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Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans

Goitom Tesfom, Nancy J. Birch and Jeffrey N. Culver

Journal of Retailing and Consumer Services, 2016, vol. 33, issue C, 154-163

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.

Keywords: Switching barriers; Service retailing; Age groups; Mobile phone services; Technology leadership; Upgrade services; Mobile phone provider’s shift (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:eee:joreco:v:33:y:2016:i:c:p:154-163