A Study on the User Satisfaction and Switching Intentions of Bundle Services in Telecommunication Market : Focusing on Perceived Values and Switching Costs 


Vol. 44,  No. 2, pp. 387-406, Feb.  2019
10.7840/kics.2019.44.2.387


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  Abstract

As the bundle service market has become very important in Korean telecommunication market, there is a concern that bundle service users may be locked in. This study aims to propose and empirically analyze a research model examining the user lock-in of bundle services from a perspective of perceived value, satisfaction, switching costs, and switching intentions. Perceived value is conceptualized as a monetary, functional, convenience and social value from a multi-dimensional construct perspective. The result of impact for each dimension of perceived value on users’ satisfaction is that only monetary and functional value positively influence on satisfaction. We define switching costs as a combination of transaction cost, contractual cost, search cost, learning cost and psychological cost and contractual cost, search cost, and psychological cost are significant among five sub-factors of switching cost. Switching intention decreases with higher satisfaction, less attractive alternatives, and higher switching costs. Also, the number of mobile lines combined in bundle is identified as a major factor which affects user lock-in by increasing the probability of not to switch a service provider. This study is the first empirical study to examine user lock-in of bundle services incorporating users’ perceived value, satisfaction, switching costs and switching intentions.

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  Cite this article

[IEEE Style]

J. Yu and S. Lee, "A Study on the User Satisfaction and Switching Intentions of Bundle Services in Telecommunication Market : Focusing on Perceived Values and Switching Costs," The Journal of Korean Institute of Communications and Information Sciences, vol. 44, no. 2, pp. 387-406, 2019. DOI: 10.7840/kics.2019.44.2.387.

[ACM Style]

Jieun Yu and Seong-Jun Lee. 2019. A Study on the User Satisfaction and Switching Intentions of Bundle Services in Telecommunication Market : Focusing on Perceived Values and Switching Costs. The Journal of Korean Institute of Communications and Information Sciences, 44, 2, (2019), 387-406. DOI: 10.7840/kics.2019.44.2.387.

[KICS Style]

Jieun Yu and Seong-Jun Lee, "A Study on the User Satisfaction and Switching Intentions of Bundle Services in Telecommunication Market : Focusing on Perceived Values and Switching Costs," The Journal of Korean Institute of Communications and Information Sciences, vol. 44, no. 2, pp. 387-406, 2. 2019. (https://doi.org/10.7840/kics.2019.44.2.387)

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