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Discriminant Analysis of Factors Affecting Telecoms Customer Churn

Author

Listed:
  • Benjamin Oghojafor
  • Godson Mesike
  • Rasaki Bakarea
  • Charles Omoera
  • Ismaila Adeleke

Abstract

A major challenge facing telecoms business providers in Nigeria today is the continuous growing competition and customers¡¯ expectation of service quality and as such customers are able to choose among multiple service providers based on the level of satisfaction, affordability, and service quality of service providers. Customer demand and competition are forcing firms to cut loose from the traditional customer satisfaction paradigm, to adopt proactive strategies which will assist them to take the lead in the market-place. This study aims at identifying factors that discriminate among subscribers exhibiting willingness to drop their current service provider and those willing to stay. The study also examines the effect of socio-economic and demographic factors associated with the identified discriminants. The major factors identified are high call rate, poor service facilities, off-beam advertisement medium, availability of superior service provider and unattractive service plan.

Suggested Citation

  • Benjamin Oghojafor & Godson Mesike & Rasaki Bakarea & Charles Omoera & Ismaila Adeleke, 2012. "Discriminant Analysis of Factors Affecting Telecoms Customer Churn," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 3(2), pages 59-67, March.
    • Handle: RePEc:jfr:ijba11:v:3:y:2012:i:2:p:59-67
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    References listed on IDEAS

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    1. Lee, Richard & Murphy, Jamie, 2008. "The Moderating Influence of Enjoyment on Customer Loyalty," Australasian marketing journal, Elsevier, vol. 16(2), pages 11-21.
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    Cited by:

    1. 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.
    2. Abbas Al-Refaie & Murad Al-Tarawneh & Nour Bata, 2018. "Study Of Customer Churn In The Telecom Industry Using Structural Equation Modelling," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 12(1), pages 393-411.

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