Abstract
The conditions for doing business are changing rapidly. In last few years the mobile telecom market has witnessed a substantial growth and rapid changes globally as well as domestically. Customer loyalty is a critical issue in the success of any business system, for this reason, the main condition for protecting the subscriber base is to win customer loyalty, a key necessity for the maintenance of a brand’s life in the long term. To achieve this aim, customer loyalty must be measured and “switching costs” identified. The latter render subscribers’ preference for rival operator more expensive. In this connection, this study aim is to measure the impact of switching costs on customer loyalty, and the direct and indirect of “switching costs” on customer loyalty. For doing so, a survey has been performed on customers of the prepaid and postpaid mobile service operator in Indonesia, questionnaire were distributed among them and the results analyzed base upon the proposed research questions and hypotheses, and finally the conclusions and implications were made.
Highlights
Industrial of cellular phone has been rapid growth in the last of two decade
That we can focus our analytical to determine the problems between switching cost problems and customer loyalty problems and we can focusing our effort in a right place, is to be more effective and efficient in making a decision
Our research has been proving that the costs that customers in mobile telephony industry associate with the process of switching from one provider to another is a significant factor in their loyalty in mobile telephone services that they have used
Summary
Industrial of cellular phone has been rapid growth in the last of two decade. In Indonesia, cellular phone has been radically changing the mapping of telecommunication industrial. Which is in the past, phone was one of a luxury thing, with the intention that only certain groups which can enjoying it. We can get it without any problems and their price is usually cheap than in the past, even in fixed line wire line or in fixed line wireless and mobile phone. The entire people have an access to use telecommunications service to various needs, either commerce business, family or other need. Does all walks of life from elite to house assistant, from metropolis until villagers in all Indonesia can access existing telecommunications service. With the intention that the telecommunication service activities brought to purilieus, though its result still not yet gratified
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