A Model of Customer Retention of Dissatisfied Business Services Customers

The purpose of this paper is to present a theoretical framework of the factors that potentially influence dissatisfied customers to continue purchasing from their existing service provider in the business-to-business (B2B) services sector. This review paper synthesises the findings from previous studies on switching barriers, and relationship variables, dependence, and calculative commitment. Five major factors deter customers from switching to an alternative service provider: (i) switching costs; (ii) interpersonal relationships; (iii) the attractiveness of alternatives; (iv) service recovery; and (v) inertia. These factors are mediated by dependence and calculative commitment. This is the first comprehensive study of the factors that potentially influence dissatisfied customers to remain behaviourally loyal to a service provider in the B2B services sector. This important study has significance for marketers in developing strategies for customer retention and service recovery.