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Switching costs provide a unique and valid theoretical window into the mechanisms of consumer decision-making process as well as account for the behaviors of dissatisfied customers who still decide to patronize the same product or service. Therefore, switching costs provide a new research paradigm to consumer behavior studies, which are currently dominated by benefit-based articulations. Our study investigates the effects of switching costs on the perceived values and brand loyalty of customers of a luxury hotel in Shanghai, China. Through a structural equation model analysis, we find that switching posts bring about significant effects on perceived values and brand loyalty. The theoretical and practical implications of this study are also discussed.

Assessing the Effects of Switching Costs on Perceived Values and Brand Loyalty: The Impact of Customers’ Perceived Authenticity in Hotel Sector