Study of social ties as one kind of switching costs: a new typology

The purpose of this paper is to study how customers’ social ties can be performed as one kind of switching costs, which can affect customer loyalty and have a moderate effect on the relationship between customer satisfaction and customer loyalty, and to improve the typology study of switching costs and give suggestions for companies about how to strengthen customer loyalty.

An empirical research is implemented to prove the effectiveness of the study model, using factor analyses, regression analyses and structural equation model analyses as data analyses approaches.

The research results prove the direct and moderate effect of social ties loss costs, and the effectiveness and reasoning of the new typology of switching costs.

According to the research results, companies can take measures to enhance customers’ social ties loss costs properly so as to strengthen their loyalty.

This research comes up with a new kind of relational switching costs, social ties loss costs and proves its effects, thus improving the typology of switching costs, and makes practical suggestions for companies.