The Effects of Relationship-Destroying Factors on Customer Relationships: Relationship Recovery as the Moderator

Abstract

The threshold for switching mobile phone numbers between different mobile communication service providers has largely decreased since the government lifted the ban on mobile phone number portability service. Users can convert their mobile communication service from their current provider to others while maintaining their existing phone numbers. The demand for mobile communication services has been increasing, along with the popular sales of smartphones and tablet PCs. However, more and more complaints have emerged in response to system service failures, employee service mistakes, and the sales promotion activities offered from competitors, which could destroy the trading relationship. These factors will lead to the customers’ intentions of complaining and switching to another service provider. This study aims to explore the relationship between destructive factors in trading relations, service providers’ relationship-recovery policies, and the outcome of customer default. Empirical data were collected from mobile service users through online questionnaires. Using the general linear model (GLM) to test the research hypotheses, the results showed that (1) the relationship-destroying factors including service system failures and personnel service errors positively impact customers’ complaining and switching intentions and (2) the financial and psychological recovery policies might decrease the customers’ complaining intention. Finally, this research also offers mobile communication services providers with strategic implications in customer relationship management. Keywords: Relationship-destroying factors, relationship recovery, customer response To cite this document: Hui-Chen Chang, Yi-Ching Tsai, and Sheng-Yuan Hsu, "The Effects of Relationship-Destroying Factors on Customer Relationships: Relationship Recovery as the Moderator", Contemporary Management Research, Vol.9, No.4, pp.369-388, 2013. Permanent link to this document: http://dx.doi.org/10.7903/cmr.11261