Which Positive Switching Costs? The 5PS Model
Perceived Usefulness
Perceived usefulness refers to the dynamic nature of the engagement that occurs between asupplier and its customers through the Web site (i.e., contact interactivity). Even if several
studies have highlighted the importance of interactivity and perceived usefulness to customer
loyalty (Deighton, 1996; Watson, Akselsen & Pitt, 1998), lack of interactivity is still a
problem for a lot of Web sites (they are often hard to navigate, provide insufficient information,
etc.). Perceived usefulness is often seen as the availability and effectiveness of customer support
tools on a Web site, and the degree to which communication with customers is facilitated. It
enables a search process that can quickly locate a desired product or service, thereby replacing
dependence on detailed customer memory, but, also dramatically increases the amount of information
that can be presented to a customer (Deighton, 1996; Watson, Akselsen & Pitt, 1998).
Perceived Ease of Use
This positive switching cost refers to the extent to which a customer feels that the Web siteis simple, intuitive and user friendly. Accessibility of information and simplicity of the
transaction processes are important antecedents to the successful completion of transactions. The
quality of the Web site and the customer feeling of perceived ease of use are particularly
important, since they represent the central or even the only interface with the marketplace (Palmer
& Griffith, 1998). According to Schaffer (2000), 30% of the consumers who leave a Web site
without purchasing anything act so because they are unable to find their pathway through the Web
site. Sinioukov (1999) suggested that enabling customers to search for information easily and
making the information readily accessible and visible is the key to creating a successful
e-business. Cameron (1999) pointed out that a number of factors render a Web site inconvenient from
a user’s perspective. In some cases, information may not be accessible because is not in a logical
place, or is buried too deeply within the Web site. In other cases, information may not be
presented in a meaningful format; finally, needed or desired information may be completely
absent.
Perceived Simplicity of Web Site Interface Design
As mentioned earlier, Web sites’ design elements influence perceptions of Web sitecomplexity, and perceived complexity, in turn, has a direct influence on communication efficiency
and effectiveness and, thus, on purchase intentions. Moreover, it has been shown that perceived
complexity in a Web site is related to communication effectiveness (O’Guinn et al., 2000; Zinkhan
& Blair, 1984) and that usually customers respond more favorably toward Web sites of moderate
complexity (Berlyne’s theory, for example, predicted an inverse, curvilinear relationship between
medium complexity and communication effectiveness). Creative Web site interface design can help a
supplier build a positive reputation and characterization for itself in the mind of customers. The
perceived simplicity of Web site interface design and its positive impact as a switching cost on
loyalty and retention has to be evaluated through the overall image the online firm projects to the
customers through the use of inputs such as text, style, graphics, colors, logos, slogans or themes
on Web site. Web site design, even with its simplicity, plays a key role: Web sites can be rather
impersonal and boring to deal with in the absence of the person-to-person interaction that pervades
conventional brick-and-mortar marketplaces (beyond general presentation and image, Web sites can
use unique characters or personalities to enhance site recognition and recall (Henderson &
Cote, 1998): such coded stimuli can positively impact customer attitudes).
Best Perceived Customer Service
This switching cost deals with the ability of an online firm to develop a quick and strongcustomer service through the Web site and to tailor products, services and the transactional and
shopping environment to individual customers. A survey by NetSmart Research indicated that 83% of
Web surfers are frustrated or confused when navigating sites (Lidsky, 1999). By personalizing its
site and bettering the customer service, an online firm can reduce this frustration. A strong
customer service through the use of collaborative masks, filtering tools, cookies, log files,
simplified pathway, are key factors (they can signal high quality and lead to a better real match
between customer and product. Finally, individuals are able to complete their transactions more
efficiently when the customer service is well built. The advantages of a good customer service make
it appealing for customers to visit the Web site again in the future, instead of switching to
another site.
Positive Perceived Feeling with the Web Site
Schaffer (2000) argued that a convenient Web siteprovides a short response time, facilitates fast completion of a transaction, and minimizes
customer effort. Because of the nature of the medium itself, online customers have come to expect
fast and efficient processing of their transactions. If customers are stymied and frustrated in
their efforts to seek information or consummate transactions, they are less likely to come back
(Cameron, 1999). A Web site that is logical and convenient to use will also minimize the likelihood
that customers make mistakes and will make their shopping experience more satisfying. A perceived
general positive feeling with the Web site make appealing the online shopping experience, thus
inducing the customer to return.In the following section we will present the results of our empirical study.