Examining the impact of the attractiveness of alternatives on customers’ perceptions of price tolerance: Moderation and mediation analyses

Mohamed Sobhy Temerak ()
Additional contact information
Mohamed Sobhy Temerak: Cairo University

Journal of Financial Services Marketing, 2016, vol. 21, issue 4, No 4, 284-297

Abstract: Abstract The current literature provides mixed support for the positive influence of competitors on customers’ perceptions of price tolerance (Herrmann et al, Psychology & Marketing, 2004 21(7), 533–551). This paper examines a number of mediators and moderators of this relationship, such as positive switching barriers, negative switching barriers and customer satisfaction. A total of 162 valid responses was collected from the financial brokerage context by means of a random sample. The data were analysed using the Partial-least square (PLS) approach to structural equation modelling. The findings show that customers’ satisfaction with the service provider partially mediates the positive effect of alternatives on price tolerance. Negative, not positive, switching barriers were found to weaken the effect on price tolerance of the attractiveness of alternatives.

Keywords: switching barriers; price tolerance; customer satisfaction; attractiveness of alternatives (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/s41264-016-0010-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jofsma:v:21:y:2016:i:4:d:10.1057_s41264-016-0010-5

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41264

DOI: 10.1057/s41264-016-0010-5

Access Statistics for this article

Journal of Financial Services Marketing is currently edited by Tina Harrison

More articles in Journal of Financial Services Marketing from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().