Determinants of Customer Churn: An Empirical Study Of Cellular Subscribers From Saudi Arabia

Yasir Soomro and Ahmed Nafe Al-Sehli

MPRA Paper from University Library of Munich, Germany

Abstract: This research main objective finds the determinants of churn that affect the telecom industry of the Kingdom of Saudi Arabia (KSA). To analyze the churn predictions to retain the customers in the telecom industry, the paper takes factors of churns that create obstacles in the retention of the customers. The variables of the study included switching cost, price, value-added services, and service quality relevant to the telecom industry. The questionnaire was created using adopted items from various studies and was used to collect the data from 315 respondents through non-restricted random sampling. Data reliability and analysis were performed on IBM SPSS®20 software and multiple regressions were applied. The key findings that lower switching costs of cellular network providers significantly lead to customer churn (MNP). This study found that switching costs are not considered a factor if a customer is dissatisfied or innovator in nature to try other companies’ services. Whereas, low service quality, high price structure, and less value-added encourage customers to switch service. The telecom industry should improve its service quality since it is considered one of the most important factors in churning in any industry. This paper would be highly beneficial for the managers of the telecom industry in KSA and other Middle Eastern telecommunication companies.

Keywords: Switching behavior; Service quality, Switching cost; Value-Added services; Client churn rate; Customer churn; Mobile Number Portability (MNP); Pricing structure; Mobile service provider. (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2020-05-15
New Economics Papers: this item is included in nep-ara, nep-com and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies 11.11(2020): pp. 1-12

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/101398/1/MPRA_paper_101398.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:101398

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().