Smooth operators? Drivers of customer satisfaction and switching behavior in virtual and traditional mobile services

Abstract

The present study analyses the creation of customer satisfaction and loyalty, along with the influence of switching costs in the mobile services’ market, by analyzing network mobile services – the so-called traditional operators – and virtual mobile services, in order to empirically and conceptually investigate the difference between these mobile services’ operators. A conceptual model is tested by developing structural equation modeling, in the context of a European mature market – the Spanish market, gathering a sample of 524 mobile services’ users. The analysis highlights that mobile service value exerts the strongest influence on customer satisfaction for both type of mobile companies, while the attractiveness of alternatives is the more relevant switching costs; despite some interesting differences were found between the virtual and the traditional companies. Considering our findings mobile companies should seek to improve their customers’ perceptions of the core services offered, stressing the importance of the prices charged for the services and the functional benefits provided. Moreover, we suggest to personalize mobile services in order to provide with higher value to customers, since value-added services make consumers more satisfied.