Understanding Internet service switching behaviour based on the stage model

Abstract

As customer switching is the major concern in the competitive Internet industry, many studies have sought to identify the determinants that cause customers to switch in order to build effective customer retention strategies. However, they were found to be insufficient for explaining the determinants and processes related to service switching. To fill this gap, this study attempts to provide a theoretical mechanism explaining customer service switching behaviours. More specifically, this study examines three hypotheses that may help ISPs develop appropriate marketing and business strategies. Survey data collected from 151 ISP customers in Australia were analysed to test the hypotheses. The results identify four stages of customers switching behaviours and suggest that motivational variables for switching behaviours differ across stages. This study provides a stepping-stone for analysing the staged model in the service-switching context and will help managers enhance their customer retention capability, and thus improve their organizational performance.