Brand Management
Factors Affecting Brand Switching: The Case of Cellular Service Provider in Danang, Vietnam

Article Details
Pub. Date : June, 2021
Product Name : The IUP Journal of Brand Management
Product Type : Article
Product Code : IJBRM20621
Author Name : Trinh Le Tan and NguyenThi Doan Trang
Availability : YES
Subject/Domain : Marketing
Download Format : PDF Format
No. of Pages : 21



In today's competitive business environment, businesses are under great pressure from external factors, in which customers are considered the key factor affecting the business results. For the telecommunications network service business, customers have many choices from many different providers. To increase customer loyalty, the paper focuses on exploring the factors that influence the intention to switch brands in Da Nang. It applies the method of synthesizing the previous papers to build the research model, including factors price, competitor appeal, consumer dissatisfaction, switching cost and variation seeking. In addition, the authors use quantitative research methods to test the relationship between factors and brand switching intention through SPSS 20 Software. The study showed that the three factors affecting brand switching intention are competitor attractiveness, consumer dissatisfaction and variation seeking variables. Based on the results, cellular service providers build marketing strategy for retaining customer loyalty.


In the context of customer loyalty, there are dimensions related to the scope of repurchase of brand or company product, oral communication to others, involvement in company activities and even willingness to make sacrifices for the existence of the company. Contrary to the positive condition of the dimensions of loyalty in terms of customer relationships with the company is the intention of customers to switch brands, from the use of corporate brands to switch brands from competitors. Chaarlas et al. (2012) defined intention in switching as a process of shifting from the regular and stable use of a product or brand produced by a company to a different or similar product or brand from another company.

Losing customers is a serious setback for the company in terms of profit, both for the present and the future. In addition to losing the benefits of loyalty dimensions, companies must invest resources in attracting new customers to replace old customers who have been lost (Sathish et al., 2011). Further, they indicated that the cost to acquire new customers can be five times more than keeping the old customers. Maintaining a current customer base is much more important than finding new customers.


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