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Nam Nguyen

First Name: Nam
Surname: Nguyen
Department Dept of Marketing and Management
Supervisor(s): Prof. Scott Koslow , Dr. Jana Bowden

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Paper Title

Committed or trapped? Exploring the link between customer satisfaction and retention in financial services.


Customer retention is a critical issue for managers and several studies have been done to find the factors influencing customer retention. In addition, marketing scholars have long been interested in the link between customer satisfaction and customer retention. However, empirically the link between satisfaction and retention has often been less strong than we have wanted to believe. In many cases, customer satisfaction is not enough to explain customer retention because customers still defect when satisfaction is high and stay with the firm when satisfaction is low (Hennig‐Thurau and Klee, 1997). With the purpose to shed some light in the explanation of customer retention issue, the current research uses the well-known motivation–opportunity–ability (MOA) framework developed by MacInnis and Jaworski (1989) to examine customer retention in financial services. Besides, the study also explores the causality among variables of MOA in customer retention.


The thesis uses MOA framework in explaining customer retention and aims to contribute the insight in mechanism of customer retention in financial service industry. Understanding about mechanism of customer retention helps companies building appropriate strategies to retain customers and enhance competitive ability.

Key literature/theoretical perspective

The study focus on examining customer retention in financial services based on marketing literature in financial services. Moreover, it helps to answer an important question that can MOA theory help explain reason why dissatisfied customers do not defect and why other unsatisfied customers stay loyal?


A mixed method research combining both qualitative and quantitative approach is adopted. Research starts with face to face interviews, follows with survey questionnaire. Then, one year when the survey finishes, follow up activity to find out the changes in customer behaviour is conducted


Research in progress.

Practical and Social implications

Findings help financial service institutions can establish the effective strategy in retaining customers.


Customers’ satisfaction, customers’ retention, confidence in decision making, financial service