Consumer switching in telecommunication markets

Choice Overload and Telecommunications
Intervention Telecommunications

Overcoming choice overload for better decision-making

Intervention Desrciption

As a consumer, deciding on communication service providers can be extremely overwhelming due to the many endless options available. In order to better understand how customers switch service providers, a communications regulator observed participants in an experiment. The two main switching processes analyzed in the experiment were: Gaining Provider Led Processes (GPLPs) and Losing Provider Led Processes (LPLPs). The results of the experiment showed that limited attention and choice overload made decision making challenging for consumers and that GPLPs were better than LPLPs for consumers.