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Drivers of Loyalty and Switching Mobile Telecommunications Provider: The Roles of Service Value, Alternatives, and Search Efforts
Journal of Indonesian Economy and Business,
Vol 41 No 3 (2026): September
Abstract
Introduction/Main Objectives: This study investigates factors influencing satisfaction, switching intention, and loyalty among mobile telecommunication providers in Bangladesh as a developing nation. Background Problems: Although previous research has made progress, a gap remains in understanding how users perceive alternative attracttiveness, search efforts, and service value, and how these perceptions impact satisfaction, switching intention, and loyalty. Novelty: Dearth of research specifically addresses the influence of alternative attractiveness, search effort, and service value on users' decisions to stay or switch between telecommunication service providers in the Bangladeshi context. Research Methods: Using a cross-sectional approach, data were collected from 355 eligible mobile telecommunication users in Bangladesh through purposive sampling with clear screening criteria. Data were analyzed using partial least squares-based structural equation modeling (PLS-SEM). Finding/Results: Findings indicate that users' perceptions of service value significantly influence satisfaction, while search effort has no significant effect. Attractiveness of alternatives unexpectedly shows a significant positive relationship with satisfaction. Furthermore, satisfaction significantly affects both switching intention and loyalty, suggesting satisfied users may still consider switching in a competitive market. Conclusion: Practitioners should focus on enhancing service value and understanding alternative perceptions. Improving satisfaction alone cannot reduce switching; firms must adopt additional retention strategies to foster long-term loyalty in Bangladesh.
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