Abstract
In this paper we propose a model of switching behavior of customers from flat-rate to metered rate payment of internet service subscription. The model is based on theories of switching behavior in service industries and is divided into three layers. The first layer within the model includes factors related to flat-rate payment system, which are: “satisfaction”, “customer value” and “switching costs”. The second layer includes factors related to metered rate payment system which are: attitude and impact of discount. Attitude is the psychological and emotional mind-set toward a metered rate payment. Impact of discount is the economic incentive for a customer to adopt metered rate payment. Finally, the third layer consists of the element under investigation and this is switching intention. The result of this research shows that there is a significant negative relationship between intention to switch (from flatrate to metered rate) on the one hand, and satisfaction, customer value and switching costs on the other hand. However, the relationship between intention to switch and impact of discount is shown to be positive but not statistically significant.
