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Abstract

The influence of switching costs could play an important role that prevents dissatisfied cus- tomers from switching to another service provider, particularly in the highly competitive hotel market. Drawing on Hirschman’s model of customers’ reactions to service failures (1970), this study investigated the moderating effect of switching costs on the inter-relationships between complaint behavior, customer satisfaction, and switching behavior for hotel guests. A self-administered questionnaire was distributed via Amazon Mechanical Turk and yielded a total of 1,135 responses from travelers who stayed in US hotels and experienced service failures. The results of this study revealed that switching costs did influence hotel guests’ switching behavior, such that switching costs moderated the relationship between their sat- isfaction and switching behavior. This study produced new knowledge about the moderating effects of switching costs as applied to the Hirschman’s model in the hotel context, thus extending the model’s application. The findings also provided insights for hotel practitioners regarding the causes of customers’ switching behavior, which could help develop and en- hance strategies related to appropriate service recovery, increasing customer satisfaction, and revisiting intentions, which are essential for hotel profitability.

Keywords

switching costs, switching behavior, service failure, service recovery, customer satisfaction, repatronage.

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