The impacts of unique service resources and habit on e-service loyalty in a highly competitive market

Purpose – The purpose of this study is to seek to quantify how unique service resources and consumer habit affect e-service loyalty (e-loyalty) in a highly competitive market. This study is grounded on Chinese social networking service (SNS) industry. A resource-based view is introduced as an alternative perspective to understand building consumer loyalty in e-service contexts. Design/methodology/approach – A research framework is developed by reviewing prior literature. An online survey is conducted to collect research data. Based on 221 valid responses, the research model is tested by using partial least squares path modeling technique. Findings – The features of market environments affects the loyalty of consumers to e-service providers. Consumers become mercenary in highly competitive and low differentiation e-service markets like Chinese SNS industry. The interaction of satisfaction and switching cost affects loyalty. Satisfied consumers can be either loyal or not loyal to a service provider depending on their level of switching cost, but unsatisfied consumers will have no loyalty. In addition, users are loyal to a SNS partly because it is their habit to use the service. Our study suggests that relying on consumer satisfaction to build e-loyalty may be problematic and risky. Originality/value – The study represents an attempt to introduce the resource-based view to e-loyalty research. The research highlights the importance of habit in building consumers’ e-service satisfaction and loyalty and contributes to new insights on the importance of industry environment in determining e-service satisfaction–loyalty relationship based on studying consumers in a highly competitive market. © 2015, Emerald Group Publishing Limited.