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This study examined the influence of Internet use on product switching, as the Internet is an important channel for information acquisition. Using data from China, the study found that: (1) Internet use significantly increased the probability of companies to switch products; and (2) the impact of the internet is heterogeneous with respect to types of product switching. The Internet significantly prompts businesses to add products, but decreases two product-switching categories, i.e. both adding and dropping products, and only dropping products. Business innovation, product similarity and product core values are the keys to understanding the differentiation of internet influence.

The internet and product switching: an empirical test and mechanism analysis based on China