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Article
Publication date: 5 June 2023

Pengsongze Xue and WooMi Jo

Although various booking platforms have been contributing to the dramatic growth of hotel industry, little research has been conducted to understand consumer psychological…

Abstract

Purpose

Although various booking platforms have been contributing to the dramatic growth of hotel industry, little research has been conducted to understand consumer psychological processes and behaviors in online hotel booking. To fill this gap, the current study examines the effect of switching barriers (switching cost and alternative attractiveness) on consumers' decision postponement and repurchase intention. Additionally, the moderating effect of time pressure in different phases of booking decision is investigated.

Design/methodology/approach

A total of 352 samples was collected through an online platform. Data analysis was conducted via Amos 23 (structural equation modeling) and SPSS 24 (descriptive analysis and PROCESS macro).

Findings

Results show that switching cost and alternative attractiveness are two significant drivers of decision postponement and repurchase intention. Meanwhile, time pressure only has a significant moderating effect on the relationship between switching cost and decision postponement.

Practical implications

The findings of this research reveal that hotel operations need to implement strategies to prevent customers' delayed booking decisions and overcome the influence of time pressure on customer decision-making.

Originality/value

These findings stress the importance of consumer perceptions of switching barriers and time span when making hotel reservations online. Hotel practitioners are encouraged to provide multiple human–computer interaction applications to attract novice consumers and increase their familiarity with booking process.

Details

Journal of Hospitality and Tourism Insights, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 17 January 2023

Jianming Wang, Tan Vo-Thanh, Yi-Hung Liu, Thac Dang-Van and Ninh Nguyen

On the basis of the approach-avoidance motivation theory, this study aims to examine the role of information confusion in influencing consumer switching intention among social…

Abstract

Purpose

On the basis of the approach-avoidance motivation theory, this study aims to examine the role of information confusion in influencing consumer switching intention among social commerce platforms, with the mediating effect of emotional exhaustion and the moderating role of social overload.

Design/methodology/approach

This study applied a multi-method quantitative approach including a survey and two experiments. Data were obtained from consumers on popular social commerce platforms in China. The survey's sample size was 327 respondents, whereas a total of 1,621 consumers participated in the two experiments.

Findings

Findings from the survey reveal that information confusion affects switching intention directly and indirectly via emotional exhaustion. Moreover, social overload moderates the emotional exhaustion–switching intention relationship and the indirect impact of information confusion on switching intention. Results of the two experiments further confirm the relationships found in the survey.

Originality/value

This study develops and validates a mediation and moderation model which expectedly serves as a framework to better explain consumer switching intention on social commerce platforms. The study also offers fresh insights into consumer switching intention in the unique context of social commerce in an emerging market (i.e. China), which has been largely ignored in the prior literature.

Details

Information Technology & People, vol. 37 no. 1
Type: Research Article
ISSN: 0959-3845

Keywords

Book part
Publication date: 11 December 2023

Antonio Davola and Gianclaudio Malgieri

The attempt to establish a common European framework for core platforms' duties and responsibilities toward other actors in the digital environment is at the core of the recent…

Abstract

The attempt to establish a common European framework for core platforms' duties and responsibilities toward other actors in the digital environment is at the core of the recent scholarly debate surrounding the Digital Markets Act (DMA) proposal. In particular, the everlasting juxtaposition between the “data power” – as emerging from recent cases (Section 2) – that dominant tech companies enjoy and the concept of consumer sovereignty (Section 3) lies at the core of the proposal's attempt to identify digital core platforms as market gatekeepers. Accordingly, this chapter critically investigates the divide between power imbalance and consumer sovereignty in light of the architecture designed by the DMA, with a specific focus on its effectiveness in identifying gatekeepers' power drivers (Section 4). After highlighting the main critical aspects of the pertinent rules, opportunities for fruitful developments are then identified through the reframing of some of the notions considered in the proposal, and namely the role of “lock-in” effects and “data accumulation” (Section 5). Lastly, this chapter suggests that the DMA advancements – while desirable – are bound to be fragmentary in the absence of a wider appraisal of the nature of data power imbalance dynamics in the modern digital markets (Section 6).

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Article
Publication date: 5 April 2023

Yi-Fei Chuang, Cong-Minh Dinh and Wei-Min Lu

Contractual services are characterized by features such as termination fees, long-term commitment, and complex terms. When customers find better deals from other providers, they…

Abstract

Purpose

Contractual services are characterized by features such as termination fees, long-term commitment, and complex terms. When customers find better deals from other providers, they may want to switch, but contractual obligations prevent them from doing so. Thus, this study aims to draw upon the stimulus-organism-response paradigm and theories of emotion regulation to examine how punitive switching costs (PSCs) can evoke negative emotions (NEs) from customers and, consequently, lead to negative behavioral responses in contractual service settings.

Design/methodology/approach

This study collected data from 395 customers of telecommunications companies, fitness centers, tutoring firms/centers, and house leasing companies in Taiwan. We tested the hypotheses using partial least squares structural equation modeling via SmartPLS 3.0.

Findings

The results show that NEs partially mediate the relationship between PSC and customers’ switching intention and negative word-of-mouth. This study also finds alternative attractiveness (AA) and service recovery (SR) do not moderate the PSCs–NEs relationship, but AA does directly influence NEs.

Originality/value

First, this study contributes to the literature on switching costs by exploring how PSC exerts a detrimental impact on behavioral responses. Second, this study adds to the literature on service failures by identifying the mediating role of NEs in such a relationship.

Article
Publication date: 18 April 2024

Ahmad Samed Al-Adwan

The primary objective of this study is to explore consumers' non-adoption intentions towards meta-commerce (or metaverse retailing). Utilizing the Innovation Resistance Theory…

Abstract

Purpose

The primary objective of this study is to explore consumers' non-adoption intentions towards meta-commerce (or metaverse retailing). Utilizing the Innovation Resistance Theory (IRT) as the theoretical foundation, this study investigates the impact of diverse barriers on non-adoption intentions within the meta-commerce context.

Design/methodology/approach

A total of 356 responses were gathered to test the proposed hypotheses. Structural Equation Modelling (SEM) with SmartPLS 4 software was used to examine these hypotheses.

Findings

The findings of this study show that perceived cyber risk, perceived regulatory uncertainty, perceived switching cost and perceived technical uncertainty are significantly linked to non-adoption intention towards meta-commerce. Furthermore, the study suggests that the moderating influence of technostress on these connections is more pronounced for consumers with high technostress compared to those with low technostress.

Originality/value

This study makes a significant contribution to the current body of literature by providing valuable insights into the fundamental barriers that consumers encounter when contemplating the adoption of meta-commerce. This contribution is particularly noteworthy as it fills a gap in the existing literature, as no prior study has comprehensively examined the primary obstacles that shape consumer intentions towards meta-commerce adoption. This novel perspective offers scholars, businesses and policymakers a foundation for developing strategies to address these barriers effectively.

Details

Online Information Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1468-4527

Keywords

Article
Publication date: 29 February 2024

Kármen Kovács

The purpose of this paper is to develop a systematic literature review on the sunk cost effect from consumers’ perspectives. By applying a comprehensive approach, this paper aims…

Abstract

Purpose

The purpose of this paper is to develop a systematic literature review on the sunk cost effect from consumers’ perspectives. By applying a comprehensive approach, this paper aims to synthesise and discuss the impact of financial and behavioural sunk costs on consumers’ decisions, judgements and behaviour before and after purchasing. This study also identifies potential research avenues to inspire further studies.

Design/methodology/approach

Following a search in the Scopus and Web of Science databases, a systematic literature review was conducted by identifying and analysing 56 peer-reviewed articles published between 1985 and 2022 (November). Descriptive and content analysis was implemented based on the selected papers to examine and synthesise the effect of sunk costs on consumers’ choices, evaluations and actions in a comprehensive approach; uncover research gaps; and recommend paths for future research.

Findings

The research results found in the literature are discussed according to five related themes: factors affecting the sunk cost effect; the impact of past investments on purchasing decisions; consumers’ post-purchasing evaluation, behaviour and choices; the mental amortisation of price; and the sunk cost effect on loyalty and switching.

Originality/value

The originality of this study lies in the comprehensive approach to the sunk cost effect from consumers’ perspectives. This review paper synthesises and discusses the research results found in the literature related to financial and behavioural sunk costs that can influence consumers’ decisions, judgements and behaviour before and after paying for a good or service.

Details

Journal of Consumer Marketing, vol. 41 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 8 November 2023

Vibhava Srivastava, Deva Rangarajan and Vishag Badrinarayanan

This study aims to investigate the role of three customer equity drivers on customer repurchase intent in business-to-business (B2B) markets. It also explores the interconnected…

Abstract

Purpose

This study aims to investigate the role of three customer equity drivers on customer repurchase intent in business-to-business (B2B) markets. It also explores the interconnected nature of equity drivers, specifically, the effects of brand equity and value equity on relationship equity. Further, it investigates how perceived switching costs moderates the interrelationships between customer equity drivers. The authors explore the interrelationships between the customer equity drivers in a B2B context involving commodity products in a developing market.

Design/methodology/approach

Data collection was done from a pool of 184 institutional customers of a lubricant brand in a developing market. The sample had representations of buyer organizations across sectors, namely, automobile, cement, metal, fertilizer, railway, defence and mining, etc. The final data were subjected to partial least squares-based structural equation modeling to test the hypothesized model.

Findings

The study found a direct effect of brand equity, and value equity on relationship equity and an indirect effect on repurchase intent, namely, relationship equity. Perceived switching cost was found to moderate the interaction between brand equity and relationship equity as well as between value equity and relationship equity. The direct effect of relationship equity on repurchase intent was also significant.

Practical implications

The study implies that B2B firms should ground their marketing program on these customer equity drivers, especially when dealing with commodity products. The absence of any of these drivers would be detrimental in customer retention. The study also establishes the relevance of switching cost(s) and its impact on the underlying dynamics between the different equity drivers in the context of commodity products. The customer equity drivers along with switching costs, if managed well, may become switching barriers for customers and eventually would ensure recurring revenue through repeat purchases.

Originality/value

To the best of the authors’ knowledge, this is one of the first studies that focuses on the disaggregated effect of customer equity on customer outcomes in the B2B context. Furthermore, this study investigates how perceived switching costs moderates the interrelationships between customer equity drivers in the industrial sales context in an emerging market.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 March 2023

Ayesha Afzal, Nawazish Mirza and Saba Firdousi

Market discipline is an important part of financial regulation, under Basel II and III. This paper aims to provide evidence on market discipline in Pakistan. Specifically, the…

Abstract

Purpose

Market discipline is an important part of financial regulation, under Basel II and III. This paper aims to provide evidence on market discipline in Pakistan. Specifically, the authors have analyzed the impact of CAMEL variables on costs of funds and deposit switching.

Design/methodology/approach

This study has used panel data related to different banking and macroeconomic variables. The sample period is 2004–2017 so it has covered the changing regulations that became binding for banks under Basel II and III. Quarterly data has been collected from the financial disclosure of publicly listed banks. The total number of banks in the sample is 26. Among these, 24 are publicly listed. Foreign banks have not been included because their activities in Pakistan are quite limited.

Findings

It has been found that efficiency, liquidity, asset quality and capital adequacy are negatively related to costs of funds for banks. Capital adequacy, liquidity and profitability are negatively related to deposit switching.

Research limitations/implications

These results indicate the presence of market discipline and have generated valuable implications for bank managers and regulators.

Originality/value

In this study, the case of Pakistan is interesting. The country has experienced financial liberalization that sought to avoid government intervention and encourage a more “market-based” approach. This change in the system was made more pronounced by the privatization of nationalized banks, improvement in the market structure, reduction in barriers to entry and consolidation of smaller banks. As a result, the banking system has emerged as an important source of financing and it provides us motivation to look deeper into depositor discipline in banking sector.

Details

Review of Accounting and Finance, vol. 22 no. 2
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 5 March 2024

Daniel Padgett, Christopher D. Hopkins and Colin B. Gabler

This paper aims to investigate the interrelated role of relational commitment and dependence as drivers of key performance outcomes. Specifically, the authors provide a conceptual…

Abstract

Purpose

This paper aims to investigate the interrelated role of relational commitment and dependence as drivers of key performance outcomes. Specifically, the authors provide a conceptual model of the impact of commitment on relationship value dependence and switching cost dependence. The authors further investigate how these dimensions of dependence offer differing noneconomic and economic paths to strategic and financial performance.

Design/methodology/approach

Survey data was collected from 296 purchasing agents across multiple industries located in the USA. The conceptual model and accompanying hypotheses were tested via partial least squares structural equation modeling.

Findings

The results show that the relational path is driven by affective and normative commitment, which are related to relationship value dependence. Conversely, calculative commitment is related to switching cost dependence. This economic path is related to both strategic and financial performance, whereas the relational path is more closely related to strategic as opposed to financial performance outcomes.

Research limitations/implications

This study extends research on Business-To-Business (B2B) relationships by leveraging social exchange theory to examine the interrelated roles played by two forms of dependence on performance outcomes. Thus, the authors answer Scheer et al.’s (2015) call for research into the two distinct types of dependence – relationship value and switching cost dependence – and their roles in determining B2B relationship outcomes. The findings contribute to the literature by integrating social exchange and relationship marketing concepts to develop a dual pathway approach to B2B partnerships.

Practical implications

The results suggest that dependence is not necessarily negative for firms. Specifically, buyers can and do still exhibit positive performance, both strategic and financial, in relationships with suppliers even when dependent on the relationship. Regardless of whether buyers are dependent due to a relationship or economic factors, both can, in different ways, lead to positive strategic and financial outcomes. Together, the authors contribute to the understanding of B2B partnerships by offering guidelines for both buyers and suppliers in the dyad.

Originality/value

The authors derive a comprehensive model depicting primarily relational and economic paths to performance through different types of commitment and dependence. The authors contribute to the literature by demonstrating that relational and economic paths to success are not the same, highlighting how firms could influence performance even when the relationship is not necessarily characterized by generally positive relational benefits and behaviors.

Details

European Journal of Marketing, vol. 58 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 19 March 2024

Junsung Park, Joon Woo Yoo, Youngju Cho and Heejun Park

This study aims to understand the reasons for individuals switching from traditional banks to Internet-only banks and examine how switching intentions differ between Generation X…

Abstract

Purpose

This study aims to understand the reasons for individuals switching from traditional banks to Internet-only banks and examine how switching intentions differ between Generation X and Generation Z. Notably, Generation Z, being digital natives, exhibits distinct characteristics compared to Generation X, who often referred to as digital immigrants. Given the technology-driven nature of Internet-only banks, a multi-group analysis between these two generations was conducted.

Design/methodology/approach

This study utilizes Bansal’s push–pull–mooring model as a framework to analyze switching intention. The study collected survey data from 383 Korean participants, consisting of 198 participants from Generation Z and 185 participants from Generation X.

Findings

The findings indicate that low satisfaction and discomfort are factors that push people to leave traditional banks. Specifically, Generation Z shows a significantly higher inclination to leave traditional banks due to discomfort. On the other hand, relative advantage, compatibility, observability and trialability are factors that pull people to switch to Internet-only banks. Generation X is more likely to consider adopting Internet-only banks when compatibility is high and complexity is low.

Originality/value

This study is the first to explore unique motivators for Generation Z, such as their discomfort with interpersonal interactions in the retail banking sector. These findings challenge earlier research emphasizing human interaction’s importance in technology adoption, offering insights into their future adoption of contactless services.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

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