Customer Retention and Telecommunications Services in Bangladesh

Abstract

The telecommunication service in Bangladesh entered into a new transition period of its growth. The industry is moving its strategic focus on attracting new customer rather than retaining existing one through customer satisfaction strategy, referring as a fundamental marketing strategy during the past few decades. The study aims to explore the antecedents of customer satisfaction and retention behavior. Current study applies structural equation modeling via partial least squares with samples of 245 subscribers from 5 telecommunication service companies. The findings support the importance of customer satisfaction in building buyer-seller relationship, and reveal customer retention is the precursor of company’s profit. The study’s contribution to the literature is to scrutinize, empirically, the main antecedents of this endogenous variable in greater depth.