It is a marketplace reality that marketing managers sometimes inflict switching costs on their customers, to inhibit them from defecting to new suppliers. In a competitive setting, such as the Internet market, where competition may be only one click away, has the potential of switching costs as an exit barrier and a binding ingredient of customer loyalty become altered? To address that issue, this article examines the moderating effects of switching costs on customer loyalty through both satisfaction and perceived-value measures. The results, evoked from a Web-based survey of online service users, indicate that companies that strive for customer loyalty should focus primarily on satisfaction and perceived value. The moderating effects of switching costs on the association of customer loyalty and customer satisfaction and perceived value are significant only when the level of customer satisfaction or perceived value is above average. In light of the major findings, the article sets forth strategic implications for customer loyalty in the setting of electronic commerce.

This study investigates the effects of Chinese companies’ institutional environment on the development of trust and information integration between buyers and suppliers. Three aspects of China's institutional environment are salient: legal protection, government support, and the importance of guanxi (interpersonal relationships). This study uses structural equation modeling to analyze data collected from 398 Chinese manufacturing companies. Government support and importance of guanxi significantly affect trust, which subsequently influences two elements of information integration, namely, information sharing and collaborative planning. Furthermore, the importance of guanxi has a direct, positive impact on information sharing, and government support has a direct, positive effect on both information sharing and collaborative planning.

PurposeThe purpose of this paper is to identify the key convenience dimensions of online shopping, as convenience has been one of the principal motivations underlying customer inclinations to adopt online shopping.Design/methodology/approachThe authors first employ in‐depth focus group interviews with online consumers to identify the attributes of online shopping convenience and then develop and validate an instrument of five key dimensions to measure online shopping convenience by analyzing data collected via a Web‐based questionnaire survey.FindingsThe five dimensions of online shopping convenience are: access, search, evaluation, transaction, and possession/post‐purchase convenience.Practical implicationsOnline retailers can employ the five‐factor measurement instrument to assess the degree of customer perceived online shopping convenience. This instrument can assist managers in identifying and overcoming key obstacles to the delivery of a highly convenient online shopping service to customers, and also helps them enlarge their loyal customer base.Originality/valueThis study focuses on uncovering the key dimensions of convenience and their associated sub‐dimensions specific to the context of online shopping. Theoretically, the identified dimensions and their related sub‐items comprise a validated scale for measuring Web‐based service convenience and can serve as building blocks for further studies in e‐commerce customer relationship management.

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Firms doing business in foreign institutional environments face pressures to gain social acceptance (commonly referred to as legitimacy) and difficulty in evaluating market information, both of which undercut firm performance. In this article, the authors argue that firms can design governance strategies to deal with foreign institutions to secure both social acceptance and firm performance. Using a Chinese sample of manufacturers that export products to various foreign markets through local distributors, the authors develop and test a model that bridges the effects of institutional environments and governance strategy on channel performance. Specifically, they find that firms can use two governance strategies, contract customization and relational governance, to deal with both legitimacy and efficiency issues and to safeguard channel performance. Thus, international channel managers are advised to maintain an integrated management of legitimacy and efficiency in foreign marketing channels.