Can perceived risks affect the relationship of switching costs and customer loyalty in e‐commerce?

Abstract

PurposeThe purpose of this paper is to verify the relationship between switching costs and customer loyalty in e‐commerce.Design/methodology/approachThe study conducted an empirical research. A total of 425 online shopping customers were invited from northeastern USA as samples.FindingsThe findings show that switching costs positively influence customer loyalty. In addition, perceived risks will affect the relationship of switching costs and customer loyalty. For customers with low perceived risks, switching costs are also positively associated with customer loyalty. However, for customers with high perceived risks, the relationship of switching costs and customer loyalty is weak or negative.Research limitations/implicationsOne limitation is that mostly students were selected in the sample. The insights of this study can further validate the previous studies about the relationship of switching costs and customer loyalty, and suggest that perceived risks can be a moderating factor affecting this relationship.Practical implicationsThe study suggests that the practitioners should further understand the relationship among switching costs, perceived risks and customer loyalty for their customers.Originality/valueThe paper contributes to the knowledge of perceived risks and how switching costs affect customer loyalty, particularly in e‐commerce.