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Effects of switching costs on customer loyalty in the liner shipping industry

Author

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  • Shih-Liang Chao

    (Department of Shipping and Transportation Management, National Taiwan Ocean University, 2. Pei-Ning Road, Keelung, 20224 Taiwan.)

  • Bo-Chuan Chen

    (Department of Shipping and Transportation Management, National Taiwan Ocean University, 2. Pei-Ning Road, Keelung, 20224 Taiwan.)

Abstract

In the liner shipping industry, controlling switching costs (SCs) is an important strategy for maintaining customer loyalty (CL). This study proposes a research model comprising four constructs and six hypotheses to examine how SCs helps prevent customers from switching their freight loads from one carrier to the other. Moreover, a sub-model is also proposed and tested by two sample sets, separated by the degree of customer satisfaction to further identify relationships between perceived service quality (PSQ), SCs and CL. This study confirms the existence of a mediation effect of SC between PSQ and CL in the liner shipping industry.

Suggested Citation

  • Shih-Liang Chao & Bo-Chuan Chen, 2015. "Effects of switching costs on customer loyalty in the liner shipping industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 17(3), pages 341-358, September.
    • Handle: RePEc:pal:marecl:v:17:y:2015:i:3:p:341-358
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    Citations

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    Cited by:

    1. Chao, Shih-Liang & Yu, Ming-Miin & Wei, Sin-Yi, 2024. "Ascertaining the impact of e-service quality on e-loyalty for the e-commerce platform of liner shipping companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    2. Chao, Shih-Liang & Lin, Ru-Yan & Sun, Yu-Han, 2019. "Mediating effects of service recovery on liner shipping users," Transport Policy, Elsevier, vol. 84(C), pages 40-49.
    3. Balci, Gökcay, 2021. "Digitalization in container shipping: Do perception and satisfaction regarding digital products in a non-technology industry affect overall customer loyalty?," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    4. Irina V. Benedyk & Srinivas Peeta, 2018. "A binary probit model to analyze freight transportation decision-maker perspectives for container shipping on the Northern Sea Route," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 358-374, September.

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