The role of procedural, financial and relational switching costs in the Chinese online hotel booking market: antecedents and consequences

Abstract

This study reveals the key facets of switching costs and their antecedents within the context of online hotel booking in China using mixed methods. Survey results based on 368 valid responses indicate significant antecedents stemming from the characteristics of the online booking market and the individual behavioural and experiential characteristics of customers. However, relational switching costs show a significant positive effect on customers’ intentions to continue with their current online booking service provider, while other switching costs do not. Qualitative research further explores the multi-dimensional nature of customer-perceived switching costs and shows that consumers’ habitual purchases with an online hotel booking service provider form trust, increasing the cost of brand relationship losses and preventing customers from switching. When the self-construal of consumers is different, the homogeneity of providers will have both a positive and negative impact on switching intentions. There are also some interesting findings regarding learning costs in the online hotel booking field. This study extends knowledge about customer retention in the competitive Chinese online booking market by incorporating different types of antecedents and testing their influences on different facets of switching costs as well as the consequences.