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An Empirical Study on Determinants of Telecommunications Industry Customer Retention Based in the 3rd Generation on Structural Equation Modeling

Author: SongJiaShun
Tutor: ZhangZhenGang
School: South China University of Technology
Course: Management decision-making and system theory
Keywords: Customer retention SEM Telecom industry
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 237
Quote: 1
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Abstract


With the completion of the restructuring of the telecommunications industry, 3G license issuance, China’s telecom industry declared the advent of full-time business operations, the three major operators, China Mobile, China Unicom, China Telecom, in order to win the new 3G era, have launched a unique 3G distinctive brand of business, along with the "number portability" policy of gradual implementation of the national telecom operators are facing increasingly fierce market competition. Competition in the market is the main problem facing: the new technology on the traditional operators, the impact of slow growth in new customers, customer churn switch network is serious, the stock of competition has become increasingly important customers. Therefore, the current competition in the core of telecom operators have been transferred from the competition in the stock of incremental competition, who can win customers and retain customers will be able to obtain sustainable competitive advantage in the fierce market competition in an invincible position.This article is based on sample survey data obtained from the sample, the use of structural equation model of the determinants of customer retention models were tested, and from the start of each of the determinants of customer retention strategies of enterprises. First, the paper describes the Home and Abroad customer retention, and customer satisfaction, customer loyalty, the theory of transfer of disorders, a detailed theoretical analysis, according to China’s telecom industry, the competitive situation at this stage (including industry restructuring, 3G services, the three network integration, etc.) and basic characteristics of customer groups, summarized the telecommunications industry, the determinants of customer retention; Second, in the basic theory is proposed based on theoretical models used in this paper and research hypotheses. Based on the empirical characteristics of the object, combined with structural equation modeling analysis, theoretical models of customer retention empirical analysis, including the determinants of scale design, data quality analysis, in this based on theoretical models and hypotheses to test and demonstrate , and draw customer satisfaction, customer loyalty, switching costs, relationship, alternative attractiveness and consumption habits impact on customer retention effect coefficient, defined the key factor in the decision to retain customers. Finally, the results of theoretical analysis and empirical research, this article from the determinants of customer retention perspective of the various proposed telecommunications companies to retain customer specific strategies, which for our business customers to retain service to provide a theoretical basis.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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