Modelling switching behaviour of mobile phone customers.

Abstract

The study aims to provide evidence on the drivers of customer switching in the mobile phone industry of the Cypriot market. The study’s purpose is to provide empirical evidence on the drivers of customer switching in the Cypriot market based on factors demographics (age, gender, level of education, type of job, and level of monthly income), costs, price, technological aspects, customer satisfaction, service quality, and perceived service value. Data were collected through a questionnaire survey from mobile phone users in Cypriot market. The first analysis tests Cronbach’s Alpha value. A description of the sample examines the demographic characteristics of the respondents. A Chi-square test and a Cross Tabulation Analysis is used. Correlation coefficient was employed to examine the relationship between the dependent and the independent variables. A qualitative analysis and a Principal Component Analysis was employed as well. A logistic regression analysis is used to identify the important factors that affect significantly the switching behaviour of customers, and to develop the final model. The findings showed that the combination of technological aspects and price, and service quality (assurance) are important factors. Frequent network problems with the current mobile service providers, and a higher price will make them switch to a competitor. The knowledge and courtesy of employees, and their ability to convey trust and confidence affect significantly the switching behaviour of customers. The hypothesis “Is it possible to develop a model that describes switching behaviour and the effect of main influence factors” is supported, and the final model is developed. The study helps service providers in strategic marketing, and executives of service firms, and recommends future research in the switching behaviour of mobile phone customers. Finally, the thesis provides relevant and appropriate recommendations for further researc