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      • KCI등재

        기술제품 재구매시 제품지식과 전환비용이 제품속성별 중요도에 미치는 영향

        주영진 ( Young Jin Joo ),정진우 ( Jin Woo Jung ) 한국소비자학회 2011 소비자학연구 Vol.22 No.1

        본 연구에서는 하이테크 결합제품인 DSLR(digital single-lens reflex) 카메라를 중심으로 소비자가 제품을 재구매하고자 하는 상황에서 제품의 내재적 속성인 제품성능과 외재적 속성인 브랜드가 소비자의 제품선택에 미치는 영향이 소비자의 제품 관련 지식수준과 전환비용에 따라 어떻게 달라지고 있는지를 분석하였다. 먼저 제품지식이 많은 소비자는 제품지식이 적은 소비자보다 제품선택 시 제품성능을 더 중요시 할 것이며, 제품지식이 적은 소비자는 제품지식이 많은 소비자보다 제품선택 시 브랜드를 더 중요시 할 것(가설 1)으로 기대된다. 다음으로 전환비용이 큰 소비자는 전환비용이 작은 소비자보다 제품선택 시 브랜드를 더 중요시 할 것이며, 전환비용이 작은 소비자는 전환비용이 큰 소비자보다 제품선택 시 제품성능을 더 중요시 할 것(가설 2)으로 기대된다. 제시된 가설들을 검정하기 위해 본 연구에서는 컨조인트 분석을 이용하여 DSLR을 보유하고 있는 소비자들이 DSLR을 재구매하는 경우 제품성능과 브랜드 등 DSLR 속성들을 각각 얼마나 중요하게 생각하는지를 측정하고, 속성별 중요도가 소비자의 지식수준과 전환비용크기에 따라 구분된 두 집단에서 유의한 차이를 보이는지 검정하였다. 컨조인트 분석을 위한 제품 프로파일은 fractional-factorial 디자인을 적용하여 내재적 속성인 제품성능과 관련된 CCD 크기와 화소 (pixel) 수, 외재적 속성인 브랜드, 통제변수로서 가격 등 4가지 속성들로부터 9가지 유형으로 구성되었다. 조절변수인 지식수준은 5점 척도로 측정한 응답자의 주관적 제품지식 관련 변수들로부터 추정한 요인값을 이용하였고, 전환비용 크기는 응답자가 현재 보유하고 있는 DSLR용 렌즈에 대한 잔존가치를 이용하였다. 제품지식 수준에 따른 집단 간 비교 결과에 의하면 제품지식 수준이 높은 소비자들은 제품지식 수준이 낮은 소비자들에 비해 CCD 크기, 화소 수, 브랜드, 가격 등 4가지 속성들 중 CCD 크기를 유의하게 더 중요시하고, 브랜드는 유의하게 덜 중요시하는 것으로 나타났다. 이와 반대로 전환비용 크기에 따른 집단 간 비교 결과에 의하면 전환비용이 큰 소비자들은 전환비용이 작은 소비자들에 비해 브랜드를 유의하게 더 중요시하고, CCD 크기를 유의하게 덜 중요시하는 것으로 나타났다. 이러한 결과는 DSLR의 재구매시 제품지식 수준이 높을수록 내재적 속성인 제품성능을 더 중요하게 생각하고 외재적 속성인 브랜드를 덜 중요하게 생각하며, 전환비용이 클수록 브랜드를 더 중요하게 생각하고 제품성능을 덜 중요하게 생각한다는 것을 의미한다. In this study, focusing on a repurchasing situation of a hi-tech combined product DSLR (digital single-lens reflex) camera, we have analyzed how are the effects of functional performances of a product (as intrinsic attributes) and the brand of a product (as an extrinsic attribute) on a customer`s choice of a product changing according to the level of the customer`s knowledge about the product and the amount of switching cost caused by DSLR lens. Our first research hypothesis (H1) is that a customer with a high level of product knowledge would think much of the functional performances of a product than a customer with a low level of product knowledge did, while a customer with a low level of product knowledge would think much of the brand of a product than a customer with a high level of product knowledge did. Our second research hypothesis (H2) is that a customer with a large switching cost would think much of the brand of a product than a customer with a small switching cost did, while a customer with a small switching cost would think much of the functional performances of a product than a customer with a large switching cost did. We used conjoint analysis, for a situation of repurchasing DSLR camera, to test our research hypotheses. First, we estimated the relative importances of attributes, including functional performances and the brand, of the DSLR camera for each customer who has DSLR camera, by assuming that he or she is going to repurchase a DSLR camera. After that, respondents, to the conjoint questionnaire, were divided into two groups by the level of product knowledge (to test H1) and the amount of switching cost (to test H2). Finally, we tested if there is any significant difference in the relative importance of each attribute between the two groups. Conjoint profiles were driven with 4 attributes: CCD(charge coupled device) size, number of pixels (as intrinsic attributes), brand (as an extrinsic attribute), and price. The 4 attributes were set to have 2×3×2×3 levels respectively. We used nominal scales for CCD size (full-frame or crop) and brand (two big brands in the market: Cannon or Nicon), and ratio scales for number of pixels and price. Hence the full factorial design needs 36 profiles. However, in order to be able to make an efficient comparison by reducing the number of profiles, we applied a fractional factorial design to set 9 conjoint profiles. The level of product knowledge was estimated by the factor score from 5 measurement variables about subjective level of product knowledge. And the amount of switching cost was calculated by the remaining value of DSLRlens the respondents have. It is interesting to note that DSLR-lens is a complementary good for the DSLR, so the switching cost is caused by a lock-in to the brand he or she has because of the complementary good. 179 respondents gave their preference order among 9 conjoint profiles. The relative importances of 4 attributes was driven for each respondents. The decreasing order of the average values of the relative importances for all respondents if price > CCD size > number of pixels > brand. In order to test the research hypotheses, we used t-test to test if there is any significant difference in relative importances of attributes according to the level of product knowledge or the amount of switching cost. The mean difference tests for the relative importance of 4 attributes between the 2 groups, divided by the level of product knowledge, show that ① the relative importance of CCD size is significantly larger in the customer group with a high level of product knowledge than in the customer group with a low level of product knowledge, and ② the relative importance of brand is significantly smaller in the customer group with a low level of product knowledge than in the customer group with a high level of product knowledge. However, the mean difference tests for the relative importance of 4 attributes between the 2 groups, divided by the amount of switching cost, show that ① the relative importance of brand is significantly larger in the customer group with large amount of switching cost than in the customer group with small amount of switching cost, and ② the relative importance of CCD size is significantly smaller in the customer group with large amount of switching cost than in the customer group with small amount of switching cost. The result of this research means that, in a situation of repurchasing the DSLR, the higher his or her level of product knowledge is, the more (or the less) he or she thinks about the intrinsic attribute (or the extrinsic attribute). It also means that, the larger the amount of his or her level switching cost is, the more (or the less) he or she thinks about the extrinsic attribute (or the intrinsic attribute).

      • KCI등재

        오픈마켓 식품 구매에 있어서 현상유지편향이 전환의도에 미치는 영향에 관한 연구: 전환비용의 매개역할을 중심으로

        오승원,Oh, Seung Won 한국IT서비스학회 2022 한국IT서비스학회지 Vol.21 No.4

        Recently, the number of cases of purchasing food online has been increased, especially in the open market. Therefore, we examined the characteristics of status quo bias and switching costs in the open market. Also, in this study, the causal relationship between the characteristics of status quo bias and switching costs, switching costs and switching intention in the open market was investigated. The analysis result consists of four parts as follows. First, in the open market, rational decision making, which belongs to the characteristics of status quo bias, was found to have a positive (+) effect on time switching cost among switching costs, but did not have a positive (+) effect on economic and psychological switching cost. Second, cognitive misperceptions was consistent with the assumption that it have a positive (+) effect on all of the economic, time, and psychological switching cost, which are switching costs in the open market. Third, psychological commitment was found to have a positive (+) effect on economic and time switching cost among switching costs, but did not have a positive (+) effect on psychological switching cost. Fourth, psychological switching cost, which belongs to switching costs in the open market, was found to have a negative (-) effect like the hypothesis set in switching intention. However, it was found that economic and time switching cost did not have a negative (-) effect on switching intention. This study subdivided the switching costs into three dimensions and compared the degree of influence on the switching intention, and the degree of influence was different for each dimension. Therefore, it was found that when switching from the existing open market to the new open market, it is not possible to simply judge that the switching costs directly has a negative (-) effect on the switching intention or does not.

      • KCI우수등재

        서비스 기업의 전환비용에 대한 선행요인과 결과요인에 관한 연구

        나광진(Kwang Jin Na) 한국경영학회 2009 經營學硏究 Vol.38 No.5

        The customer retention strategy is considered by many service providers as an important source of competitive advantage in low growth market. Enhanced customer loyalty in service firms will lead to greater profitability. A great deal of research has focused on examining the relationship between customer loyalty and its antecedents via switching costs. However, these studies provide little understanding of relationships among variables in service products. Specifically, these studies have not tried to explore antecedents and consequences of switching costs and investigate relationships among variables considering characteristics of service products, even though service products have different features from tangible products. Therefore, it is necessary to investigate the factors which can influence switching costs in service products considering its` characteristics. Switching costs can be defined as the costs involved in changing from one supplier to another. The domain of switching costs contains both monetary expenses and nonmonetary costs. Furthermore, the domain could include the loss of loyalty benefits as a result of ending the current relationship. The relationship between service providers and customers has to be approached to understand switching behavior in the services industry. Burnham et al.(2003) suggested that personal relationship loss costs are one of switching cost facets. Personal relationship loss costs are the affective losses associated with breaking the bonds of identification that have been formed with the people with whom the customer interacts. Consumers` familiarity with incumbent provider employees creates a level of comfort that is not immediately available with a new provider. When the bonds of identification between service providers and customers are broke, customers could feel emotional discomfort and in turn, this uncomfortable feeling could be perceived as the costs when they consider switching service providers. Therefore, the personal relationship loss costs could be the critical factor for explaining switching costs in the service industry where interactions between service providers and customers take place frequently. Moreover, the bonds of identification caused by the direct interactions between service providers and customers could influence customers` perceived switching costs, because customers participate in service production processes due to the inseparability of service products. It is difficult to evaluate the performances of service providers due to the intangibility of service products. Thus, customers perceive the switching costs higher than tangible products and are prone to maintain the relationship with established service providers. The uncertainty costs and searching costs caused by switching service providers could be perceived higher when customers evaluate performances of established service providers positively. Early in the service provider/customer relationship, consumers are often faced with not knowing what to expect of the service. Owing to this intangibility, they perceive services as risky and consequently need to have initial confidence in their service provider. To reduce the uncertainty associated with service encounters, buyers will look for signs or evidence of service quality, and will draw inferences about service quality from their perceptions. Therefore, favorable corporate associations could be concrete cues for evaluating the service performance and facilitate the drawing of more positive evaluation which in turn influences perceived switching costs by increasing psychological uncertainty costs. Moreover, owing to the inseparability which refers to productions and consumptions of service products takes place simultaneously, consumers take part in the process of service provision. Thus, consumers have to participate in service process actively and make an effort to obtain the satisfactory service performance. The customers` perceived usage convenience

      • KCI등재

        프랜차이즈 시스템에서 관계특유투자와 계약상 안전장치 조항이 두 가지 전환비용과 계약이행 그리고 가맹점성과에 미치는 영향

        박성진,박경도,이호택 한국마케팅학회 2022 마케팅연구 Vol.37 No.4

        Even in the COVID-19 situation, franchise industry in South Korea continues to grow quantitatively. but many problems are still being raised in terms of franchise system quality such as lack of communication and trust between franchise headquarters and franchisees. From a long-term perspective, it is very important to acquire a competitive relationship quality between the franchisee and the franchisee in order to improve the productivity of the franchise system. Therefore, in this study, for the qualitative growth of the franchise system, the franchise system is understood from the perspective of a long-term exchange and the quality of the relationship for the development of the franchise relationship is studied. To this end, this study examines the effect of the franchisor and franchisees’ relationship-specific investment(RSI) and the effect of the safeguarding clauses on franchisees’ switching costs on franchise performance through contract performance intention. In this study, relationship-specific investments in which mutual investment is made were used as prior variables, and the effect on the switching cost of franchises along with the safeguarding clauses for franchises was studied. In addition, the effect of these switching costs on franchise performance through contract compliance was studied. As a result of the study, both the affiliated franchisor and franchisee’s relationship-specific investment had a positive (+) effect on the franchisee’s financial and relational switching costs. In addition, the hypothesis (H3) on the effect of the safeguarding clauses on the financial switching cost and the relational switching cost was found to reduce the financial switching cost and increase the relational switching cost, consistent with the hypothesis setting direction. This suggests that setting a safeguarding clauses, a kind of protection for franchisees, can lower the financial switching cost of franchisees. by reducing the dependence of franchisees in inferior power, but can increase the relational switching cost by increasing the franchisee’s commitment. Hypothesis 4 of this study verified the effect of the type of switching cost on the contract compliance of franchisees. As a result of the study, it was found that the financial switching cost did not affect the contract compliance, but the relational switching cost had a positive (+) effect on the contract compliance. Moreover, this study suggests the importance of establishing relationship-specific investments and safeguarding clauses to establish relational switching costs for franchisees, as it was found to have a positive (+) effect on both their customers and financial performance. 국내 프랜차이즈 산업은 COVID 19 상황에서도 신규 창업 가맹점들이 늘어가며, 양적인 성장을 지속하고 있으나 가맹본부와 가맹점 간의 소통 및 신뢰부족 등 질적인 부분에서 여전히 많은 문제가 제시되고 있다. 본 연구는 장기적 교환관점에서 국내 프랜차이즈 시스템을 이해하고 프랜차이즈 관계 발전을 위한 관계의 질에 대한 연구로 프랜차이즈 가맹본부와 가맹점의 관계특유투자와 가맹점에 대한 안전장치 조항이 가맹점의 전환비용에 미치는 영향과, 전환비용이 계약이행의도를 통해 프랜차이즈 성과에 미치는 영향을 실증함으로써, 상호 간의 관계에 대한 투자가 프랜차이즈 성과에 미치는 영향을 확인하고자 한다. 본 연구는 기존 거래관계에서 주로 활용되는 거래특유투자가 아닌 상호 간의 투자가 이루어지는 관계특유투자를 선행변수로 활용하고, 가맹점에 대한 안전장치 조항과 더불어 가맹점의 전환비용에 미치는 영향을 연구하였다. 또한 기존에는 주로 소비자 차원에서 연구가 진행되던 전환비용을 B2B관계에 적용하여, 이를 재무적 전환비용과 관계적 전환비용으로 분리하여 연구에 활용하였으며, 두 가지 전환비용의 유형이 계약준수를 통해 프랜차이즈 성과에 미치는 영향을 연구하였다. 대구․경북지역에 소재하고 있는 총 200개 가맹점들을 대상으로 확보한 설문에 대한 분석결과 가맹본부와 가맹점의 관계특유투자는 모두 가맹점의 재무적/관계적 전환비용에 정(+)의 영향을 미치는 것으로 나타나, 상호 간 투자 형태인 관계특유투자가 가맹점의 전환비용을 모두 높이는 것을 확인하였다. 또한 가맹점의 안전장치조항이 재무적/관계적 전환비용에 미치는 영향은 연구의 가설 설정 방향과 일치하게, 재무적 전환비용을 감소시키고 관계적 전환비용을 높이는 것으로 나타났다. 이는 가맹점에 대한 일종의 보호조치인 안전장치 조항설정이 힘의 열위에 있는 가맹점의 의존성을 낮춰 가맹점의 재무적 전환비용을 낮추는 효과가 있으나, 반대로 가맹점의 관계몰입을 높여 관계적 전환비용을 높여줄 수 있다는 점을 시사한다. 전환비용과 가맹점의 계약이행 간의 관계에 있어서는 재무적 전환비용은 계약이행의도에 영향을 미치지 못하나, 관계적 전환비용은 계약이행의도에 정(+)의 영향을 미치는 것으로 나타났다. 아울러 가맹점의 계약이행이 가맹점의 고객 및 재무성과에 모두 정(+)의 영향을 미치는 것으로 나타나, 가맹점의 관계적 전환비용 구축을 위한 관계특유투자와 안전장치조항 설정이 중요하다는 점을 본 연구를 통해 확인할 수 있다.

      • KCI등재

        지각된 위험과 전환비용이 클라우드 서비스로의 전환의도에 미치는 영향에 관한 연구: PPM 모델 중심으로

        이승희 ( Lee¸ Seung Hee ),정석찬 ( Jeong¸ Seok Chan ) 한국정보시스템학회 2021 情報시스템硏究 Vol.30 No.3

        Purpose In this study, we investigated the impact of perceived risk and switching costs on switching intention to cloud service based on PPM (Pull-Push-Mooring) model. Design/methodology/approach We focused on revealing the switching factors of the switching intention to the cloud services. The switching factors to the cloud services were defined as perceived risk consisting of performance risk, economic risk, and security risk, and switching costs consisting of financial and learning costs. On the PPM model, we defined the pull factors consisting of perceived usefulness and perceived ease of use, and the push factor as satisfaction of the legacy system, and the mooring factor as policy supports. Findings The results of this study as follows; (1) Among the perceived risk factors, performance risk has a negative effect on the ease of use of pull factors, and finally it was found to affect the switching intention to the cloud services. Therefore, cloud service providers need to improve trust in cloud services, service timeliness, and linkage to the legacy systems. And it was found that economic risk and security risk among the perceived risk factors did not affect the switching intention to the cloud services. (2) Of the perceived risk factors, financial cost and learning cost did not affect the satisfaction of the legacy system, which is a push factor. It indicates that the respondents are positively considering switching to cloud service in the future, despite the fact that the respondents are satisfied with the use of the legacy system and are aware of the switching cost to cloud service. (3) Policy support was found to improve the switching intention to cloud services by alleviating the financial and learning costs required for cloud service switching.

      • SECURING BUSINESS-TO-BUSINESS RELATIONSHIPS: THE IMPACT OF SWITCHING COSTS

        Markus Blut,Heiner Evanschitzky,Christof Backhaus,John Rudd,Michael Marck 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

        Although the relationship marketing literature acknowledges the importance of switching costs for increasing customer retention in general, little is known about its relevance in industrial markets. In particular, it is unclear whether switching costs and its dimensions impact relevant behavioral outcomes of buyer-seller relationships in business-to-business (B2B) markets. Against this background, our research intends to make two main contributions: Since we assume differential effects for different types of switching costs, our research first explores the dimensions of switching costs for the B2B domain. Second, it tests the relative impact of the dimensions of switching costs on business customers’ actual purchase behavior. Results suggest that switching costs in B2B settings are a multi-faceted construct, including (i) procedural, (ii) financial, and (iii) relational switching costs. Moreover, we find relational switching costs to be most important for securing B2B buyer-seller relationships since they impact a customer’s (a) share-of-wallet, (b) cross buying behavior, and (c) actual switching behavior. While procedural switching costs only influence share-of-wallet, financial switching costs solely impact customer’s cross-buying behavior across a firm’s product and services categories. These findings contribute to a better understanding about how to secure B2B buyer-seller relationships.

      • KCI등재

        Which Complementary Product Do You Like? Exploring the Effects of Complementary Products on the Patronage of Main Products

        박성연,Ku Yun Chung 한국마케팅과학회 2011 마케팅과학연구 Vol.21 No.4

        The market of complementary products, also known as third-party products, is becoming a type of industry and economy. According to The Fiscal Times (Oct 18, 2011), the global market for mobile phone accessories is expected to rake in an estimated $34 billion in revenue in 2011 and is predicted to hit an estimated $50.2 billion by 2015. Beyond being simply related products, it even influences increasing the value of main products. The best example of this phenomenon is the case of iPod. Since the first introduction of iPod in December 2001, aftermarket or the market of complementary products has expanded along with the breaking out sales of main products. iPod created large scales of aftermarket and the sales of iPod-related accessories reached $700 million in 2005 just after 4 years of the introduction of iPod (CNN Money Jan 12, 2006). Complementary product is getting more important as a new market. Blue ocean strategy by Kim and Mauborgne (2005) emphasizes the significance of providing complementary products and services that can affect the value of main products to reconstruct a market borderline. Therefore, studies on the influence of complementary products on main products are highly necessary and this study explores how perceived characteristics of complementary products influence the patronage of main products through the mediating variables such as the perceived value and switching cost of main products. From the previous studies, this research adopts variety, compatibility and price as the important characteristics of complementary products that can affect the perceived value of main products. First, consumers prefer diversity and the variety of products increases consumer welfare (Brynjolfsson et al. 2003). According to Pae and Jung (2002), various complementary products with compatibility give positive effects on network externalities and increase the value of current technology. Finally, price has two different indicators: financial sacrifice to purchase a product and the perception of the quality of a product (Dodds et al. 1991; Sweeney et al. 1999). Perceived price gives positive effects on the perceived quality of products. Therefore, Hypotheses 1, 2 and 3 are derived: H1. Perceived variety of complementary products increases the perceived value of main products. H2. Perceived compatibility of complementary products increases the perceived value of main products. H3. Perceived price of complementary products increases the perceived value of main products. Pae and Jung (2002) support that diverse complementary products increase the switching cost of present technology. However, Farrell and Klemperer(2007) identifies that consumers have less switching cost as the products have more compatibility. Incompatible complementary products cause financial loss (Burnham et al.2003). In other words, consumers get financial loss or financial switching cost if their complementary products do not work with their new product. Hypotheses 4, 5 and 6 are derived from this background literature: H4. Perceived variety of complementary goods increases the perceived switching cost of main products. H5. Perceived compatibility of complementary goods decreases the perceived switching cost of main products. H6. Perceived price of complementary products increases the perceived switching cost of main products. According to Yoon et al. (2004), customer value affects the switching cost perceived by customers. It is very important in explaining switching cost. Also Kim and Cho (2004) confirm that the perceived value of products increases perceived switching cost. Therefore, Hypothesis 7 is derived from this background literature: H7. Perceived value of main products increases the perceived switching cost of main products. Perceived value comes from the trade-off between perceived price and quality, which is the most important factor influencing purchase intention (Chang and Wildt 1994). Also, Kim and Oh (2002) support that perceived switch...

      • KCI등재

        The Advent of Smartphones and Switching Costs in Mobile Communications

        ( Sung-hwan Kim ),( Jinhan Jung ) 정보통신정책학회 2017 정보통신정책연구 Vol.24 No.3

        We assess how the advent of smartphones affected consumer switching costs in the mobile communications market, using data from two surveys conducted in South Korea. A nested logit random utility model is employed to explain consumers` choice over service type and carrier, and to estimate switching costs for each service type. We fail to identify whether the switching costs increased while smartphones were penetrating the market. Yet, comparing the switching costs across service types offers some evidence to how smartphones affected the switching costs. We suspect that the effect of reduced physical switching costs dominated at first, but was offset later by the rise in informational switching costs.

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        의류쇼핑 웹사이트 전환비용과 사이트 유지의 구조모델

        김은영(Kim, Eun Young) 한국생활과학회 2012 한국생활과학회지 Vol.21 No.6

        This study estimates a structural model to examine the causal relationships among web browsing, switching cost, and site retention in the context of apparel shopping website. A total of 499 usable questionnaires were obtained from consumers aged from 20 to 49 years. For data analysis, exploratory factor analysis, confirmatory factor analysis and structural model were used. The result showed that consumer’s perceived switching costs consisted of three factors: relationship cost, search cost and benefit loss cost. In estimated structural model, the relationship cost was influenced by leisure browsing; the search cost was influenced by informational browsing and leisure browsing;the benefit loss cost was influenced by leisure browsing. Especially, the leisure browsing was the most highly related to the benefit loss cost, and followed by relationship cost and search cost. However, hedonic browsing was not significantly related the factors of switching costs. The search costs significantly affected customer’s intentions for site retention. A managerial implication was discussed for e-retailers in order to develop strategic switching costs in building long-term relationships with web browsers on the apparel shopping websites.

      • Do Switching Costs Moderate the Price Effect of Search Cost Reduction? Internet Use and Fares in the U.S. Airline Industry

        ( Hwa Ryung Lee ) 정보통신정책학회 2014 정보통신정책학회 학술발표논문집 Vol.2014 No.1

        A reduction in search costs is generally believed to make markets more competitive, However, The effect may be smaller if consumers must pay costs for switching products. This paper invest-tigates how search costs affect prices in the presence of switching costs using U.S. domestic airfare Data for2000-2010. We develop a simple and dynamic theoretical framework which highlights the interaction between search and switching costs in determining prices. In the empirical analysis, we use the average network size of airlines in a market as a proxy for switching costs related to a Frequent Flyer Program (FFP) and Internet usage as a proxy for (the inverse of) search costs. The Results show that increasing Internet usage lowers airfares but the effects is smaller for markets with a Larger average network size. Maintaining consistency with the theoretical framework, these results Suggest that switching costs allow firms to avoid moving to a more competitive pricing regime when Search costs decrease.

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