The effects of personalized recommendations on perceived switching costs: The mediation roles of customer satisfaction and habits

Li Xu (), Yide Sun (), Yuan-Teng Hsu () and Ya-Ling Chiu ()
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Li Xu: Zhejiang Yuexiu University
Yide Sun: Zhejiang Yuexiu University
Yuan-Teng Hsu: Research Center of Finance, Shanghai Business School
Ya-Ling Chiu: Zhejiang Yuexiu University

Electronic Markets, 2025, vol. 35, issue 1, No 80, 16 pages

Abstract: Abstract As e-commerce evolves, personalized recommendations have become essential for enhancing user experience and website stickiness, yet their impact on customer behavior remains unclear. This study examines how personalized recommendations affect perceived switching costs, focusing on the mediating roles of customer satisfaction and habits, and the moderating effects of consumption levels. Using structural equation modeling on Survey data from 512 Taobao users, findings reveal that personalized recommendations significantly enhance customer satisfaction and habit formation, which fully mediate their impact on perceived switching costs. Additionally, the influence of these mediators varies by consumption level: habits have a stronger effect on perceived switching costs in high-spending groups, while customer satisfaction is more pivotal for low-spending groups. These insights highlight the need for e-commerce platforms to tailor marketing strategies to different customer segments. The study also emphasizes balancing technological innovation, user experience, and consumer rights in the digital marketplace.

Keywords: Personalized recommendations; Perceived switching costs; Customer satisfaction; Habits; Spending level (search for similar items in EconPapers)
JEL-codes: C83 D91 L81 M31 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s12525-025-00829-0

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