Why Customers Switch the Service Provider? A Critical Issue

Abstract

Intention to switch from one service provider to another, leads to switching behavior, which results in the decrease of profits of the company. Switching behavior helps in creating relationship between consumer and producer. This study uses the theory of planned behavior to develop a unifying framework for understanding the factors that influence consumers’ switching behaviors. An empirical investigation tested the proposed model with data from 1051 customer who used the service of travel agencies. Results indicate that the theory of planned model fits the data well. Perceived behavior control, attitude toward the switching, and subjective norms all significantly influence switching intentions. Perceived behavior control also significantly influence switching behavior.

Keywords: service provider, Theory of planned behavior, switching behavior, customer’s expertise