IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v21y2022i4d10.1057_s41272-021-00367-2.html
   My bibliography  Save this article

Is price a significant predictor of the churn behavior during the global pandemic? A predictive modeling on the telecom industry

Author

Listed:
  • Vishal Shukla

    (Presidency University)

  • Sanjeev Prashar

    (Indian Institute of Management)

  • Bhartrihari Pandiya

    (Presidency College)

Abstract

The recent pandemic has affected the world in many aspects including, communication. Telecom and internet-based communication have witnessed a drastic upsurge due to lockdown and consequent work-from-home situation, being termed as the new normal. Due to the low switching costs and stiff competition, telecom service providers are struggling hard to attract new customers and prevent the existing ones from switching to rival telecom service providers. Hence this study is undertaken with an aim to discover the key factors in the order of their relative worth that could be focused upon by the telecom companies to prevent their customers from churning. For the study, linear discriminant analysis was applied on the collected dataset to predict the customers’ churn behavior. It was found that tariff rates for domestic calls and the number of calls made to the customer service were the significant predictors of the customer churn behavior.

Suggested Citation

  • Vishal Shukla & Sanjeev Prashar & Bhartrihari Pandiya, 2022. "Is price a significant predictor of the churn behavior during the global pandemic? A predictive modeling on the telecom industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(4), pages 470-483, August.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:4:d:10.1057_s41272-021-00367-2
    DOI: 10.1057/s41272-021-00367-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-021-00367-2
    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/s41272-021-00367-2?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. Suresh K. Chadha & Namita Bhandari, 2014. "Determinants of Customer Switching towards Mobile Number Portability," Paradigm, , vol. 18(2), pages 199-219, December.
    2. Laato, Samuli & Islam, A.K.M. Najmul & Farooq, Ali & Dhir, Amandeep, 2020. "Unusual purchasing behavior during the early stages of the COVID-19 pandemic: The stimulus-organism-response approach," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    3. De’, Rahul & Pandey, Neena & Pal, Abhipsa, 2020. "Impact of digital surge during Covid-19 pandemic: A viewpoint on research and practice," International Journal of Information Management, Elsevier, vol. 55(C).
    4. Van den Poel, Dirk & Lariviere, Bart, 2004. "Customer attrition analysis for financial services using proportional hazard models," European Journal of Operational Research, Elsevier, vol. 157(1), pages 196-217, August.
    5. Sourav Bikash Borah & Srinivas Prakhya & Amalesh Sharma, 2020. "Leveraging service recovery strategies to reduce customer churn in an emerging market," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 848-868, September.
    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. Sigitas Urbonavicius & Karina Adomaviciute – Sakalauske, 2023. "Learning from Pandemic Periods: Elements of the Theory of Behavioral Transformation," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 35(2), pages 251-266.
    2. Goel, Pooja & Parayitam, Satyanarayana & Sharma, Anuj & Rana, Nripendra P. & Dwivedi, Yogesh K, 2022. "A moderated mediation model for e-impulse buying tendency, customer satisfaction and intention to continue e-shopping," Journal of Business Research, Elsevier, vol. 142(C), pages 1-16.
    3. Vijayakumar Bharathi S & Dhanya Pramod & Ramakrishnan Raman, 2022. "An Ensemble Model for Predicting Retail Banking Churn in the Youth Segment of Customers," Data, MDPI, vol. 7(5), pages 1-15, May.
    4. Erjavec, Jure & Manfreda, Anton, 2022. "Online shopping adoption during COVID-19 and social isolation: Extending the UTAUT model with herd behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    5. Ali Zackery & Joseph Amankwah-Amoah & Zahra Heidari Darani & Shiva Ghasemi, 2022. "COVID-19 Research in Business and Management: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(16), pages 1-32, August.
    6. Ava Francesca Battocchio & Kjerstin Thorson & Dan Hiaeshutter-Rice & Marisa Smith & Yingying Chen & Stephanie Edgerly & Kelley Cotter & Hyesun Choung & Chuqing Dong & Moldir Moldagaliyeva & Christophe, 2023. "Who Will Tell the Stories of Health Inequities? Platform Challenges (and Opportunities) in Local Civic Information Infrastructure," The ANNALS of the American Academy of Political and Social Science, , vol. 707(1), pages 144-171, May.
    7. Farooq, Ali & Laato, Samuli & Islam, A.K.M. Najmul & Isoaho, Jouni, 2021. "Understanding the impact of information sources on COVID-19 related preventive measures in Finland," Technology in Society, Elsevier, vol. 65(C).
    8. Yen-Chun Chou & Howard Hao-Chun Chuang, 2018. "A predictive investigation of first-time customer retention in online reservation services," Service Business, Springer;Pan-Pacific Business Association, vol. 12(4), pages 685-699, December.
    9. Talwar, Manish & Talwar, Shalini & Kaur, Puneet & Tripathy, Naliniprava & Dhir, Amandeep, 2021. "Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    10. Liu, Hongfei & Liu, Wentong & Yoganathan, Vignesh & Osburg, Victoria-Sophie, 2021. "COVID-19 information overload and generation Z's social media discontinuance intention during the pandemic lockdown," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    11. Agrawal, Shiv Ratan & Mittal, Divya, 2022. "Optimizing customer engagement content strategy in retail and E-tail: Available on online product review videos," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    12. De Caigny, Arno & Coussement, Kristof & De Bock, Koen W. & Lessmann, Stefan, 2020. "Incorporating textual information in customer churn prediction models based on a convolutional neural network," International Journal of Forecasting, Elsevier, vol. 36(4), pages 1563-1578.
    13. Agarwal, Reeti & Mehrotra, Ankit & Sharma, Veenu & Papa, Armando & Malibari, Areej, 2023. "Over-the-top (OTT) retailing in the post pandemic world. Unveiling consumer drivers and barriers using a qualitative study," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    14. Arno de Caigny & Kristof Coussement & Koen de Bock, 2020. "Leveraging fine-grained transaction data for customer life event predictions," Post-Print hal-02507998, HAL.
    15. Liu, Zhenkun & Zhang, Ying & Abedin, Mohammad Zoynul & Wang, Jianzhou & Yang, Hufang & Gao, Yuyang & Chen, Yinghao, 2024. "Profit-driven fusion framework based on bagging and boosting classifiers for potential purchaser prediction," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    16. Jiang, Yangyang & Stylos, Nikolaos, 2021. "Triggers of consumers’ enhanced digital engagement and the role of digital technologies in transforming the retail ecosystem during COVID-19 pandemic," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    17. Amir Gandomi & Amirhossein Bazargan & Saeed Zolfaghari, 2019. "Designing competitive loyalty programs: a stochastic game-theoretic model to guide the choice of reward structure," Annals of Operations Research, Springer, vol. 280(1), pages 267-298, September.
    18. Cheng Liu & Cheuk-Kwan Sun & Yu-Chia Chang & Shang-Yu Yang & Tao Liu & Cheng-Chia Yang, 2021. "The Impact of the Fear of COVID-19 on Purchase Behavior of Dietary Supplements: Integration of the Theory of Planned Behavior and the Protection Motivation Theory," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    19. Lariviere, Bart & Van den Poel, Dirk, 2007. "Banking behaviour after the lifecycle event of "moving in together": An exploratory study of the role of marketing investments," European Journal of Operational Research, Elsevier, vol. 183(1), pages 345-369, November.
    20. Sebastian Schmidt & Christoph Benke & Christiane A Pané-Farré, 2021. "Purchasing under threat: Changes in shopping patterns during the COVID-19 pandemic," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-15, June.

    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:jorapm:v:21:y:2022:i:4:d:10.1057_s41272-021-00367-2. 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.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.