Search results

The purpose of this paper is to investigate the competing effects of brand community participation, which should enhance loyalty to both the brand and to already-owned products, against switching costs, which should make consumers sensitive about the financial costs associated with new products.

Using the participation and weekly adoption data from 7,411 members in two brand communities and one product category forum over a six-month period, switching costs were computed for each member using 10 years of product release and pricing data.

Consistent with prior research, switching costs had a significant effect on reducing product adoption. Brand community participation also had a significant effect on overcoming switching costs. However, these main effects were qualified by an interaction, such that the most active participants were more likely to buy the new product when switching costs were higher.

Most importantly, these findings provide unique insights into financial switching costs and demonstrate ways in which brand community participation provides a way to mitigate switching costs for consumers who would most be affected by them.

The purpose of this paper is to explore the structural relationships among skepticism, experiential risk, cognitive dissonance, experiential quality, brand experience and experiential satisfaction, switching intentions and switching behavior from the perspective of green branding.

A questionnaire survey was used to collect data from consumers who had purchased environmental shampoos, obtaining 613 valid samples which were analyzed with structural equation modeling.

The results indicate that green brand experiential risk, green brand cognitive dissonance, green brand experiential quality and green brand experience influence green brand experiential satisfaction. In addition, green brand experiential satisfaction has an impact on green brand switching intentions, which, in turn, positively influence green brand switching behavior.

To decrease the perceptions of green brand skepticism, green brand experiential risk, green brand cognitive dissonance, green brand switching intentions and green brand switching behavior and increase the perceptions of green brand experiential quality, green brand experience and green brand experiential satisfaction, the findings will help environmental organizations develop and implement market-orientated product strategies.

The results provide a better understanding of the relationships among skepticism, experiential risk, cognitive dissonance, experiential quality, brand experience, experiential satisfaction, switching intentions and switching behavior in an environmental context.

This study aims to develop and test a theoretical model postulating that a hotel customer’s brand attachment is reinforced by positive and negative switching barriers, which, in turn, determine customer citizenship behaviour (CCB) towards hotel brands.

Surveys were conducted and completed by 233 respondents in the USA who had favourite hotel brands and used these brands in the previous year. A framework was developed based on the literature, and eight hypotheses were tested using structural equation modelling.

The findings suggest that a customer’s brand attachment (brand-self connection and brand prominence) to a hotel is strengthened not only by relational benefits (positive switching barriers) but also by switching costs (negative switching barriers). Brand prominence can promote CCB, whereas the impact of brand-self connection on CCB is rather limited.

This study highlights the importance of affirmative and passive reasons for customers to remain in a relationship with the hotel brand and how sub-dimensions of switching barriers are interrelated to predict a customer’s attitude and behaviour to the brand. By emphasising the role of customers’ hotel brand attachment, this study also ascertains that cognitive and affective bonds towards a hotel brand can be significant antecedents to their extra-role behaviours.

This research contributes to the hospitality literature by expanding the realm of consumer behaviour research on switching barriers, brand attachment and CCB.

The purpose of this paper is to investigate the impact on consumer behaviour/brand choice resulting in the relocation of communities from informal to formal settlements.

A survey conducted among a probability sample of 384 consumers comprising different “socio-income” groups, who were relocated from informal settlements as well as others who relocated voluntarily to Cosmo City, a state designed residential development, to explore their brand choice behaviour.

It was ascertained that households switch brands if the degree of social change is greater than the perceived strength of the current brand, and an improvement in the space or house size which impacted their lifestyle. There is also a significant relationship between the product format and brand switching; between brand choice and change in the place and type of residence.

It is evident that residential location, changes in social positions, inclusive of place of residence, lifestyle changes, and functional benefits, are essential factors for consideration in the development of a coherent brand strategy that seeks to adequately address the toilet-care product brand needs of consumers in the new democratic South Africa.

Marketers have to move beyond simple demographics and use multifaceted approaches to understanding brand switching behaviour, because consumers adapt quickly to changes in the market. Marketers also need to be cognisant of the rapid changes in consumers’ perception of their lifestyle change, and how they (consumers) relate to these changes.

The relocation was viewed as a “social disruption” which in this study was the “relocation” which changed the place of and type of dwelling/home ownership type. Marketers also need to be cognisant of the rapid changes in consumers’ perception of their lifestyle change, and how they (consumers) relate to these changes.

The concept of social disruption in the form or relocated customers has not been studied in South Africa, especially with respect to the impact on brand choice of toilet cleaning products.

The purpose of this paper is to investigate the effects of satisfaction and switching costs on the development of brand equity in the business-to-business (B2B) setting. The study considers the hierarchical effects between brand awareness, brand associations, perceived quality, and brand loyalty. Furthermore, the conceptual model examines the direct effect of switching costs on satisfaction.

Structural equation modeling was used to analyze 632 responses from the CEOs and CFOs of organizations buying auditing and business consultancy services from one of the Big Four auditing companies.

The findings demonstrate the significant impact of satisfaction and switching costs on brand equity in the B2B setting. Furthermore, the findings show the positive effect of switching costs on satisfaction.

The study is conducted in the professional services context. Future research can examine whether the observed effects can be found in other B2B settings and considering various B2B services and industrial goods.

The study contributes to marketing managers’ understanding of how marketing actions aimed to increase satisfaction can affect brand equity. Marketing managers are provided with insights and evidence on how switching costs can impact satisfaction and brand equity.

The study tests a unique conceptual model focussing on the causal relationships between four dimensions of brand equity, satisfaction and switching costs. The findings provide a strong foundation for further investigation of links between the key marketing concepts: brand equity, satisfaction, and switching costs.

The purpose of this paper is to investigate the factors that underpin consumer attitude toward switching a product brand, using functional magnetic resonance imaging (fMRI) to study brain activity during the decision-making process. Most of the literature shows that in the past, conventional marketing research approaches have been used to study brand switching among consumers. However, there is a lack of understanding of the importance of evaluating brain activations during the decision-making process when a consumer is selecting a brand.

The proposed model is a simplified version of consumer acceptance of technology model. This model accounts for cognitive and affect factors when choosing a product by including perceived usefulness and pleasure variables, respectively. An event-related fMRI experiment was designed and conducted using two smartphone brands.

The level of brain activation at the ventromedial prefrontal cortex (vmPFC) increased when participants were asked to judge images that reflect brand perceived usefulness compared with judging images that reflect brand pleasure. Similarly, the higher the perceived usefulness of the other smartphone, the greater the activation of the vmPFC during decision-making to switch to that smartphone.

This study contributes to the literature on brand switching by exploring the importance of fMRI technique in evaluating brain activities during decision-making to adopt a brand. For managers, research findings would allow them to draft better marketing and advertisement strategies that enhance consumer perception value of high technology brands and positive emotional experience.

Although the literature reports considerable research on brand switching, this is the first exploratory study to utilize fMRI to investigate consumer attitude toward switching. In addition, unlike most prior research, which uses generic products in fMRI studies, this study is utilizing high technology product to investigate the brand switching behavior.

Previous research argues that customer switching costs play an important role in the firm’s ability to retain customers and achieve competitive advantage. Research also indicates that in the increasingly networked environment, switching costs are changing in important ways. Despite switching costs’ recognized role in contributing to competitive advantage and its increasingly strategic characteristics in the expanding networked environment, we find a lack of coherence and completeness in the conceptual tools and models developed to understand its role and help effectively to manage the phenomenon. In this paper we attempt to address these needs by expanding and refining the conceptualization of customer switching costs and developing a more useful and comprehensive framework for managers.

This paper aims to examine the antecedents of customer inertia (i.e. knowledge, confusion, perceptions of competitor similarity and switching costs) and their relationship to customer satisfaction, service providers’ switching intentions and actual switching behavior. Customer inertia is said to reduce the incidence of service provider switching; however, little is known about the antecedent drivers of inertia.

The conceptual model was tested by a longitudinal/discontinuous panel design using an online survey research of 1055 adult (i.e. +18 years old) subscribers to cell phone services. Partial least squares (PLS) path modeling was used to simultaneously estimate both the measurement and structural components of the model to determine the nature of the relationships between the variables.

Findings of the PLS structural model provide support for the direct relationship between customer inertia and its antecedents (i.e. knowledge, confusion, perceptions of competitor similarity and switching costs). The results show that customer inertia has a moderate negative effect on the intention to change service providers but had no measurable effect on the actual behavior of changing service providers, other than indirectly, by influencing the perception of difficulty in switching some 11 months later. Further results from an analysis of indirect pathways of the antecedents to inertia show that switching costs are the only variable which indirectly reduce intentions to change service providers. The results also show that the effect of satisfaction on switching service providers is partially moderated by inertia. Importantly, these relationships are reasonably robust given past switching behavior and contract status of consumers.

The authors find evidence which explains some of the causes of inertia, and show that it has both direct and moderating effects on service provider switching intentions, though not necessarily the behavior of changing service providers. However, support was found for its indirect role through intent as an influence on switching behavior. Importantly, the authors find that inertia has lingering effects, in that it influences the perception of switching difficulties and, hence, behavior up to 11 months in the future.

Managerial implications are that service firms can profit from customer inertia through a reduction in churn. However, high levels of customer inertia over the longer term may increase the level of customer vulnerability to competitor offers and marketing activities, as satisfaction with the provider does not in itself explain switching intentions or behavior.

This study is the first study to contribute to an understanding of the antecedent drivers of customer inertia with respect to service provider switching and to empirically evaluate a variety of antecedent factors that potentially affect switching intentions. Importantly, the long lasting latent effect of inertia in indirectly influencing service switching behavior was found to persist some 11 months later.

Provides a new way to look at competitive brand strategy through analysis of switching, where the only data required are market‐level brand‐switching matrices. The parameters indicate, for each brand, the degree to which it insulates itself from competition. Shows empirically that this insulation is characteristic of both market leaders and market nichers. Compares results across eight data sets which range from consumer packaged goods to services to durables. Suggests that, by applying this method to panel or survey data, managers can better map out long‐term marketing strategies such as product design, segment targeting and advertising campaigns, and gives some examples of how this can be carried out.

The purpose of this paper is to examine whether line extensions (modified brands) create their own loyalties or induce variety-seeking within the brand. Prior research has explored how the branded house strategy (i.e. multiple products bearing the same brand name) retains customers from competing brands. However, this research investigates loyalty within the brand by comparing loyalty and variety-seeking rates of modified brands.

Markov chains examine behavioral loyalty and switching rates of panel households in the USA over several quarters for two family brands of carbonated beverages. Emphasis is placed on the consumers who purchase the upper median of volume (heavy half) and constitute a disproportionate amount of brand’s sales (86 per cent of the volume).

Three propositions find that loyalty rates are high among modified brands with little switching to other lines within the brand. Further, loyalty and switch to rates are highest for the flagship branded product (the master modified brand).

Managers segment the market using the branded house strategy, yet loyalty rates vary for each product line. The switching rates can guide managers as to which products have established a loyal consumer base.

While brand switching is a considerable research stream, this research is believed to be the first to explore loyalty versus variety-seeking in the branded house strategy.