The Effects of Customer Dissatisfaction, Sales Promotion, and Variety Seeking on Product Brand Switching: Evidence from Indonesia

Abstract:

As the competition becomes more intensified, it is important to any companies to anticipate any changes in its customers’ preferences, especially all variables related to the customer dissatisfaction and varieties seeking that are much revealed in prior studies. This study has two objectives; firstly, it aims to examine the effect of consumer dissatisfaction, variety seeking, and sales promotions simultaneously on brand switching. Secondly, it will explore a further relationship, which is rarely investigated in prior studies, between consumer dissatisfaction and brand switching that is moderated by the variety seeking. By using 240 respondents in the 2010-GSM prepaid cards' market situation, we used logistic regression to analyze the data. The results reveal that consumer dissatisfaction and sales promotion are significantly positive related to brand switching. The variety seeking moderates the effect of consumer dissatisfaction on brand switching, and as the moderating variable, the variety seeking has weakened the effect of consumer dissatisfaction on brand switching.

nsdlogo2016