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Title:
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THE CONFLICTING ROLE OF ONLINE SWITCHING COSTS: THE MAIN AND INTERACTION EFFECTS ON CUSTOMER RETENTION |
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Author(s):
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Ana Isabel Torres , Francisco Vitorino Martins |
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ISBN:
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978-972-8924-89-8 |
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Editors:
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Sandeep Krishnamurthy |
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Year:
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2009 |
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Edition:
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Single |
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Keywords:
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Switching Costs, Customer Retention, Electronic Markets. |
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Type:
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Full Paper |
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First Page:
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163 |
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Last Page:
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170 |
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Language:
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English |
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Cover:
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Full Contents:
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click to dowload 
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Paper Abstract:
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In this paper we examine prior research, which has been studying the effects of switching costs on customer retention,
within online and offline markets. The empirical studies in the area reveal contrasting results: (1) switching costs are a
stronger predictor of customer retention than customer satisfaction alone; (2) the main effect of switching costs moderates
the relationship between satisfaction and customer retention; (3) conversely, the lack of main effects reflects the
interaction effects indicating that switching costs have an even greater impact on customer retention than under
satisfaction variation levels. These power asymmetries reveal a conflicting role of switching costs across industry and
marketplaces. We also observe a significant bias in favor of service industries with high switching costs. Based on this
meta-analytical research we propose a theoretical base to support the path structural relationship between the constructs
providing a nomological framework to future research. Finally we draw some conclusions, suggest future research
directions and make managerial recommendations. |
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