The effect of switching costs and price plan on the customer loyalty : a study of mobile phone service / Vivien Bawit

The topic of this research is The Effect of Switching Costs and Price Plan on the Customer Loyalty toward mobile phone service in Kota Kinabalu. The purpose of this study is to examine how the switching costs and price plan affect customer loyalty on the mobile phone service. This sector is highly competitive and challenging as a new player coming in with aggressive price offering, high promotion, better network quality and great customer service. There is 50 respondents participated in this study. Out of this three variable tested (switching costs, price plan and customer loyalty), it is found that switching costs and price plan have positive relationship on customer loyalty. The present study has its own limitation since this research is only conducted in Kota Kinabalu, Sabah which is area as the sample size larger. In conclusion, service providers must be able to understand the effect of switching costs and price plan on the customer loyalty in the mobile phone service. It will be a great challenge for the service providers in preparing their strategic plan in maintaining customer loyalty and at the same time expending customer base.