Suppliers' willingness of customization, effective communication, and trust: a study of switching cost antecedents

Purpose - This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and trust regarding perceived switching costs.Design methodology approach - Research data were collected from...

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Bibliographic Details
Published in:The Journal of business & industrial marketing 2011-04, Vol.26 (4), p.250-259
Main Authors: Yen, Yu-Xiang, Shih-Tse Wang, Edward, Horng, Der-Juinn
Format: Article
Language:English
Subjects:
Analysis
Communication
Costs
Customer relations
Customer retention
Customer services
Customization
Electronics industry
Hypotheses
Influence
Marketing
Perceptions
Studies
Suppliers
Trust
Vendor supplier relations
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Summary:Purpose - This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and trust regarding perceived switching costs.Design methodology approach - Research data were collected from electronics firms in Taiwan; 281 questionnaires were collected. Structural equation model (SEM) analysis was applied to the data.Findings - The study suggests that perceived trust contributes to perceived switching costs. The perceived willingness of a supplier to customize for a buyer can indirectly impact on perceived switching costs by way of perceived trust toward the supplier. Furthermore, analysis of the direct and indirect effects reveals that effective communication plays a dominant role and has a significant influence on trust and perceived switching costs.Originality value - While recent research increasingly examines customer switching costs in terms of antecedents, this study provides greater insight into switching costs from the trust-forming perspective to ensure customer retention.
ISSN:0885-8624
2052-1189
DOI:10.1108/08858621111126992