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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