This study aims to examine the influence of dimensions of the psychological contract on strengthening customers' switching barriers through the mediating role of service brand love.
The study used a cross-sectional survey research design to collect data from 406 respondents from commercial banks in the banking industry. A quantitative approach using structural equation modeling was used to analyze the data collected through structured questionnaires.
The findings revealed that dimensions of the psychological contract, namely, ideological, transactional and relational psychological contract, significantly influence the strengthening of customers' switching barriers when mediated by service brand love.
Managers should consider adopting high-intensity relationship approaches that go beyond mere customer satisfaction to ensure customer retention.
While customer retention remains the primary avenue for establishing competitive advantages, there remain unresolved issues regarding what determines customers’ intentions to stay or switch. This study represents one of the initial endeavors to explore the psychological contract within the context of the service industry. It contributes to the existing knowledge by enhancing the understanding of the mechanisms that can impact customers' switching barriers and complements the literature on customer retention in the service domain.
