The Adoption of Push-pulland Mooring Model for Small Industry in Indonesia

Abstract

Customers' migration is very crucial to the firm due to its ability to influence the survival of the company. This research was conducted in order to understand the antecedents of customers• migration from the origin to the alternative service provider. It examined the relationship between push factors, pull factors, mooring factors, interaction between mooring factors and push .factors, interaction between mooring factors and pull factors with intention to switch. There are five hypotheses which were proposed in this research. Those hypotheses were examined with 150 respondents. The respondents were customers of beauty salo11s, representing small industry which was taken in convenient sampling. Data were analyzed using structural equation modeling methods usi11g LISREL 8.8. Data showed that the three hypotheses were accepted. The result showed that push effect, pull effect and mooring effect significantly influenced the intention to switch. On the other hand, the interaction of mooring effect and push effect and interaction of mooring effect and pull effect did not significantly influence the intention to switch either. Implications of this research were that the company had to manage push effect, pull effect and mooring effect carefully in order to retain the customer. An important contribution of this research is that it includes emotional bonding as the additional variable for mooring effect. On the other hand, the relational commitment, the subjective norm, and the unfavorable attitude toward switching and infrequent seeking behavior were not included as the mooring effects