How Do Switching Costs Affect User Loyalty On P2P Lending Platform

With the rapid development of the Internet and the raise of "Internet +",a variety of new industries show up,recombined by the traditional industries and different type of Internet.Peer-to-Peer lending is the one mode of The Internet Finance,with dual attributes of Internet and Finance Service.Recently,P2 P lending has grew fast in China,and its flexibility,convenience and unsecured lending pattern fill the vacancy of traditional bank lending and personal lending,attracting a large number of users as well.The rapid development of P2 P internet lending industry is the opportunity and challenge for some other related platforms at the same time.Besides,it's necessary to pay much attention to many significant factors when P2 P faces the competitors in the market,such as maintaining competitive advantages,following up the user,enhancing user loyalty,Based on the previous literatures,there are a lot of studies on the factors before,affecting user loyalty in traditional industry.It is summarized into two aspects: on the one hand,users are willing to continue the transactions due to high satisfaction.On the other hand,according to the high switching cost in technical,economic and psychological,users loyal to the company as well.Based on the existing studies and characteristics of P2 P Lending,this paper will focus on the users in this platform.The interview method will be adopted in this study to help divide the dimension of switching costs as risk costs,procedural costs,financial costs and relationship costs.Then we adopt exploratory factor analysis and confirmatory factor analysis to test them.In addition,the SEM of four dimensional switching costs,satisfaction and user loyalty will be studied by using AMOS 20.0.Also,hierarchical regression method will used to test the interaction separately between four switching costs and satisfaction,which affects user loyalty.The assumption from related theory is validated by empirical analysis,and the study shows that:(1)risk costs,procedural costs,financial costs,the relationship costs,and satisfaction all have a direct and positive influence on customer loyalty,and the financial cost,followed by the relationship cost,risk cost and procedural costs,is the most important factor in these four dimensions.(2)The interaction exists when four dimensions switching costs and satisfaction work together on user loyalty,and these four interactive coefficients will have the negative value.So it is concluded that the influence of satisfaction on customer loyalty would be weakened on the mechanism of all factors working together.It is significant to choose P2 P Lending as study object in theoretical aspect and practical fields.In theoretical aspect,the theoretical system will be enriched and extended in the related area of switching cost and loyalty,due to dual attributes of Internet and Finance.In practical fields,based on the user relationship,the corresponding suggestions will be come up with in the area of government supervision,industry development and users.