Use of switching barriers to retain customers: Online retail stock traders in Hong Kong

Abstract

Why some customers decide to stay with existing service provider after having thought of switching has apparently not been examined adequately in extant research. The purpose of this research is to identify factors relevant to building constructs to represent switching barriers in online retail stock trading industry in Hong Kong. Review of extant literature, development of a questionnaire and focus group interviews are the three principal methods used for this research. Four factors that are relevant for measuring switching barriers are identified: two positive barriers involve service recovery and trust and two negative barriers relate to higher switching costs and lack of attractive alternatives.