Bayesian Statistics and Marketing
Marketing Science
Optimizing the Marketing Interventions Mix in Intermediate-Term CRM
Marketing Science
Telecommunications Policy
Switching Costs, Network Effects, and Competition in the European Mobile Telecommunications Industry
Information Systems Research
Implications of mandatory registration of mobile phone users in Africa
Telecommunications Policy
The diffusion of mobile telephones: An empirical analysis for Peru
Telecommunications Policy
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Switching costs are one of the most important economic forces that affect market competition in mobile communications. Both theoretical and empirical studies have shown that switching costs reduce market competition leading to higher prices, lower product and service quality, and lower customer welfare. Given their negative consequences, national regulatory authorities have designed policies aimed at reducing switching costs and fostering competition. One of the most important of these, in the mobile communications industry, is mobile number portability (MNP). The aim of this paper is to investigate the effect of MNP on switching costs in mobile phone services. First, a hierarchical Bayes model is proposed to measure switching costs at the customer level and to investigate the impact of MNP on them. Second, this study examines the drivers of MNP adoption by customers using a binary logit specification. The results reveal that this regulatory policy has significantly reduced the cost of switching and that MNP adoption partially depends on customer-related variables.