Determinants of Customer Switching Behaviour in Mobile Telecommunication Industry in South-South Nigeria

Abstract

The study examined the determinants of customers’ switching behaviour in mobile telecommunications industry in South-South Nigeria. The main objective of the study was to explore the factors influencing customers’ switching behaviour in the mobile telecommunications industry and in specific terms, determine whether price, reputation, service quality, promotional package and switching cost did have a significant and positive influence on customers’ switching behaviour. The unit of analysis comprised 400 mobile telecommunication subscribers drawn from six cities in the South-South geopolitical zone of Nigeria. The study units were selected using a proportionate stratified sampling technique and the data obtained from the process were analysed with descriptive statistic using Statistical Package for Social Sciences (SPSS) version 23 software. Conceptual hypothesized relationships involving the independent and dependent variables formulated from the research model were tested with multiple regression analysis technique. The findings of the study revealed that reputation, service quality, promotional package and switching cost had a strong and positive relationship with customers’ switching behaviour but price and involuntary switching seemed to have the least significant relationship. It showed that those factors were very important determinants of customers’ decision to switch from one mobile telecommunications provider to another except price and involuntary switching as earlier stated. The key recommendations from the study were that managers of mobile telecommunications companies should develop proper pricing strategies that were remarkably different in terms of moderate call rates and data charges to prevent customer switching. Secondly, plans could be put in place by management that would encourage the development of trust and confidence through the provision of timely quality services and ensure good network coverage. Finally, managers should ensure that promotional campaigns were aimed at building relationships. In conclusion, it is quite important that managers should have adequate knowledge of the determinants of customers’ switching behaviour established in the study so as to put in place preventive measures that will enhance customers’ retention of improved sales and profitability. The study made a significant contribution by identifying customers’ perceptions of marketing variables that could affect switching.