Open Access Open Access  Restricted Access Subscription Access

A Study on Factors Affecting Consumer Churn in The Indian Telecom Industry


Affiliations
1 Vodafone Idea Ltd as General Manager, India
2 Professor, Mittal School of Business, Lovely professional University, Phagwada, Punjab, India
 

Factors affecting consumer churn is important to study in order to reduce the consumer churn for a particular brand in telecom industry. As per research by Verint® Systems Inc with 34000 consumers would wide published in the Forbes 2019, consumer retention is on declining trend, study shows that two third of customers are willing to change the product and service, which may results in churn for existing company. In mobile industry as per data by Telecom Regulatory Authority of India for March’20, 5.74 Million unique porting requests has been generated by Indian mobile consumers which shows the consumer’s intention to change the existing mobile operator. Hence there is opportunity to review the factors affecting consumer churn. In the given paper author tried to find mobile consumer influencing factors that affects the churn and data analysis is done with exploratory factor analysis. Results showed that the Digital Experience, Service Delivery, Consumer interaction, Monitory benefits, and Product promotions significantly contributed in explaining consumer churn.

Keywords

Consumer Churn, Indian Telecom Industry and Consumer Behaviour.
User
Notifications
Font Size

  • Ahmad, S., Srivastava, A., & Sharma, S. (2019). Factors affecting attrition in cellular service subscription. International Journal of Business Excellence, 18(4), 570-581.
  • Akmal, M. (2017). Factor Causing Customer Churn: A Qualitative Explanation of Customer Churns In Pakistan Telecom Industry (Doctoral dissertation, MS Thesis], March).
  • Banda, P. K., & Tembo, S. (2017). Factors Leading to Mobile Telecommunications Customer Churn in Zambia. In International Journal of Engineering Research in Africa (Vol. 31, pp. 143-154). Trans Tech Publications Ltd.
  • Bhale, U., Harpreet, S., & Bedi. (2020). A Qualitative Study On Mobile Number Portability- 7 th Amendment In Indian Telecom. https://www.ijstr.org/final-print/feb2020/A-Qualitative-Study-OnMobile-Number-Portability-7th-Amendment-In-Indian-Telecom.pdf
  • Berson A, Simith S, Thearling K.,(2000). Building data mining applications for CRM, McGrawHill, New York.
  • Caruana, A. (2003). The impact of switching costs on customer loyalty: A study among corporate customers of mobile telephony. Journal of Targeting, Measurement and Analysis for marketing, 12(3), 256-268.
  • Chang, Y.-T. (2009). Applying Data Mining to Telecom Churn Management. International Journal of Reviews in Computing, 67-77.
  • Chih Ping Wei & I-Tang Chiu (2002). Expert Systems with Applications. Volume 23, Issue 2, August 2002, Pages 103–112.
  • Chueh, H. E. (2013). Analysis of marketing data to extract key factors of telecom churn management. African Journal of Business Management, 5(20), 8242-8247.
  • Coussement, K., & Poel, D.V. (2008). Churn prediction in subscription services: An application of support vector machines while comparing two parameter-selection techniques. Expert Syst. Appl., 34, 313-327.
  • Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2010). Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International journal of information management, 30(4), 289-300.
  • Eshghi, A., Haughton, D., & Topi, H. (2007). Determinants of customer loyalty in the wireless telecommunications industry. Telecommunications policy, 31(2), 93-106.
  • Estalami, H., Maxwell, S., Martín‐Consuegra, D., Molina, A., & Esteban, (2007). An integrated model of price, satisfaction and loyalty: an empirical analysis in the service sector. Journal of Product & Brand Management.
  • Ferguson, R., & Brohaugh, B. (2008). Telecom's search for the ultimate customer loyalty platform. Journal of Consumer Marketing.
  • Gautam, P. (2012). Switching behavior of telecom subscribers A case study of subscribers in Punjab and Chandigarh.
  • Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. Journal of marketing, 69(4), 210-218.
  • Hennig‐Thurau, T., & Klee, A. (1997). The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development. Psychology & marketing, 14(8), 737-764.
  • Hyken, S. (2019, October 11). Customer Loyalty And Retention Are In Decline. Retrieved from https://www.forbes.com/sites/shephyken/2019/10/13/customer-loyalty-and-retention-are-in-decline/
  • Jahanzeb, S., & Jabeen, S. (2007). Churn management in the telecom industry of Pakistan: A comparative study of Ufone and Telenor. Journal of Database Marketing & Customer Strategy Management, 14(2), 120-129.
  • Joshi, S. (2014). Customer experience management: An exploratory study on the parameters affecting customer experience for cellular mobile services of a telecom company. Procedia-Social and Behavioral Sciences, 133, 392-399.
  • Kayaalp, F. (2017). Review of customer churn analysis studies in telecommunications industry. Karaelmas Science and Engineering Journal, 7(2), 696-705.
  • Kim, M. K., Park, M. C., &Jeong, D. H. (2004). The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services. Telecommunications policy, 28(2), 145-159.
  • Mahajan, V., & Mahajan, R. (2018). Variable Selection of Customers for Churn Analysis in Telecommunication Industry. International Journal of Virtual Communities and Social Networking (IJVCSN), 10(1), 17-32.
  • Mattison, R. (2006). The telco churn management handbook. Lulu. com.
  • Mahajan, V., Misra, R., & Mahajan, R. (2017). Review on factors affecting customer churn in telecom sector. International Journal of Data Analysis Techniques and Strategies, 9(2), 122-144.
  • Rajeswari, P. &Ravilochanan, P. (2014). An Empirical Model on Customers' Perception in the Selection of Indian Prepaid Mobile Services. Indian Journal of Finance. 8. 28. 10.17010/ijf/2014/v8i7/71905.
  • TRAI(2020).Retrieved20 July 2020, from https://www.trai.gov.in/sites/default/files/PR_No.49of2020_1.pdf
  • Uday, A., &Bhale, H. (2020). A Qualitative Study On Service Channels In The Indian Telecom Industry. https://www.ijstr.org/final-print/mar2020/A-Qualitative-Study-On-Service-Channels-InThe-Indian-Telecom-Industry.pdf
  • Uday, A., Bhale, H., & Singh Bedi. (2020). A Study On The Impact Of Engagement With Service Channels And Factors Affecting Mobile Number Portability.
  • https://www.ijstr.org/final-print/mar2020/A-Study-On-The-Impact-Of-Engagement-With-ServiceChannels-And-Factors-Affecting-Mobile-Number-Portability.pdf

Abstract Views: 292

PDF Views: 154




  • A Study on Factors Affecting Consumer Churn in The Indian Telecom Industry

Abstract Views: 292  |  PDF Views: 154

Authors

Uday Arun Bhale
Vodafone Idea Ltd as General Manager, India
Harpreet Singh Bedi
Professor, Mittal School of Business, Lovely professional University, Phagwada, Punjab, India

Abstract


Factors affecting consumer churn is important to study in order to reduce the consumer churn for a particular brand in telecom industry. As per research by Verint® Systems Inc with 34000 consumers would wide published in the Forbes 2019, consumer retention is on declining trend, study shows that two third of customers are willing to change the product and service, which may results in churn for existing company. In mobile industry as per data by Telecom Regulatory Authority of India for March’20, 5.74 Million unique porting requests has been generated by Indian mobile consumers which shows the consumer’s intention to change the existing mobile operator. Hence there is opportunity to review the factors affecting consumer churn. In the given paper author tried to find mobile consumer influencing factors that affects the churn and data analysis is done with exploratory factor analysis. Results showed that the Digital Experience, Service Delivery, Consumer interaction, Monitory benefits, and Product promotions significantly contributed in explaining consumer churn.

Keywords


Consumer Churn, Indian Telecom Industry and Consumer Behaviour.

References