Mobile Service and Phone as Consumption System -the Impact on Customer Switching

Mobile telecommunications service sector is, in spite of providing high service quality and striving for customer satisfaction, characterized by dynamic customer activities and provider switching. In this research with data from Slovenia we explore the impact of usage, budgetary constraints, involvement and customer characteristics on customers\u27 intention to switch mobile service provider. By using the consumption system perspective on mobile services and mobile phone, we seek to provide explanation on the factors of customer switching. It is shown that the mobile services usage effect on switching intentions is curvilinear (positive linear and negative quadratic) and that only the budgetary constraint regarding the service matters and not the one related to the mobile phone. Past mobile service providers switching experience also contributes to the intention to switch. Mobile phone ego involvement has positive impact on customer retention, however purchase involvement (both mobile phone and mobile services) increases customer risk. This research thus emphasizes the studying of the mobile services system together with its phone subsystem and it based on extensive survey. Managerial implications are discussed