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Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans

Author

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  • Tesfom, Goitom
  • Birch, Nancy J.
  • Culver, Jeffrey N.

Abstract

The study examines the impact of the recent shift of the mobile phone service providers in the U.S., from contract to no contract mobile phone service offerings, on the switching behavior of customers in different age groups. Consistent with previous research, the findings ascertain that switching barriers related to relational benefits, availability and attractiveness of alternatives, service recovery and retention in the mobile phone industry are perceived differently by customers in different age groups. However, counter to previous research in the retail banking industry, the research finds that younger customers in the mobile phone service industry are more likely to perceive relational benefits, the effort providers exert to recover a service and are less likely to switch to other providers than older customers. The research findings have implications to theory and practice.

Suggested Citation

  • Tesfom, Goitom & Birch, Nancy J. & Culver, Jeffrey N., 2016. "Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 154-163.
    • Handle: RePEc:eee:joreco:v:33:y:2016:i:c:p:154-163
    DOI: 10.1016/j.jretconser.2016.08.015
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    References listed on IDEAS

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    Cited by:

    1. Jin, Haofeng, 2022. "The effect of overspending on tariff choices and customer churn: Evidence from mobile plan choices," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    2. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad H., 2023. "A cross-cultural investigation of the relationship between eco-innovation and customers boycott behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    3. Mortimer, Gary & Weeks, Clinton S., 2019. "How unit price awareness and usage encourages grocery brand switching and expenditure," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 346-356.
    4. Lily (Xuehui) Gao & Evert Haan & Iguácel Melero-Polo & F. Javier Sese, 2023. "Winning your customers’ minds and hearts: Disentangling the effects of lock-in and affective customer experience on retention," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 334-371, March.

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