There was a rapid growth in telecommunications industry in Korea. In general, competitive market leads to profit of customers. But lock-in effect prevents customers from changing their service providers.
In order to increase the profit of effective competition, Mobile Number Portability will be introduced in Korea at 2004. By introduction of Mobile Number Portability the subscribers change the telecommunication service company without changing the number, so subscribers have more convenience and the service providers proceed the improvement the qualities, price down, additional services without the interest the of prior occupation. There are many factors that cause subscribers to change their service providers and these factors will be differentiated by service providers. The purpose of this paper did empirical analysis on the factors of that cause subscribers to change their service providers.
In this study, I analyzed the difference of customer churning behaviors between subscribers. Analytical Hierarchy Process was used to get relative weights between factors. With the relative weights of differentiated factors in each three mobile service providers derived from the empirical study, this paper suggests differentiation strategy for each three mobile service providers.
