The Analysis of Customer Switching Choice in China Mobile Market

Abstract

The exploratory research on subscribers' switching choice has vital theoretical and practical value. We present eighteen factors which influence subscribers' switching intention based on the Discrete Choice Model, and then establish the DCM for subscribers' switching intention of the 3G/4G operators in China. With a consumer oriented perception, variables are divided into four parts, including subscriber’s characteristics, mobile usage traits, terminal needs and satisfaction. Based on the survey data supported by China Academy of Telecommunication Research of MIT, the study illustrates that there are six factors significantly affects the subscribers switching choice respectively in two scenarios(with MNP or not), but in either scenario they are not all the same. The results of the model provide a strong evidence for operators' decision-making of subscription design and 3G/4G marketing strategies, and it will enhance subscriber holdings of the 3G/4G operators. Meanwhile, it will support the authority to make proper asymmetric MNP policy.

DOI: http://dx.doi.org/10.11591/telkomnika.v12i2.3822