Chapter 2- Review of LiteratureReview of literature is a systematic search of existing facts on a particular topic. It is very useful to know what has happening and what has been found out on the topic and to decide what should be found out in future research. In this review, we provide a framework for establishing the importance of our study as well as a benchmark for comparing results with other findings. 2.1 Literature ReviewKotler & keller, (2006) hold that companies recognize the importance of satisfying and retaining customers. To them, the following are interesting facts about customer retention, acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers, the average company loses 10 percent of its customers each year, and the customer profit rate tends to increase over the life of retained customers.The need for customer loyalty in business has been recognized by many scholars. Customer loyalty is one of the most frequently discussed subjects in the marketing and service literature (Eshghi et al., 2007; (hasket & sasser, (2010) There is a plethora of definitions of loyalty and/or customer loyalty in the extant literature. Customer loyalty is customer repeating purchase intention to some specific products or services in the future (Jones et al., 1995). It is making customers feel committed: When the benefits are meaningful to them, they will stay on (Grossman, 1998). Customer loyalty is one of the key factors and can help a company achieve long-term success (Andres, 2007). Ndubisi (2005) and Pfeifer (2005) point out that the cost of serving a loyal customer is five or six times less than a new customer. Walsh et al.(2005) state that it is better to look after the existing customer before acquiring new customers. From the above, it is evident that a mobile telecom firm that promotes customer loyalty has a lot to benefit from.Basically, customers are assets that need to be acquired before they can be managed for profit. More importantly, organizations go out of business when they lose consumers. That is why efforts are being made towards retaining the customers of an organization ,barak, (2010). According to the Information, Telecoms and Media (2010), the telecommunications industry is at a point marked by saturation, competition, stagnant revenue growth, increasing customer care and subscriber acquisition costs. As such, the ability to retain an existing customer has become critical to revenue mobilization. Mobile operators have appreciated that the cost of acquiring a new customer is incrementally greater than the cost of retaining an existing one. The findings of the research can be used by service providers in building relationship with corporate customers and in designing loyalty programmes. Airtel would adopt the findings to have competitive advantage over its rivals in the industry. Understanding, managing, growing and retaining its customers are some of the key initiatives critical for their success in the coming years. Customer retention is an important objective in competitive and mature markets. According to (dawkings, 2013), customer loyalty and customer satisfaction are integral parts of customer retention process. (dawkings, 2013) pointed out that focusing efforts on retaining customers must be done in the context of customer experience. They suggested that, to win or retain customers, organizations should identify potential defectors, communicate with customers, listen to front line people, treat valuable customers well, be fair and win the right customers back. Furthermore, the greater the experience a customer has with a service provider the greater the chances of meeting his expectations in perceived values, hence his retention. Service quality is also considered a major determinant in customer retention and building value relationship (Venetis and Ghauri, 2004). An organizations ability to remain in business is a function of its competitiveness and its ability to win customers from the competition. Customer loyalty is viewed as the strength of the relationship between an individuals relative attitude and repeat patronage. The relationship is seen as a Cognitive, affective, and co-native antecedents of relative attitude are identified as contributing to loyalty, along with motivational, perceptual, and behavioral consequences (Dick and Basu, 1994). Behavioral loyalty is defined as the consumers tendency to repurchase which is revealed through behavior that is measured and directly impacts brand sales ,digbasu, (2008). A repurchase pattern is determined as actual purchase frequency as the proportion of occasions in which a specific brand is purchased as compared to the total number of purchased brands and/or the actual amount of purchase. Earlier loyalty researchers have simply measured behavioral variables to predict the customers purchasing behavior in the future (Beck and Parks, 2003). Behavioral loyalty focuses on realistic data, which can facilitate calculation of customer life-time value, and assist in developing cost-effective marketing strategies while attitudinal loyalty emphasizes the importance of understanding why customers buy (OMally, 1998). Behavioral loyalty is the consequence of prior behavior and observed market share (Olshavsky and Granbois, 1979). Measuring only behavioral aspects of loyalty may overestimate true loyalty between intentionally loyal and spuriously loyal customers (Day, 1969; Prichard, Howard, and Havitz, 1992). Customer loyalty and satisfaction are integral part of customer retention process. Customer Retention is a primary measure of loyalty. There is a positive relationship between changes in satisfaction and share of wallet. In particular, the initial satisfaction level and the conditional percentage of change in satisfaction significantly correspond to changes in share of wallet. This is basically based on the two variables that is customer retention factors and customer loyalty in taking the decisions regarding to the subject. It is not guaranteed that every customer retained, generates contribution. Therefore the concept of Customer lifetime Value plays an important role. According to them they want to exceed customer satisfaction but there are still required if the company seeks the delight customer. As far as concern services quality is considered as a major determinant in customer retention and building value relationship. (ghari, 2013) The quality of the service has various elements namely: a) Reliability, b) Responsiveness, c) Assurance, d) Empathy, and e) Tangibles as identified by Parasuraman et al. (1985). According to huber 2005) Customer Experience Management (CEM) -helps to satisfy customer needs, increase customer retention and optimize business performance and profitability. Strategic CEM uses customer feedback to prioritize actions and improve processes, so as to optimize overall business performance by developing better customer-centric strategies. One of the most important factor in analysis Analysis of data is a general ways involves a number of closely related operations, which are performed, with the purpose of summarizing the collected data, organizing these in such a manner that they answer the research questions (Kothari, C.R.1990). In this chapter, the data collected were systemically processed, tabulated and made suitable for analysis and interpretations. Gender differentiation is also an important deciding factor of the goods and services for gender distinguished goods and services. For example, products of shaving sets such as razor, cream and brush, are meant for males only. Likewise, lipsticks, nail polish etc., are especially for females. In these goods, the gender distinguishing feature is meaningless. But, in the case of common goods and services, the gender takes a deciding role in peculiar situations. In the case of landline connection, the role of gender can be studied. Age is an important attribute to fix the consumer decisions and it plays a role in decisive status in the case of consumer goods. The landline was the only telecom service in the days of youngster years of them. As no any other telecom device was in vogue, the landline had been their choice for oral communication in those days. The present old generation had landline telephone in their young ages and it implies that there was no other means of telecom service except the landline service. Marital status of consumers is one of the factors that decides purchase or non-purchase of the goods and services in selected cases. In the case of telecom service, it is a common service required for all the persons irrespective of the marital status. Companies can achieve better retention rates, reduce acquisition costs and boost market share by addressing the root causes of customer attrition and applying targeted treatment strategies that involve all service channels and functions in an end-to-end effort to improve the customer experience. Todays customers want it allcompetitive pricing, value for money, and above all, high quality service. Whats more, they wont hesitate to switch providers if they dont find what theyre looking for. Even in industries where satisfaction is relatively high, loyalty levels are declining. And thanks to social mediathe ultimate in word-of-mouth communicationindividual switching decisions can have rapid and widespread consequences. Accentures most recent global research exposes the scale of the challenge. Despite a small overall decline in switching levels, two in three customers have changed providers in the past year in at least one of the industries covered in the research because of dissatisfaction with service. Retention strategies based on customer value and profitability are critical to successhence the importance of analytics. By leveraging a diversity of data demographic and behavioral (products, usage, interaction), as well as value-relatedretention analytics can predict just when and why customers are likely to churn. They determine the customers' value to the company in terms of both current and future revenue and profitability, as well as their influence on other customers. They also infer the drivers of churn by using multi-dimensional analysis in novel ways. Correlating churn with the interactions a customer has had with the company can trigger retention treatments, as well as identifying areas where the customer experience needs to be improved. This may sound straightforward, but it requires the ability to build a service interaction history across all interaction channels retail, contact centers, Web and Integrated Voice Response (IVR) systems. Coyne (1989) states that customer satisfaction has measurable impact on customer retention, in that, when satisfaction reaches a certain level, on the high side, loyalty increases dramatically; at the same time, when satisfaction falls to a certain point, loyalty reduces equally dramatically. Payne and Frow (2005) stated that organizations are increasingly recognizing that enhanced customer satisfaction leads to better customer retention and profitability. Many organizations are now reviewing their customer service strategies to find ways to boost retention rates as a means of improving their business performance. Often, this entails a fundamental shift in business emphasis from customer acquisition to customer retention. While staff and management commit to focusing specific efforts on retaining customers, it must be done in the context of the overall customer experience. Thus, Dawkins and payne & frow, (2005) stated that in order to win or retain customers as a strategic business objective, one has to listen to front-line people, identify potential defectors, communicate with known customers, treat valuable customers well, be fair (even when one does not have to) and win the right customers back. The power of attitudinal loyalty predicting future purchase behavior and providing sufficient explanation of true customer loyalty has fallen short (Kraus, 1995; Li and Petrick, 2008, Opermann, 1999) because the attitude-based loyalty framework limits the operationalization of dynamic relationships between customers and providers (Fournier, 1998). Managers appear to rely more heavily on customers actual repeat behavior rather than attitudinal loyalty for more realistic status of business performance for estimating customer life-time value and developing cost-related strategies. Price is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service (Kotler &Armstrong, 2010). Nowadays, due to breathtaking competition, the telecommunication service providers tend to offer innovative services as well as competitive prices just to attract handful magnitude of customers (Haquea et al.,2011). Price plays a vital role in telecommunication market especially for the mobile telecommunication service providers. Customer service is one of the most important considerations in the evaluation of a supplier (Jackson et al.,1985) and the effectiveness of the level of customer service will enhance customer retention and reduce switching between and among service providers (Oyeniyi & Joachim, 2008; McDougall & Levesque, 2000; Wang & Shiek, 2006). Bharti: Telecom giant Bharti Airtel is the flagship company of Bharti enterprises. Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is Indias largest mobile service provider. It was founded in 1985. Airtel is the largest mobile service provider in India in terms of number of subscribers. It also offers fixed line services and broadband services. It has shown its presence in all f circles of the country. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. Switching cost had been investigated extensively in literature. It is argued that switching is related to poor service quality in banks (Benkenstein and Stuhlreier, 2004); reaction to high price (Gerrard and Cunnininggham, 2004); and customer satisfaction (Bowen and Chen, 2001).Some other researchers, however, had different argument. There is an argument in literature of the benefits of switching cost to prevent consumers from switching service providers (Ganesh, Arnold and Reynolds, 2000; Keaveney and Parthasarathy, 2001). In terms of classification, Burnham, Frels and Mahajan (2003), classified switching cost as procedural switching costs, financial switching costs, and relational switching costs. These costs were found to be negatively correlated to consumers intention to switch service providers. Klemperer (1995) developed three types of switching cost: artificial cost, learning cost and transaction cost. In utility, however the most appropriate cost is the transaction cost. A consumer must be aware that he can switch service providers before he takes steps. The next step is to decide whether to search and then whether to switch.The effect of customers defection or switching could be significant on revenues and service continuity. Therefore, to reduce the level of customers switching to other service providers in a dynamic competitive environment, service providers develop strategies to respond to consumers.Keeping customers can be challenging but as markets mature, successful retention strategies are becoming an increasingly essential element of competitive advantage for many different industries. Accenture experience shows, moreover, that such strategies can be developed. They hinge, crucially, on really understanding what motivates different customers to churna capability dependent on sophisticated analytics. They also require the support of senior leadership, strong governance and the commitment to build a whole new set of capabilities that accelerate speed to market, maximize campaign return while minimizing risk and ensure the right experience for the right customer. Equipped with an end-to-end operating model that optimizes customer interactions across all channels, companies can ensure delivery of a better experience for all their customers. There exists an interaction between the desired results and customer satisfaction, customer loyalty and customer retention. They may go by other names such as patients, clients, buyers, etc. without the customer it is impossible for any business to sustain itself. Achieving the desired results is frequently a result of customer actions. Any business without a focus on customer satisfaction is at the mercy of the market. Without loyal customers eventually a competitor will satisfy those desires and your customer retention rate will decrease. Dissatisfied customer Looking for someone else to provide product or service Satisfied customer Open to the new better opportunity Loyal customer Returns despite offers by the competition

One of the ways to help obtain loyal customers is by having products and services that there is very little chance that the customer requirements will not be met and make them delightful. Of course one of the difficult is, understanding the true customer requirements. Even when you have the requirements in advance the customer can and will change them without notice or excuse. Having a good recovery process for a dissatisfied customer is a necessity. The customer rate quality of the service as the most relevant one and hence Airtel Broadband services should maintain the quality in services and should make improvements in this feature. Some customers are planned to discontinue because of high billing and after sales service is not good. Though it is a small percentage the company should focus on these to keep the brand image in the minds of people. If any complaint is observed from the customers, it should be dealt quickly. This will reduce the chance for dissatisfaction. Many dissatisfied customers asked for more information about other plans or change of plans. So the dissatisfaction may be due to providing wrong plans by the sales persons. So the company can make use of this opportunity to retain its customers by providing the right plans. The study revealed the picture of customers retention and loyalty which help Airtel broadband to encourage more people to be the customers/consumers of Airtel landlines. Blumberg and Luke (2008) did not address the question of whether respondents with both a landline and a cell phone are likely to behave differently from those with either only a landline or only a cell phone. A difference is expected because, for instance, those reached on a cell phone who also have a landline differ demographically from those reached on a landline. This suggests that the influence of cell phones may not be simply a non coverage issue, but also a non response issue since frequent use of a cell phone may result in a decreased likelihood of answering a landline. There are also respondents who will answer a landline but have a cell phone for out-going calls only and respondents who share a cell phone. Because of these issues, an analysis of the impact of cell phones needs to take into consideration the respondents relative use of their cell phone and landline. Not only might the type of person that owns a cell phone be different than those who do not, but the use of the cell phone may also influence the attitudes and behaviors of the owner. Rich Ling discusses the impact of cell phones on society. One of his conclusions is that having a cell phone increases communication with the intimate sphere of friends and family at the expense of speaking to strangers. Cell phones also allow instant communication with others through both talk and text, which may lead to a greater expectation of quick satisfaction of needs. These effects would theoretically be felt by all who use a cell phone for more than emergency purposes and should be greater in those who use their cell phone more often. This again stresses the importance of including the relative use of cell phones into the analysis. A study done by The Pew Research Center reported that those with lower incomes are less likely to own a landline telephone and more likely to be cell-only. They found that 29 percent of those reached on a landline reported an income above $75,000 compared to 16 percent of cell-only respondents, and 21 percent of landline users reporting an income less than $30,000 compared to 41 percent of those with only a cell phone.Cooil et al., (2007) Customer loyalty and satisfaction are integral part of customer retention process. Customer Retention is a primary measure of loyalty. There is a positive relationship between changes in satisfaction and share of wallet. In particular, the initial satisfaction level and the conditional percentage of change in satisfaction significantly correspond to changes in share of wallet. Income and length of the relationship negatively moderate this relationship Loyalty and retention although positively moderate with share of wallet it is necessary to examine the cost of maintaining the particular customer. It is not guaranteed that every customer retention generates contribution. Therefore the concept of Customer lifetime Value (CLV) plays an important role. In creating loyalty and thereby CLV, it would be prudent to explore qualities of loyalty. Rundel Thiele, (2005) Two types of primary loyalty qualities had been identified in the previous researches, i.e. Attitudinal Loyalty and Behavioral Loyalty, out of which attitudinal loyalty could be the most important dimension for marketers to monitor.Richard Lee, Jamie Murphy, University of Western Australia (2005), their study investigates determinants that cause landline phone Customers to transit from being loyal to switching. It concluded that there are different factors which affect the Customers to switch from loyalty to switching intentions such as price, technical service quality, Functional service quality, switching costs, etc. But, the rating was given that price is the most important factor which affects the Customers to switch loyalties to another provider.Mohammed Sohel Islam (2008), in his study examined the relationship between switching cost, corporate image, trust and Customer loyalty. The research finds that although all the independent variables, switching cost, corporate image, and trust have certain degree of relationship with the dependent variable, Customer loyalty, only trust has the strongest relationship with Customer loyalty.Leonard Waverman, et al (2003) investigated into telecom sector and the authors find that mobile phones in less developed economies are playing the same crucial role that fixed telephony played in the richer economies in the 1970s and 1980s. Mobile phones substitute for fixed lines in poor countries, but complement fixed lines in rich countries, implying that they have a stronger growth impact in poor countries. Many countries with under-developed fixed-line networks have achieved rapid mobile telephony growth with much less investment than fixed-line networks would have needed. The research also provides new estimates of demand elasticitys in developing countries we find both the ownprice and income elasticitys of mobile phone demand to be significantly above That is, demand increases much more than in proportion to either increases in income or reductions in price. They also suggest that mobile phones are substitutes for fixed-line phones.As the competition in the telecom industry increases day by day, it reduces the revenues and profits of these industries and it becomes very difficult for them to sustain in this environment. There are some factors that influence the word of mouth which has an impact on the switching behavior of people from one service provider to other service providers. They are customer value, customer satisfaction, switching barriers and customer loyalty. Some studies stated that mobile data services have become new opportunities for the service providers. They fulfils several needs of the people like critical needs, decision needs, entertainment needs etc. (Anckar , & Incau, 2005).

Customer value defines in terms of benefits gained by the customers from the product or service on the basis of quality, money, benefit received or social psychology etc. (Feng, Ming, Deng & Jaw, 2009).

Customer satisfaction can be defined by two perspectives named transaction perspective and cumulative perspective (Kuo Ying-Feng, Wu Chi-Ming, Deng Wei-Jaw, 2009). The first perspective indicates evaluation on recent purchase experiences (Boulding, W., Kalra, A., Richard, S., & Zeithaml, V. A., 1993) and the second perspective indicates evaluation on all purchase experiences (Fornell, Claes, Michael D. Johnson, Eugene W. Anderson, Jaesung Cha, and Barbara Everitt Bryant, 1996).

Customer Loyalty refers to the commitment of the people towards the particular product or service to repurchase that product or service in the future (Oliver. Whence Consumer Loyalty? 1999).

So if the telecom industry wants the retention of their customers towards their brands they have to track the values of their customers because customer value has a highest effect on the loyalty of the customer. Also there are two most important factors that effects the customer value and they are perceived sacrifice and service quality. Therefore for customer retention reducing customer sacrifice and improving the service quality is very essential.

Some other studies stated that people spread both positive and negative word of mouth. They have several ways now- a- days to communicate positive and negative information and opinion to customers about different service providers. (Elliot & Warfield, 1993; Feick & Price, 1987; Walsh and Mitchell, 2001; Williams and Slama, 1995) stated in the research paper An investigation of negative word-of-mouth communication among market mavens that customers are influential and knowledgeable to buy different service providers. The research also suggested that buyers brand evaluations are greater affected by the negative word of mouth than positive word of mouth (Arndt, 1967; Mizerski, 1982; Richins, 1983, 1987; Wright, 1974). Studies also indicate that people spread negative word of mouth twice times more than people spread positive word of mouth who are satisfied with the service providers (Hart et al., 1990; Kotler & Keller, 2006; Richins, 1987).

As people spread negative word of mouth more increasingly than negative word of mouth so to reduce this threat they have to proactively disseminate the positive word of mouth or they have to quickly address any negative consumer concerns. Thus, it is important for the firms to prevent the occurrence of negative word of negative word of mouth rather than to stop the negative word of mouth. The customer switching behavior is greatly affected by the negative word of mouth so if the firms are not able to prevent the negative word of mouth they have to bear loss as they are not able to gain profits from the customers because of their switching behavior from one service provider to other service provider.

Also some of the telecom service providers are not able to provide after sales service to their customers and are unable to handle the complaints of their buyers. This is also the main reason of the switching behavior of people from one service provider to other. The telecom industries can prevent the negative word of mouth by making online and offline open and honest communications with the people. The industries have the chance to convert their losses into their assets by viewing their complaints as opportunities. Using various media the firms can target the customers by spreading the positive word of mouth. Viral marketing can be used to encourage the customers to use the service providers by the firms to improve their sales and profits and prevent from the switching behavior of customers.

Sweeney & Swait (2008) in his studies in the research paper A Study on airtel Brand Credibility on landlines phones With Reference to Internet Service Providers in india has stated that in this competitive market that to survive in this competition customer attraction towards the service provider and retention towards that brand is necessary. Service industries have to take care of both customer satisfaction and customer retention which affects the word of mouth. For retaining the customers towards their service providers brand credibility plays a very important role. This study revealed that brand credibility have a positive influence on word of mouth through customer loyalty and satisfaction. Therefore more and more telecom service provider tries to attract more and more customers towards their brands.

Heskett, Jones, Loveman, and Sasser (1994) in his studies said that focus on technology and frontline staff is more important in the economics than to attract the customers. Customer satisfaction and loyalty is influenced by the products and services offered by the telecom service providers. Now-a-days customers are more attracted towards vast brand and names so the telecom industries that have more reputation in the market are gaining the advantage of this and are able to attract more and more customers. It also depends on the priorities of the customers to which telecom companies they give priorities to purchase the products and services. In todays scenario the industries are trying to build a global market and high speed system for offering the products and services to customers that guides to generate a competitive market for companies both internationally and domestically.Scholars said that to retain customer is less costly then to attract customers as a huge cost is involved in attracting the customers through advertising and promotion activities. If the telecom industry is able to identify the needs, wants and desires of the customers they become able to retain their customers and if the customers are satisfied with that service provider they do not switch from that service provider to other service provider. As all the people have their own perceptions which are different from each other therefore the industries have to understand the behavior of every person. Ganeshan Malathi and N.M. Selvaraj (2005) studied the choice of brands among consumers and reasons for the same and studied the problems faced by the respondents with respect to mobile services. The study revealed that 90 per cent of cell phone users were male, 73 per cent of the respondents were satisfied with the mobile services, 30 per cent of the respondents opines that billing pattern offered by the service provider was good, 44 per cent of the respondents are motivated by their friends to avail the mobile services, 40 per cent of the respondents agreed that cell phone was a cheaper mode of communication.

Yavas, Benkenstein, & Stuhldreier (2004) assert that poor service quality is the root cause of bank switching, whereas Gerrard and Cunningham (2004) maintain that price is more influential than service quality when switching banks. Similarly, some studies suggest that customer satisfaction is an important antecedent of loyalty (Bowen and Chen, 2001; B. Mittal and Lassar, 1998), whereas others oppose this sanguine view (Gerpott, Rams and Schindler, 2001; Mazursky, LaBarbera and Aiello, 1987).(Anderson, 1973) Based on the assimilation-contrast theory (Sherif and Hovland, 1961), consumers have a zone of indifference and tolerate substandard performance provided actual performance meets a minimum threshold Thus, changes in the determinants may cause switching once they breach this zone.(Haquea et al.,2011) Price is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service Nowadays, due to breathtaking competition, the telecommunication service providers tend to offer innovative services as well as competitive prices just to attract handful magnitude of customers Price plays a vital role in telecommunication market especially for the mobile telecommunication service providers.(Jackson et al.,1985) Customer service is a system of activities that comprises customer support systems, complaint processing, speed of complaint processing, ease of reporting complaint and friendliness when reporting complaint. Customer service is one of the most important considerations in the evaluation of a supplier and the effectiveness of the level of customer service will enhance customer retention and reduce switching between and among service providers.(Smith & Taylor, 2004) It is external perception of all human and physical resources of an organization, especially characteristics as employees behaviors, attitudes, communication levels, and clothing (Pampaloni, 2006). Empirical findings have also shown the relationship between brand image and customer satisfaction and loyalty. Groholdt et al.,(2000) reported that corporate/brand image is an important driver of customer satisfaction and loyalty in the industries of soft drinks, banking and telecommunications. Liu (2008) stated that corporate/brand image has a significant impression on services quality, customer value, customer satisfaction and customer loyalty in the Chinese telecommunication market.Harris (2003) sees customer service as anything that enhances the customers experience of a purchase interaction. Harris added that the ultimate goal of customer service is to achieve customer satisfaction by meeting customers expectations. Thus, we can say that customer service is about customer satisfaction. For companies providing pure services/care such as mobile communications, this indicates the need to achieve excellence in customer satisfaction regarding both product quality (quality of physical products such as mobile phone handsets, modems, etc) and the quality of associated sales and after-sales services.According to Adebayo (2008), in Nigeria, acquiring a new customer can cost 6 to 7 times more than retaining an existing customer. Happy subscribers reward companies for their emphasis on service with repeat purchases. When operators make it easy for subscribers in terms of access to good quality service and prompt complaint resolution, they tend to spend more on the airtime of that network.Mitja Pirc, Universitat Pompeu Fabra(2006), Spain, the Mobile telecommunications service sector, in spite of providing high service quality and striving for Customer satisfaction, is characterized by dynamic Customer activities and provider switching. By using the consumption system perspective on mobile services and mobile phone, he provides the explanation on the factors of Customer switching. It is found that the mobile services usage effect on switching intentions is curvilinear (positive linear and negative quadratic) and that only the budgetary constraint regarding the service matters and not the one related to the mobile phone. Past mobile service providers switching experience also contributes to the intention to switch. Mobile phone ego involvement has positive impact on Customer retention; however purchase involvement (both mobile phone and mobile services) increases Customer risk.Conor Twomey (2008), Department of Statistics, University College Cork, Ireland, they try to identify hysteresis in the switching patterns of Customers in the Irish mobile phone industry. It was not until the introduction by the Communication Regulator of full-number portability that Customers began to take advantage of the savings that switching mobile phone operator could produce. Through the use of experimental economics and by modelling switching behaviour using the Preisach model, along with observed and market data suggests that the average Customer is misguided and misinformed in his/her decision to switch to bill pay. More realistically though, one can attribute this unexpected result to the enhanced services and mobile phone subsidies that a Customer receives as a bill-pay Customer.

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