Switching Cost In B2C

Switching Costs

Switching cost can be defined as the costs involved in changing from one supplier to another (Heide and Weiss, 1995). It also can be defined as the real or perceived costs that are incurred when changing supplier but which ore rest incurred when changing supplier but which are not incurred by remaining with the current supplier (Xavier and Ypstanti, 2008). Switching cost are important to reflect a buyer’s need to maintain his or her relationship with a supplier to achieve the desire goals (Frasier, 1983).

 Barriers to switching can be present due to high switching costs. It reduce consumer flexibility and lower the pressure exerted by the prospect of a consumer migrating to a competitor. Jones, Mothersbaugh, and Beatty (2000) provided evidence that in B2C settings, the influence of customer satisfaction on repurchase intention deacreases under conditions of high switching barriers. Furthermore, the domain could include the loss pf loyalty benefits as a result of ending the current relationship.