Determinants of consumer retention in cellular industry of Pakistan
Keywords:
Customer satisfaction, consumer retention, switching cost, cellular industry, Pakistan.Abstract
Cellular industry of Pakistan has grown many folds in recent years. Many new entrants have also joined
the market to reap the potentials of this growing industry. This situation has originated a hyper
competition among major cellular service providers in Pakistan. Companies are working hard to
introduce more innovative and eye-catching products to attract customers. The companies with large
consumer base are striving to reduce their switching costs. However the main concerns of the cellular
service providers is to retain the existing customers. This research is designed to find out the
determinants of consumer retention in cellular industry of Pakistan. This is an exploratory study based
on primary data which was collected from University students of Pakistan. The study found user
friendliness, price reasonability and call clarity as strongest determinants of consumer retention in
cellular industry of Pakistan. Although the findings of this study are specific to cellular industry in
Pakistan, these may be generalized to any other market passing through transitional phase of rapid
growth and characterized by low paying capacity of customers.
