Forecasting customer switching intention in mobile service: An exploratory study of predictive factors in mobile number portability

• Published in: Technological forecasting & social change Vol. 75; no. 6; pp. 854 - 874
• Main Authors: Shin, Dong-Hee, Kim, Won-Yong
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01.07.2008; Elsevier Science Ltd
• Subjects: Causality; Competition; Constraints; Consumers; Customer satisfaction; Discriminant analysis; Forecasting; Mobile number portability; Regression analysis; Structural equation modeling; Studies; Switching; Switching barrier; Switching behavior; Telecommunications; United States of America; Switching behavior; Switching barrier; Mobile number portability; Structural equation modeling
• ISSN: 0040-1625; 1873-5509
• DOI: 10.1016/j.techfore.2007.05.001

This study investigates switching barriers under the mobile number portability (MNP) in the U.S. mobile market. The structural equation modeling analysis is used to evaluate the causal model, and confirmatory factor analysis is performed to examine the reliability and validity of the measurement model. The logistic regression is used to investigate the effect of demographics on switching decision. The findings indicate that customer satisfactions, switching barriers, and demographics significantly affect subscribers' intent to switch. Among them, switching barriers had the most significant influence, which raises a question of the effectiveness of MNP. The MNP in the U.S. mobile market is intended to play an important role in lowering switching costs which can increase the level competition among providers. The findings, however, imply that subscribers still perceive switching barrier high, discouraging them from switching carriers.