The Effort to Increase Switching Costs in Telecommunications

The Effort to Increase Switching Costs

Telecommunications companies should be aware that such trend to increase the swifting costs could backfire on them.

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When attracting customers, Telecommunications companies focus on increasing the switching costs not to lose the customers to competitiors. Increasing membership benfits and offering various promotions are good examples. 


However, according to this research paper, such actions do not always leave positive outcomes. That’s because today’s customers keep a close eye on every actions and judge the image of companies. Telecommunications companies should be aware that such trend to increase the swifting costs could backfire on them.

© 2017 Samjong KPMG Accounting Corp., the Korea member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved.

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