As deregulation, new technologies, and new competitors open up the mobile telecommunications industry, churn management has become of great concern to mobile service providers. A mobile service provider wishing to retain its subscribers needs to be able to predict which of them may be at-risk of changing services and will make those subscribers the focus of customer retention efforts.
This research attempts to examine and specify the factors which effect on customers’ churning behavior by analyzing the direct effect of them as well as the mediation effect of customer status. Empirical results suggest that satisfaction and dissatisfaction directly influence customers’ churning decision. And it is proved by analysis that the switching barrier actually exist in the mobile telecommunications industry. The analysis shows that the loyalty programs are not effective on retaining customers. And the call behavior does not explain customers’ churning behavior.
I discuss the effectiveness of the loyalty programs in the mobile telecommunications industry based on empirical results. And I interpret the call behavior of customers from variety-seeking point of view.
The review concludes with a possible agenda for future research.
