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

 
Keywords: 
General Systems Theory, Consumer-switching, Migration, Systems control, Systems adjustment 
INTRODUCTION
Man is a mobile creature, capable of inquiring, susceptible to suggestions, and endowed with imagination 
and initiative. This explains why, having conceived the notion that his wants might be satisfied elsewhere, he might 
decide not merely on going there but also on the means by which his project can be achieved (Beaujeau-Garnier, 
1966). 
Since their emergence on the surface of earth, human beings have constantly moved from place to place 
and over long and short distances, all in search of improvement of their individual and group circumstances as well 
as environmental conditions (Lewis, 1982). Interestingly, human movement is not limited to geographical location 
and relocation, but is also extended to several other human daily activities. One aspect of constant movement of 
human beings is potrayed in consumer behavior, particularly, consumer switching of service providers. Like 
Beaujeu-Garnier (1966) stipulates, for one reason or another, consumers move from one service provider to another 
in search of better circumstances and improvement of the self as well as the conditions of others. 
In the extant hospitality marketing literature, consumer switching, particularly brand switching, is one of 
the most researched topics (e.g. Lin & Matilla, 2006). According to Blattberg, Briesch and Fox (1995), several 
factors have been suggested as motivators of consumer switching and they include: perceived quality such as better 
features by other providers, greater reliability, and other favorable brand associations as well as lower prices. Other 
cited motivations for consumer switching are: quality and satisfaction (McDougall & Levesque, 2000), value and 
price (Bansal & Taylor, 1999a) and the perceived switching costs (Ping, 1993). Hennig-Tharau, Gwinner and 
Gremler (2002) suggest commitment as a motivation to switch while Bansal and Taylor (1999a, 2002) predicted that 
variety seeking motivates this consumer movement. 
Service switching has a significant influence on hospitality firms for several purposes, all, which have 
implications on a firm’s sustainability and profitability. For example, Reichheld and Teal (2001) suggest that loyal 
customers tend to purchase more over time, likely to be a source of referral, purchase products at the full margins 
rather than discounts and therefore create operating efficiencies. Losing established customers therefore takes away 
highly profitable customers (Keveney, 1995) because acquiring new customers is costly in terms of setting up new 
accounts, credit search and advertising (Reichheld & Teal, 2001). Also, loyal customers are less likely to search 
information about similar products (Dick & Basu, 1994), hence a lower probability of defection. Over the past 
decade, research reveals that consumer switching behavior can have adverse effects on a hospitality firm’s 
profitability and viability (Bowen & Shoemaker, 1998; Ganesh, Arnold, & Reynolds, 2000). Statistics reveal that 
US companies lose up to 30% customers a year and that this kind of movement reduces performances and 
profitability (Rechheld & Teal, 2001). Trends like these need a better understanding. An understanding like the one 

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