Determinants influencing the intention to switch internet service providers of consumers: Application of transaction costs theory

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Abstract

Customer loyalty, retention, and repurchase intentions give favorable outcomes for providers, and service switching and switching intentions imply unfavorable outcomes (Bansal & Taylor, 1999). The aim of this study is to investigate the determinants influencing the intention to switch internet service providers of Vietnamese consumers. Data for this study were collected from a survey of 564 Vietnamese consumers in Hanoi who have bought internet service. Through quantitative research methods with some techniques, such as Cronbach’s alpha and exploratory factor analysis, the research shows that 9 factors influence the intention to switch internet service providers of Vietnamese consumers. The regression model among variables shows that influencing level clarity of the factors on the intention to switch internet service providers of Vietnamese consumers. Therefore, the empirical findings show that the intention to switch internet service providers of Vietnamese consumers has a mediating role in the relationship between service providers. The findings of this study suggest that managers need to focus on investing and researching to understand customers’ attitudes towards competitors’ products better, thereby they can proactively develop marketing programs to negatively influence the intention to switch. This article makes a new discovery about the intention to switch internet service providers for Vietnamese consumers.

Keywords: Intention to Switch, Internet Service, Marketing, Consumers

Authors’ individual contribution: Conceptualization — P.T.T.V.; Methodology — L.M.H. and L.T.H.H.; Resources — N.T.A.T.; Writing — Original Draft — L.M.H. and L.T.H.H.; Writing — Review & Editing — L.M.H. and P.T.T.V.; Visualization — L.T.H.H.; Funding Acquisition — M.T.A.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M31, M10

Received: 12.02.2022
Accepted: 25.07.2022
Published online: 27.07.2022

How to cite this paper: Hien, L. M., Van, P. T. T., Tram, N. T. A., Ha, L. T. H., & Dao, M. T. A. (2022). Determinants influencing the intention to switch internet service providers of consumers: Application of transaction costs theory. Corporate Governance and Organizational Behavior Review, 6(3), 56–66. https://doi.org/10.22495/cgobrv6i3p5