Research increasingly suggests the importance of switching costs in customer retention strategies. However, research on the downstream effects of different types of switching costs is lacking. This study seeks to address this issue by proposing and testing a framework for examining the alternative routes through which different types of switching costs (i.e., procedural, social, and lost benefits) operate in affecting relational outcomes. Consistent with our hypotheses, social switching costs, and lost benefits costs appear to bolster affective commitment, which subsequently increases positive emotions and repurchase intentions and decreases negative word of mouth. Furthermore, and again consistent with our hypotheses, procedural switching costs appear to bolster calculative commitment, which subsequently increases repurchase intentions in some instances but also increases negative emotions and negative word of mouth. Overall, this study's findings suggest that service firms should use caution when utilizing procedural switching costs as a retention strategy.
The authors propose and find that the mixed results of prior research regarding disclosure antecedents are due in part to a failure to account for information sensitivity. Using prospect theory to examine willingness to disclose in an online service context, the authors propose and find that greater sensitivity of information requested produces weaker effects of customization benefits but stronger effects of information control and online privacy concern. The authors also find that customization benefits can overcome the negative effects of sensitive information requests when concern is lower or control is higher, and that perceived risk and firm trust are mechanisms through which disclosure antecedents operate. For theory, this research suggests that online disclosure models need to include sensitivity of information as a moderator. Moreover, the privacy paradox (consumers voice concerns but still disclose) may result from a failure to account for information sensitivity, since the authors find no effect of privacy concern on overall disclosure but find the predicted negative effect for higher sensitive information. For practice, our research suggests actionable strategies to aid online marketers in matching information requests with the needs and concerns of consumers by providing greater control and customization, enhancing firm trust, and adapting information requests to the situation.
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