Descriptive Trajectories of How Service Innovation Shapes Customer Exit Intentions in Online Travel Agencies

Abstract

This study examines the descriptive trajectories through which service innovation is associated with customer exit dynamics after service failures, drawing on a three-wave panel of 532 online travel agency users and employing partial least squares structural equation modeling with predictive assessment. We analyze how innovation is associated with switching intentions via brand hate and brand distrust over time. Results reveal distinct temporal patterns: service innovation is linked to consistent reductions in both hate and distrust, yet only hate emerges as a salient mediator whose marginal association with switching intensifies over time. In contrast, distrust, although mitigated by innovation, remains relatively stable and behaviorally inert. Rather than asserting a causal explanation, we document temporal associations-labelled here as a "dilution effect"-to indicate that innovation coincides with weakening negative emotions but only partial attenuation of their behavioral correlates. By distinguishing between the fading but influential role of hate and the persistent yet inert nature of distrust, this study clarifies differentiated pathways through which negative states coincide with customer exit. For managers, the results highlight the need for staged innovation strategies to dissipate hate, complemented by long-term trust-repair initiatives to address enduring distrust and reduce customer churn.