KOREASCHOLAR

THE INFLUENCE OF CUSTOMERS RESISTANCE INNOVATION TOWARDS CUSTOMERS ATTRITION BASED ON FSQCA: A CASE STUDY OF SMARTPHONE APP

Minyi Chen, Yang Sun, Helen (Huifen) Cai, Cheng Hua, Jiaolong Zhang
  • LanguageENG
  • URLhttp://db.koreascholar.com/Article/Detail/350759
Global Marketing Conference
2018 Global Marketing Conference at Tokyo (2018.07)
pp.186-187
글로벌지식마케팅경영학회 (Global Alliance of Marketing & Management Associations)
Abstract

Introduction
The study chooses smartphone applications which have update experience as the study case to analysis if it will cause customer attrition. Application updates aims to make up the bugs which may cause bad effects on using, while in fact, most changes will be resisted by customers. We adapt three elements to collect data about the attitude of customers toward applications update, the conclusion illustrates, customers will resist changes in some conditions and cause customers attrition. Therefore, application developers should focus on the personal emotional reaction and cognitive evolution as well as predict what may influence the customers normal use after the applications update to make correct update decisions. In order to define the relationship between variable and result., we take smartphone application which had experienced update as examples and choose fsQCA as the methodology to analysis.
Literature Review
Resistance to change is a psychological process, Brehm(1966)claims customers resist to change origins from their believe that they have rights to control free, when this rights be challenged, this resistance behavior will happen due to they want to protect their own rights. Some scholars distinguished the concept of resistance to change: when receptors in the low involvement or limited cognize, their resistance behaviors is likely to be considered as the passive resistance; otherwise, the behaviors would be recognized as active resistance (Nabih,1997). Bagozz and Lee(1999) think that functional barrier is an important factors which influence the degree of innovation receptance, when customers think products after update cannot meet their function needs will cause resistance to change. Resistance always occur passively, bemuse of the disturb of the former habits of using (Ram &Sheth 1989), and former studies also indicate that prejudice towards changes is one of significant factors. Because changes are uncertainty, Fiske and Taylor(1991)claims that uncertainty can make people hate changes and Whitson and Galinsky(2008)consider aversion will be the strong driver of resistance to change to reduce uncertainty and risk. In terms of a company, the cost of maintaining a old customer is much lower than these of develop a new user, Actually, customer attrition is response of entrepreneur revenue and the vital section in development of companies. The famous american honesty management scholar Frederic Reichheld’s research indicates that when the extension of the commercial relationship of entrepreneur and customers, companies can acquire fatter profit through the relationship.
Conclusions
This study chooses fsQCA as methodology to define the relationship between resistance to change and customer attrition instead of using structural equation modeling. Sometimes, even customers have right cognitive evolution towards changes, when they find their efficiency be influenced by it, they also resist to change; while adverse emotional reaction also has an adverse effect on customer retention though they build positive cognitive evolution about changes. there is a remain circumstance of lossing of customers that when customers hate changes and they find their efficiency be influenced by update, the honesty of this product will also decrease. This three condition all contribute to customers attrition which should be paid more attention by companies.

Author
  • Minyi Chen(Zhejiang SCI-TECH University, China)
  • Yang Sun(Zhejiang SCI-TECH University, China)
  • Helen (Huifen) Cai(Business School Middlesex University London, UK)
  • Cheng Hua(Zhejiang SCI-TECH University, China)
  • Jiaolong Zhang(State Street Technology (Zhejiang) Co., LTD, China)