FEATURE PEER-REVIEWED ARTICLE

• DETERMINANTS OF CUSTOMER CHURN: AN EMPIRICAL STUDY OF CELLULAR SUBSCRIBERS FROM SAUDI ARABIA

  Yasir Ali Soomro (Department of Marketing, Faculty of Economics and Administration, King Abdulaziz University, KINGDOM of SAUDI ARABIA),
  Ahmed Nafe Al-Sehli (Department of Business Administration, Faculty of Economics and Administration, King Abdulaziz University, KINGDOM of SAUDI ARABIA).
  

  Disciplinary: Management and Marketing Sciences.

  ➤ FullText

  DOI: 10.14456/ITJEMAST.2020.211

  Keywords: Switching behavior; Service quality, Switching cost; Value-Added services; Client churn rate; Customer churn; Mobile Number Portability (MNP); Pricing structure; Mobile service provider.

  Abstract
  This research main objective finds the determinants of churn that affect the telecom industry of the Kingdom of Saudi Arabia (KSA). To analyze the churn predictions to retain the customers in the telecom industry, the paper takes factors of churns that create obstacles in the retention of the customers. The variables of the study included switching cost, price, value-added services, and service quality relevant to the telecom industry. The questionnaire was created using adopted items from various studies and was used to collect the data from 315 respondents through non-restricted random sampling. Data reliability and analysis were performed on IBM SPSS®20 software and multiple regressions were applied. The key findings that lower switching costs of cellular network providers significantly lead to customer churn (MNP). This study found that switching costs are not considered a factor if a customer is dissatisfied or innovator in nature to try other companies' services. Whereas, low service quality, high price structure, and less value-added encourage customers to switch service. The telecom industry should improve its service quality since it is considered one of the most important factors in churning in any industry. This paper would be highly beneficial for the managers of the telecom industry in KSA and other Middle Eastern telecommunication companies.
  

  Paper ID: 11A11G

  Cite this article:

  Soomro, Y.A., Ahmed Nafe Al-Sehli, A.N. (2020). DETERMINANTS OF CUSTOMER CHURN: AN EMPIRICAL STUDY OF CELLULAR SUBSCRIBERS FROM SAUDI ARABIA. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 11(11), 11A11G, 1-12.