Analysis of Customer Switching Behavior in GSM Service
RATIH PRAPTI HANDAYANI (Pembimbing: Sahid Susilo Nugroho, Dr., M.Sc.), Sahid Susilo Nugroho, Dr., M.Sc.
The fact that demands for mobility increase makes the number of cell phone users in Indonesia also increase. It pushes the service providers to compete in taking attractive policy by arranging programs that will give facilitation and cheap service package for their customers. Various choices of brand offer different specialty and do kinds of marketing campaign to make their selling volume higher. Those things make churn rate in telecommunication industry increase.
Excelcomindo Pratama Tbk. as the third biggest provider in Indonesia with its prepaid card called XL Bebas has noted that in the first quarter of 2009, its churn rate amounted to one million subscribers or estimated to be approximately 10% per month. Regarding the issue, this research is written to identify and analyze factors that influence customer switching behavior. This research uses customer switching behavior model proposed by Keaveney (1995) which states that pricing, inconvenience, core service failure, service encounters failure, employee responses to service failure, competition, ethical problems, and involuntary switching are factors that influence customer switching behavior in service industry.
This research was conducted in Bandung, especially North Bandung. Research data gained from the distribution of 200 questionnaires, which is analyzed by multiple regression analysis to test the interaction effect. The result of this research proves that pricing, core service failure, and competitor's attraction has significant influence to negative word-of mouth. Moreover, pricing, core service failure, inconvenience, and involuntary switching significantly influences search for new service.
Kata Kunci : switching behavior, word-of-mouth, search for new service, telecommunication
