The Role of Customer Complaint Management on Switching Intention and Customer Exit in Fitness Centers

Abstract

Service failures are common, and the absence of an adequate response may increase switching intentions and customer exit. Thus, it is important to address the influence of customer satisfaction with complaint handling on switching intentions and customer exit. We tested hypotheses using data collected in two stages from a total of 821 customers who experienced service failure in 38 Brazilian gyms. The results indicate that perceptions of justice positively affect satisfaction with complaint handling, which reduces switching intention and customer exit. Moreover, failure severity is shown to increase switching intention and customer exit. Theoretical, methodological, and managerial implications are discussed.

Keywords:

• Service recovery
• failure severity
• customer exit
• switching intention
• fitness center