Skip to main content
SpringerLink
Log in

Switching Costs

  • Living reference work entry
  • First Online:
The Palgrave Encyclopedia of Strategic Management

Abstract

Switching costs are the anticipated procedural, financial and relational costs to an economic agent if the agent were to a change from one product or service to another. Switching costs can be inherent in a product or created as the result of strategic actions, such as the creation of a loyalty programme. If the expected costs of a switch are greater than the expected benefits, the switch may not occur. In practice, switching costs do not necessarily save a weak company from losing customers.

This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Burnham, T.A., J.K. Frels, and V. Mahajan. 2003. Consumer switching costs: A typology, antecedents, and consequences. Journal of the Academy of Marketing Science 31: 109–126.

    Article  Google Scholar 

  • Gomez, J., and J.P. Maícas. 2011. Do switching costs mediate the relationship between entry timing and performance? Strategic Management Journal 32: 1251–1269.

    Article  Google Scholar 

  • Klemperer, P. 1987. Markets with consumer switching costs. Quarterly Journal of Economics 102: 375–394.

    Article  Google Scholar 

  • Monteverde, K., and D.J. Teece. 1982. Supplier switching costs and vertical integration in the automobile industry. Bell Journal of Economics 13: 206–213.

    Article  Google Scholar 

  • Polo, Y., and F.J. Sesé. 2009. How to make switching costly: The role of marketing and relationship characteristics. Journal of Service Research 12: 119–137.

    Article  Google Scholar 

  • Rumelt, R.P. 1987. Theory, strategy, and entrepreneurship. In The competitive challenge: Strategies for industrial innovation and renewal, ed. D.J. Teece. Cambridge, MA: Ballinger.

    Google Scholar 

  • Shapiro, C., and H.R. Varian. 1999. Information rules: A strategic guide to the network economy. Boston: Harvard Business School Press.

    Google Scholar 

  • West, J. 2003. How open is open enough? Melding proprietary and open source platform strategies. Research Policy 32: 1259–1285.

    Article  Google Scholar 

  • Yang, Z., and R.T. Peterson. 2004. Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology and Marketing 21: 799–822.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Berkeley, CA, USA

    Greg Linden

Authors
  1. Greg Linden
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Greg Linden .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

Copyright information

© 2016 The Author(s)

About this entry

Cite this entry

Linden, G. (2016). Switching Costs. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_449-1

Download citation

  • DOI: https://doi.org/10.1057/978-1-349-94848-2_449-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation