Value, Brand And Relationship Drivers In Cellular Phone Markets

Abstract

The combination of value, brand and relationship strategies to acquire and retain customers has been described as customer equity management. This study used a multinomial logistic model to investigate the economic utility gained by switching brands, as driven by the value offering, the brand and relationship building. A total of 1600 online questionnaires were emailed to an Australian consumer panel. Customers from four mobile telephony networks returned 409 eligible questionnaires. The results confirm larger logistic regression coefficients for value equity. As expected, value is more important to customers locked in by long-term airtime contracts.