A CASE STUDY INVESTIGATING IN CUSTOMER DEFECTION

Abstract: This master’s thesis investigates the Swedish American Chamber of Commerce (SACC) in Chicago, a non-profit organization, in order to aid it with customer defection. The chosen literature contributes to a better understanding of customer behavior, and thus, customer defection, by examining customer retention, customer defection, switching behaviors, and different gaps that can occur in the relationship between a service supplier and its customers. Through a systematic combining approach and empirical findings gained through semi-structured interviews with both executives and defected customers, this study reveals that the main reason for customer defection is a perceived lack of value in their membership to the SACC, along with the sentiment that their business-oriented expectations are not being met. As for the SACC, the Board members have a varied range of views as to the value of defected customers, though overall, acquisition is prioritized over customer defection strategies.