Influence Analysis of Dissatisfaction, Situational Condition, and Switching Costs on the Switching Behavior of Telkomsel Postpaid Card Customers in Batam City

Abstract

The intense competition in the Indonesian telecommunications industry has resulted in a price war and then
raises the level of consumer churn. Churn is a representation of switching behavior from consumers. Switch Behavior is
caused by three factors namely consumer dissatisfaction, perceptions of situational conditions, and switching costs. This
study aims to determine the significance of the influence of these three factors on the switching behavior of postpaid card
Telkomsel’s customers in Batam city. Population in this research is all Telkomsel telecommunication service consumers
residing in the geographical area of Batam. The method of determining the sample is quota sampling with a sample
size of 400 samples, and data collection was done through a questionnaire. Testing research hypothesis was done using
logistic regression analysis technique with SPSS 24.0 version software tool. The result of the research shows that: (1)
consumer dissatisfaction has a significant influence on switching behavior Telkomsel’s postpaid subscriber in Batam city,
(2) perception of situational condition has a significant influence on switching behavior of Telkomsel postpaid customer in
Batam city. (3) Switching cost does not have a significant effect on switching behavior of Telkomsel’s postpaid subscriber
in Batam city. 4) The greatest influence factor is the predictor of situational conditions. 5) In relation to the results
where switching costs have no significant effect on switching behavior of Telkomsel’s postpaid subscriber in Batam city,
it becomes very significant when it comes to procedural and financial switching costs. It is strongly suspected due to the
relational switching cost. The result of this research can help the telecommunication industrial management to state the
right marketing strategy to win the competition on the telecommunication industrial market especially in Batam city. In
connection with the results and discussion in this study, it is expected that further research should examine more specific
indicators of dissatisfaction and focus on the dimension of the response of service failure. In addition, it is hoped that
further research will be conducted to find other factors that also contribute to the effect of switching behavior to obtain
a more complete model of consumer switching.