SWITCHING COST AND BRAND LOYALTY IN ELECTRONIC MARKETS: EVIDENCE FROM ON-LINE RETAIL BROKERS1

Pei Yu Chen, Lorin M. Hitt

Research output: Contribution to conferencePaperpeer-review

13 Scopus citations

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 languageEnglish (US)
Pages134-144
Number of pages11
StatePublished - 2000
Externally publishedYes
Event21st International Conference on Information Systems, ICIS 2000 - Brisbane, Australia
Duration: Dec 10 2000Dec 13 2000

Conference

Conference21st International Conference on Information Systems, ICIS 2000
Country/TerritoryAustralia
CityBrisbane
Period12/10/0012/13/00

Keywords

  • Electronic markets
  • empirical research
  • financial sector
  • marketing
  • measures

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Computer Science Applications
  • Information Systems

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