Switching costs and users’ intentions of an app-enabled cross-border e-commerce platform: examples of Amazon and Tmall Global

Abstract

Purpose

Using surveys of Amazon and Tmall Global users, this paper aims to empirically investigate the issue of platform technological selection. We explore the impact of switching costs on users’ intentions to use an app-enabled cross-border e-commerce (CBEC) platform based on an extended technology acceptance model (TAM). The results suggest that the higher the switching cost of a platform is, the greater the users’ satisfaction and intention to use this platform. Therefore, for the platform, a moderate switching cost will be beneficial for retaining users.

Design/methodology/approach

Based on the TAM, this paper takes the switching costs as the starting point and focuses on exploring the relationships among switching costs, perceived usefulness, perceived ease of use, perceived reliability, satisfaction and intention to use. Online surveys of users of Amazon and Tmall Global are adopted as the main instruments of this research. We collected a total of 408 valid responses from Amazon users and 490 from Tmall Global users. For the data analysis, this study conducts frequency analysis, a test analysis of the reliability and validity of the measures, correlation analysis, and path analysis using a structural equation model.

Findings

The results show that switching costs positively affect the users’ satisfaction and intentions to use a CBEC platform through perceived usefulness, perceived ease of use and perceived reliability.

Research limitations/implications

The questionnaire respondents were predominantly Chinese due to the constraints of the survey conditions. In fact, China has a high penetration rate in CBEC, and Chinese users have rich experience using the Amazon and Tmall Global platforms.

Practical implications

The development of CBEC has ups and downs, and users frequently switch platforms. Considering how platforms can stand out from the crowd and retain users, we believe that a moderate increase in the switching cost of the platform is helpful for companies to address these problems, and the implications of the results are particularly valid for decision-makers of CBEC platforms and companies.

Social implications

Amazon and Tmall Global are the two largest CBEC platforms in the world. Using these two companies as examples for comparison can effectively identify the differences between the platforms and the conclusions are representative. We suggest that platforms can improve user satisfaction and willingness to use by establishing VIP communities, issuing coupons, providing shipping services as well as convenient after-sale complaint channels, and improving the platform’s easy-to-use interface, as ways to further enable the platform to retain more users and stand out in fierce competition.

Originality/value

This paper addresses an interesting and practical issue related to the effects of introducing switching costs in an extended TAM applied to CBEC platforms.

Citation

Li, J. and He, Y. (2024), "Switching costs and users’ intentions of an app-enabled cross-border e-commerce platform: examples of Amazon and Tmall Global", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-10-2023-0979