Factors Affecting Switching Behavior of Mobile Subscribers in Korea

In a mature market, acquiring new subscribers often means taking them away from other service providers, which requires more incentives to make those customers switch. Due to the increased competition, it has become increasingly important for companies to focus on retaining clients. Therefore mobile network operators need to understand the factors that affect customer switching and customer loyalty. This study aims at identifying the most critical factors affecting the customer switching behavior for mobile service providers in Korea. It has been known that three factors such as customer satisfaction, switching cost, and customer loyalty have influences on the switching behavior. This study first reviews from literature the concepts of customer satisfaction, switching cost, and customer loyalty. Then, we investigate the factors that determine customer loyalty in Korean mobile market.