An Empirical Study On Determinants Of Customer Retention Based On Structural Equation Modeling

In recent years, along with economic globalization and strategic alliances, customer groups is also experiencing great changes, and gradually becoming more important. The continuous development of the market and the gradual saturation make new customers who could be explored decreased. Customers, as a source of profit for enterprises, have been increasingly valued. And who are able to gain and retain customers will be able to obtain lasting competitive advantages in the face of fierce market competition invincible.First, this paper analyzes the theoretical background, concepts, values of customer retention, and explain the relationship of customer retention and customer loyalty. Then, analyzes the decisive impact of customer satisfaction, customer value, switching costs and relationship trust on customer retention and the relationships between four factors theoretically, On this basis the conceptual model and research assumptions are put forward. In order to properly test the theoretical model, the scope of the study and empirical objects are defined and chosen. According to the principles and advantages of structural equation model, we make an empirical analysis on Bank-Card Industry, so the model and assumptions are tested and verified. According to the impact of customer satisfaction, customer value, relationship of trust and switching costs on customer retention, the article works out the influence weights and confirms customer value is the key determinant. Finally, based on the theoretical analysis and empirical study results, we first analyze the reasons for customer defection. And then make several specific practical strategy and measures for enterprises to retain customers with reference value.