Effects of network externalities on user loyalty to online B2B platforms: an empirical study

2019 ◽  
Vol 33 (2) ◽  
pp. 309-334
Author(s):  
Yonghua Cen ◽  
Li Li
Keyword(s):  
User Satisfaction ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Network Externalities ◽  
Perceived Value ◽  
Network Size ◽  
Network Externality ◽  
Equation Modeling ◽  
Content Type

Purpose Given a product or service, the number of its installed user base has a significant positive effect on the existing users’ loyalty and new users’ conversion. This effect is conceptualized as network externalities in economics. Network externalities are supposed to be particularly striking in nowadays online business-to-business (B2B) platforms, but yet the mystery behind their effects on user loyalty to online B2B platforms remains to be delicately unraveled. The purpose of this paper is to discover the factors driving users’ loyalty, especially buyers’ loyalty, to online B2B platforms, by highlighting the impacts of network externalities on loyalty and other mediating factors. Design/methodology/approach A conceptual model of buyer loyalty under network externalities is elaborated. The reliability and validity of the instruments of the latent model constructs are assessed by confirmatory factor analysis, and the hypothesized causal relationships among the constructs are tested by structural equation modeling, on 710 valid buyer samples collected from a famous online B2B platform in China. Findings The analysis demonstrates that: perceived value, user satisfaction and switching costs are the major predictors of buyer loyalty to online B2B platforms characterized by network externalities; network externalities positively account for buyer loyalty by contributing to perceived value, user satisfaction and switching costs; and direct network externality (measured by perceived network size and perceived external prestige) has a significant effect on indirect network externality (measured by perceived compatibility and perceived complementarity). Originality/value The findings allow the authors to conclude meaningful managerial implications for online B2B service providers to build up loyal user bases through improving users’ perceptions of network externalities, switching costs and value.

The distinct roles of dedication-based and constraint-based mechanisms in social networking sites

2015 ◽  
Vol 25 (1) ◽  
pp. 30-51 ◽  
Author(s):  
Byoungsoo Kim ◽  
Jinyoung Min
Keyword(s):  
Social Networking ◽  
User Satisfaction ◽  
Structural Equation ◽  
Switching Costs ◽  
Critical Role ◽  
Network Size ◽  
Social Networking Site ◽  
Equation Modeling ◽  
Content Type ◽  
Constraint Based Models

Purpose – The purpose of this paper is to investigate the effects of dedication- and constraint-based mechanisms on users’ post-adoption behavior in the social networking site (SNS) context. Design/methodology/approach – The proposed framework uses user satisfaction and trust belief to capture the dedication-based mechanism and perceived switching costs and social norms to capture the constraint-based mechanism. Hypotheses were tested by applying partial least squares to data from 250 experienced Facebook users. A structural equation modeling was used to test the validity of the proposed research models. Findings – The analysis results show that SNS users’ continuance intention is jointly affected by two distinctive mechanisms: a dedication-based one and a constraint-based one, the former playing a more critical role. The findings indicate that both perceived relative benefits and perceived enjoyment significantly influence user satisfaction. Learning and network size were found to be the key predictors of perceived switching costs. Research limitations/implications – This study applies the dedication- and constraint-based models by incorporating numerous sets of antecedents. The framework provides a theoretical lens of how two distinctive mechanisms influence SNS users’ post-adoption behaviors. Practical implications – The analysis results provide several insights that can aid SNS providers understand SNS users post-adoption behaviors. Moreover, the findings will help SNS providers effectively facilitate dedication- and constraint-based mechanisms by enhancing the key antecedents of two distinctive mechanisms. Originality/value – SNSs have become an important component of individuals lives. However, few systematic works investigate the fundamental mechanisms leading to SNS users’ continued usage. In an attempt to extend the horizons of SNS research, this study incorporates a set of antecedents to dedication- and constraint-based models.

Identifying brand touchpoints to increase switching costs in the banking industry

2019 ◽  
Vol 38 (3) ◽  
pp. 718-736 ◽  
Author(s):  
Abdullah Sultan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Banking Industry ◽  
Service Failure ◽  
Customer Experience ◽  
Equation Modeling ◽  
Exploratory Research ◽  
Content Type

Purpose The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry. Design/methodology/approach Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling. Findings Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality. Research limitations/implications Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications. Practical implications Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting. Originality/value This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

Managing perceived risk for customer retention in e-commerce

2015 ◽  
Vol 23 (2) ◽  
pp. 145-160 ◽  
Author(s):  
Yung-Shen Yen
Keyword(s):  
Customer Loyalty ◽  
Perceived Risk ◽  
Structural Equation ◽  
Online Survey ◽  
Switching Costs ◽  
Service Providers ◽  
Customer Retention ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose – This paper aims to explore how perceived risk affects customer loyalty in e-commerce and how switching costs mediate in the relationship between perceived risk and customer loyalty. Design/methodology/approach – In this paper, structural equation modeling was conducted, and data on Internet shopping habits of 382 consumers in Taiwan were examined. Findings – The findings of this study revealed that lowering perceived risks can increase switching costs, which leads to customer loyalty with the service provider in e-commerce. Research limitations/implications – A sample bias may exist because the sampling was conducted through an online survey in a specific Web site. This study affirmed the theoretical framework regarding the mediation effect of switching costs on perceived risk and customer-loyalty relationships. Practical implications – To avoid the single effect of reducing perceived risk on customer loyalty, practitioners should be difficult for competitors to imitate. This can increase the barriers to competition, further lock in the customer and can prevent the switch to other service providers. Originality/value – The findings provide a new feasible approach to customer retention: a business can reduce customers’ perceived risk to increase switching costs against the competition for customer retention in e-commerce.

The effect of network externality on mobile social network site continuance

2015 ◽  
Vol 49 (3) ◽  
pp. 289-304 ◽  
Author(s):  
Tao Zhou
Keyword(s):  
Social Network ◽  
Structural Equation ◽  
Network Size ◽  
Perceived Usefulness ◽  
Network Externality ◽  
Equation Modeling ◽  
Privacy Concern ◽  
Mobile Social Network ◽  
Content Type ◽  
User Adoption

Purpose – The purpose of this paper is to examine the effect of network externality on users’ continuance of mobile social network sites (SNS). Design/methodology/approach – Based on the 230 valid responses collected from a survey, structural equation modeling was employed to examine the research model. Findings – The results indicated that network externality, which includes referent network size and perceived complementarity, has a significant effect on perceived usefulness and flow. Privacy concern affects perceived usefulness, flow and privacy risk. These three factors determine continued use. Originality/value – Previous research has focussed on the effects of motivations such as perceived value on user adoption of SNS. The effect of network externality on user continuance has seldom been examined. This research tries to fill the gap.

Role of coffeehouse brand experiences (sensory/affective/intellectual/behavioral) in forming patrons’ repurchase intention

2019 ◽  
Vol 3 (1) ◽  
pp. 17-35 ◽  
Author(s):  
Heesup Han ◽  
Kai-Sean Lee ◽  
HakJun Song ◽  
Sanghyeop Lee ◽  
Bee-Lia Chua
Keyword(s):  
Customer Satisfaction ◽  
Purchase Intention ◽  
Structural Equation ◽  
Switching Costs ◽  
Perceived Value ◽  
Equation Modeling ◽  
Generation Process ◽  
Repurchase Intention ◽  
Content Type

Purpose The purpose of this paper is to investigate the interrelationships among coffeehouse brand experiences, customer satisfaction and perceived value in generating patrons’ repeat purchase intention. Design/methodology/approach The survey sample consisted of 379 coffeehouse patrons who visited an international chain coffeehouse in a metropolitan city of South Korea. Findings The results of the structural equation modeling revealed that a coffeehouse brand experience exerted a significant influence on customer satisfaction and perceived value. The repurchase intention was found to be a significant and positive function of customer satisfaction and perceived value. Moreover, the result of the metric invariance test demonstrated a significant moderating impact on the relationships between coffeehouse brand experiences and customer satisfaction, coffeehouse brand experiences and perceived value, and customer satisfaction and repurchase intention. Research limitations/implications An examination of the moderating role of switching costs demonstrated that the relationships between coffeehouse brand experiences and customer satisfaction, between coffeehouse brand experiences and perceived value and between customer satisfaction and repurchase intention differed across switching costs groups. More specifically, the relationship strength was greater for the high group of switching costs than for the low group. Originality/value The present study provides coffeehouse management with a better understanding of the underlying mechanism of patrons’ repurchase decision generation process.

Why do customers intend to continue using internet-based sharing economy service platforms? Roles of network externality and service quality

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yung-Ming Cheng
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Service Providers ◽  
Sharing Economy ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Network Externality ◽  
Equation Modeling ◽  
Continuance Intention ◽  
Content Type

Purpose The purpose of this study is to integrate network externality and service quality as antecedents to the synthesis of expectation–confirmation model (ECM) and perceived ease of use (PEOU) in explaining customers’ continuance intention of internet-based sharing economy service platforms. Design/methodology/approach Sample data for this study were collected from students enrolled in a comprehensive university in Taipei, Taiwan. A total of 600 questionnaires were distributed in various campus locations, and 510 usable questionnaires were analyzed in this study, with a usable response rate of 85.0%. Collected data were analyzed using structural equation modeling. Findings The primary findings are as follows. First, service enablers’ online service quality positively affected customers’ perceived usefulness (PU), confirmation and PEOU of internet-based sharing economy service platforms, which directly or indirectly explained customers’ satisfaction and continuance intention of the platforms. Next, service providers’ offline service quality positively influenced customers’ PU of internet-based sharing economy service platforms, which in turn caused customers’ satisfaction and continuance intention of the platforms. Finally, network externality from customers’ side and service providers’ side all positively affected customers’ PU of internet-based sharing economy service platforms, which in turn led to customers’ continuance intention of the platforms. Originality/value First, this study contributes to the identification of network externality and service quality that may reveal deep insights to the understanding of customers’ continuance intention of internet-based sharing economy service platforms greatly driven by their confirmation of expectations and satisfaction with the platforms. Next, the empirical evidence on capturing ECM and PEOU for completely explaining the antecedents of customers’ continuance intention of internet-based sharing economy service platforms is well documented. Hence, this study’s findings have significantly shed light on the possible formulation of a richer post-adoption model.

Utilizing the Push-Pull-Mooring-Habit framework to explore users’ intention to switch from offline to online real-person English learning platform

2019 ◽  
Vol 29 (1) ◽  
pp. 167-193 ◽  
Author(s):  
Yu-Hsin Chen ◽  
Ching-Jui Keng
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Service Providers ◽  
Perceived Usefulness ◽  
Equation Modeling ◽  
English Learning ◽  
Content Type ◽  
Learning Platform ◽  
Perceived Price ◽  
Real Person

Purpose The purpose of this paper is to develop an extended Push-Pull-Mooring-Habit (PPMH) framework in order to better understand users’ intention of switching from offline to an online real-person English learning platform service. Design/methodology/approach Based on 301 valid responses collected from an online survey questionnaire, structural equation modeling was employed to examine the research model. Findings The causal model was validated using SmartPLS 3.0, and all study hypotheses were supported. The results show that push effects (learning convenience, service quality and perceived price), pull effects (e-learning motivation, perceived usefulness), mooring effects (learning engagement, switching cost and social presences) and habit effects (relationship inertia) all significantly influence users’ switching intentions from offline to an online real-person English learning platform. Practical implications The findings should help online English learning service providers and marketers to understand the intention of offline English learning users to switch to an online real-person English learning platform, and develop related theories, services and regulations. Originality/value The present study extends the prior research of an online real-person English learning platform by providing PPMH as the general framework and demonstrating its efficacy in explaining user switching intentions.

Deriving managerial implications through SERVQUAL gap elasticity in UAE banking

2018 ◽  
Vol 35 (4) ◽  
pp. 940-964 ◽  
Author(s):  
Mukesh Kumar ◽  
K.S. Sujit ◽  
Vincent Charles
Keyword(s):  
United Arab Emirates ◽  
Structural Equation ◽  
Service Providers ◽  
Traditional Approach ◽  
Equation Modeling ◽  
Relative Importance ◽  
Linear Regression Models ◽  
Content Type ◽  
Managerial Implications ◽  
The Right

Purpose The purpose of this paper is to propose the microeconomics concept of elasticity to estimate the SERVQUAL gap elasticity to derive important insights for service providers to develop the right strategies to bridge the overall gap in service. Design/methodology/approach The dimensions of SERVQUAL adopted from Parasuraman et al. (1988) and Kumar et al. (2009) are first verified for their unidimensionality using structural equation modeling and reliability in the context of United Arab Emirates banking industry. Furthermore, the technique of dominance analysis is used to derive the relative importance of dimensions for different groups of banks. Finally, the stepwise log-linear regression models are used to estimate the gap elasticity to measure the responsiveness of the overall SERVQUAL gap to a change in customers’ perception on different dimension. Findings The results reveal that the dimension which is prioritized as the most important dimension need not to be the one to be targeted under the resource constraint to react faster to the changes of customers’ banking behavior. Originality/value This is probably the first attempt to examine the service quality through gap elasticity. This method is especially useful when the traditional approach to measure relative importance of critical factors fails to clearly discriminate between two or more dimensions, which, in turn, may lead to failure in decision making to choose the right strategies to bridge the overall gap in the service.

Why do people play mobile social games? An examination of network externalities and of uses and gratifications

2014 ◽  
Vol 24 (3) ◽  
pp. 313-331 ◽  
Author(s):  
Pei-Shan Wei ◽  
Hsi-Peng Lu
Keyword(s):  
Mobile Devices ◽  
Structural Equation ◽  
Uses And Gratifications ◽  
Network Externalities ◽  
Mobile Apps ◽  
Academic Research ◽  
Two Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Social Games

Purpose – The purpose of this paper is to identify the factors that influence people to play socially interactive games on mobile devices. Based on network externalities and theory of uses and gratifications (U&G), it seeks to provide direction for further academic research on this timely topic. Design/methodology/approach – Based on 237 valid responses collected from online questionnaires, structural equation modeling technology was employed to examine the research model. Findings – The results reveal that both network externalities and individual gratifications significantly influence the intention to play social games on mobile devices. Time flexibility, however, which is one of the mobile device features, appears to contribute relatively little to the intention to play mobile social games. Originality/value – This research successfully applies a combination of network externalities theory and U&G theory to investigate the antecedents of players’ intentions to play mobile social games. This study is able to provide a better understanding of how two dimensions – perceived number of users/peers and individual gratification – influence mobile game playing, an insight that has not been examined previously in the mobile apps literature.

Success factors driving consumer reuse intention of mobile shopping application channel

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timmy H. Tseng ◽  
Crystal T. Lee ◽  
Hsiao-Ting Huang ◽  
Wei Hao Yang
Keyword(s):  
User Satisfaction ◽  
Structural Equation ◽  
Success Factors ◽  
Positive Impact ◽  
Perceived Value ◽  
Sales Promotion ◽  
Parasocial Interaction ◽  
Content Type ◽  
Mobile Shopping ◽  
Ess Model

PurposeDue to fierce competition in the mobile retailing market, it is desirable to identify the success factors driving consumers to reuse a mobile shopping application. This research intends to develop a model for mobile shopping app success by integrating an e-commerce systems success (ESS) model and sales promotion benefits and parasocial interaction literatures.Design/methodology/approach302 useable online questionnaires were obtained. The data analysis was conducted using the structural equation modelling.FindingsThe results indicate the validity of the ESS model in predicting consumers' reuse intention of mobile shopping apps where three quality dimensions of system, information and service facilitate both perceived value and user satisfaction, which in turn generates reuse intention. Furthermore, savings and entertainment denoting the utilitarian and hedonic sales promotion benefits have positive impact on perceived value but have no influence on satisfaction. Parasocial intention between consumers and sellers facilitates both value perception and satisfaction.Originality/valueThis research contributes to the mobile retailing literature by identifying the success factors driving consumers' continuance intention of mobile shopping apps. Theoretically, it validates and extends the ESS model in mobile shopping app context by identifying savings, entertainment and parasocial interaction as additional success factors. Based on the findings, two approaches are proposed to suggest mobile retailers design a successful mobile shopping app.

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