Does Subsidy Work? An Investigation of Post-Adoption Switching on Car-Hailing Apps

Journal of Electronic Commerce Research, Forthcoming

24 Pages Posted: 17 Apr 2017 Last revised: 21 Oct 2020

See all articles by Xusen Cheng

Xusen Cheng

Renmin University of China

Shixuan Fu

University of International Business and Economics (UIBE)

Guopeng Yin

RMF of the Harvard Medical Institutions

Date Written: October 25, 2016

Abstract

Subsidy has been consistently considered as an efficient way to attract consumers with low price, and can be measured through users’ price perception. By focusing on car-hailing apps, this study investigates users’ switching intention and continuous usage based on value-intention framework and Limayem’s intention-habit-usage model under the context of lower subsidy. Price perception, as a perceived cost, was proved to have an effect on perceived value. From value perspective, utilitarian value, hedonic value and social value are conjointly hypothesized to affect users switch intention, while the switch intention is influenced by habit and alternative attractiveness. The relationships between switch intention and continuous usage are also investigated. Questionnaire data collected from 295 valid car-hailing apps users provide support for hypothesis validation of the research model. Discussions and implications of this study are provided.

Keywords: Switching intention; car-hailing apps; value; price perception; habit

JEL Classification: M15; M31

Suggested Citation

Cheng, Xusen and Fu, Shixuan and Yin, Guopeng, Does Subsidy Work? An Investigation of Post-Adoption Switching on Car-Hailing Apps (October 25, 2016). Journal of Electronic Commerce Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2953448

Xusen Cheng

Renmin University of China ( email )

59, Zhongguancun South Street
Haidian District
Beijing, Beijing 100872
China

Shixuan Fu

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

Guopeng Yin (Contact Author)

RMF of the Harvard Medical Institutions ( email )

Boston, MA 02215
United States

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