Examining Customer Switching Behavior in Cellular Industry

Abstract

Although technology evolves over the year, people take it longer to accept it. The invention of touch screen mobiles or smart phones has now become a need of the hour, simultaneously lowering the demand for keypad mobiles. Our research investigates these switching intentions among people due to the adoption of the new technology. Customer defection is happens when people give up one service provider for another in order to get equipped with the latest gadgets. Survey research method was employed. Questionnaires were distributed among cellular phone users in Bahawalpur. Valid questionnaires (n=170) were filled and returned. Regression analysis was used to analyze the data. PEOU and PU are directly related which has a positive relationship with switching intentions. Also, switching costs and customer loyalty are positively associated. Overall, this research explains that perceived usefulness play a major role in determining customer’s switching intentions and that the companies should increase their switching costs to enhance customer loyalty.