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Markets with Consumer Switching Costs
Abstract
Ex ante homogeneous products may, after the purchase of one of them, be ex post differentiated by switching costs including learning costs, transaction costs, or “artificial” costs imposed by firms, such as repeat-purchase discounts. The nonco-operative equilibrium in an oligopoly with switching costs may be the same as the collusive outcome in an otherwise identical market without switching costs. However, the prospect of future collusive profits leads to vigorous competition for market share in the early stages of a market's development. The model thus explains the emphasis placed on market share as a goal of corporate strategy.
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Citations
Cited by
Relational Benefits in Services Industries: The Customer's Perspective
Gwinner, K. P., Gremler, D. D., & Bitner, M. J. (1998) · Journal of the Academy of Marketing Science · doi:10.1177/0092070398262002 · Cited by 2,347
Consumer Switching Costs: A Typology, Antecedents, and Consequences
Burnham, T. A., Frels, J. K., & Mahajan, V. (2003) · Journal of the Academy of Marketing Science · doi:10.1177/0092070302250897 · Cited by 1,858
Jones, M. A., Mothersbaugh, D. L., & Beatty, S. E. (2002) · Journal of Business Research · doi:10.1016/s0148-2963(00)00168-5 · Cited by 909
Bloemer, J., de Ruyter, K., & Peeters, P. (1998) · International Journal of Bank Marketing · doi:10.1108/02652329810245984 · Cited by 804
Kim, S. S., & Son, J.-Y. (2009) · MIS Quarterly · doi:10.2307/20650278 · Cited by 339
Network effects without network externalities
Chou, C.-F., & Shy, O. (1990) · International Journal of Industrial Organization · doi:10.1016/0167-7187(90)90019-w · Cited by 249
Switching barriers in business‐to‐business services: a qualitative study
Yanamandram, V., & White, L. (2006) · International Journal of Service Industry Management · doi:10.1108/09564230610656980 · Cited by 187
Eisenmann, T. R. (2006) · Strategic Management Journal · doi:10.1002/smj.567 · Cited by 149
Changing Behavior Using the Model of Action Phases
Keller, L., Gollwitzer, P. M., & Sheeran, P. (2020) · The Handbook of Behavior Change · doi:10.1017/9781108677318.006 · Cited by 147
Lederman, M. (2007) · The RAND Journal of Economics · doi:10.1111/j.0741-6261.2007.00129.x · Cited by 131
Multi-dimensional analysis of perceived switching costs
Barroso, C., & Picón, A. (2012) · Industrial Marketing Management · doi:10.1016/j.indmarman.2011.06.020 · Cited by 122
Consumer attitudes towards switching supplier in three deregulated markets
Gamble, A., Juliusson, E. A., & Gärling, T. (2009) · The Journal of Socio-Economics · doi:10.1016/j.socec.2009.05.002 · Cited by 81
Consumer Information and Decisions to Switch Insurers
Schlesinger, H., & von der Schulenburg, J.-M. G. (1993) · The Journal of Risk and Insurance · doi:10.2307/253381 · Cited by 82
Online loyalty and its interaction with switching barriers
Mutum, D., Mohd Ghazali, E., Nguyen, B., & Arnott, D. (2014) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2014.08.012 · Cited by 45
Personalized pricing versus history-based pricing: implications for privacy policy
Miettinen, T., & Stenbacka, R. (2015) · Information Economics and Policy · doi:10.1016/j.infoecopol.2015.10.003 · Cited by 15
Eisenmann, T. R., Parker, G., & Van Alstyne, M. W. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1496336 · Cited by 829
Metadata
- Authors
- Klemperer, P.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1987-05
- Volume
- 102
- Issue
- 2
- Pages
- 375
- ISSN
- 0033-5533 (ISSN-L)
- OpenAlex
- W2109390866
- Cited by
- 1,465
- References
- 0
- FWCI
- 30.60
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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