The Dimensions of Switching Cost and Brand Loyalty:Application in Auto Industry

• Main Authors: Huang Shu Chi, 黃淑琪
• Other Authors: Tseng Jou Ying
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/33240761882781163239

碩士 === 國立宜蘭大學 === 經營管理研究所碩士班 === 95 === This study investigates customer switching costs cause customers to transit from being loyal to switching. By examining what keeps customers’ brand loyalty, and then examining what provokes or attracts customers to switch, the findings which dimensions of switching costs and customer experience affect which dimensions of brand loyalty, as the above changes related to value chain, and it’s also necessary to produce change. To demonstrate how the approaches can be implemented in specific industry setting, and to show the methods used to test and validate the model, the author illustrates a detailed application of the approaches using data from auto industry. Data are collected among customers in auto market, besides analyzing customer characteristic, principal component analysis and confirmatory factor analyses are undertaken to investigate customer relationships. The results of the consequences model suggest that switching costs type contribute significantly to brand loyalty, even in relatively low switching costs contexts. In this study, it is necessary to calculate the likely future contribution by a customer to each year’s marketing activities, the grand total is the customer lifetime value of a given customer by using RFM analysis. The author suggests that managers or marketers use the tools to enhance their advantage.