|
Due to fierce competition, to reduce customer churn rate has become a critical issue for mobile phone service providers in Taiwan. To investigate this issue theoretically and practically, this study examines several important factors influencing customer churn. These factors include switching experience, usage level, reference group, satisfaction, switching cost, and regret. Firstly, we review the related literature and develop research hypotheses and framework. Then, we conduct a mail survey to the subjects who are randomly selected from Taiwan telephone directory and are willing to answer the questionnaire. The data collected from 199 effective samples are analyzed by ANOVA and structural equation model (SEM) analysis. The major findings of this study are (1) high-usage-level users have the lower satisfaction, (2) reference group are positively related to satisfaction and negatively related to regret, (3) satisfaction and switching cost will decrease churn intention directly, and (4) regret can affect satisfaction directly and increase churn intention indirectly. Finally, some useful suggestion and marketing strategies about managing customer relationship are provided in this study.
|