Locked In By Services: Willingness to Pay More and Switching Behavior in a Digital Environment

Abstract

We discuss a dynamic model of cognitive and behavioral e-loyalty developed through the analysis of barriers (perceived switching costs) which can be raised against customer’s switching behavior. Using results from an empirical study, our chapter will be focused particularly on the determinants of the switching behavior online and on the opportunity to change Web site usability in a powerful lock-in strategy. Finally, as a result, we will discuss one of the main consequences of loyal behavior, in presence of positive perceived switching costs: the customer willingness to pay more.