IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v35y2025i1d10.1007_s12525-025-00829-0.html
   My bibliography  Save this article

The effects of personalized recommendations on perceived switching costs: The mediation roles of customer satisfaction and habits

Author

Listed:
  • Li Xu

    (Zhejiang Yuexiu University)

  • Yide Sun

    (Zhejiang Yuexiu University)

  • Yuan-Teng Hsu

    (Research Center of Finance, Shanghai Business School
    Shanghai Jiao Tong University)

  • Ya-Ling Chiu

    (Zhejiang Yuexiu University)

Abstract

As e-commerce evolves, personalized recommendations have become essential for enhancing user experience and website stickiness, yet their impact on customer behavior remains unclear. This study examines how personalized recommendations affect perceived switching costs, focusing on the mediating roles of customer satisfaction and habits, and the moderating effects of consumption levels. Using structural equation modeling on Survey data from 512 Taobao users, findings reveal that personalized recommendations significantly enhance customer satisfaction and habit formation, which fully mediate their impact on perceived switching costs. Additionally, the influence of these mediators varies by consumption level: habits have a stronger effect on perceived switching costs in high-spending groups, while customer satisfaction is more pivotal for low-spending groups. These insights highlight the need for e-commerce platforms to tailor marketing strategies to different customer segments. The study also emphasizes balancing technological innovation, user experience, and consumer rights in the digital marketplace.

Suggested Citation

  • Li Xu & Yide Sun & Yuan-Teng Hsu & Ya-Ling Chiu, 2025. "The effects of personalized recommendations on perceived switching costs: The mediation roles of customer satisfaction and habits," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-16, December.
    • Handle: RePEc:spr:elmark:v:35:y:2025:i:1:d:10.1007_s12525-025-00829-0
    DOI: 10.1007/s12525-025-00829-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-025-00829-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12525-025-00829-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Kyle B. Murray & Gerald Hubl, 2007. "Explaining Cognitive Lock-In: The Role of Skill-Based Habits of Use in Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(1), pages 77-88, March.
    2. Bucklin, Randolph E. & Sismeiro, Catarina, 2009. "Click Here for Internet Insight: Advances in Clickstream Data Analysis in Marketing," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 35-48.
    3. Pei-Yu (Sharon) Chen & Lorin M. Hitt, 2002. "Measuring Switching Costs and the Determinants of Customer Retention in Internet-Enabled Businesses: A Study of the Online Brokerage Industry," Information Systems Research, INFORMS, vol. 13(3), pages 255-274, September.
    4. Su, Winston T. & Lee, Zach W.Y. & He, Xinming & Chan, Tommy K.H., 2025. "Switching to cloud gaming: A push-pull-mooring perspective," Journal of Business Research, Elsevier, vol. 189(C).
    5. Andreas Eggert & Wolfgang Ulaga, 2002. "Customer perceived value: a substitute for satisfaction in business markets?," Post-Print hal-00484980, HAL.
    6. Gediminas Adomavicius & Jesse C. Bockstedt & Shawn P. Curley & Jingjing Zhangc, 2018. "Effects of Online Recommendations on Consumers’ Willingness to Pay," Information Systems Research, INFORMS, vol. 29(1), pages 84-102, March.
    7. Sarkar, Subhro & Chauhan, Sumedha & Khare, Arpita, 2020. "A meta-analysis of antecedents and consequences of trust in mobile commerce," International Journal of Information Management, Elsevier, vol. 50(C), pages 286-301.
    8. Roland T. Rust & Tuck Siong Chung, 2006. "Marketing Models of Service and Relationships," Marketing Science, INFORMS, vol. 25(6), pages 560-580, 11-12.
    9. Benlian, Alexander, 2015. "Web Personalization Cues and their Differential Effects on User Assessments of Website Value," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 74450, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. Dominick Werner & Martin Adam & Alexander Benlian, 2022. "Empowering users to control ads and its effects on website stickiness," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1373-1397, September.
    11. Mohamed Khalifa & Vanessa Liu, 2007. "Online consumer retention: contingent effects of online shopping habit and online shopping experience," European Journal of Information Systems, Taylor & Francis Journals, vol. 16(6), pages 780-792, December.
    12. repec:dar:wpaper:133899 is not listed on IDEAS
    13. Werner, Dominick & Adam, Martin & Benlian, Alexander, 2022. "Empowering users to control ads and its effects on website stickiness," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 152753, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Zihan Guan & Xiaoran Shi & Huajing Ying & Ruhui Xue & Xiaojiao Qiao, 2024. "An empirical study on traditional offline retailer’s switching intention towards community-based group buying program: A push–pull-mooring model," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-20, December.
    15. Grewal, Dhruv & Guha, Abhijit & Satornino, Cinthia B. & Schweiger, Elisa B., 2021. "Artificial intelligence: The light and the darkness," Journal of Business Research, Elsevier, vol. 136(C), pages 229-236.
    16. Du, Shuili & Xie, Chunyan, 2021. "Paradoxes of artificial intelligence in consumer markets: Ethical challenges and opportunities," Journal of Business Research, Elsevier, vol. 129(C), pages 961-974.
    17. Anita Pansari & V. Kumar, 2017. "Customer engagement: the construct, antecedents, and consequences," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 294-311, May.
    18. Benlian, Alexander, 2015. "Web Personalization Cues and their Differential Effects on User Assessments of Website Value," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 73386, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Ashraf, Abdul R. & Thongpapanl Tek, Narongsak & Anwar, Ali & Lapa, Luciano & Venkatesh, Viswanath, 2021. "Perceived values and motivations influencing m-commerce use: A nine-country comparative study," International Journal of Information Management, Elsevier, vol. 59(C).
    20. Hsu, Meng-Hsiang & Chang, Chun-Ming & Chuang, Li-Wen, 2015. "Understanding the determinants of online repeat purchase intention and moderating role of habit: The case of online group-buying in Taiwan," International Journal of Information Management, Elsevier, vol. 35(1), pages 45-56.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Kee-Kuo & Ho, Hui-Ping & Chang, Ching-Ter, 2015. "Estimating attributes importance for container shipping industry by closing the listening gap with maximum convergent validity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 145-163.
    2. Antonia Köster & Christian Matt & Thomas Hess, 2021. "Do All Roads Lead to Rome? Exploring the Relationship Between Social Referrals, Referral Propensity and Stickiness to Video-on-Demand Websites," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 63(4), pages 349-366, August.
    3. Weidig, Jakob & Weippert, Marco & Kuehnl, Christina, 2024. "Personalized touchpoints and customer experience: A conceptual synthesis," Journal of Business Research, Elsevier, vol. 177(C).
    4. Lily (Xuehui) Gao & Evert Haan & Iguácel Melero-Polo & F. Javier Sese, 2023. "Winning your customers’ minds and hearts: Disentangling the effects of lock-in and affective customer experience on retention," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 334-371, March.
    5. Nazir, Sajjad & Khadim, Sahar & Ali Asadullah, Muhammad & Syed, Nausheen, 2023. "Exploring the influence of artificial intelligence technology on consumer repurchase intention: The mediation and moderation approach," Technology in Society, Elsevier, vol. 72(C).
    6. Chau Thi Minh Pham & Anh Thi Minh Bui & Tuan Van Pham, 2025. "Investigating the factors affecting online hotel reservations: An analysis of Vietnamese adolescents," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 15(6), pages 132-145.
    7. Robertson, Jeandri & Botha, Elsamari & Oosthuizen, Kim & Montecchi, Matteo, 2025. "Managing change when integrating artificial intelligence (AI) into the retail value chain: The AI implementation compass," Journal of Business Research, Elsevier, vol. 189(C).
    8. José Alberto Martínez-González & Carmen D. Álvarez-Albelo, 2021. "Influence of Site Personalization and First Impression on Young Consumers’ Loyalty to Tourism Websites," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    9. Sharma, Neeru & Fatima, Johra Kayeser, 2024. "Influence of perceived value on omnichannel usage: Mediating and moderating roles of the omnichannel shopping habit," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    10. Cloarec, Julien, 2020. "The personalization–privacy paradox in the attention economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    11. Grigorios, Lamprinakos & Magrizos, Solon & Kostopoulos, Ioannis & Drossos, Dimitrios & Santos, David, 2022. "Overt and covert customer data collection in online personalized advertising: The role of user emotions," Journal of Business Research, Elsevier, vol. 141(C), pages 308-320.
    12. Alnawas, Ibrahim & Al Khateeb, Amr & El Hedhli, Kamel, 2023. "The effects of app-related factors on app stickiness: The role of cognitive and emotional app relationship quality," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    13. Martin Adam & Konstantin Roethke & Alexander Benlian, 2022. "Gamblified digital product offerings: an experimental study of loot box menu designs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 971-986, June.
    14. Sharma, Purva & Srivastava, Ankur & Sharma, Veenu & Singh, Nidhi & Nijjer, Shivinder, 2024. "Understanding consumer repurchase intentions towards luxury retail brands: Evidence from an emerging market," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    15. Murray, Kyle B. & Häubl, Gerald, 2009. "Personalization without Interrogation: Towards more Effective Interactions between Consumers and Feature-Based Recommendation Agents," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 138-146.
    16. Jan-Hendrik Schmidt & Sebastian Clemens Bartsch & Martin Adam & Alexander Benlian, 2025. "Elevating Developers’ Accountability Awareness in AI Systems Development," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 67(1), pages 109-135, February.
    17. Dominick Werner & Martin Adam & Alexander Benlian, 2022. "Empowering users to control ads and its effects on website stickiness," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1373-1397, September.
    18. Jia, Lin & Xue, Geng & Fu, Yuwei & Xu, Longjia, 2018. "Factors affecting consumers’ acceptance of e-commerce consumer credit service," International Journal of Information Management, Elsevier, vol. 40(C), pages 103-110.
    19. Fatemeh Mariam Zahedi & Yan Chen & Huimin Zhao, 2024. "Ontology-Based Intelligent Interface Personalization for Protection Against Phishing Attacks," Information Systems Research, INFORMS, vol. 35(3), pages 1463-1478, September.
    20. Chen, Kee Kuo & Chiu, Rong-Her & Chang, Ching-Ter, 2017. "Using beta regression to explore the relationship between service attributes and likelihood of customer retention for the container shipping industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 1-16.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elmark:v:35:y:2025:i:1:d:10.1007_s12525-025-00829-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.