Switching Costs

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Switching Costs

In microeconomics, what one must spend in order to upgrade to a higher technology. For example, switching costs may involve purchasing a new, higher quality mobile phone. The higher the switching costs are for a consumer, the less likely that consumer is to adopt the higher technology.
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Additionally, switching costs and switching barriers are also viewed as key determinants of customer loyalty (de Matos et al.
As each of these choice factors could influence buyers of banking services and products this case study will examine how cause related marketing efforts may influence switching barriers (reduce barriers for potential customers and erect barriers for existing customers) that are more typically attribute based.
Faced with growing competition from new entrants, banks across the emerging regions should address trust and loyalty issues, particularly in South East Asia where digital banking has high adoption rates and lower switching barriers.
Until now, several researches have been done about the customer's loyalty and his or her oral advertisements after satisfaction, but about the habits of the consumer and social relationships and economic switching barriers in his/her loyalty in service industries, no research has been done.
Switching barriers may be defined as 'the consumer's assessment of the resources and opportunities needed to perform the switching act, or alternatively, the constraints that prevent the switching act' (Bansal, Taylor 1999; Ranaweera, Prabhu 2003).
Switching barriers consist of discounts for loyal clients, cognitive efforts customers would make to find another supplier and financial, social and psychological risks for buyers.
Cross-selling of retail banking services intended to boost consumer loyalty may have increased switching barriers and reduced competitive forces.
Similarly, our industry creates switching barriers with bulk production and mass marketplaces that reward how you buy over what you sell.
The current study moves beyond satisfaction and proposes that switching barriers are important factors impacting a customer's decision to remain with a service provider.
0 and Contivo Chameleon allows companies to break through previously prohibitive switching barriers and enable unprecedented portability and choice for integration solutions and services.
This area of study was focused in this research, with the objective to investigate customer satisfaction and the switching barriers as main, moderating and mediating determinant/ variables which may have an effect on of customer repurchase intention.