Switching costs and consumer behaviour: Implications for telecommunications regulation

Purpose – This paper aims to examine the extent to which telecommunications consumers decide to switch and why. Design/methodology/approach – Results from surveys of consumer switching behaviour in a number of countries are examined to ascertain reasons for actual consumer decision making regarding...

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Main Authors: Xavier, Patrick, Ypsilanti, D.
Format: Journal Article
Published: Camford Publishing Ltd 2008
Online Access:http://hdl.handle.net/20.500.11937/29663
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author Xavier, Patrick
Ypsilanti, D.
author_facet Xavier, Patrick
Ypsilanti, D.
author_sort Xavier, Patrick
building Curtin Institutional Repository
collection Online Access
description Purpose – This paper aims to examine the extent to which telecommunications consumers decide to switch and why. Design/methodology/approach – Results from surveys of consumer switching behaviour in a number of countries are examined to ascertain reasons for actual consumer decision making regarding switching. Findings – Implications for telecommunications regulation are considered. In essence, regulation should require that communications service providers ensure that switching is fast, cheap, predictable and reliable and that consumers are able to switch with minimum difficulty and delay. Practical implications – The ability and willingness to switch from one to another supplier of telecommunications and internet services are an important aspect in manifesting consumer empowerment. In turn, empowered consumers are important for sustainable competition. If consumers are inert and passive, suppliers will not be under pressure to deliver the potential benefits of competition. And it is empowered assertive consumers, able and willing to switch, who will exert pressure on suppliers to deliver these benefits. Thus, in making well-informed choices between suppliers, consumers not only benefit from competition but also initiate and sustain it. Originality/value – Insights from behavioural economics are incorporated in the analysis.
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institution Curtin University Malaysia
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publishDate 2008
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spelling curtin-20.500.11937-296632017-09-13T15:56:51Z Switching costs and consumer behaviour: Implications for telecommunications regulation Xavier, Patrick Ypsilanti, D. Purpose – This paper aims to examine the extent to which telecommunications consumers decide to switch and why. Design/methodology/approach – Results from surveys of consumer switching behaviour in a number of countries are examined to ascertain reasons for actual consumer decision making regarding switching. Findings – Implications for telecommunications regulation are considered. In essence, regulation should require that communications service providers ensure that switching is fast, cheap, predictable and reliable and that consumers are able to switch with minimum difficulty and delay. Practical implications – The ability and willingness to switch from one to another supplier of telecommunications and internet services are an important aspect in manifesting consumer empowerment. In turn, empowered consumers are important for sustainable competition. If consumers are inert and passive, suppliers will not be under pressure to deliver the potential benefits of competition. And it is empowered assertive consumers, able and willing to switch, who will exert pressure on suppliers to deliver these benefits. Thus, in making well-informed choices between suppliers, consumers not only benefit from competition but also initiate and sustain it. Originality/value – Insights from behavioural economics are incorporated in the analysis. 2008 Journal Article http://hdl.handle.net/20.500.11937/29663 10.1108/14636690810887517 Camford Publishing Ltd restricted
spellingShingle Xavier, Patrick
Ypsilanti, D.
Switching costs and consumer behaviour: Implications for telecommunications regulation
title Switching costs and consumer behaviour: Implications for telecommunications regulation
title_full Switching costs and consumer behaviour: Implications for telecommunications regulation
title_fullStr Switching costs and consumer behaviour: Implications for telecommunications regulation
title_full_unstemmed Switching costs and consumer behaviour: Implications for telecommunications regulation
title_short Switching costs and consumer behaviour: Implications for telecommunications regulation
title_sort switching costs and consumer behaviour: implications for telecommunications regulation
url http://hdl.handle.net/20.500.11937/29663