An Empirical Analysis of Attitudinal and Behavioral Reactions Toward the Abandonment of Unprofitable Customer Relationships

The management of unprofitable customer relationships and in particular their abandonment is a topic that has received increasing interest in both managerial decision making and academic research. However, little is known about the attitudinal and behavioral reactions that companies should expect from current and potential customers in response to such strategies. Based on an online study of 773 customers, we show that the majority of current/potential customers react with affective or cognitive responses toward unprofitable customer abandonment, whereas salient behavioral attitude components are less frequent. In addition, we show that different attitude components lead to different consequences for the abandoning firm and that the salience of behavioral attitude components tends to be associated with more negative reactions. Finally, we show that the potential negative consequences of unprofitable customer abandonment for current customers can be compensated for by improvements in core service quality.