Determinants of Customer Churn in the U.S. Wireless Telecommunication Market

• Main Author: 葉政憲
• Other Authors: 唐瓔璋
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/26125927473397523893

碩士 === 國立交通大學 === 管理學院碩士在職專班經營管理組 === 95 === Churn management is a fundamental concern for business, companies’ strategies to handle churn issue have been directed to survive or maintain an advantage in such a competitive marketplace. By using a binary logistic regression base on a survey of 103,179 mobile users from a customer database of an anonymous U.S. wireless telecommunications company from Duke University, the determinants of subscriber churn and customer loyalty are identified. The main purpose of this research is to find out the variables for better churn prediction prior to initiate strategies for customer retention. The probability that a subscriber will switch carrier is dependent on the level of satisfaction with alternative specific service attributes including behavior predictors, company interaction predictors, customer demographics affect customer loyalty. ii In this thesis, we focused on developing and applying binomial logit model technique to support the churn prediction. The cost of acquiring a new customer is much higher than current customer retention, retention and acquisition of new clients are matters of great concern for businesses. Companies strive towards keeping exist or loyal customers, these customers are more likely to be more profitable over the long haul. These findings provide implications in preventing customers churn: 1. Customer focuses with limited resource to increase customers’ satisfaction and company’s profitability. 2. Initiate customized package for effective customer retention. 3. Provide good customer service to reduce complaints. 4. To propose combined subscription with competitive cellular phone package to build up entry barrier. Keywords: Churn Prediction, Churn Management, Binary logistic regression