Predictions from an Empirical Study in the Turkish Mobile Telecommunications Market on the Determinants of Mobile Customer Churn

Main Article Content

Mustafa Çağrı Sucu
Cagatay Unusan

Keywords

Churn, Subscriber loss, Churn prediction, Switching, Customer retention

Abstract

Acquiring new customers compared to holding the existing ones is costlier and more troublesome for businesses, so customer retention is of great importance in today's intensely competitive environment. It is crucial in customer relations management to identify and analyse customers whose loyalty decreases and who tend to leave, and prevent churn through various methods under resource constraints. This issue is especially prominent in the mobile communication market. This paper uses a binomial logit model based on a survey with 637 mobile users in Turkey to determine the factors affecting customer churn and how they find their effect. Results indicate that, among various factors, network quality, billing, tariff level, tariff plan, and education level are the determinants affecting customer churn and associated with the intention to switch. Our findings demonstrate implications for both managers and rule-makers in the mobile telecommunications sector.

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