Exploring the influence of personal schema on trust transfer and switching costs in brick-and-click bookstores

Abstract

Due to competition, most firms try to retain and lock in customers; this is likely to ensure a greater market profit than that gained by acquiring new customers. While many studies have investigated customer satisfaction and retention in online and offline firms, scant research exists on customer satisfaction and customer retention in the context of brick-and-click firms: i.e., those that conduct business both online and in stores. Such firms encourage trust transfer among their customers. However, most studies have failed to consider the role of personal schema in trust transfer. Based on social exchange, investment, and information integration theories, we analyzed the impact of trust transfer, switching costs, and personal schema on customer satisfaction and repurchase intentions in the context of an offline bookstore that has now launched an online business. Our results indicated that trust transfer and switching costs had a small effect on customer satisfaction and repurchase intentions. Personal schema, however, affected both customer satisfaction and repurchase intention.