Customer Segmentation in Mobile Carrier Choice Modeling

Abstract

Service choice behavior of customers is becoming complicated and diversified in the mobile phone market. The aim of this paper is to analyze mobile carrier choice behavior and clarify the customer segments and their decision-making factors. We classify mobile phone customers into two groups: churning customers and stable customers. Customer segmentation is carried out based on survey data for each customer group in order to clarify the decision-making factors. We propose a new service choice modeling with regard to mobile carriers based on the customer segmentation results.