An Examination of the Switching Behavior of the Customers in Cellular Industry of Pakistan

Abstract

There is strong competition and rapid change in technology cell phone industry. Cellular industry has to build up customer-oriented strategies in order to compete effectively in the competitive environment. The longer a brand can retain a customer, the greater revenue and cost savings from that customer. Pakistani customer have greater choices between multiple cell phone brands. This study aims to identify and analyses the factors that influence cell phone users and adoption of high technology cell phone brands.

Facts and figures for this research were collected by using a convenience Sample of 160 cell phone users in Bahawalpur City, Punjab Province, Pakistan. The decision to switch the cell phone brand or to be loyal with current cellular brand is hypothesized to be a function of customer satisfaction that is ultimately has strong relation with, service quality and brand commitment, switching cost also has great impact on the both dimension of customer either to be loyal with brand or to switch. Here switching cost also play very important role to keep customer loyal with brand.

The research findings reveal that service quality brand commitment impact on customer’s satisfaction level. As this level increase, it makes a customer loyal and in decrease in satisfaction level leads to switching behavior of customer. Switching cost also play a key role to keep loyal a customer even if he/she want to change the cell phone brand. The findings also reveal that the young and high-income groups are more likely to switch towards high technology cell phone brand.