Win Back Offer and Service Benefit towards Switchback Intention in Indonesia Retail Business

Abstract

In today's market, firms realize that a perfect customer retention is impossible to achieve regardless of related initiatives. Various relationships between elements of retail business and personnel such as social capital, attitude, service importance, service benefit, win back offer, and switchback intention affects the customer's loyalty to the business. Absence of efforts to retain customers may cause the tamers to leave the company, thus, necessitates the importance of Customer relationship Management (CRM) system which includes concepts on win back offer switch back intention. Research respondents of the study were 245 customers have various shopping experiences with modern retail shops located in Indonesia. To test the effect of social capita l, perceived service importance, attitude toward service benefits to win back offer and switchback intention, structural equation model with AMOS was used. The research revealed that: (1) Indonesian retail firm's social capital and perceived service importance has positive and significant effect on attitude toward the service benefit; (2) Attitude toward the service benefit has positive and significant impact on perceived value of win back offer and switchback intention; (3) Perceived value of win back offer has positive and significant impact on intention switchback: and (4) The overall relationship showed a significant and positive relationship. The research offers a model switching on retail consumers affected by the influence of social capital, perceived service importance, attitude toward service benefits, and switchback