Assessing the Effects of Switching Costs on Perceived Values and Brand Loyalty: The Impact of Customers’ Perceived Authenticity in Hotel Sector


  •  Chau Ka Yin    
  •  Huawen Shen    

Abstract

Switching costs provide a unique and valid theoretical window into the mechanisms of consumer decision-making process as well as account for the behaviors of dissatisfied customers who still decide to patronize the same product or service. Therefore, switching costs provide a new research paradigm to consumer behavior studies, which are currently dominated by benefit-based articulations. Our study investigates the effects of switching costs on the perceived values and brand loyalty of customers of a luxury hotel in Shanghai, China. Through a structural equation model analysis, we find that switching posts bring about significant effects on perceived values and brand loyalty. The theoretical and practical implications of this study are also discussed.


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