In uence Analysis of Dissatisfaction, Situational Condition, andSwitching Costs on the Switching Behavior of Telkomsel Postpaid CardCustomers in Batam City

Paskah Rinauli Purba and Palti Marulitua Sitorus
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Paskah Rinauli Purba: Economic and Business, Telkom University, Indonesia
Palti Marulitua Sitorus: Economic and Business, Telkom University, Indonesia

International Journal of Business and Economic Affairs (IJBEA), 2017, vol. 2, issue 3, 193-205

Abstract: The intense competition in the Indonesian telecommunications industry has resulted in a price war and thenraises the level of consumer churn. Churn is a representation of switching behavior from consumers. Switch Behavior iscaused by three factors namely consumer dissatisfaction, perceptions of situational conditions, and switching costs. Thisstudy aims to determine the signi cance of the in uence of these three factors on the switching behavior of postpaid cardTelkomsel's customers in Batam city. Population in this research is all Telkomsel telecommunication service consumersresiding in the geographical area of Batam. The method of determining the sample is quota sampling with a samplesize of 400 samples, and data collection was done through a questionnaire. Testing research hypothesis was done usinglogistic regression analysis technique with SPSS 24.0 version software tool. The result of the research shows that: (1)consumer dissatisfaction has a signi cant in uence on switching behavior Telkomsel's postpaid subscriber in Batam city,(2) perception of situational condition has a signi cant in uence on switching behavior of Telkomsel postpaid customer inBatam city. (3) Switching cost does not have a signi cant e ect on switching behavior of Telkomsel's postpaid subscriberin Batam city. 4) The greatest in uence factor is the predictor of situational conditions. 5) In relation to the resultswhere switching costs have no signi cant e ect on switching behavior of Telkomsel's postpaid subscriber in Batam city,it becomes very signi cant when it comes to procedural and nancial switching costs. It is strongly suspected due to therelational switching cost. The result of this research can help the telecommunication industrial management to state theright marketing strategy to win the competition on the telecommunication industrial market especially in Batam city. Inconnection with the results and discussion in this study, it is expected that further research should examine more speci cindicators of dissatisfaction and focus on the dimension of the response of service failure. In addition, it is hoped thatfurther research will be conducted to nd other factors that also contribute to the e ect of switching behavior to obtaina more complete model of consumer switching.

Keywords: Switching behavior; Consumer dissatisfaction; Situational conditions; Switching costs (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aya:ijbeaa:2017:p:193-205

DOI: 10.24088/IJBEA-2017-23004

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