3.

Methodology

3.1. Sampling

Data were collected using the convenience method from various public places around Dhaka city. A total
of 500 respondents participated in the study. The self-administered survey was conducted between
November 22–26, 2015, across various age and income groups. Incomplete questionnaires were
discarded, leaving 442 usable surveys. The questionnaire presented the respondents with a set of
statements regarding their mobile network operator. Seven-point semantic differential scales were used
(1 = “strongly disagree”; 7 = “strongly agree”).

3.2. Measures

Variables in the model include customer satisfaction, switching intentions, perceived switching costs,
and perceived alternative attractiveness. A three-item scale was adapted from Shin and Kim (2008) to
measure customer satisfaction. Switching intentions were measured using a three-item scale adapted
from Bansal and Taylor (2002). To measure perceived switching costs, a three-item scale was adapted
from Shin and Kim (2008). Perceived alternative attractiveness was measured using a three-item scale
adapted from Chuang (2011). Table II lists all the items and their corresponding constructs, along with
their mean and standard deviation, and cronbach’s alpha for each variable.

Table II: Measures of Variables

Variable Item Description Mean SD

Consumer Satisfaction SAT1 I am satisfied with my current mobile network 4.57 1.75
operator.
SAT2 According to me, my mobile network operator meets 4.28 1.65
Cronbach’s α = 0.798 all reasonable requirements.
SAT3 My mobile network operator meets my all need. 4.20 1.74

Switching Intentions SI1 I am likely to switch to another mobile network 3.57 1.86
operator.
SI2 Probability of me switching to another mobile network 3.38 1.77
Cronbach’s α = 0.898 operator is high
SI3 I will certainly switch to another mobile operator. 3.36 1.79

Switching Cost SC1 Switching to another operator would be a bother. 3.71 2.08
SC2 The cost in time, effort and grief to switch to 3.55 2.09
another mobile network operator is high for me.
Cronbach’s α = 0.732 SC3 It will be hassling in general, if I switch to another 3.59 2.13
mobile network operator.
Alternative AA1 Other mobile network operators provide better 4.71 1.88
Attractiveness services than my mobile network operator.
AA2 Services by other mobile network operators meet my 4.49 1.84
Cronbach’s α = 0.852 needs better.
AA3 Services provided by other network operator are highly 4.41 1.72
attractive.

5. Discussions

5.1 Theoretical Implications

Customer satisfaction is contingent upon what customers “think” about the product/service they are
provided with. This study confirmed that customers’ overall satisfaction in the Bangladeshi MTM is
based on their perceptions of financial, technological, and customer service aspects of the services they
receive, which is in line with many previous studies conducted in various telecommunications markets
around the world (Ahn et al., 2006; Chen and Cheng, 2012; Gerpott et al., 2001; Lim et al., 2006;
Santouridis and Trivellas, 2010; Woo and Fock, 1999). This study found that customers in the
Bangladeshi MTM are less likely to switch to another service provider when they are satisfied with the
services provided by their operators. This is similar to other studies concluding that there exists a direct
negative association between customer satisfaction and switching intentions (Antón et al., 2007; Bansal
and Taylor, 1999; HennigThurau et al., 2002; Hsu, 2014; McDougall and Levesque, 2000; Mittal and
Lasser, 1998;Picónet al., 2013). Regarding the other two predictors of switching intention, present in this
study—that is, perceived switching costs and perceived alternative attractiveness—perceived switching
costs seems to be more significant as it effects switching intentions both directly and indirectly through
customer satisfaction. This is consistent with findings from earlier studies (Aydin et al., 2005; Burnham
et al., 2003; Chebat et al., 2011; Jones et al., 2000; Lam, et al., 2004; Lee et al., 2001; Pick and Eisend,
2013; Wathne et al., 2001). Perceived alternative attractiveness, on the other hand, was found to be a
weak predictor of switching intentions as only a moderating effect through customer satisfaction was
observed, which contrasts with earlier studies suggesting a direct effect of perceived alternative
attractiveness on switching intentions (Bansal et al., 2005; Burnham et al., 2003; Jones, et al., 2000; Pick
and Eisend, 2013). One explanation why perceived alternative attractiveness has an insignificant direct
effect on switching intentions in the Bangladeshi MTM may be that other variables, such as perceived
switching costs, customer satisfaction, etc., have more leverage on switching intentions and customers
do not find other service providers attractive enough, or view all service providers as somewhat similar.

5.2 Managerial Implications

Mobile telecommunications operators in Bangladesh should put emphasis on customer satisfaction and
its drivers, along with perceived switching costs and perceived alternative attractiveness. In order to
enhance customer satisfaction, mobile operators in Bangladesh should focus on financial, technological,
and customer service aspects of their services. To enhance favorable perceptions of customers
regarding financial aspects, operators may reduce their prices or offer more benefits at the same price.
If this is not possible, they must communicate their service benefits to customers by conveying the
message that the services they are getting are worth the price. To improve customers’ perceptions of
technological aspects in the short run, operators should convey a positive image about network
improvement and installation of transmission stations using advertising and public relations; in the long
run, operators can invest more in equipment and technologies so that transmission quality and other
important technological issues improve. An increase in the number of customer care centers in
convenient locations, and providing appropriate training to customer service personnel regarding
efficient ways of communicating, assisting, and managing customers, will help to enhance customer
service aspects, which in turn will increase overall customer satisfaction. As perceived switching costs
create a barrier to switching to another operator, mobile telecommunications operators in Bangladesh
may improve already existing loyalty programs or introduce new ones, and make investments in various
customer-relationship-building programs to increase perceived relational switching costs. Although
perceived alternative attractiveness was not found to play a vital role in the switching process in the
Bangladeshi MTM, operators should still try to keep the alternative attractiveness perceived by existing
customers low by offering regular discounts and other promotional benefits, and constantly reminding
them through promotional messages of the superior service benefits compared to alternatives.