An Empirical Examination of Customer Retention in Mobile Telecommunication Services in Australia

Hassan Shakil Bhatti, Ahmad Abareshi, Siddhi Pittayachawan

Abstract

The service quality has an impact on customer satisfaction and retention. From Telecommunication annual reports it has been investigated that there are service quality issues due to high complaints in Australia and it can affect end customers and businesses (TIO, 2013, ACMA, 2013). Factors such as behavioural intention which leads to customer intention to repurchase the service are measured through the Unified Theory of Acceptance and Use of Technology (UTAUT2), Marketing Mix Theory and Expectation Confirmation Theory (ECT). Similarly, researchers have studied the habit, hedonic motivation, customer satisfaction, customer experience, marketing mix factors relationship by empirical testing. There has been very little research in the area of customer retention in mobile telecommunication services. Drawing upon theories of marketing mix, ECT and UTAUT2, this study aims to determine what factors affect customer retention in mobile telecommunication services in Australia. Data gathering will be done through online surveys from Australian consumers. Quantitative data analysis techniques, structural equation modelling (SEM) will be used for data analysis. This study will contribute to the customer retention literature through a theoretical framework that shows how the customer retention can be generated in mobile telecommunication services. Additionally, this study will help businesses to have understanding of how to retain their customers which will result in higher business revenues.

References

  1. Abubakar, F. M. and H. Ahmed (2013). The moderating effect of technology awareness on the relationship between UTAUT constructs and behavioral intention to use technology: A conceptual paper. Australian Journal of Business and Management Research 3(2) 14-23.
  2. ACMA. (2013). Annual report 2012-13 [online]. Available at: http://www.acma.gov.au/theACMA/annual-report2012--13 [Accessed 07/09/2014 2014].
  3. Anaman, M. (2010). Toward a model of customer experience. Brunel University, School of Information Systems, Computing and Mathematics.
  4. Chang, P. and H. Chong (2011). Customer satisfaction and loyalty on service provided by malaysian telecommunication companies. Electrical Engineering and Informatics (ICEEI), 2011 International Conference on, IEEE.
  5. Chatura, R. and P. Jaideep (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management 14(4) 374-395.
  6. Chomley, P. M. M. (2014). The relationship between knowledge sharing and workplace innovation in a transnational corporation: A behavioral Perspective. Thesis, School of Management, College of Business RMIT University.
  7. Chou, P.-F., C.-S. Lu and Y.-H. Chang (2014). Effects of service quality and customer satisfaction on customer loyalty in high-speed rail services in Taiwan.
  8. Churchill Jr, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of marketing research 64-73.
  9. De Canniere, M. H., P. De Pelsmacker and M. Geuens (2009). Relationship Quality and the Theory of Planned Behavior models of behavioral intentions and purchase behavior. Journal of business research 62(1) 82-92.
  10. Deng, Z., et al. (2010). Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International Journal of Information Management 30(4) 289-300.
  11. Edward, M. and S. Sahadev (2011). Role of switching costs in the service quality, perceived value, customer satisfaction and customer retention linkage. Asia Pacific Journal of Marketing and Logistics 23(3) 327-345.
  12. Escobar-Rodríguez, T. and E. Carvajal-Trujillo (2013). Online drivers of consumer purchase of website airline tickets. Journal of Air Transport Management 32(0) 58- 64.
  13. Gerpott, T. J., W. Rams and A. Schindler (2001). Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market. Telecommunications policy 25(4) 249-269.
  14. Ha, J. and S. Jang (2009). Perceived justice in service recovery and behavioral intentions: The role of relationship quality. International Journal of Hospitality Management 28(3) 319-327.
  15. Hopewell, L. (2014). http://www.gizmodo.com.au/2014/ 07/vodafone-plans-massive-4g-network-expansion/.
  16. Islam, M. B. and A. R. Rima (2013). Factors Affecting Customer Experience in Telecommunication Services and its Importance on Brand Equity: A Study on Telecommunication Companies in Bangladesh.
  17. Karatepe, O. M. (2006). Customer complaints and organizational responses: the effects of complainants' perceptions of justice on satisfaction and loyalty. International Journal of Hospitality Management 25(1) 69-90.
  18. Kassim, N. M. (2006). Telecommunication industry in Malaysia: demographics effect on customer expectations, performance, satisfaction and retention. Asia Pacific Business Review 12(4) 437-463.
  19. Kaur, P. and D. S. K. Sharma (2015). Validating scale on determinants affecting complaining intentions & its applicability for indian service industry. International Journal of Applied Services Marketing Perspectives 3(4) 1365-1372.
  20. Kuo, Y.-F. and S.-N. Yen (2009). Towards an understanding of the behavioral intention to use 3G mobile value-added services. Computers in Human Behavior 25(1) 103-110.
  21. Lee, M.-C. (2010). Explaining and predicting users' continuance intention toward e-learning: An extension of the expectation-confirmation model. Computers & Education 54(2) 506-516.
  22. Lee, Y.-K., W.-K. Ahn and K. Kim (2008). A study on the moderating role of alternative attractiveness in the relationship between relational benefits and customer loyalty. International Journal of hospitality & tourism administration 9(1) 52-70.
  23. Liang, T.-P., et al. (2011). What drives social commerce: The role of social support and relationship quality. International Journal of Electronic Commerce 16(2) 69-90.
  24. Limayem, M., S. G. Hirt and C. M. Cheung (2007). How habit limits the predictive power of intention: The case of information systems continuance. MIS quarterly 705-737.
  25. Lin, J.-S. C. and P.-L. Hsieh (2011). Assessing the Selfservice Technology Encounters: Development and Validation of SSTQUAL Scale. Journal of Retailing 87(2) 194-206.
  26. Liu, C.-T., Y. M. Guo and C.-H. Lee (2011). The effects of relationship quality and switching barriers on customer loyalty. International Journal of Information Management 31(1) 71-79.
  27. Lopez-Nicolas, C., F. J. Molina-Castillo and H. Bouwman (2008). An assessment of advanced mobile services acceptance: Contributions from TAM and diffusion theory models. Information & Management 45(6) 359- 364.
  28. Maklan, S. and P. Klaus (2011). Customer experience: are we measuring the right things? International Journal of Market Research 53(6) 771-792.
  29. Mandal, D. and R. J. McQueen (2012). Extending UTAUT to explain social media adoption by microbusinesses. International Journal of Managing Information Technology 4 (4) 1-11.
  30. McCarthy, E. J. (1960). Basic marketing: a managerial approach. Homewood, IL: Richard D. Irwin. Inc., 1979 McCarthy Basic Marketing: A Managerial Approach 1979.
  31. Meyer, C. and A. Schwager (2007). Understanding customer experience. Harvard business review 85(2) 116.
  32. Morgan. (2014). Telstra scores biggest gains in consumer mobile service market share in 2013 with four quarters of growth [online]. Available at: http://roymorgan.com //media/Files/Findings%20PDF/2014/March/5472- mobile-phone-services-in-operation-market-sharesdecember-2013.pdf [Accessed 21/12/2014 2014].
  33. news (2012). Vodafone has lowest customer satisfaction of all telcos, study reveals.
  34. News (2014). Optus losing customers and revenue.
  35. Olsen, S. O. (2002). Comparative evaluation and the relationship between quality, satisfaction, and repurchase loyalty. Journal of the academy of marketing science 30(3) 240-249.
  36. Ray, I. and L. Chiagouris (2009). Customer retention: Examining the roles of store affect and store loyalty as mediators in the management of retail strategies. Journal of Strategic Marketing 17(1) 1-20.
  37. Reichheld, et al. (1989). Zero defections: quality comes to services. Harvard business review 68(5) 105-111.
  38. Roberts-Lombard, M. (2009). Customer retention strategies implemented by fast-food outlets in the Gauteng, Western Cape and Kwazulu-Natal provinces of South Africa-a focus on Something Fishy, Nandos and Steers. African journal of marketing management 1(2) 070-080.
  39. Roca, J. C., C.-M. Chiu and F. J. Martínez (2006). Understanding e-learning continuance intention: An extension of the Technology Acceptance Model. International Journal of Human-Computer Studies 64 (8) 683-696.
  40. Santouridis, I. and P. Trivellas (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal 22(3) 330-343.
  41. Straub, D., M.-C. Boudreau and D. Gefen (2004). Validation guidelines for IS positivist research. The Communications of the Association for Information Systems 13(1) 63.
  42. Taylor, J. (2013). Optus loses customers amid 4G growth.
  43. TIO. (2010). Telecommunications Industry Ombudsman 2010 Annual Report [online]. Available at: http://www.tio.com.au/__data/assets/pdf_file/0016/14 1262/AR_2010_complete.pdf [Accessed 07/09/2014 2014].
  44. TIO. (2012). Telecommunications Industry Ombudsman 2012 Annual Report [online]. Available at: http://www.tio.com.au/__data/assets/pdf_file/0017/14 1263/AR_2012_complete.pdf [Accessed 07/09/2014 2014].
  45. TIO. (2013). Telecommunications Industry Ombudsman 2013 Annual Report [online]. Available at: http://www.tio.com.au/__data/assets/pdf_file/0018/14 1264/2013-AR.pdf [Accessed 07/09/2014 2014].
  46. TIO (2014). Telecommunications Industry Ombudsman 2014 Annual Report
  47. Tsai, H.-T. and H.-C. Huang (2007). Determinants of erepurchase intentions: An integrative model of quadruple retention drivers. Information & Management 44(3) 231-239.
  48. Uma, S. and B. Roger (2003). Research methods for business: A skill building approach. John Wiley and Sons Inc., New York.
  49. Van Vuuren, Roberts-Lombard and Van Tonder (2013). Customer satisfaction, trust and commitment as predictors of customer loyalty within an optometric practice environment. Southern African Business Review 16(3) 81-96.
  50. Vatanasombut, B., et al. (2008). Information systems continuance intention of web-based applications customers: The case of online banking. Information & Management 45(7) 419-428.
  51. Venkatesh, V., et al. (2003). User acceptance of information technology: Toward a unified view. MIS quarterly 425-478.
  52. Venkatesh, V., J. Y. Thong and X. Xu (2012). Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS quarterly 36(1) 157-178.
  53. Wangpipatwong, S., W. Chutimaskul and B. Papasratorn (2008). Understanding citizen's continuance intention to use e-government website: A composite view of technology acceptance model and computer selfefficacy. The electronic journal of e-government 6(1) 55-64.
  54. Wu, Y.-L., Y.-H. Tao and P.-C. Yang (2008). The use of unified theory of acceptance and use of technology to confer the behavioral model of 3G mobile telecommunication users. Journal of Statistics and Management Systems 11(5) 919-949.
  55. Yadav, R., et al. (2016). A multi-analytical approach to understand and predict the mobile commerce adoption. Journal of enterprise information management 29(2).
  56. Zhao, L., et al. (2012). Assessing the effects of service quality and justice on customer satisfaction and the continuance intention of mobile value-added services: An empirical test of a multidimensional model. Decision Support Systems 52(3) 645-656.
  57. Zhou, T. (2013). An empirical examination of continuance intention of mobile payment services. Decision Support Systems 54(2) 1085-1091.
  58. Zhou, T. and Y. Lu (2011). Examining Postadoption Usage of Mobile Services From a Dual Perspective of Enablers and Inhibitors. International Journal of Human-Computer Interaction 27(12) 1177-1191.
Download


Paper Citation


in Harvard Style

Bhatti H., Abareshi A. and Pittayachawan S. (2016). An Empirical Examination of Customer Retention in Mobile Telecommunication Services in Australia . In Proceedings of the 13th International Joint Conference on e-Business and Telecommunications - Volume 2: ICE-B, (ICETE 2016) ISBN 978-989-758-196-0, pages 72-77. DOI: 10.5220/0005951900720077


in Bibtex Style

@conference{ice-b16,
author={Hassan Shakil Bhatti and Ahmad Abareshi and Siddhi Pittayachawan},
title={An Empirical Examination of Customer Retention in Mobile Telecommunication Services in Australia},
booktitle={Proceedings of the 13th International Joint Conference on e-Business and Telecommunications - Volume 2: ICE-B, (ICETE 2016)},
year={2016},
pages={72-77},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0005951900720077},
isbn={978-989-758-196-0},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 13th International Joint Conference on e-Business and Telecommunications - Volume 2: ICE-B, (ICETE 2016)
TI - An Empirical Examination of Customer Retention in Mobile Telecommunication Services in Australia
SN - 978-989-758-196-0
AU - Bhatti H.
AU - Abareshi A.
AU - Pittayachawan S.
PY - 2016
SP - 72
EP - 77
DO - 10.5220/0005951900720077