Article ID Journal Published Year Pages File Type
880105 International Journal of Research in Marketing 2015 4 Pages PDF
Abstract

When consumers have switching costs of changing the product that they purchase from period to period firms may compete aggressively to attract them, to potentially take advantage of the consumers' future inertia. Similarly, consumers may foresee that they may be held up, and adjust their choices. This paper considers these market forces in the literature on switching costs, while focusing on the effects of (1) firms being forward-looking, (2) consumers being forward-looking, (3) degree of stability of consumer preferences, and (4) market time horizon.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Marketing
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