Managing Customer Switching Costs: A Framework for Competing in the Networked Environment

IESE Working Paper No. D/472-E

32 Pages Posted: 31 Dec 2003

See all articles by Mike Hess

Mike Hess

IESE

J. E. Ricart

University of Navarra - IESE Business School

Multiple version iconThere are 2 versions of this paper

Date Written: October 2002

Abstract

Previous research argues that customer switching costs play an important role in the firm's ability to retain customers and achieve competitive advantage. Research also indicates that in the increasingly networked environment, switching costs are changing in important ways. Despite switching costs' recognized role in contributing to competitive advantage and their increasingly strategic characteristics in the expanding networked environment, we find a lack of coherence and completeness in the conceptual tools and models developed to understand their role and help effectively manage the phenomenon. In this paper, we attempt to address these needs by expanding and refining the conceptualization of switching costs and developing a more comprehensive framework for managers.

Keywords: Customer switching costs, strategy, framework, networked environment

Suggested Citation

Hess, Mike and Enric Ricart, Joan, Managing Customer Switching Costs: A Framework for Competing in the Networked Environment (October 2002). IESE Working Paper No. D/472-E, Available at SSRN: https://ssrn.com/abstract=443320 or http://dx.doi.org/10.2139/ssrn.443320

Mike Hess

IESE ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Joan Enric Ricart (Contact Author)

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
34 3 204 40 00 (Phone)
34 3 280 11 77 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
234
Abstract Views
1,299
rank
157,359
PlumX Metrics