CONSUMER’S “LOCK-IN” – A KEY ELEMENT OF THE SWITCHING COSTS IN MOBILE TELEPHONY IN THE REPUBLIC OF MACEDONIA
This paper presents the calculation of the switching costs based on the previously developed model providing analysis for the mobile telephony market in the Republic of Macedonia for period from 2005 to 2015. Based on an administered questionnaire to various customers of the mobile telecommunication industry in the country, we find that the so called “Lock-in“ affects the switching costs, being in close relation to the market competition. The analysis shows different stages of the competition on the mobile market and proposes some appropriate regulatory tasks.
Key words: switching costs empirical model; regulation; consumer behavior; loyalty; competition
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