TITLE

The Role of Switching Costs in Technology Commitment: The Case of High Technology Market

AUTHOR(S)
Jung Suk Hyun; Pae, Jae H.
PUB. DATE
January 2005
SOURCE
Advances in Consumer Research - Asia-Pacific Conference Proceedi;2005, Vol. 6, p303
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Proceeding
ABSTRACT
Reduced regulation, increased price competition, and diminished consumer loyalty have propelled customer retention and customer relationship management (CRM) to the forefront of marketing concerns. The role of switching costs in customer retention has been posited, but has not been subjected to rigorous empirical testing. Therefore, our main focus is on the factors that influence whether consumers will switch to alternative technologies or stay with an incumbent technology. Based on consumer survey data, we find empirical support for the link between technology compatibility strategies and consumer's expertise in technology and commitment to a particular technology. Specifically, switching costs are found to be positively associated with technology commitment. Further, the lack of expertise on the part of consumers tends to increase the likelihood that they will rely on an existing technology, rather than switch to a new one.
ACCESSION #
26767699

 

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