Authors: Dong-Il Lee, Changsoo Sohn
Addresses: Department of eBusiness, Sejong Cyber University, 111-1 Kunja Dong Kwangjin Gu, Seoul, 143-150, Korea. ' Department of Business Administration, The Catholic University of Korea, San 43-1 Yokkok 2-Dong, Wonmi-Gu, Buchon City, Gyuonggi-Do, 420-743, Korea
Abstract: As the expectations from e-business have changed to disappointment, many e-business companies are trying to survive in internet markets. As a way to survive in the market, they try to build customers| loyalty by emphasising trust. On the other hand, they set high switching costs in order to lock-in customers. Few studies have empirically conducted the test to verify that trust and switching costs are the most critical components for building customer loyalty. This study, based on survey analysis and structural equation modelling, revealed that trust is the main factor for building customers loyalty, rather than switching costs.
Keywords: trust; switching cost; price premium; electronic commerce; structural equation modelling; confirmatory factor analysis; path analysis; e-commerce; customer loyalty; e-loyalty; internet markets.
International Journal of Internet and Enterprise Management, 2004 Vol.2 No.3, pp.209 - 220
Published online: 29 Sep 2004 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article