Analysing Consumer Switching Decisions in Airtel

Abstract

In the study, the customer switching behaviour in Airtel, factors leading to customer retention among Airtel subscribers is the main concern where the telecom market is highly competitive. The study finds out that using survey data, determinants which include brand image, additional benefits besides the product, and the kind of communication to customers are profound through a logistic regression analysis. The results reveal that a positive brand image raises switching probability strongly, and other benefits and clarity in communications, reduce it strongly. Competitive pricing, favourable service quality and tangible product features factors, that have been deemed significant in the competing model seem less important for customers’ loyalty. Based on the insights, further it is suggested to Airtel to disburse funds on solving issues related to loyalty programs and other related problems to with an aim of building the solid rapport of trust with the consumers which will make them contented with the company’s communication efforts. In conclusion, this thesis offers practical insights for Airtel to strengthen its market communication and customer retention initiatives with focus on brand image and value added services while operating in a highly mobile telecom market. Assuming that such dynamics hold across other segments, future research could isolate and comprehend some of them to enhance the maximisation of retention approaches efficiently.