User Satisfaction and Retention of Mobile Telecommunications Services in Korea

Abstract

Since the introduction of smartphones in South Korea, users have shown quick and positive responses to them. This study explores issues in user satisfaction and develops strategies for user retention of a specific mobile telecommunications service provider in Korea. We presented a face-to-face questionnaire to 4398 participants representing nationwide characteristics of Korean users. Mobile telecommunications services and features were divided into two factors based on benefit segmentation and were analyzed with user profiling. Users’ responses to mobile telecommunications services were characterized as “Fundamental services and functions,” which meet users’ basic and traditional expectations for a smartphone as a communication and media tool, and “Cost and monetary benefits,” which mobile telecommunications providers offer to attract users. Based on the scores for those two factors, we divided respondents into five groups and addressed their characteristics in terms of demographic features, subscription duration, and factors that influence user satisfaction. The results of our analysis suggest strategies mobile communications providers can develop for each segment to promote high satisfaction and increase user retention. To improve satisfaction levels, relatively more efforts need to be invested in the fundamental services and functions.

Additional information

Notes on contributors

Byung Do Chung

Byung Do Chung is an assistant professor in the Department of Information and Industrial Engineering at Yonsei University. He received a PhD in Industrial Engineering from the Pennsylvania State University. His research interests include service engineering, convergence of value chain management and business intelligence, and human-involved complex systems.

Jae Heon Park

Jae Heon Park is a team leader of the Customer Analysis Office at kt (Korea Telecom Corporation). He received a PhD in Industrial Engineering from Korea Advanced Institute of Science and Technology. His research interests include human–computer interaction, market intelligence, MIS, and telecommunications market.

Yoon Jeon Koh

Jae Heon Park is a team leader of the Customer Analysis Office at kt (Korea Telecom Corporation). He received a PhD in Industrial Engineering from Korea Advanced Institute of Science and Technology. His research interests include human–computer interaction, market intelligence, MIS, and telecommunications market.

Sangwon Lee

Yoon Jeon Koh is a senior vice president of the Customer Analysis Office at kt (Korea Telecom Corporation). She received a PhD in Mass Communications from the Pennsylvania State University. Her research interests include human–computer interaction, market intelligence, and user experience.

Sangwon Lee is an assistant professor in the Department of Interaction Science at Sungkyunkwan University. He obtained a PhD degree in Industrial Engineering from the Pennsylvania State University in 2010. His research interests lie in human factors, including human–computer interaction, UI/UX, cognitive and affective engineering, and service design.