Abstract
The ability to retain and lock-in customers in the face of competition is a major concern for e-commerce businesses. If a firm is able to build a significant amount of switching cost and brand loyalty, then it can benefit from a long-term flow of profits and recover investments in customer acquisition. In this paper, we propose a method to measure the magnitude of switching costs for on-line service providers, which we apply to the on-line brokerage industry. We find a significant variation in calculated switching costs between brokers—on the factor of 2—suggesting that brokers have substantial influence over their switching costs.
| Original language | English (US) |
|---|---|
| Pages | 134-144 |
| Number of pages | 11 |
| State | Published - 2000 |
| Externally published | Yes |
| Event | 21st International Conference on Information Systems, ICIS 2000 - Brisbane, Australia Duration: Dec 10 2000 → Dec 13 2000 |
Conference
| Conference | 21st International Conference on Information Systems, ICIS 2000 |
|---|---|
| Country/Territory | Australia |
| City | Brisbane |
| Period | 12/10/00 → 12/13/00 |
Keywords
- Electronic markets
- empirical research
- financial sector
- marketing
- measures
ASJC Scopus subject areas
- Computer Networks and Communications
- Computer Science Applications
- Information Systems