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Assessing the Effects of Switching Costs on Perceived Values and Brand Loyalty: The Impact of Customers’ Perceived Authenticity in Hotel Sector

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  • Chau Ka Yin
  • Huawen Shen

Abstract

Switching costs provide a unique and valid theoretical window into the mechanisms of consumer decision-making process as well as account for the behaviors of dissatisfied customers who still decide to patronize the same product or service. Therefore, switching costs provide a new research paradigm to consumer behavior studies, which are currently dominated by benefit-based articulations. Our study investigates the effects of switching costs on the perceived values and brand loyalty of customers of a luxury hotel in Shanghai, China. Through a structural equation model analysis, we find that switching posts bring about significant effects on perceived values and brand loyalty. The theoretical and practical implications of this study are also discussed.

Suggested Citation

  • Chau Ka Yin & Huawen Shen, 2016. "Assessing the Effects of Switching Costs on Perceived Values and Brand Loyalty: The Impact of Customers’ Perceived Authenticity in Hotel Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(1), pages 1-84, December.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2016:i:1:p:84
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    References listed on IDEAS

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    1. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    2. Jones, Michael A. & Mothersbaugh, David L. & Beatty, Sharon E., 2002. "Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes," Journal of Business Research, Elsevier, vol. 55(6), pages 441-450, June.
    3. Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
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    Cited by:

    1. Weizhao Huang & Jingna Wang & Jinbo Jiang & Jinwen Tang, 2021. "The role of procedural, financial and relational switching costs in the Chinese online hotel booking market: antecedents and consequences," Information Technology & Tourism, Springer, vol. 23(3), pages 439-470, September.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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