The role of perceived value in the relationship of switching cost and Essay

The role of perceived value in the relationship of switching cost and customer loyalty in e-commerce 04242 - Essay Example In the contemporary world of consumer marketing, customer loyalty has received immense importance as the success of an organisation is dependent on it (Reichheld and Schefter, 2000). There are many studies related to customer loyalty; however, there are few which highlight the role of perceived value in relation with switching cost and customer loyalty. In this project, eCommerce industry is selected and the relation is examined with the help of primary and secondary research. There are many studies pertaining to customer loyalty and switching cost; however, there are few regarding the affect of perceived value on both the factors. This prompted the researchers to do extensive research on the topic and examine the relation in the eCommerce industry. The researchers have defined customer loyalty as the behavioural and attitudinal measures for assessing the success of an organisation. With regard to attitudinal perspective, it is viewed as particular desire for continuing the relationship with the service providers (Anderson and Cunningham, 2008; Yang and Peterson, 2004). However, the behavioural view explains that customer loyalty can be defined as the repeat patronage of the individuals towards a particular brand. It is dependent on the number of times a purchaser has chosen the product or service from a definite category. This frequency is compared with the total number of purchases that is made earlier in order to examine the level of customer loyalty (Anderson and Cunningham, 2008). Customer perceived value is significant for examining the purchase behaviour of an individual (Yen, 2009). The customers get a number of opportunities during any online shopping; hence, the brands have to maintain a good relationship with the customers so that the switching cost is not high. Nevertheless, perceived value contributes loyalty towards the consumers by providing a number of alternatives (Anderson and