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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
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    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

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