Locked In By Services

Author(s):  
Manlio Del Giudice ◽  
Michel Polski

We discuss a dynamic model of cognitive and behavioral e-loyalty developed through the analysis of barriers (perceived switching costs) which can be raised against customer’s switching behavior. Using results from an empirical study, our chapter will be focused particularly on the determinants of the switching behavior online and on the opportunity to change Web site usability in a powerful lock-in strategy. Finally, as a result, we will discuss one of the main consequences of loyal behavior, in presence of positive perceived switching costs: the customer willingness to pay more.

2003 ◽  
Vol 22 (2) ◽  
pp. 87-93
Author(s):  
James Otto ◽  
Mohammad Najdawi ◽  
William Wagner

With the extensive growth of the Internet and electronic commerce, the issue of how users behave when confronted with long download times is important. This paper investigates Web switching behavior. The paper describes experiments where users were subjected to artificially delayed Web page download times to study the impact of Web site wait times on switching behavior. Two hypotheses were tested. First, that longer wait times will result in increased switching behavior. The implication being that users become frustrated with long waiting times and choose to go elsewhere. Second, that users who switch will benefit, in terms of decreased download times, from their decision to switch.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Guillem Roig

Abstract When consumers have preference costs, two opposing effects need to be assessed to analyse the incentives of firms to set collusive prices. On the one hand, preference costs make a deviation from collusion less attractive, as the deviating firm must offer a large enough discount to cover the preference costs. On the other hand, preference costs lock in consumers and make punishment from rivals less effective. When preference costs are low, the latter of the two effects dominates and collusion is more challenging to sustain than in a situation with no preference costs. With high enough preference costs, collusion is a (weakly) dominant strategy. These results do not eventuate in a model with switching costs.


2017 ◽  
pp. 12-23
Author(s):  
Emanuele Schimmenti ◽  
Antonio Asciuto ◽  
Caterina Patrizia Di Franco ◽  
Antonio Galati

Energy Policy ◽  
2008 ◽  
Vol 36 (9) ◽  
pp. 3612-3619 ◽  
Author(s):  
Shi-Ling Hsu ◽  
Joshua Walters ◽  
Anthony Purgas

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