The switching costs and their effects on commitment, repurchase intentions and word of mouth in educational services

Abstract

The present study addresses the switching costs in the educational service sector, measuring their effects on the commitment, repurchase intentions and word-of-mouth (positive and negative). This article seeks to fill the gap regarding the analysis of the effects of different types of switching costs: relational, financial and procedural costs, taking into account their multidimensional nature. In order to do that, a literature review and a qualitative research were conducted, followed by a survey with undergraduate students from private institutions to examine the role of switching costs and their positive and negative effects in the context of educational services at undergraduate level. The results show an influence of relational, financial and procedural switching costs on affective, normative and calculative commitment, respectively. The affective commitment and the normative commitment are associated with positive effects, such as repurchase intentions, being affective commitment also associated with positive word-of-mouth. It should be noted that the calculative commitment leads to negative effects: greater negative word-of-mouth and lower repurchase intentions. Hence. the incremental cost of procedural changes, which precede the calculative commitment should not be encouraged. At the end of the article, the results are discussed, as well as the study’s limitations, suggestions for future research and managerial implications are presented.

Key words: switching costs, commitment, repurchase intentions and word-of-mouth, educational services.