Do Customers Pay Attention to Motivations and Switching Costs When They Terminate Their Relationships?

Abstract

Research on some key boundary conditions and outcomes of consumers' relationship termination in the online environment is scare. We examine how four categories (e.g., upkeep, time, benefits, and personal loss) of avoiding relationships affect customers' relationship termination. We also consider both the motivation (hedonic vs. utilitarian) and switching costs when customers evaluate whether to exit from or stay in a relationship. Results show that time plays a significant role in customers' relationship termination, but there appears to be an increase or decrease in customers' relationship termination associated with the role of two moderators. More specifically, upkeep plays a significant role in affecting relationship termination for consumers motivated by hedonic interests (as opposed to those motivated by utilitarian interests). Meanwhile, personal loss plays a role in affecting relationship termination for utilitarian consumers (and not hedonic). Furthermore, we found that high switching costs facilitate a relationship termination if time and personal loss are involved. The findings indicate that the effect of high switching costs on customer loyalty is limited. We also found that when consumers consider time category, they are likely to have a greater intent to terminate a relationship regardless of the level of switching costs.