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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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    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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