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Constructing online switching barriers: examining the effects of switching costs and alternative attractiveness on e-store loyalty in online pure-play retailers

Author

Listed:
  • Ezlika Ghazali

    (University of Malaya)

  • Bang Nguyen

    (East China University of Science and Technology)

  • Dilip S. Mutum

    (The University of Nottingham Malaysia Campus)

  • Amrul Asraf Mohd-Any

    (University of Malaya)

Abstract

Developing switching barriers to retain customers has become a critical marketing strategy for online retailers. However, research on the role of switching barriers in e-retailing is still limited. Recent trends show that when competitors are just one click away, it is questionable if customer loyalty can be achieved at all in online environments. This leads to the research question on whether switching barriers have any impact on e-loyalty in pure-play retailers. The paper examines the influence of switching barriers on customer retention (i.e., e-store loyalty) and further investigates the moderating effects of switching costs and alternative attractiveness. Data were gathered via a survey of 590 shoppers of online pure-play retailers in the UK. Findings show that customer satisfaction and the two dimensions of switching barriers (perceived switching costs and perceived attractiveness of alternatives) significantly influence customer loyalty. Contrary to findings in earlier studies, it was found that switching costs did not moderate the relationships between satisfaction and loyalty nor between perceived attractiveness of alternatives and loyalty. The paper makes imperative recommendations to develop switching barriers and to foster loyalty along with suggestions for future research.

Suggested Citation

  • Ezlika Ghazali & Bang Nguyen & Dilip S. Mutum & Amrul Asraf Mohd-Any, 2016. "Constructing online switching barriers: examining the effects of switching costs and alternative attractiveness on e-store loyalty in online pure-play retailers," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 157-171, May.
    • Handle: RePEc:spr:elmark:v:26:y:2016:i:2:d:10.1007_s12525-016-0218-1
    DOI: 10.1007/s12525-016-0218-1
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    References listed on IDEAS

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    9. Andrea Moretta Tartaglione & Ylenia Cavacece & Giuseppe Russo & Giuseppe Granata, 2019. "A Systematic Mapping Study on Customer Loyalty and Brand Management," Administrative Sciences, MDPI, vol. 9(1), pages 1-21, January.
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    11. Wu, Hung-Che & Ai, Chi-Han & Cheng, Ching-Chan, 2019. "Experiential quality, experiential psychological states and experiential outcomes in an unmanned convenience store," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 409-420.
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    14. Chang-Gyu Oh & Jongpil Park, 2020. "Insights for Sustainability of Smartphone Business: Understanding Customer Switching Behavior in Smartphone Services," Sustainability, MDPI, vol. 12(3), pages 1-14, February.
    15. Mark Ng & Monica Law & Ka-fu Kevin Lin, 2024. "Determinants of smartphone brand switching intention of consumers in Hong Kong," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(2), pages 275-289, June.
    16. Singh, Reema & Rosengren, Sara, 2020. "Why do online grocery shoppers switch? An empirical investigation of drivers of switching in online grocery," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    17. Busalim, Abdelsalam H. & Ghabban, Fahad & Hussin, Ab Razak Che, 2021. "Customer engagement behaviour on social commerce platforms: An empirical study," Technology in Society, Elsevier, vol. 64(C).
    18. Ali, Mazhar & Ahmed, Masood, 2018. "Determinants of students’ loyalty to university: A service-based approach," MPRA Paper 84352, University Library of Munich, Germany.
    19. Nora Nahr & Marikka Heikkilä, 2022. "Uncovering the identity of Electronic Markets research through text mining techniques," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1257-1277, September.
    20. Xin Zhang & Xiaoyan Ding & Liang Ma & Gaoshan Wang, 2018. "Identifying Factors Preventing Sustainable Brand Loyalty among Consumers: A Mixed Methods Approach," Sustainability, MDPI, vol. 10(12), pages 1-13, December.
    21. Kyungyeol (Anthony) Kim & Kevin K. Byon & Heedong Choi, 2020. "A Conceptual Analysis of Switching Costs: Implications for Fitness Centers," Sustainability, MDPI, vol. 12(9), pages 1-16, May.
    22. Yi-Wen Kuo & Cheng-Hsien Hsieh & Yu-Chen Hung, 2021. "Non-linear characteristics in switching intention to use a docked bike-sharing system," Transportation, Springer, vol. 48(3), pages 1459-1479, June.
    23. Ulrike Baumöl & Linda Hollebeek & Reinhard Jung, 2016. "Dynamics of customer interaction on social media platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(3), pages 199-202, August.
    24. Koryoe Anim-Wright & Rhodalene Amartey, 2024. "Examining the Effect of Brand Like and Brand Love on Brand Loyalty," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(2), pages 1-51, March.
    25. Yi-Wen Kuo & Cheng-Hsien Hsieh & Yu-Chen Hung, 0. "Non-linear characteristics in switching intention to use a docked bike-sharing system," Transportation, Springer, vol. 0, pages 1-21.

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    More about this item

    Keywords

    Switching barriers; Switching costs; Alternative attractiveness; Customer satisfaction; E-store loyalty; Online pure-play retailers;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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