Study of social ties as one kind of switching costs: a new typology

Abstract

Purpose – The purpose of this paper is to study how customers’ social ties can be performed as one kind of switching costs, which can affect customer loyalty and have a moderate effect on the relationship between customer satisfaction and customer loyalty, and to improve the typology study of switching costs and give suggestions for companies about how to strengthen customer loyalty. Design/methodology/approach – An empirical research is implemented to prove the effectiveness of the study model, using factor analyses, regression analyses and structural equation model analyses as data analyses approaches. Findings – The research results prove the direct and moderate effect of social ties loss costs, and the effectiveness and reasoning of the new typology of switching costs. Practical implications – According to the research results, companies can take measures to enhance customers’ social ties loss costs properly so as to strengthen their loyalty. Originality/value – This research comes up with a new kind of relational switching costs, social ties loss costs and proves its effects, thus improving the typology of switching costs, and makes practical suggestions for companies.

The influence of service quality on customer satisfaction and customer behavioral intentions by moderating role of switching barriers in satellite pay TV market

“…Social ties refer to customer's perception of social bonds that is developed with other customers who share the same service consumption (Shi et al, 2015). Pay TV is one of the settings that relevant to develop social ties because the service consumption is being shared by one or more users (Woisetschläger et al, 2011).…”

“…On the other hand, when social ties are strong, satisfaction gives more impact to positive recommendation because of the reputational gain and influence to others. According to Shi et al (2015), customers will go to their social ties when they seek for advice pertaining their service consumption. Therefore, social ties give positive moderating effect to the relationship between customer satisfaction and positive recommendation.…”

“…Rooted in this notion, we included social ties as a switching barrier that affect customer behavioral intentions in pay TV setting. To the researcher's knowledge, there are only three studies by Shi et al (2015), Woisetschläger et al (2011) and Tsai et al (2006) that have used this type of switching barriers in understanding customer behavior. Thus, there is a need to further study in this area.…”

A qualitative exploration of female Harley-Davidson apparel wearer's symbolic expression of identities through dress

“…Women in this study indicated that relational switching costs (Burnham, Frels, & Mahajan, 2003) --the potential loss of personal relationships they have formed with other consumers of a brand --might impact their decision to quit riding or to switch to another brand of motorcycle. Previous studies have identified similar barriers to leaving the Harley subculture or switching brands (Schouten & McAlexander, 1995;Shi, Ma, & Fi, 2015). Brand loyalty research contends that social ties and reference groups influence an individual's product preference and lead to enhanced brand loyalty (Lindquist & Sirgy, 2009;Shi et al, 2015).…”

“…Previous studies have identified similar barriers to leaving the Harley subculture or switching brands (Schouten & McAlexander, 1995;Shi, Ma, & Fi, 2015). Brand loyalty research contends that social ties and reference groups influence an individual's product preference and lead to enhanced brand loyalty (Lindquist & Sirgy, 2009;Shi et al, 2015).…”