Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans |
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| Institution: | 1. Department of Finance and Marketing, Eastern Washington University, Bellevue Campus, 3000 Lander Holm Circle Se, Bellevue, WA 98007, USA;2. Department of Information Systems and Business Analytics, 668 N. Riverpoint Blvd Suite A, Spokane, WA 99202, USA;1. Department of Marketing, Monash University, PO Box 197, Caulfield East, VIC, 3145 Australia;2. Department of Marketing and Entrepreneurship, Kent State University, PO Box 5190, Kent, OH, 44240 United States;1. School of Business, University of the Sunshine Coast, Sippy Downs, Australia;2. Department of Marketing, Faculty of Management, Bournemouth University, Executive Business Centre, 89 Holdenhurst Road, Bournemouth BH23 2EL, United Kingdom;1. College of Merchandising, Hospitality & Tourism, University of North Texas, 342H Chilton Hall, 1155 Union Circle #311100, Denton, TX, 76203-5017 USA;2. Department of Psychology, University of North Texas, Room 368 Terrill Hall, 1155 Union Circle, #311280, Denton, TX, 76203-5017 USA |
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| 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. |
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| Keywords: | Switching barriers Service retailing Age groups Mobile phone services Technology leadership Upgrade services Mobile phone provider’s shift |
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