Mobile-Carrier Churning Behavior Modeling Based on Customer Satisfaction

Abstract

The Japanese mobile phone market is in the matured stage. Under competitive conditions, the most important objective of a mobile-carrier is to increase the market share. The aim of this research is to understand mobile-carrier choice behavior under assumed market conditions. We propose the binary choice models of which alternatives are change to other carrier or not. Three models are constructed based on survey data for three mobile-carriers: NTT docomo, au by KDDI, and Soft Bank. Each model has eight factors expressed by the satisfaction levels for mobile-service characteristics. It is shown that important decision-making factors vary from carrier to carrier. It implies that a mobile carrier should keep and improve the satisfaction level of the important factors in order to increase the market share.