Do Customer Dissatisfaction and Variety Seeking Really Affect the Product Brand Switching? A Lesson from the Biggest Southeast Asia Mobile Telecommunication Market

Abstract

As the 21st century world would be a cellular age going by the phenomenal increase in cell phones worldwide, the Southeast Asia's market is experiencing a tremendous growth of mobile penetrations in the context of a region for developing countries with large population concentration. The mobile revolution has triumphed in Southeast Asia and become the key hub of the world's mobile & telecom market in terms of penetration and innovation, and promoted the best of mobile-based implementations in the region Asia. Therefore, as the competition becomes more intensified, it is important to any companies to anticipate any changes in its customers' preferences, especially all variables related to the customer dissatisfaction and varieties seeking that are much revealed in prior studies. This study has two objectives; firstly, it aims to examine the effect of consumer dissatisfaction, variety seeking, and sales promotions simultaneously on brand switching. Secondly, it will explore a further relationship, which is rarely investigated in prior studies, between consumer dissatisfaction and brand switching, which is moderated by the variety seeking. By using 240 respondents in the 2010-GSM prepaid cards' market situation, we used logistic regression to analyze the data. The results reveal that consumer dissatisfaction and sales promotion are significantly positive related to brand switching. The variety seeking moderates the effect of consumer dissatisfaction on brand switching, and as the moderating variable, the variety seeking has weakened the effect of consumer dissatisfaction on brand switching.

Factors Influencing Brand Switching Behavior: Role Of Variety Seeking Need As Moderator Variable

“…Empirically, this result is in line with the previous study was conducted by Junaidi and Dharmmesta (2002) who found that consumer dissatisfaction has a significance influence on brand-switching decision. Furthermore, this study result is also consistent with the previous study was conducted by Uturestantix et al, (2012) who conclude that consumer dissatisfaction has a positive significantly influence on brand switching.…”

“…Previous study was conducted by Uturestantix et al, (2012) proves that sales promotion has a significantly positive effect on brand switching. Furthermore, study was conducted by Erman (2014) found evidenced that competitor advertisement has a positive significantly effect on brand switching.…”

“…According to Lau et al, (2006) sales promotion is occupying a major role on consumer buying behavior which is a factor to differentiate brand switchers from hardcore loyal consumers, and their study pointed that brand switchers are more affected by sales promotion. Previous study was conducted by Uturestantix et al, (2012) proves that sales promotion has a significantly positive effect on brand switching. Furthermore, study was conducted by Erman (2014) found evidenced that competitor advertisement has a positive significantly effect on brand switching.…”

“…The study was conducted by Ahmed et al, (2015) found that 23% people want to change because of a problem that is showing the "impact of need", it means switching behavior of people in mobile phone market at Manchester-United Kingdom close related to the problem of variety seeking needs. Additionally, study by Uturestantix et al, (2012) conclude that need of variety seeking moderates the influence of consumer dissatisfaction on brand switching. Based on the explanation, third hypothesis within study can be formulated as follows: H3:…”

“…Previous study was conducted by Setiyaningrum (2006) found that consumer dissatisfaction has a significance influence on brand-switching decision. Furthermore, study was conducted by Uturestantix et al, (2012) conclude that consumer dissatisfaction has a positive significantly influence on brand switching. Refers to the theory and previous studies results, first hypothesis within study can be proposed as follows:…”