The purpose of this study is to contrast the effects of four exit barriers on word of mouth activities. Monetary, service loss, social and convenience exit barriers are compared. The differential effects of these four barriers on the valence of word of mouth (positive, negative), the type of word of mouth recipient (weak tie, strong tie) and the motives (catharsis, company sabotage) for spreading word of mouth are studied.
The data for empirically addressing a set of hypotheses were collected from 185 consumers. The hypotheses were analyzed using ANOVA models along with post hoc tests.
The results suggest that the type of exit barrier matters. Exit barriers, with respect to word of mouth activities, seem to fall on a continuum. On one extreme, the most detrimental barriers are monetary hurdles, and on the other end, the least detrimental barriers are convenience hurdles. Monetary barriers are responsible for the most negative word of mouth and company sabotage. Social and convenience barriers lead to significantly less.
The implications for erecting exit barriers are discussed. In particular, the value of monetary barriers is questioned. The benefits of such involuntary customer retention methods may be offset by the sabotage they invite through negative word of mouth.
The paper provides insights into word of mouth activities of dissatisfied customers that are trapped by various exit barriers. The word of mouth activities investigated include valence, recipient type and motives. The study contrasts monetary, service loss, social and convenience exit barriers.
