The effect of customer value, customer satisfaction, and switching costs on customer loyalty: An empirical study of hypermarkets in Taiwan

Ming-Tien Tsai1, Chung-Lin Tsai2, Han-Chao Chang3
1National Cheng Kung University, Taiwan
2National Cheng Kung University and Chang Jung Christian University, Taiwan
3National Applied Research Laboratories, Taiwan
Cite this article:  Tsai, M., Tsai, C., & Chang, H. (2010). The effect of customer value, customer satisfaction, and switching costs on customer loyalty: An empirical study of hypermarkets in Taiwan. Social Behavior and Personality: An international journal, 38, 729-740.

Volume 38 Issue 6 | e2036 | Published: July 2010 | DOI: https://doi.org/10.2224/sbp.2010.38.6.729

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Hypermarkets play an increasingly important role in the retail industry in Taiwan. In this study hypermarket customers in Taiwan were surveyed, using switching costs as a variable, to explore the relationship between customer value, customer satisfaction, and customer loyalty. The results indicate that a customer with a more positive perception of the value of products/services has a more positive evaluation of the hypermarket, greater satisfaction, and loyalty. Greater satisfaction combined with greater concern over nonmonetary switching costs also increases customer loyalty to the hypermarket. These findings may help hypermarket operators to develop their businesses further in Taiwan’s competitive retail sector.

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