Suppliers' willingness of customization, effective communication, and trust: a study of switching cost antecedents

Abstract

Purpose

This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and trust regarding perceived switching costs.

Design/methodology/approach

Research data were collected from electronics firms in Taiwan; 281 questionnaires were collected. Structural equation model (SEM) analysis was applied to the data.

Findings

The study suggests that perceived trust contributes to perceived switching costs. The perceived willingness of a supplier to customize for a buyer can indirectly impact on perceived switching costs by way of perceived trust toward the supplier. Furthermore, analysis of the direct and indirect effects reveals that effective communication plays a dominant role and has a significant influence on trust and perceived switching costs.

Originality/value

While recent research increasingly examines customer switching costs in terms of antecedents, this study provides greater insight into switching costs from the trust‐forming perspective to ensure customer retention.

Citation

Yen, Y., Shih‐Tse Wang, E. and Horng, D. (2011), "Suppliers' willingness of customization, effective communication, and trust: a study of switching cost antecedents", Journal of Business & Industrial Marketing, Vol. 26 No. 4, pp. 250-259. https://doi.org/10.1108/08858621111126992