Using segmentation to reduce the churn rate: the case of an Internet Service Provider

This study examines the determinants of brand loyalty in an Internet service provision context within a developing economy (Thailand). Internet service providers’ (ISPs) customers often evaluate service quality through several factors such as network quality, customer service, information support, privacy and security. This study confirms the positive associations between overall service quality and customers’ satisfaction, commitment, and value. In addition both customers’ satisfaction and commitment imposed positive effects on attitudinal and behavioural loyalty. However, the relationship between customers’ value and either attitudinal or behavioural loyalty were not supported. This study’s findings assist ISPs in the Thai home Internet services context to formulate retention strategies. Improving the overall service quality perceptions of existing customers would likely lead to more favourable customer affective and cognitive evaluations. This in turn would increase current customers switching costs and minimise the costs associated with attracting new customer