The Influence of Market Dynamics on Switching Intention in the Mobile Telecommunication Industry in Ghana: Exploring the Mediating Role of Competitive Intensity

Abstract

This study investigates the mediating role of competitive intensity on market dynamics and switching intention in the mobile telecommunications industry in Ghana. Through convenient sampling, data was collected via a questionnaire designed using Google Forms. The analysis employed smart PLS to assess the gathered data from 200 respondents. The findings reveal that switching costs and perceived value have a significant impact on switching intention, whereas customer loyalty and alternative attractiveness have no significant effect. Furthermore, switching costs, perceived value, and alternative attractiveness all have a significant influence on competitive intensity whereas customer loyalty has no significant effect. Moreover, competitive intensity positively mediates the relationship between market dynamics and switching intention, indicating its crucial role in shaping customer behaviour in the Ghanaian mobile telecommunications sector. Based on the findings, the study makes the following recommendations for stakeholders in the mobile telecommunications industry: Companies should invest in strategies to reduce switching costs and enhance perceived value to mitigate customer churn, and improve alternative attractiveness to attract and retain customers in a competitive market landscape. Additionally, policymakers should focus on promoting healthy competition in the industry to foster innovation and improve service quality. Overall, the study enhances readers’ knowledge of the factors driving switching intention and provides valuable implications for both academic research and industry practice.