The Effect of Switching Costs on Intent to Switch: An Application in IS Service Provision Markets

 

ABSTRACT

 

The focus of this research is to evaluate the relationship between switching costs and customers’ intent to switch service providers. Additional factors that are posited to influence the intention include service satisfaction and attractiveness of alternative service providers. Results indicate 1) that service satisfaction both mediates and moderates the relationship and 2) that attractiveness of alternatives moderates but does not mediate the relationship.  While customers do consider switching costs when making the decision whether or not to switch to a new service provider, they do not consider the costs in isolation.  They consider the costs in light of their level of satisfaction with their current provider and the level of attractiveness of alternatives.