Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

GENERAL SYSTEMS THEORY AND CONSUMER SWITCHING 
For this study, we adopt a broad conception of the term “system” which implies 
a complex of interacting 
components together with the relationships among them that permit the identification of a boundary-maintaining 
entity or process. 
This definition is based on Russell Ackoff's (1981) suggestion that a system is a set of two or more 
interrelated elements with the following properties: 1) Each element has an effect on the functioning of the whole; 2) 
Each element is affected by at least one other element in the system; and 3) All possible subgroups of elements also 
have the first two properties (Ackoff, 1981). Lazlo (1999) emphasizes that: “by substituting the concept of ‘
element’
for that of ‘
component
,’ it is possible to arrive at a definition that pertains to systems of any kind, whether formal 
(e.g., mathematics, language), existential (e.g., ‘real-world’), or affective (e.g., aesthetic, emotional, and 
imaginative). In each case, a whole made up of interdependent components in interaction is identified as the system. 
One implication is that systems do not operate in vacuums but special environments. Thus, for any system, 
like consumer switching, the environment is a set of all objects whose attribute affects the system and also those 
objects whose attributes are changed by the behavior in the system” (Hall and Fagen, 1965, p.20) and therefore 
systems and its environment constitute the universe the universe phenomenon which is of interest in any given 
context (Mabogunje, 1970).
Figure 1 indicates the basic elements in the consumer switching system as well as the environment in which 
the switching system operates. This figure provides a holistic view of the switching system and its environment so 
that, just like perspectives allow architects to visualize the internal and external environment of a building and see 
the relationship of the finished product as an integral whole, so does the systems approach allow marketers to view 
consumer behavior as a subsystem or a part of a whole. Consumer switching is definitely complex and the systems 
approach allows it to be examined as a part of a larger system and recognize the complex consequences that arise. 
A great advantage of applying the systems approach to developing an understanding of consumer switching 
is that, it allows us to ask and develop answers to several questions concerning why consumers switch from one 
service provider to another, thus, it becomes possible to develop the “why”, “how” and even “when” of consumer 
switching can be developed. Questions such as: “why does consumer switch service providers?” What changes does 
the consumer undergo in the process of switching?” and “What effects does this switching phenomenon have on 
both service providers (switched from and switched to)?” Further, questions as “what are the switching and 
admittance or acceptance costs/fees?” These and other questions provide the definition of the problems that need a 
consumer switching theory that examines the process in relation to the greater environment in which it is occurring.