Consumer behavior in switching between membership cards and mobile applications: The case of Starbucks

Abstract

Not every branded app can successfully draw consumers’ attention and continued usage. Although smartphone apps are effective tools for retaining customers, few studies have examined consumers’ switching behavior with reference to branded apps. This study applies the push–pull–mooring (PPM) framework to delineate the determinants of consumers’ switching behavior between traditional membership cards and branded apps. Structural equation modeling analysis was conducted on data from 329 users of the myStarbucks app and Starbucks card. The findings indicate that both a push effect, in terms of poor aesthetic design, and pull effects, including locatability, transaction convenience, economic benefits, and gamification, positively affect switching intention. Furthermore, perceived substitutability not only has a direct effect on switching intention but also moderates the relationship between pull effects and switching intention. Finally, in addition to having a direct influence on switching intention, inertia moderates the relationship between push effects and switching intention. This understanding helps managers to develop strategies that can effectively retain consumers through branded apps.