Modeling and Analyzing Switching Cost of Service

Abstract

Switching cost is a key factor of service, not only for traditional service, but also for modern service. It always plays an important role when customers want to change from one service provider to another. So more and more service providers try to utilizing switching cost. The paper focuses on how to estimate switching cost. Considering many influencing factors, we propose one mathematical model to calculate switching cost by using some available parameters. Especially, we study its dynamic process by using a memory function. Simulation results are given in the end and some discussion and analysis is shown.