IDEAS home Printed from https://ideas.repec.org/a/eee/ijrema/v38y2021i4p915-934.html
   My bibliography  Save this article

Customer defection due to service elimination and post-elimination customer behavior: An empirical investigation in telecommunications

Author

Listed:
  • Somosi, Agnes
  • Stiassny, Alfred
  • Kolos, Krisztina
  • Warlop, Luk

Abstract

Service industries require rapid innovations in their service portfolios to gain and maintain competitive advantages. Service elimination is a potential tool for portfolio renewal, though it might threaten increased defection rates. To contribute to both service elimination and customer defection literature, this paper proposes a model of customer responses to service elimination, with practical implications for decision-makers in rapidly innovating telecommunication markets.

Suggested Citation

  • Somosi, Agnes & Stiassny, Alfred & Kolos, Krisztina & Warlop, Luk, 2021. "Customer defection due to service elimination and post-elimination customer behavior: An empirical investigation in telecommunications," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 915-934.
    • Handle: RePEc:eee:ijrema:v:38:y:2021:i:4:p:915-934
    DOI: 10.1016/j.ijresmar.2021.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167811621000161
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijresmar.2021.03.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gilles Laurent & Raphaelle Lambert-Pandraud & Eric Lapersonne, 2005. "Repeat Purchasing of New Automobiles by Older Consumers: Empirical Evidence and Interpretations," Post-Print hal-00458431, HAL.
    2. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    3. James R. Carpenter & Michael G. Kenward & Stijn Vansteelandt, 2006. "A comparison of multiple imputation and doubly robust estimation for analyses with missing data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(3), pages 571-584, July.
    4. Robert J. Bennett & Paul J. A. Robson, 2004. "The role of trust and contract in the supply of business advice," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(4), pages 471-488, July.
    5. M. Grajek & K. Gugler & T. Kretschmer & I. Mişcişin, 2019. "Static or Dynamic Efficiency: Horizontal Merger Effects in the Wireless Telecommunications Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(3), pages 375-402, November.
    6. Seo, DongBack & Ranganathan, C. & Babad, Yair, 0. "Two-level model of customer retention in the US mobile telecommunications service market," Telecommunications Policy, Elsevier, vol. 32(3-4), pages 182-196, April.
    7. Buchmueller, Thomas, 2006. "Price and the health plan choices of retirees," Journal of Health Economics, Elsevier, vol. 25(1), pages 81-101, January.
    8. Peter J. Danaher, 2002. "Optimal Pricing of New Subscription Services: Analysis of a Market Experiment," Marketing Science, INFORMS, vol. 21(2), pages 119-138, February.
    9. Hoffmann, Antje & Herstatt, Cornelius, 2005. "Service provider - customer interactions: Key to success of innovative services," Working Papers 30, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    10. Cecere, Grazia & Corrocher, Nicoletta, 2011. "The intensity of VoIP usage in Great Britain: Users' characteristics and firms' strategies," Telecommunications Policy, Elsevier, vol. 35(6), pages 522-531, July.
    11. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    13. Helsen, Kristiaan & Schmittlein, David, 1994. "Understanding price effects for new nondurables: How price responsiveness varies across depth-of-repeat classes and types of consumers," European Journal of Operational Research, Elsevier, vol. 76(2), pages 359-374, July.
    14. Zahra Idrees & Xia Xinping, 2017. "Quality of Banking Services & Customer Retention: Moderated by Relationship Characteristics," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(2), pages 205-217, February.
    15. Wolfgang Briglauer & Anton Schwarz & Christine Zulehner, 2011. "Is fixed-mobile substitution strong enough to de-regulate fixed voice telephony? Evidence from the Austrian markets," Journal of Regulatory Economics, Springer, vol. 39(1), pages 50-67, February.
    16. Argouslidis, Paraskevas C., 2004. "An empirical investigation into the alternative strategies to implement the elimination of financial services," Journal of World Business, Elsevier, vol. 39(4), pages 393-413, November.
    17. Nawata, Kazumitsu, 1994. "Estimation of sample selection bias models by the maximum likelihood estimator and Heckman's two-step estimator," Economics Letters, Elsevier, vol. 45(1), pages 33-40, May.
    18. Lukasz Grzybowski & Ryan Hawthrone, 2019. "Benefits of regulation vs competition where inequality is high: The case of mobile telephony in South Africa," Working Papers 791, Economic Research Southern Africa.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eunji Choi & Jonghoon Park & Seongwoo Lee, 2020. "The Effect of the Comprehensive Rural Village Development Program on Farm Income in South Korea," Sustainability, MDPI, vol. 12(17), pages 1-23, August.
    2. Lange, Mirjam R.J. & Saric, Amela, 2016. "Substitution between fixed, mobile, and voice over IP telephony – Evidence from the European Union," Telecommunications Policy, Elsevier, vol. 40(10), pages 1007-1019.
    3. Stiassny, Alfred & Somosi, Agnes & Kolos, Krisztina, 2019. "Enhancing customer retention in case of service elimination? An empirical investigation in telecommunications," Department of Economics Working Paper Series 283, WU Vienna University of Economics and Business.
    4. William Greene, 2001. "Estimating Econometric Models With Fixed Effects," Working Papers 01-10, New York University, Leonard N. Stern School of Business, Department of Economics.
    5. Hu, Juncheng, 2021. "Do facilitation payments affect earnings management? Evidence from China," Journal of Corporate Finance, Elsevier, vol. 68(C).
    6. Troske, Kenneth R. & Voicu, Alexandru, 2010. "Joint estimation of sequential labor force participation and fertility decisions using Markov chain Monte Carlo techniques," Labour Economics, Elsevier, vol. 17(1), pages 150-169, January.
    7. Robert D. J. Anderson, 2008. "US Consumer Inflation Expectations: Evidence Regarding Learning, Accuracy and Demographics," Centre for Growth and Business Cycle Research Discussion Paper Series 99, Economics, The University of Manchester.
    8. Caggese, Andrea, 2007. "Testing financing constraints on firm investment using variable capital," Journal of Financial Economics, Elsevier, vol. 86(3), pages 683-723, December.
    9. Juergen Bitzer & Erkan Goeren, 2018. "Foreign Aid and Subnational Development: A Grid Cell Analysis," Working Papers V-407-18, University of Oldenburg, Department of Economics, revised Mar 2018.
    10. Takashi Yamagata & Chris Orme, 2005. "On Testing Sample Selection Bias Under the Multicollinearity Problem," Econometric Reviews, Taylor & Francis Journals, vol. 24(4), pages 467-481.
    11. Susan Athey & Raj Chetty & Guido Imbens, 2020. "Combining Experimental and Observational Data to Estimate Treatment Effects on Long Term Outcomes," Papers 2006.09676, arXiv.org.
    12. Ertan, Arhan & Fiszbein, Martin & Putterman, Louis, 2016. "Who was colonized and when? A cross-country analysis of determinants," European Economic Review, Elsevier, vol. 83(C), pages 165-184.
    13. Saul D. Hoffman, 2015. "Teen Childbearing and Economics: A Short History of a 25-Year Research Love Affair," Societies, MDPI, vol. 5(3), pages 1-18, September.
    14. Torberg Falch, 2003. "Estimating the Elasticity of Labour Supply to an Enterprise Utilizing a Quasi–Natural Experiment," Working Paper Series 3303, Department of Economics, Norwegian University of Science and Technology.
    15. David T. Tan & Larelle Chapple & Kathleen D. Walsh, 2017. "Corporate fraud culture: Re-examining the corporate governance and performance relation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 597-620, June.
    16. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    17. Jorge Garcia Hombrados, 2018. "Empirical essays on development economics," Economics PhD Theses 0318, Department of Economics, University of Sussex Business School.
    18. Curi, Claudia & Murgia, Maurizio, 2018. "Divestitures and the financial conglomerate excess value," Journal of Financial Stability, Elsevier, vol. 36(C), pages 187-207.
    19. Lihui Zhang, 2016. "Are youth offenders responsive to changing sanctions? Evidence from the Canadian Youth Criminal Justice Act of 2003," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 515-554, May.
    20. Niron Hashai & Sarit Markovich, 2017. "Market Entry by High Technology Startups: The Effect of Competition Level and Startup Innovativeness," Strategy Science, INFORMS, vol. 2(3), pages 141-160, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijrema:v:38:y:2021:i:4:p:915-934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-research-in-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.