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The impact of web-based service on switching cost: evidence from Thai internet banking

Published: 15 August 2005 Publication History

Abstract

This study explored corporate customers' perceptions toward the benefits and barriers of web-based service in the context of Thai Internet banking, and examined the impact of the benefits and barriers on the overall customer relationship to the bank and switching cost. The survey results from corporate customers show that web benefits do enhance relationships, whereas barriers have no significant impact. Information accessibility, information quality, and transactional benefits can enhance the overall customer relationship. However, while web benefits do enhance the strength of customer relationship, the impact is not big enough to replace the interpersonal relationship of face-to-face service. The results also show that the web benefits of information accessibility and information quality lower switching costs. This is quite different from some prior studies which maintain that the value of information technology creates higher switching cost, but it is consistent with some work arguing that commoditization of information on the Internet would lower switching cost. Moreover, web benefits do have some indirect impact on creating switching costs, through their ability to enhance customer relationships, which increase switching costs. Hence, Thai Internet banking service providers need to integrate web-based service in bank business strategy as a way to supplement and enhance the relationships.

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  • (2018)Factors Influencing Individual Customers Trust in Internet Banking: Case of Baltic StatesSustainability10.3390/su1012480910:12(4809)Online publication date: 17-Dec-2018
  • (2018)The role of dimensions of perceived risk in adoption of corporate internet banking by customers in IranElectronic Commerce Research10.1007/s10660-017-9253-z18:2(389-412)Online publication date: 1-Jun-2018
  • (2012)Cultural Impact on e-service Use in Saudi ArabiaProceedings of the 2012 Ninth International Conference on Information Technology - New Generations10.1109/ITNG.2012.146(744-750)Online publication date: 16-Apr-2012

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cover image ACM Other conferences
ICEC '05: Proceedings of the 7th international conference on Electronic commerce
August 2005
957 pages
ISBN:1595931120
DOI:10.1145/1089551
  • Conference Chairs:
  • Qi Li,
  • Ting-Peng Liang
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Association for Computing Machinery

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Publication History

Published: 15 August 2005

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  1. customer relationships
  2. switching cost
  3. web barriers
  4. web benefits

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Cited By

View all
  • (2018)Factors Influencing Individual Customers Trust in Internet Banking: Case of Baltic StatesSustainability10.3390/su1012480910:12(4809)Online publication date: 17-Dec-2018
  • (2018)The role of dimensions of perceived risk in adoption of corporate internet banking by customers in IranElectronic Commerce Research10.1007/s10660-017-9253-z18:2(389-412)Online publication date: 1-Jun-2018
  • (2012)Cultural Impact on e-service Use in Saudi ArabiaProceedings of the 2012 Ninth International Conference on Information Technology - New Generations10.1109/ITNG.2012.146(744-750)Online publication date: 16-Apr-2012

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