Analysis Factors Influencing Brand Switching Prepaid GSM Customer

Abstract

Cellular industry of Indonesia has grown many folds in recent years. This situation has originated a hyper competition among major cellular service providers in Indonesia. In this competitive cellular market, customer switching is injurious for every telecommunication company. This study explore relationship between customer loyalty and variety seeking behavior on customer switching in cellular industry especially pre paid GSM customer. Customer loyalty influenced customer value, satisfaction, and switching barrier. Factor that influence variety seeking behavior are variety seeking need and characteristic of product category. This research was conducted in Jakarta, primary data was collected by a set of questionnaire and allocated to 230 prepaid GSM customer. Research methods used structural equation modeling (SEM) using AMOS version 18. Findings revealed that customer value and switching barrier have significant effect on customer loyalty; variety seeking need has significant positive effect on variety seeking behavior; customer loyalty has significant negative effect on brand switching; and variety seeking behavior has significant positive effect on brand switching.