Consumption Values and Subscription Loyalty: A Survey of Mobile Network Service Users

The importance and relevance of telecommunication services continue to grow and manifest in consumers’ daily lives. Thus, the telecommunication sector is becoming more attractive to investors. Hence, competition among telecommunication service providers became intensified. Consequently, network service companies are concerned about how consumers make subscription decisions. Consumers usually have different choice values for various goods and services. Therefore, identifying the values that influence consumer subscription loyalty is vital for the survival and growth of mobile network service providers. Thus, this study used consumption value theory as a basis for its theoretical formation. Therefore, the study examines the effects of consumption values on the subscription loyalty of consumers. This study adopts a quantitative approach using a structured questionnaire to gather the data through an online Google form. A total of 387 mobile phone service users participated in the study. The study utilized Structural Equation Modelling using the Smart-PLS to test the hypotheses. The findings showed that functional value and social value significantly affect the subscription loyalty of mobile phone service users. Emotional value showed a positive but insignificant influence on consumers’ choices. However, this study found that the influence of conditional and epistemic value on subscription loyalty is negative and insignificant.