Do perceptions of switching costs vary across customers’ household purchase decision roles?

Abstract

ABSTRACT This study investigated whether customers’ perceptions of switching costs varied across customers’ household mobile phone subscription service decision roles. Kruskal-Wallis tests among three customer groups who made self, joint, and no-involvement mobile phone subscription service decisions revealed that customers who made joint subscription service decisions were most likely to perceive switching costs compared to customers in the other two groups. Also, customers who made self-subscription service decisions were least likely to perceive switching costs and most likely to switch to other providers compared to customers in the other two groups. Customers who were not involved in the subscription service decision were least likely to switch. The theoretical and managerial implications of how differences in perception of switching costs and intention to switch affect the pathways to building customer acquisition and retention in the subscription service industry are discussed.