Customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness in Bangladesh mobile telecommunications market

Abstract

Purpose

The purpose of this paper is to link customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness in the context of the Bangladeshi mobile telecommunications market (MTM). In addition, this study develops three key formative determinants of customer satisfaction: financial factor, technological factor, and customer service factor.

Design/methodology/approach

A model is developed and tested using PLS-SEM with a sample size of 442 respondents. The three key formative determinants of customer satisfaction were developed using a panel of five industry experts.

Findings

Financial, technological, and customer service factors were found to have significant positive effects on customer satisfaction. Customer satisfaction and perceived switching costs were found to have a significant direct effect on switching intentions, and perceived switching costs and perceived alternative attractiveness were found to have significant moderating effects on switching intentions through customer satisfaction. However, no significant direct effect of perceived alternative attractiveness on switching intentions was found.

Originality/value

This is the first study to link customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness using structural equation modeling in the context of the Bangladeshi MTM. In addition, three key formative determinants of customer satisfaction are developed.

Citation

Mannan, M., Mohiuddin, M.F., Chowdhury, N. and Sarker, P. (2017), "Customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness in Bangladesh mobile telecommunications market", South Asian Journal of Business Studies, Vol. 6 No. 2, pp. 142-160. https://doi.org/10.1108/SAJBS-06-2016-0049