Multi-dimensional analysis of perceived switching costs

Barroso, Carmen; Picón, Araceli

doi:10.1016/j.indmarman.2011.06.020

Cited by 101 publications

(108 citation statements)

References 96 publications

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“…This study argues that a retailer's evaluation of switching costs has an impact on its level of technology readiness, which is itself an antecedent of satisfaction, and so models that evaluation as an antecedent. When a retailer's perceptions of potential switching costs are higher, it is more likely to try to make itself readier to adopt a new technology, so as to try to reduce its level of dependency onand thus of being locked in to -one provider (Barroso & Picón, 2012): but when its perceptions of such costs are lower, it may see less need to increase its level of technology readiness. In a dynamic environment such as web services solutions, where new technological enhancements are likely to become available on a regular basis, perceived switching costs are likely to remain high, as retailers will endeavor to increase their technology readiness to try to stay in step with their WSSPs in adopting newer technologies.…”

Section: H2: There Is a Positive Relationship Between Industry Trust mentioning

confidence: 99%

Technology readiness in a B2B online retail context: An examination of antecedents and outcomes

Vize

Coughlan

Kennedy

et al. 2013

Industrial Marketing Management

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This paper develops and empirically tests a model that examines the role of Technology Readiness (TR) in the Business-to-Business (B2B) context. It examines how the antecedents of TR affect the construct, and how the construct affects evaluations of a complex credence based B2B service. The research investigates how the retailers' TR impacts their evaluation of web solution service providers (WSSPs). It responds to previous research calls by extending the TR construct from the business-to-consumer (B2C) perspective that is traditional in the extant literature into the B2B domain. The key findings of a survey conducted with 133 firms in the retail industry are that TR is an important contributor to the eventual achievement of service quality and satisfaction. The key contributions of this study are; first it develops and validates a measure of TR in a B2B context; second it investigates the antecedents of TR in this domain, demonstrating the impact of past inexperience, industry trust and switching costs on firms' level of technology readiness to adopt online operations; and third, it finds that service quality and satisfaction are outcomes of TR. The key management implication for WSSPs is the need to address the TR levels of existing and potential clients if they wish to deliver successful e-business solutions to them, and that their clients' TR can be better managed by making the offerings more easily understood, building relational rapport, reducing risk perceptions and adopting a client centric perspective throughout the process.

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Section: H2: There Is a Positive Relationship Between Industry Trust mentioning

confidence: 99%

Technology readiness in a B2B online retail context: An examination of antecedents and outcomes

Vize

Coughlan

Kennedy

et al. 2013

Industrial Marketing Management

View full text Add to dashboard Cite

show abstract

“…At the initial stage of relationship development, customers may perceive more uncertainties and they may even refuse to make attempts, leading to wrong evaluations of customers on suppliers. The stable relationship between customers and suppliers could be established as time goes on (Carmen et al, 2012 [18]). It could be observed that the nodal point of the society and the property will be more stable if the relationship between customers and suppliers could be maintained longer (Chiu et al, 2003 [19]); meanwhile, the possibility of customer transferring will be lowered.…”

Section: Relationship Characteristicsmentioning

confidence: 99%

“…Switching costs research in the field of economics is mainly discussed around the inelastic pricing [1], and market barriers to entry [2]. Management and marketing field studies the relationship among switching costs and product forecast [3], technology development strategy [4], technology loyalty and customer loyalty [5], repeat purchase behavior [6], etc.…”

Section: Introductionmentioning

confidence: 99%

The Influence of Relationship Characters on Switching Cost: The Moderating Role of Customer Characters

Zhang¹,

Hou²,

Li³

et al. 2016

AJIBM

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With the competitive environment intense, the leader of the market gradually becomes buyers market. For the enterprise, to maintain and retain existing customers, which is to reduce the customer switch to the competition as low as possible, is particularly important. Therefore, how to effectively seize the minds of consumers and understand their behavior trends is the crux for enterprise to win. This study developed a model of the influence of relationship characteristics on switching costs, and we set customer characteristics as a regulated variable which was always set to a leading factor in the previous study. We used smart-phone users as our research object, through the method of questionnaire and established an equation model to analyze data. The results showed that: (1) in general, the relationship characteristics between consumers and businesses (including the length of time and the kind of purchase) respectively played a positive role on the switching costs (including procedural switching costs, relational switching costs and lost benefits costs), (2) the moderating effects of customer characteristics (including involvement and switching tendency) in the relationship between relationship characteristics and switching costs (including the procedural switching costs, relational switching costs and lost benefits costs) are respectively significant. This article verifies the regulated effect of customer characteristics and enriches the antecedent influencing factors of switching costs. So it is of great significance for enterprises to better manage switching costs and effectively retain customers.

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“…Through the creation of PSC, firms can discourage customers from attempting to abandon the relationship, and increase the difficulties that the switching procedure entails. The recent literature recognises that PSC is a multidimensional construct (Barroso and Picón, 2012). Therefore, the nature of these costs (relational, monetary, psychological, or associated with the time the switching process takes up) can be very different depending on the sector or industry.…”

Section: Customer Loyalty: Determinant Factorsmentioning

confidence: 99%

“…The PSC variable is as an aggregate multidimensional construct (reflective firstorder, formative second-order) with six reflective first-order dimensions, as has been described in previous works (Barroso and Picón, 2012). Regarding the scales related to the rest of the constructs analysed in the study, we use the scale developed by Maloles (1997) to measure the level of customers' satisfaction with their usual insurance company.…”

Section: Measurement Instrumentsmentioning

confidence: 99%

The influence of market heterogeneity on customer loyalty: a multigroup analysis

Picón-Berjoyo

Ruiz-Moreno

Castro

2015

Proceedings of the 2nd International Symposium on Partial Least Squares Path Modeling: The Conference for PLS Users

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Loyalty is configured as one of the main determinants of firm performance. Many works have proposed models that analyze the relationship between loyalty and its main determinants: the customer perceived value (PV), their level of satisfaction and their perceived switching costs (PSC). Thus, the aim of this study is to validate a model that gathers the relationships between these variables and analyze the influence of customer characteristics -propensity towards switching and customer involvement-on these relationships in the insurance industry. The results show that (a) for the whole sample, perceived value, satisfactions and switching costs are set as antecedents of loyalty; (b) however, for customers with high tendency to switch, the path to a loyalty behavior is only mediated by the influence of their perceived value in their satisfaction; and finally (c) for these individuals, the strength of the relationship between satisfaction and loyalty is lower than customers with low tendency to switch.

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Multi-dimensional analysis of perceived switching costs

Cited by 101 publications

References 96 publications

Technology readiness in a B2B online retail context: An examination of antecedents and outcomes

Technology readiness in a B2B online retail context: An examination of antecedents and outcomes

The Influence of Relationship Characters on Switching Cost: The Moderating Role of Customer Characters

The influence of market heterogeneity on customer loyalty: a multigroup analysis

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