Why Do Customers Keep or Switch Their Mobile Telecommunication Service Provider?

Severe competition among firms is a hallmark of the Korean mobile telecommunications industry, largely because so many similar services are being provided in a saturated market. There are no significant differences among mobile communication providers in terms of 3G quality criteria in the Korean mobile telecommunications market. Further, the switching behaviors of frequent mobile telecommunication services users have been a consequence of the aggressive marketing tactics of each of these mobile telecommunication firms, which make great efforts to lure away their competitor’s customers; the costs associated with these marketing activities amount to at least seven billion dollars, which come directly out of the pockets of the mobile telecommunication service providers. Therefore, it is clearly necessary to assess the efficacy of these marketing activities in luring away competitors’ customers.

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