Marketing Letters

, Volume 26, Issue 4, pp 489–500 | Cite as

Consumer satisfaction versus churn in the case of upgrades of 3G to 4G cell networks

  • Steven D’Alessandro
  • Lester Johnson
  • David Gray
  • Leanne Carter
Article

Abstract

The current use of 3G technologies has created significant demands for capacity, such as cell TV, and this needs to be balanced with the capital constraints of many firms. Providers face price pressures on margins and the need to update cell networks to 4G in the post-GFC era where capital is scarce. Understanding consumer behavior in this area by use of simulations may be a time- and cost-efficient method, but how accurate is it? This study demonstrates that the use of a simple, agent-based model can lead to accurate initial prediction of parameters of satisfaction with a cell phone provider, and provides a basis of understanding factors of cell phone subscriber choice in the context of the introduction of new technology.

Keywords

Simulations Netlogo Mobile phone networks 3G versus 4G choice Provider choice models Triangulation of models 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Steven D’Alessandro
    • 1
  • Lester Johnson
    • 1
    • 2
  • David Gray
    • 3
  • Leanne Carter
    • 3
  1. 1.School of Management and MarketingCharles Sturt UniversityBathurstAustralia
  2. 2.Melbourne Business SchoolCharles Sturt UniversityBathurstAustralia
  3. 3.Department of Marketing and ManagementMacquarie UniversityNorth RydeAustralia

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