are increasingly turning to museum and art gallery inspired techniques for displaying luxury products (museological display formats), we investigate whether such staging elicits more favorable product evaluations. Providing an extension to Hagtvedt and Patrick’s (2008) classic art infusion effect, we propose that artistic essence is transferred to displayed merchandise via a second-order spillover effect, enhancing its perceived luxury to consumers. Across three experiments, the museological display format outperformed a more conventional, non-museological product display. Consumers reported higher purchase intentions, via a process whereby the merchandise was first perceived as being more luxurious and then less risk inducing. Explanations for why the museological display heightened perceptions of product luxury relating to service expectations, contamination, and visual appeal were also tested, but support for the extended art infusion effect remained undiminished.

Oliver’s 1997 four-stage loyalty model proposes that loyalty consists of belief, affect, intention, and action. Although this loyalty model has recently been subject to empirical examination, the issue of moderator variables has been largely neglected. This article fills that void by analyzing the moderating effects of selected personal and situational characteristics, using a sample of 888 customers of a large do-it-yourself retailer. The results of multi-group causal analysis suggest that these moderators exert an influence on the development of the different stages of the loyalty sequence. Specifically, age, income, education and expertise, price orientation, critical incident recovery, and loyalty card membership are found to be important moderators of the links in the four-stage loyalty model. Limitations of the study are outlined, and implications for both research and managerial practice are discussed.

•Service failures of partners in a coalition loyalty program have a negative effect on the responsible partner.•Service failures of partners in a coalition loyalty program also have direct and indirect effects on the program itself.•Perceived special treatment benefits of the coalition loyalty program can buffer these negative effects of service failures.•Service failures spill over to the coalition loyalty program if the perceived special treatment benefits are low. Coalition loyalty programs are on the rise, yet few studies investigate the impact of service failures in such programs. Using data from a retail context, the authors show that a program partner deemed responsible for a service failure suffers negative customer responses. However, customers’ perceptions of the benefits of the coalition loyalty program buffer these consequences. Perhaps most importantly, when customers perceive the program's special treatment benefits as low, direct and indirect spillover effects occur, such that a service failure by one program partner has a negative effect on customer loyalty toward the program itself.

Introducing customers to new ideas lies at the heart of marketing, yet surprisingly little is known about customers' state of inspiration within this domain. This article reviews prior conceptualizations of general inspiration in psychology and introduces the concept of customer inspiration as a customer's temporary motivational state that facilitates the transition from the reception of a marketing-induced idea to the intrinsic pursuit of a consumption-related goal. The authors develop and validate a two-state, ten-item customer inspiration scale that consists of inspired-by and inspiredto states. The scale development process begins with item generation, followed by five studies: (1) scale purification and initial validation, (2) exploration of the nomological network, (3) tests for the experimental and predictive validity, (4) replication within a field experiment, and (5) assessments of generalizability and boundary conditions. Empirical results reveal sound psychometric properties of the scale, demonstrate its unique position in relation to established marketing constructs, and support experimental and predictive validity. Applying the scale in marketing practice offers a new way for firms to increase demand, motivate customers' exploration behavior, and build customer loyalty.

Research on linking operational marketing inputs to customer attitudes and customer behavior has been gaining significance concomitant with the growing recognition that customers are market-based assets. In response to this, researchers and practitioners have proposed several conceptual models. Despite recent advances in research, the results are still inconclusive as to the relationship between customer attitude and future sales. A reason for this could be due to the paucity of studies combining survey-based data with behavioral data to understand better the drivers of customer behavior. With that in mind, the authors investigate the effects of customer perceptions of key marketing actions on customer attitudes and actual customer behavior as reflected by future sales. The authors propose that customer perceptions of value, brand, and relationship—\"customer equity drivers\"—affect loyalty intentions and future sales. The results of the study, which is based on a sample of 5694 customers of a large European do-it-yourself retailer, suggest that customer equity drivers can significantly predict future sales, even after the authors control for the current sales level.

•The way in which switching costs (SC) moderate the satisfaction–repurchase behavior link is unclear.•We synthesize both an amplifying and a lock-in effect to theorize the moderating effect of SC.•We find evidence for an inverted u-shaped moderating effect of SC.•The inverted u-shaped moderating effect varies for different SC-types.•The inverted u-shaped moderating effect is stronger for positive than for negative SC. Existing studies on the role of switching costs (SC) as moderator of the relationship between satisfaction and repurchase behavior are inconclusive. We attempt to explain these inconclusive findings by synthesizing an amplifying and a lock-in effect, and hypothesize a nonlinear moderating effect. In Study 1 (a main study and three replications), we find strong evidence for an inverted u-shaped moderating effect of overall SC. Our results suggest that satisfaction is a particularly important predictor of repurchase behavior in situations characterized by medium-levels of SC. Based on Prospect Theory, Study 2 (a main study and one replication) reveals that this inverted u-shaped moderating effect of SC is stronger for positive (relational and financial) SC than for negative (procedural) SC. We conclude with recommendations for satisfaction management of different customer segments, and describe possibilities to influence customer switching costs in various industries.

The purpose of this paper is to understand the internal branding process from the employees' perspective; it will empirically assess the relationship between internal branding and employees' delivery of the brand promise as well as the relationships among their brand identification, brand commitment and brand loyalty. On a census basis, a quantitative survey is carried out with 699 customer-interface employees from five major hotels. Internal branding is found to have a positive impact on attitudinal and behavioural aspects of employees in their delivery of the brand promise. As employees' brand commitment does not have a statistically significant relationship with employees' brand performance, it is not regarded as a mediator in the link between internal branding and employees' brand performance. Furthermore, the study shows that brand identification is a driver of brand commitment, which precedes brand loyalty of employees. A number of significant managerial implications are drawn from this study, for example using both internal communication and training to influence employees' brand-supporting attitudes and behaviours. Still, it should be noted that the effect of internal branding on the behaviours could be dependent on the extent to which it could effectively influence their brand attitudes. The results provide valuable insights from the key internal audience's perspectives into an internal branding process to ensure the delivery of the brand promise. It empirically shows the relationship between internal branding and the behavioural outcome as well as the meditational effects of employees' brand identification, commitment and loyalty.

•Internal and external switching costs affect loyalty but have differential effects.•Service characteristics moderate the links between switching costs and loyalty.•Internal switching costs are more effective in industries higher in service characteristics.•While oppositely, external switching costs are less effective in industries higher in service characteristics. This research investigates the interrelationship between service characteristics and switching costs and makes two contributions to the service retailing literature: (1) As a means of better understanding the effectiveness of switching costs, the study suggests a two-dimensional typology of switching costs, including internal and external switching costs and (2) it reveals that the effect of these switching costs on customer loyalty is contingent upon four service characteristics (the IHIP characteristics of service). We carried out a meta-analytic review of the literature on the switching costs–customer loyalty link and created a hierarchical linear model using a sample of 1,694 customers from 51 service industries. Results reveal that external switching costs have a stronger average effect on customer loyalty than do internal switching costs. Moreover, we find that IHIP characteristics moderate the links between switching costs and customer loyalty. Thus, the link between external switching costs and customer loyalty is weaker in industries higher in the four service characteristics (as compared to industries lower in these characteristics), while the opposite moderating effect of service characteristics for the internal switching costs–loyalty link is noted.

Purpose – The use of key accounts has become a mature trend and most industrial firms use this concept in some form. Selling firms establish key account teams to attend to important customers and consolidate their selling activities. Yet, despite such increased efforts on behalf of key accounts, sufficient research has not quantified the returns on key account strategy nor has it firmly established performance differences between key and non-key accounts within a firm. In response to this shortcoming, this study aims to examine returns on key accounts. Design Methodology/approach – Data were collected from a global consulting firm. The data collection started two years after the implementation of the key account program. Data were collected on recently acquired customers (within the previous year) at two time periods: year 1 and year 3 (based on company access of data). Findings – Initially, key accounts perform as well or better than other types of accounts. However, in the long term, key accounts are less satisfied, less profitable and less beneficial for a firm’s growth than other types of accounts. Because the returns to key account expenditures, thus, appear mixed, firms should be cautious in expanding their key account strategies. Research limitations implications – The study contributes to research in three areas. First, most research on the effectiveness of key accounts refers to the between-firm level, whereas this study examines the effect within a single firm. Second, this study examines the temporal aspects of key accounts, namely, what happens to key accounts over time, in comparison with other accounts in a fairly large sample. Third, it considers the survival rates of key accounts versus other types of accounts. Practical implications – The authors suggest that firms also need to track their key accounts better because the results show that key accounts are less satisfied, less profitable and less beneficial for a firm’s growth than other types of accounts. Originality/value – Extant research has not examined these issues.