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Pull-and-suck effects in Taiwan mobile phone subscribers switching intentions

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  • Chuang, Yi-Fei

Abstract

This paper uses a binary logit model to investigate the factors that influence subscribers to stay or migrate based on the competitive nature of Taiwan's mobile phone industry and subscribers' habit formation regarding service providers. The results show that subscribers' satisfaction, switching costs, and habit strength negatively influence switching intentions, constituting a sucking effect that motivates subscribers to stay with their original providers. Alternative attractiveness, on the other hand, positively influences switching intentions, comprising a pulling effect that encourages subscribers to migrate to other providers. In spite of the promotional benefits offered by new service providers, Taiwanese mobile phone subscribers generally remain with their original providers. For instance, when subscribers perceive that there are no significant influences between service satisfaction and switching costs associated with different providers, what encourages subscribers to stay with their original providers is habit strength. Oftentimes, it is difficult for subscribers with strong habits to be attracted by promotions offered by alternative service providers. Because the concepts of suck-and-pull effects or habit-and-competition forces are infrequently studied, this paper explores these concepts and attempts to fill the void.

Suggested Citation

  • Chuang, Yi-Fei, 2011. "Pull-and-suck effects in Taiwan mobile phone subscribers switching intentions," Telecommunications Policy, Elsevier, vol. 35(2), pages 128-140, March.
    • Handle: RePEc:eee:telpol:v:35:y:2011:i:2:p:128-140
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    Citations

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    Cited by:

    1. Gerpott, Torsten J. & Ahmadi, Nima, 2015. "Determinants of willingness to look for separate international roaming services—An empirical study of mobile communication customers in Germany," International Journal of Information Management, Elsevier, vol. 35(2), pages 192-203.
    2. Luis Miranda-Gumucio & Ignacio Gil-Pechuán & Daniel Palacios-Marqués, 2013. "An exploratory study of the determinants of switching and loyalty in prepaid cell phone users. An application of concept mapping," Service Business, Springer;Pan-Pacific Business Association, vol. 7(4), pages 603-622, December.
    3. Gerpott, Torsten J. & Meinert, Phil, 2018. "Termination notice of mobile network operator customers after a tariff switch: An empirical study of postpaid subscribers in Germany," Telecommunications Policy, Elsevier, vol. 42(3), pages 212-226.
    4. Steven D’Alessandro & Lester Johnson & David Gray & Leanne Carter, 2015. "Consumer satisfaction versus churn in the case of upgrades of 3G to 4G cell networks," Marketing Letters, Springer, vol. 26(4), pages 489-500, December.
    5. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2017. "Determinants of the subscription to bundled services and their effect on customer retention in the Korean communications sector," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168501, International Telecommunications Society (ITS).
    6. Bölen, Mehmet Cem, 2020. "From traditional wristwatch to smartwatch: Understanding the relationship between innovation attributes, switching costs and consumers' switching intention," Technology in Society, Elsevier, vol. 63(C).
    7. Gerpott, Torsten J. & Ahmadi, Nima & Weimar, Daniel, 2015. "Who is (not) convinced to withdraw a contract termination announcement? – A discriminant analysis of mobile communications customers in Germany," Telecommunications Policy, Elsevier, vol. 39(1), pages 38-52.
    8. Gurjeet Kaur & Ritika Sambyal, 2016. "Exploring Predictive Switching Factors for Mobile Number Portability," Vikalpa: The Journal for Decision Makers, , vol. 41(1), pages 74-95, March.
    9. Capponi, Giovanna & Corrocher, Nicoletta & Zirulia, Lorenzo, 2021. "Personalized pricing for customer retention: Theory and evidence from mobile communication," Telecommunications Policy, Elsevier, vol. 45(1).
    10. Alam, Mohammad Zahedul & Hu, Wang & Kaium, Md Abdul & Hoque, Md Rakibul & Alam, Mirza Mohammad Didarul, 2020. "Understanding the determinants of mHealth apps adoption in Bangladesh: A SEM-Neural network approach," Technology in Society, Elsevier, vol. 61(C).
    11. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2019. "Determinants of subscriptions to communications service bundles and their effects on customer retention in Korea," Telecommunications Policy, Elsevier, vol. 43(9).
    12. Jentzsch, Nicola, 2012. "Implications of mandatory registration of mobile phone users in Africa," Telecommunications Policy, Elsevier, vol. 36(8), pages 608-620.
    13. García-Mariñoso, Begoña & Suárez, David, 2019. "Switching mobile operators: Evidence about consumers’ behavior from a longitudinal survey," Telecommunications Policy, Elsevier, vol. 43(5), pages 426-433.
    14. Khurram, Anoshay & Hashmi, Rabia & Khalid, Saaniya & Ali, Areesha & Khan, Muhammad Shams-UR-Rehman, 2020. "Why Do People Switch Mobile Platforms?," MPRA Paper 104639, University Library of Munich, Germany.
    15. Kang, Jin-Su & Downing, Stephen, 2015. "Keystone effect on entry into two-sided markets: An analysis of the market entry of WiMAX," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 170-186.

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