Role of switching costs and perceived risk in managing customer loyalty in Vietnam e-commerce

Abstract

This research investigates the effects of switching costs and perceived risk on customer loyalty in Vietnam e-commerce context. The study also examines the mediating roles of switching costs and perceived risk in the relationships between important factors including communication, satisfaction and personalization and customer loyalty. A questionnaire survey was conducted with the sample of 437 Vietnamese online shoppers. AMOS 22 was used to analyze the data. The results indicate that perceived risk does not directly affect customer loyalty; instead, the effect of perceived risk on customer loyalty is totally mediated by switching costs. Moreover, switching costs and perceived risk significantly mediate the relationship between each of customer satisfaction, communication and personalization on customer loyalty. The findings give an insight into the roles of switching costs and perceived risk in managing customer loyalty as well as demonstrate new perspectives in explaining paths from customer satisfaction, communication and personalization to customer loyalty.