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The Moderating Effect of Switching Costs on the Relationship between Customer Satisfaction and Customer Loyalty in an Industrial Context: An Empirical Analysis

This research examines the relationship between customer satisfaction and customer loyalty in an industrial context. The purpose of the research is to understand and explain better the antecedents of customer loyalty as well as an under-studied moderating effect, namely, switching costs. Toward this end, the extant literature is drawn upon to establish a conceptual model as well as seven hypotheses which are subsequently empirically tested using especially collected data from the European animal feed industry. Significant support is found for the model and hypotheses, suggesting important theoretical as well as managerial implications for establishing greater customer loyalty in an industrial context.