Open AccessTHE MEDIATION EFFECT OF INERTIA ON SERVICE DURATION
Author(s) -
Jonathan Lee,
Heungsun Hwang,
An T.K. Tran,
Astrid Keel
Publication year - 2019
Publication title -
journal of applied structural equation modelling
Language(s) - English
Resource type - Journals
ISSN - 2590-4221
DOI - 10.47263/jasem.3(1)02
Subject(s) - duration (music) , inertia , mediation , loyalty , service (business) , business , structural equation modeling , customer satisfaction , loyalty business model , marketing , service quality , mathematics , statistics , political science , physics , classical mechanics , law , acoustics
Firms devote large amounts of resources toward customer retention practices since relationship duration is a key driver in enhancing customer lifetime value. We posit that customer inertia plays an important role in determining service duration. In analysing service duration, we incorporate inertia into existing models that feature customer satisfaction, loyalty, and switching costs. A structural equation model is used to show the effect of latent mediation effect of inertia. We find that the mediating role of inertia is significant and the latent interaction effect of loyalty and inertia on service duration is also significant.