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ISSN : 1229-8778
This study aims to examine the influence of relational benefits on telecommunication service satisfaction and loyalty under varying levels of perceived switching costs. Drawing on the relationship marketing literature, this paper assumes that customer relationship is affected by relational benefits that fulfill motives and needs of exchange partners. This study develops hypotheses how the relational benefits (confidence, social, and special treatment benefits) are related to the satisfaction and loyalty in the Korean telecommunication services. In addition, this study examines the moderating role of perceived switching cost in predicting the relationship between relational benefits and service output variables. A survey was conducted with 111 male and 142 female users using telecommunication services. To test hypotheses, we used the regression analysis with moderating effects. Results indicate that hypotheses receive support in that relational benefits can affect the customer satisfaction and loyalty contingent on different level of perceived switching costs. Specifically, customers who perceive high switching costs tend to be more satisfied than those with low level of perception of switching costs when they receive confidence benefits such as psychological safety and trust in the marketing relationship. Results also show that customers are likely to maintain the relationship with service firms when they receive social benefits including friendship and social supports, contingent on the high level of switching costs. Theoretical and practical implications for customer management and future research implications of the findings are discussed.
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