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The Effect of Perceived Value, Customer Satisfaction, and Switching Cost on Customer Loyalty

Year: 2025

Type: article

Abstract: This study examines the effects of Perceived Value, Customer Satisfaction, and Switching Costs on Customer Loyalty using a quantitative approach with 150 respondents. Data were collected using a Likert scale (1–5) and analyzed using Structural Equation Modeling - Partial Least Squares (SEM-PLS). The findings reveal that all three constructs significantly influence customer loyalty, with perceived value having the strongest impact. Customer satisfaction and switching costs also demonstrate positive and significant relationships with loyalty, highlighting their critical roles. The study concludes that enhancing perceived value, ensuring customer satisfaction, and increasing switching costs collectively strengthen customer loyalty. Practical implications for businesses include strategies to enhance value perception, address customer satisfaction, and create switching barriers. These findings contribute to understanding loyalty formation and offer actionable insights for improving customer retention.

Source: West Science Business and Management

DOI: 10.58812/wsbm.v3i01.1750

Authors: Frans Sudirjo, Feliks Anggia Binsar Kristian Panjaitan

Institutions: Universitas 17 Agustus 1945 Semarang, Universitas Halu Oleo

Language: English

Topic: Customer Service Quality and Loyalty

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4409298902

FWCI:

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