A Manipulation of Switching Telecommunication Service Contract Decision on Consumer Regret: From the View of Marketing Strategy

This study explores the effects of switch timing decisions and valence of the outcome on regret in a contract-based telecommunication service context by applying regret theory. A 2 x 2 factorial experiment was designed, which focused on the consumers who had experiences in switching telecommunication service contract. 132 respondents had participated in the survey and all collected data were analyzed by univariate analysis. Hypothesis testing was conducted to test the direct effect of switching timing and valence of the outcome on regret, the interaction effect of switching timing and valence of the outcome on regret, and the moderating roles of justifiability and perceived responsibility. The results indicated that switch timing and valence of the outcome had significant and direct effect on regret. With regard to the interaction effects, both switch within or after contract expiry, negative valence of the outcome had higher regret than positive outcome. In the condition of high justifiability, switch within or after contract expiry with negative valence of the outcome had lower regret than low justifiability; however, the regret was higher in high perceived responsibility than low perceived responsibility condition. This study provides some insights for extending the application of regret theory from consumption decisions to switching decisions, and some alternative approaches for effective marketing strategies for service providers.