IDEAS home Printed from https://ideas.repec.org/a/pal/jmarka/v12y2024i3d10.1057_s41270-023-00222-w.html
   My bibliography  Save this article

A closer look at customer experience with bundle telecommunication services and its impacts on satisfaction and switching intention

Author

Listed:
  • Hugo Ribeiro

    (Aveiro University)

  • Belém Barbosa

    (University of Porto)

  • António C. Moreira

    (Aveiro University
    INESCTEC—Institute for Systems and Computer Engineering, Technology and Science
    NECE-UBI—Research Center for Business Sciences, Universidade da Beira Interior)

  • Ricardo Rodrigues

    (Universidade da Beira Interior, NECE-UBI)

Abstract

The telecommunications sector faces a major challenge of high customer churn. Despite this, there is still a lack of research that explores the switching intention for telecommunication services, particularly with bundle services that currently dominate the market. This study aims to provide insight into consumer behaviour regarding bundle telecommunication services by examining the factors that impact satisfaction and switching intention, both directly and indirectly. Eighteen hypotheses were defined based on the literature, and were tested through a quantitative study with 910 bundle service customers using structural equation modelling with Smart-PLS. The results show that internet and television services have the strongest indirect impact on switching intention, mediated by overall satisfaction and loyalty. Additionally, the results indicate that switching costs and barriers do not significantly affect switching intention, and surprisingly, perceived contractual lock-in positively influences switching intention. This study provides a comprehensive understanding of the customer experience with bundled telecommunications services and offers relevant insights for telecommunication managers to prevent customer loss to competitors.

Suggested Citation

  • Hugo Ribeiro & Belém Barbosa & António C. Moreira & Ricardo Rodrigues, 2024. "A closer look at customer experience with bundle telecommunication services and its impacts on satisfaction and switching intention," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(3), pages 668-686, September.
  • Handle: RePEc:pal:jmarka:v:12:y:2024:i:3:d:10.1057_s41270-023-00222-w
    DOI: 10.1057/s41270-023-00222-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41270-023-00222-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41270-023-00222-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zanna Aa & Josée Bloemer & Jörg Henseler, 2015. "Using customer contact centres as relationship marketing instruments," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 185-208, June.
    2. Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
    3. Oliver, Richard L & Swan, John E, 1989. "Equity and Disconfirmation Perceptions as Influences on Merchant and Product Satisfaction," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(3), pages 372-383, December.
    4. Veloutsou, Cleopatra & Moutinho, Luiz, 2009. "Brand relationships through brand reputation and brand tribalism," Journal of Business Research, Elsevier, vol. 62(3), pages 314-322, March.
    5. Eshghi, Abdolreza & Haughton, Dominique & Topi, Heikki, 2007. "Determinants of customer loyalty in the wireless telecommunications industry," Telecommunications Policy, Elsevier, vol. 31(2), pages 93-106, March.
    6. Yonggui Wang & Hing-Po Lo & Yongheng Yang, 2004. "An Integrated Framework for Service Quality, Customer Value, Satisfaction: Evidence from China's Telecommunication Industry," Information Systems Frontiers, Springer, vol. 6(4), pages 325-340, December.
    7. Vishal Mahajan & Richa Misra & Renuka Mahajan, 2017. "Review on factors affecting customer churn in telecom sector," International Journal of Data Analysis Techniques and Strategies, Inderscience Enterprises Ltd, vol. 9(2), pages 122-144.
    8. Gary Davies & Rosa Chun & Michael A. Kamins, 2010. "Reputation gaps and the performance of service organizations," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 530-546, May.
    9. Sarkar Sengupta, Aditi & Balaji, M.S. & Krishnan, Balaji C., 2015. "How customers cope with service failure? A study of brand reputation and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(3), pages 665-674.
    10. Johnson, Michael D & Anderson, Eugene W & Fornell, Claes, 1995. "Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(4), pages 695-707, March.
    11. Jeffrey Prince & Shane Greenstein, 2014. "Does Service Bundling Reduce Churn?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(4), pages 839-875, December.
    12. Pham Ngoc Thuy & Le Nguyen Hau & Felicitas Evangelista, 2016. "Service value and switching barriers: a personal values perspective," The Service Industries Journal, Taylor & Francis Journals, vol. 36(3-4), pages 142-162, February.
    13. Pei-Yu (Sharon) Chen & Lorin M. Hitt, 2002. "Measuring Switching Costs and the Determinants of Customer Retention in Internet-Enabled Businesses: A Study of the Online Brokerage Industry," Information Systems Research, INFORMS, vol. 13(3), pages 255-274, September.
    14. Jan Becker & Martin Spann & Timo Schulze, 2015. "Implications of minimum contract durations on customer retention," Marketing Letters, Springer, vol. 26(4), pages 579-592, December.
    15. Seyed Mohammad Mosavi & Mohamad Sadegh Sangari & Abbas Keramati, 2018. "An integrative framework for customer switching behavior," The Service Industries Journal, Taylor & Francis Journals, vol. 38(15-16), pages 1067-1094, December.
    16. Keramati, Abbas & Ardabili, Seyed M.S., 2011. "Churn analysis for an Iranian mobile operator," Telecommunications Policy, Elsevier, vol. 35(4), pages 344-356, May.
    17. Paraskevi Sarantidou, 2017. "Enriching the ECSI model using brand strength in the retail setting," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 26(3), pages 294-312, October.
    18. Amin, Adnan & Al-Obeidat, Feras & Shah, Babar & Adnan, Awais & Loo, Jonathan & Anwar, Sajid, 2019. "Customer churn prediction in telecommunication industry using data certainty," Journal of Business Research, Elsevier, vol. 94(C), pages 290-301.
    19. Stephanie Lee, 2017. "Does Bundling Decrease the Probability of Switching Telecommunications Service Providers?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(3), pages 303-322, May.
    20. Johnson, Michael D. & Fornell, Claes, 1991. "A framework for comparing customer satisfaction across individuals and product categories," Journal of Economic Psychology, Elsevier, vol. 12(2), pages 267-286, June.
    21. Izogo, Ernest Emeka, 2015. "Determinants of attitudinal loyalty in Nigerian telecom service sector: Does commitment play a mediating role?," Journal of Retailing and Consumer Services, Elsevier, vol. 23(C), pages 107-117.
    22. Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    23. García-Mariñoso, Begoña & Suárez, David, 2019. "Switching mobile operators: Evidence about consumers’ behavior from a longitudinal survey," Telecommunications Policy, Elsevier, vol. 43(5), pages 426-433.
    24. Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
    25. Miguel Godinho de Matos & Pedro Ferreira & Rodrigo Belo, 2018. "Target the Ego or Target the Group: Evidence from a Randomized Experiment in Proactive Churn Management," Marketing Science, INFORMS, vol. 37(5), pages 793-811, September.
    26. Thaichon, Paramaporn & Lobo, Antonio & Prentice, Catherine & Quach, Thu Nguyen, 2014. "The development of service quality dimensions for internet service providers: Retaining customers of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 1047-1058.
    27. Revilla-Camacho, María-Ángeles & Cossío-Silva, Francisco-José & Palacios-Florencio, Beatriz, 2017. "Corporate Responsibility Under The Ecsi Model: An Application In The Hotel Sector Capital," European Research on Management and Business Economics (ERMBE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 23(1), pages 23-32.
    28. Mithat Üner, M. & Güven, Faruk & Tamer Cavusgil, S., 2015. "Bundling of telecom offerings: An Empirical Investigation in the Turkish market," Telecommunications Policy, Elsevier, vol. 39(1), pages 53-64.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hugo Ribeiro & Belém Barbosa & António Carrizo Moreira & Ricardo Gouveia Rodrigues, 2024. "Determinants of churn in telecommunication services: a systematic literature review," Management Review Quarterly, Springer, vol. 74(3), pages 1327-1364, September.
    2. García-Mariñoso, Begoña & Suárez, David, 2019. "Switching mobile operators: Evidence about consumers’ behavior from a longitudinal survey," Telecommunications Policy, Elsevier, vol. 43(5), pages 426-433.
    3. Uner, M.Mithat & Guven, Faruk & Cavusgil, S.Tamer, 2020. "Churn and loyalty behavior of Turkish digital natives: Empirical insights and managerial implications," Telecommunications Policy, Elsevier, vol. 44(4).
    4. Guven, Faruk, 2018. "Churn and loyalty behaviour of Turkish digital natives," 29th European Regional ITS Conference, Trento 2018 184943, International Telecommunications Society (ITS).
    5. Tim Burnett, 2014. "The Impact of Service Bundling on Consumer Switching Behaviour: Evidence from UK Communication Markets," The Centre for Market and Public Organisation 14/321, The Centre for Market and Public Organisation, University of Bristol, UK.
    6. Reiko Murakami, 2022. "Consumer switching behavior and bundling: an empirical study of Japan’s retail energy markets," International Journal of Economic Policy Studies, Springer, vol. 16(2), pages 443-463, August.
    7. Mueller, Milton L. & Park, Yuri & Lee, Jongsu & Kim, Tai-Yoo, 2006. "Digital identity: How users value the attributes of online identifiers," Information Economics and Policy, Elsevier, vol. 18(4), pages 405-422, November.
    8. Wajeeha Aslam & Reema Frooghi, 2018. "Switching Behaviour of Young Adults in Cellular Service Industry: An Empirical Study of Pakistan," Global Business Review, International Management Institute, vol. 19(3), pages 635-649, June.
    9. Shu He & Jing Peng & Jianbin Li & Liping Xu, 2020. "Impact of Platform Owner’s Entry on Third-Party Stores," Information Systems Research, INFORMS, vol. 31(4), pages 1467-1484, December.
    10. Lucio Fuentelsaz & Juan Pablo Maicas & Yolanda Polo, 2012. "Switching Costs, Network Effects, and Competition in the European Mobile Telecommunications Industry," Information Systems Research, INFORMS, vol. 23(1), pages 93-108, March.
    11. Calzada, Joan & García-Mariñoso, Begoña & Suárez, David, 2023. "Do telecommunications prices depend on consumer engagement?," Information Economics and Policy, Elsevier, vol. 62(C).
    12. Dennis Campbell & Frances Frei, 2010. "Cost Structure, Customer Profitability, and Retention Implications of Self-Service Distribution Channels: Evidence from Customer Behavior in an Online Banking Channel," Management Science, INFORMS, vol. 56(1), pages 4-24, January.
    13. Deng, Zhaohua & Lu, Yaobin & Wei, Kwok Kee & Zhang, Jinlong, 2010. "Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China," International Journal of Information Management, Elsevier, vol. 30(4), pages 289-300.
    14. Yu, Eun & Jung, Jaemin, 2018. "Towards Quadruple-Play Service: Both Individual and Household Level Analyses on Mobile Bundle," 29th European Regional ITS Conference, Trento 2018 184972, International Telecommunications Society (ITS).
    15. repec:bri:cmpowp:13/321 is not listed on IDEAS
    16. Gabrielsen, Tommy Staahl & Vagstad, Steinar, 2003. "Consumer heterogeneity, incomplete information and pricing in a duopoly with switching costs," Information Economics and Policy, Elsevier, vol. 15(3), pages 384-401, September.
    17. Michael Wohlfarth, 2019. "Data Portability on the Internet," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(5), pages 551-574, October.
    18. Shane S. Dikolli & William R. Kinney & Karen L. Sedatole, 2007. "Measuring Customer Relationship Value: The Role of Switching Cost," Contemporary Accounting Research, John Wiley & Sons, vol. 24(1), pages 93-132, March.
    19. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2019. "Determinants of subscriptions to communications service bundles and their effects on customer retention in Korea," Telecommunications Policy, Elsevier, vol. 43(9).
    20. Wohlfarth, Michael, 2017. "Data Portability on the Internet: An Economic Analysis," 28th European Regional ITS Conference, Passau 2017 169506, International Telecommunications Society (ITS).
    21. Ezlika Ghazali & Bang Nguyen & Dilip S. Mutum & Amrul Asraf Mohd-Any, 2016. "Constructing online switching barriers: examining the effects of switching costs and alternative attractiveness on e-store loyalty in online pure-play retailers," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 157-171, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jmarka:v:12:y:2024:i:3:d:10.1057_s41270-023-00222-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.