The purpose of this study is to examine customer switching behavior in transitioning market structure. Drawing upon stimulus-organism-response theory, this study explores the impact of perceived firm attributes on customer switching intention, examines the mediating role of customer satisfaction in this dynamic and assesses the moderating effects of relationship depth and switching cost.
This study used a cross-sectional research design and a quantitative research approach. Data was collected through surveys from a conveniently selected sample of 380 telecom service users. The collected data were analyzed using confirmatory factor analysis to validate the measurement model and PROCESS macro models 2, 4 and 10 to test the hypothesized relationships.
The findings confirmed that perceived firm innovativeness significantly influences customer switching intention. In addition, customer satisfaction mediates the relationship between firm innovativeness and switching intention, while perceived switching costs and relationship depth moderate this relationship.
The findings highlight how perceived firm innovation shapes customer switching intentions, suggesting that firms can reduce switching by investing in innovation and managing switching costs and relationships effectively.
This study provides unique insights by examining firm innovativeness from the customer’s perspective and analyzing its impact on switching behavior within a transitioning market.
