Perceived Value, Reputation, Trust, and Switching Costs as Determinants of Customer Retention

Abstract

In service companies, maintenance and expansion of relational exchanges reinforce customer retention as a differentiator from the competition. In this research we developed and tested a theoretical model considering perceived value, service provider reputation, trust, and switching costs as determinants of customer retention. After that, a survey was done, and analysis of the results was performed using structural equation modeling with a sample of 269 client companies of corporate health plans. The contributions of the specified theoretical model, considering its uniqueness, proved that perceived value positively influences service provider reputation, service provider reputation has a direct impact on trust and switching costs, switching costs are configured as determinants of customer retention, and customer retention is positively influenced by service provider reputation in a relational context.

KEYWORDS:

• customer retention
• perceived value
• relationship marketing
• reputation
• switching costs
• trust