The Influencing Mechanism of Online Perceived Value and Switching Costs on Online Customer Loyalty

  • Authors:
  • Xuhui Wang;Jian Xu

  • Affiliations:
  • -;-

  • Venue:
  • ISBIM '08 Proceedings of the 2008 International Seminar on Business and Information Management - Volume 01
  • Year:
  • 2008

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Abstract

This study examines the influencing mechanism of the online perceived value and switching costs on the online loyalty using structural equation model. We found that the online perceived value significantly affects the online attitude loyalty and behavior loyalty directly; meanwhile affecting the online customer loyalty indirectly through the online customer satisfaction and customer trust. As a moderator, switching costs play an important role in the formation of the online loyalty, which exerts a positive moderating effect on the online customer satisfaction-online attitude loyalty link, online customer satisfaction-online behavior loyalty link, and online perceived value-online behavior loyalty link. This study might help online retailers to foster customer loyalty. On the one hand, online retailer should enhance online perceived value by improving service quality, website design and the safety of online trading; on the other hand, online retailers should make full use of the moderating effect of the switching costs, and choose appropriate switching costs according to customer perceived value and customer satisfaction.